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DACHSER News

19.01.2022
Customer-Centricity: Way to progress and profitability

The Pune team from DACHSER India reached a milestone by successfully managing over 1,000 import and export shipments in 2021 for a valuable customer -  a class leader manufacturer of heavy construction equipment and earth moving machines.

13.01.2022
DACHSER India completes its relay project shipments

DACHSER India branch in Chennai recently completed a Door-to-Door, gearbox shipment used for “Wind Mills” for one of our premium customers in the Industrial engineering.

03.01.2022
Prepare your supply chain for the impact of Chinese New Year

Chinese New Year (CNY) is coming soon at the beginning of February. Traditionally, it is an important event that influences the global freight market due to the extended national holidays, which means businesses will close, factories will suspend operations, and carriers will reduce capacity in response to lower demand. This year, with the unprecedented challenging market conditions, the impact of CNY is expected to be greater than usual.

Find out all you need to know about CNY, what it means to you and, most importantly, how you can prepare in order to minimize the impact to your supply chain.

  • When is Chinese New Year?

In 2022, the Chinese welcome the Year of Tiger on February 1. In mainland China, a week-long public holiday begins on the eve of CNY. Below are the dates of the CNY public holidays across DACHSER’s Greater China locations:

China               January 31 – February 6
Hong Kong      February 1 – February 3
Taiwan           January 31 – February 4

  • What will happen during Chinese New Year?

CNY is the biggest festival in China. It symbolizes the end of winter and the beginning of a new year in the Chinese lunar calendar. People make their way back to their hometowns for family reunions and celebrations before the first day of Chinese New Year, and travel back to their workplaces in cities after the holiday to start working again.

Most businesses including government services in China will be closed during the official public holidays as listed above, while some manufacturing facilities may close for a longer period of time or re-open with skeleton staff. Normal production levels will usually resume after four to six weeks.

All customs offices throughout China will only be closed during the national public holidays listed above. For eastbound shipment, if it arrives China during the CNY national public holiday, there will be no Customs declaration or inspection services available.

  • What is the impact of Chinese New Year on transport logistics?

While factories operations will be put on hold during CNY, shippers will increase orders to stock up their inventories. Therefore, the impact of CNY can be seen during the pre-holiday period, when factories operate on full capacities to complete orders before they close.

The higher productivity creates extra pressure for transport logistics. At the moment, the congested supply chain is a challenge for almost all industries, and the CNY cargo rush is going to further intensify the heated logistics market.

Coincidently, the 2022 Winter Olympics will be held between February 4 – 20 in the Chinese capital city, Beijing. While no official announcement about transport restrictions has yet been published, it is expected that security inspections will be tightened and restrictions to dangerous goods will be implemented a few days prior and during the event. However, its impact is uncertain for the time being.

Last but not least, the sudden outbreak of Covid cases may cause additional disruption such as road closures, flight cancellations, and manpower shortages when operators or drivers are in quarantine.

Therefore, it is important to work out a long-term strategic plan with your logistics partner to minimize disruption to your supply chain, not only during CNY but throughout the year in 2022 and beyond.

  • Market updates leading to CNY

Traditionally, CNY brings a substantial impact to the capacities of all kinds of transport – air, sea, rail and road. The logistics market will be severely challenged during the pre-CNY cargo rush this year. Keeping yourself updated with current market developments will allow you to react swiftly and plan accordingly.

Air
For air freight, it is expected that the current extraordinary peak season will continue from now until end of January, before the CNY holiday starts. Overall, the market is still facing a shortage in capacity, especially under different COVID quarantine policies resulting from the threat of the Omicron variant, leading to more uncertainty and volatility. In Hong Kong for example, many passenger flights are forced to cancel in December due to the crew rotation issues, leading to reduced belly capacity as a result. Also, many freighters are required to undergo maintenance checks in the upcoming few months after being deployed for a long period of time, which will further affect available capacity in the market.

Sea
The current sea freight market is in a similar situation to air. Services from ocean carriers remain disrupted with many blank sailings due to port congestion. Feeder services from South China to and from the Pearl River Delta were suspended from December until the start of CNY, leading to longer transit times via road transportation. Service integrity may remain a challenge or even get worse from January onwards due to expected stronger demand as CNY draws closer, together with continuous issues related to the COVID outbreak and congestions in the market. Thus, capacity and equipment will be under tremendous pressure, and rates have a high tendency to soar in such situations.

Shippers are advised to plan bookings ahead by giving at least 3 weeks’ forecast. Stay connected to your logistics partner in terms of last minute schedule changes, and keep an open mind for alternative sailing options.

Rail
The rail schedule for 2022 is yet to be released. Based on past records, rail services will be available as usual until the last week leading up to CNY. Gate-in schedules might be adjusted as per rail operators' instructions. However, pre-carriage and on-carriage services in China will become a challenge from January 20, 2022 onwards, therefore a general increase in rates is expected. During the CNY national holiday, there will be no rail services.

Based on historical experience and excluding covid uncertainties, trucking services both westbound and eastbound are expected to resume to 80% of normal levels two weeks after CNY and fully resume at the beginning of March.

  • What can be done now?

- Create a long-term planning and share with us your order forecast as early as possible, so we can plan our resources early and secure your demand;
- Build up a deeper inventory; factories normally resume their normal production levels four to six weeks after CNY;
- Take consideration of longer transit times in your planning; the global freight market is unprecedently congested already before CNY, so it is important to work out a strategic supply chain planning with your trusted logistics partner;
- Plan departures from terminals in China a few days before the CNY holiday starts i.e. January 28, 2022, and make sure your production schedule meets the gate-in time slots;
- Declare your shipment as soon as the mandatory data is available, and make sure you allow sufficient time to obtain the final Customs release before the Estimated Time of Departure (ETD);
- Get in touch with one of the DACHSER representatives. Our experienced logistics experts will assist you with finding the best solutions tailored to your needs.

We hope the above information can facilitate your logistics planning towards CNY. If you have any questions, please feel free to get in touch with us.

17.12.2021
Rail service market updates | December 2021

According to statistics, the number of freight trains running between China and Europe has increased 15 times compared to 2015, reaching the number of more than 12,000 trains in 2020. In 2021, a further increase was recorded and the Trans-Siberian route experienced even greater demand in times of the pandemic due to a lack of sea and air freight capacity. However, the pandemic impact was also evident on Rail Service connections between China and Europe.

  • Current Situation and Review 2021

As experienced during the year, the situation remains challenging. The shortage of container equipment and increased slot restrictions, comparable to the sea freight market, have also become problematic for rail service. In addition, pandemic regulations as well as weather conditions have led to backlogs at border crossings. The rates are increased, but stable.

  • Outlook 2022

The situation will remain challenging until Chinese New Year, but it is expected that the slot management setup will improve thereafter. Overall, the demand on capacity will continue to grow significantly in 2022.

DACHSER offers multimodal, reliable rail services with an extensive coverage, connecting economic centers of major importance in China and Europe. Via the North Corridor, the Trans-Siberian Route connects Hamburg, Warsaw, Vienna and Bratislava with the Chinese main terminal cities including Changchun, Shenyang, Suzhou and Dongguan. To and from Duisburg, Hamburg, Neuss, Ludwigshafen, Vienna, Bratislava and Warsaw, DACHSER serves the South Corridor, also known as New Silk Road, to the Chinese hinterland areas of Xi'an, Chengdu, Chongqing and Zhengzhou.

Not only Block Trains but also Full Container Load (FCL) service is possible on this service, as well as Less-Than-Container-Load (LCL) which includes Consolidation Container Services (LCL-LCL) and Customer Consolidations (LCL-FCL).

Should you require any other departure terminals and/or destinations like the ones mentioned above or some more detailed information on Rail Services, your DACHSER contact will be glad to assist.

17.12.2021
Air freight market update | December 2021

Global pandemic measures as well as continuing high demand have a strong impact on the air freight market. This is reflected in reduced cargo capacities due to restricted and partly suspended passenger flight connections, congested airports, handling facilities and employees.

  • Review 2021

The increase in air freight demand since the beginning of the year cannot be satisfied with the current air freight capacities. Though, a slight improvement is noticeable. 
 
All major airports worldwide have been congested resulting in huge backlog volumes and long waiting times. However, with secured premium capacities on its own weekly charter rotations between Asia, Europe and the US, as well as long-term freight allotments on regular airline services worldwide, DACHSER continued to be a reliable partner also in the second year of the pandemic.
 
The increased demand for consumer goods, the huge growth in e-commerce, and the procurement of medical equipment due to COVID-19 led to an increased number of individual partial and full charter transports.

Please click the button below to read the latest Indexes on Supply & Demand and Oil Development.

  • Current Situation

Manufacturing and trading industries remain affected by congested supply chains. Therefore, the demand for air freight capacity is still increasing, in addition to the regular Peak Season during Christmas and Chinese New Year.

Hong Kong

Due to the strict quarantine policy in Hong Kong, some airlines have cancelled their flights before Christmas. The resulting shortage of ground handling staff is causing significant service restrictions at Hong Kong Airport.

Export shipments can currently only be delivered to the terminal within 24 hours prior to estimated departure. Shipments without booking record will not be accepted. There is also an overload situation in import and delays have to be expected.

Hong Kong Airport had already announced in early December that cargo aircraft touching Omicron high-risk countries such as South Africa would not be allowed into Hong Kong until further notice. This leads to a shortage of cargo space and delays due to flight re-routings.

Frankfurt / Germany

At Frankfurt Airport, there are also still some delays in handling, especially at Frankfurt Cargo Service (FCS). Export handling has been delayed, and import handling has been subject to extended waiting times. The warehouses at all handling agents are full, especially at FCS.

Ad-hoc charter business

DACHSER is currently operating several full charter flights as part of a project transport between China and Austria. Read more about this project.

  • Outlook 2022

The tense situation will remain throughout the first half of 2022, easing slightly after Chinese New Year. On the other hand, air freight capacity will increase only gradually, as belly capacity will remain low.

Due to the unpredictable course of the pandemic and a still unstable ocean freight market, leaves plenty of scope for the development of the air freight market in 2022.

  • DACHSER Air Network

DACHSER is extending its own premium air freight services between Hong Kong and Europe in 2022 and beyond. With this extension, 100 additional cargo tons on weekly 747-400 freighter flights will extend the capacity on this route.

The premium freighter capacities from Asia (Hong Kong & Shanghai) to Europe and between Europe and the USA (rotation) are already an integral part of the DACHSER network for a long time now, and DACHSER is looking forward to continue providing this service to help secure customers' global supply chains.

For further details about the DACHSER Air Network capacities and the market please get in touch with your local DACHSER sales contact.

17.12.2021
Sea freight market update | December 2021

The development of the global ocean freight market showed a further deterioration at the end of 2021. Continuing unreliable schedules, COVID 19-related restrictions and overstretched port staff, do not lead to any relief at congested major ports worldwide. This situation will continue to challenge us for an extended period of time.
 
To counter this, DACHSER's sea freight teams around the world are working with great flexibility and commitment on finding new alternatives and solutions in close coordination with our customers and shipping partners.

  • Review 2021

In March 2021, the global shipping misery worsened with the Suez Canal incident of vessel ‘Ever Given’, that has caused hundreds of vessels being stuck for six days at the Suez Canal.
 
In the further course, pandemic-related disruptions in the global ocean freight market continued to dominate. COVID-19 outbreaks and terminal shut downs of several weeks at the port terminal of Ningbo in August, followed by lockdown situations at port Xiamen and Dalian led to delays of vessel schedules. Resulting in an increasing schedule instability and congested ports on important trade lanes to North Europe and the Transpacific.
 
The congestion situation at the US-westcoast ports Los Angeles and Long Beach had worsened during the year with tremendous berthing delays due to the transpacific imbalance as well as COVID-19-related staff shortages at the terminals.
 
The consumer demand grows due to economic recovery and funding programs which lead to an ongoing shortage of capacity and equipment. Huge backlog volumes are stressing supply chains even if consumer demand would get periodically softer.

  • Trade Lane Update

Europe

Europe - Far East
The space availability is improving while the equipment situation is still tense, especially in the inland depots. Carriers Equipment Imbalance Surcharges are still in place.

Europe - South America East & West Coast
Depending on the carrier, space is available, but subject to equipment. Yet it is still recommended, to place the bookings 6 weeks in advance. Peak Season Surcharge and Equipment Imbalance Surcharge are still in place.

Europe – Mexico
Services into Mexico are being impacted by port omissions on the US East Coast and Gulf. Capacity is tight and with no new or additional services, being added in the near future it is expected to remain.

Europe – Indian Subcontinent
Empty equipment situation in North Europe is further stabilizing in the ports; still high demand in the hinterland areas. Space remains available; carriers are trying to counterbalance the equipment stocks in India.

Asia

Port Congestion ASIA
·         Mainland China       Ningbo / Shanghai / Dalian / Qingdao / Xingang / 
                                           Yantian / Shekou / Nansha, Hong Kong: 7-10 days.
                                           Xiamen / Nanjing and PRW: no congestion.
·         Korea                       Busan / Incheon: 7-14 days
·         Indonesia                 Jakarta / Surabaya / Semarang: 2-3 days
·         India Subcontinent   Chittagong: 1-2 days. All other ports: no congestion
·         Malaysia                  2-3 days       
·         Singapore                2-3 days due port congestion.
                                          Transshipment cargoes rolling 7-14 days in Singapore, depending on carrier.
·         Taiwan                     Keelung / Kaohsiung / Taichung: 2-3 days
·         Thailand                  Bangkok: 5-7 days. Leam Chabang: no congestion
·         Vietnam                   Hiphong Export/Import: 4-5 days. Saigon Export: 7-10 days
 
Far East - Europe
The space remains tight and especially the empty equipment shortage remains unchanged very limited for all carriers and all types of container and there is no forthcoming improvement. Schedule recoveries and port omissions in Asia will further decrease space and allocation.

Far East - South America East Coast
Constraints in load capacity and equipment are still in place, especially for 40’ Container DRY and 40’ Container HC. Some carriers are willing to accept bookings only for light cargos with 8 tons per TEU. A reduction of cargo backlog is expected during December. There is already some space available on short term, but limited due to previous backlog. Pre-bookings of 4-5 weeks ahead are still necessary.

Indian Subcontinent – Europe
Empty equipment situation has not improved further. Space situation is still very tight, therefore it is recommended to place bookings 3-4 weeks in advance. Especially in South East India East equipment and capacity remains tight and the situation is not improving.

Transpacific Eastbound
Port congestion in US is main cause of ship turnaround time and impact schedule integrity. Space remain tight but also not getting worse until the end of 2021. Port Authority of Los Angeles / Long Beach introduced Emergency Fee for long standings which will be passed on to cargo owners, but it already has been postponed until December 13, 2021 effective. As an alternative to the equipment shortage for full container shipments, DACHSER is offering its expedited LCL service on the transpacific route. The weekly scheduled direct expedited LCL service brings average dwell time down from 14-25 days to 3-7 days. Please do not hesitate to contact your local DACHSER sales team to get further information about the LCL service.

America

Transatlantic
Multiple port omissions and congestions in the US continue to impact schedule integrity. Peak Season Surcharges increases are being announced. Vessel space situation improved slightly. However, early bookings are required and additional space outside allocations are not being granted.

  • Outlook 2022

Due to the global sulfur regulation, by the International Maritime Organization (IMO), which already came into force last year in January, most container ships will have to go into dry dock in 2022 to make technical adjustments that will reduce CO2 emissions. This leads to further limitation in the sea freight market.
 
However, by the end of 2022, six new MGX vessels are expected to be launched, with a capacity of 21,000 TEU, which will relieve the ocean freight market.
 
Rates on the main trades are reaching its peak now because of year end and Chinese New Year in February 2022. It is likely that in March rates will decrease a bit but will still remain high.
 
The carriers are announcing that “their books are full” and due to the fact that only at the end of 2022 new ships will come into service it can be expected that throughout the entire next year rates will stay at a high level and clearly above “before Covid” times. 

  • Container Indexes

Click the button below to read the current development on World Container Index and Shanghai Containerized Freight Index. 

If you would like to discuss your transport needs, please feel free to get in touch with your local DACHSER representative to work out the best logistics solution.

15.12.2021
DACHSER charters the world's largest cargo aircraft

DACHSER Air & Sea Logistics' international teams have chartered the world's largest cargo aircrafts, the Antonov AN-225 and AN-124. The aircrafts transport medical goods from China to Austria on multiple occasions for a customer, after which DACHSER redistributed the goods through its overland network.

08.12.2021
The new DACHSER magazine is here

“Nothing is more constant than change”—wise words that seem to be everywhere at the moment. As the world turns faster and faster, the pace of innovation and the pressure to change are increasing in logistics as well. In the latest issue of the DACHSER magazine, we report on what our company and our customers are doing to address pressing problems of the future.

03.12.2021
Market info update on Brexit: Phase 3 of the UK Border Operating Model

Last year, the British government presented how the import of goods should proceed after the end of the transitional phase of the Brexit. With the so-called "Border Operating Model" guide, a three-stage plan for the introduction of customs controls was concretized.

With the entry into phase 3 of the guideline, the UK customs procedures set in motion as part of the Brexit take another important milestone. DACHSER is continuously adapting to these changes in customs and transport procedures so that goods are transported across the border largely smoothly. From January 01, 2022, border controls will be strengthened. In the future, an electronic export declaration will then be required at the border. In addition, a new IT system for goods movements to and from the UK, the Goods Vehicle Movement Service (GVMS), will be introduced. 

The manual EIDR (Entry Declarants Record) procedure, which allows goods to be moved across the border using the trader's EORI number, will no longer be permitted from 01 January 2022. Instead, an electronic Simplified Customs Declaration Process (SCDP) must be followed. The GVMS is already used for transit movements. However, starting January 01, 2022, the customs declaration will be assigned to a Goods Movement Reference (GMR) created in GVMS, automating the border control process. The Automatic Number Plate Recognition (ANPR), in turn, links the customs declaration and GMR, so that vehicles no longer need to stop at the border. 

Unless you instruct us otherwise, DACHSER will take care of linking the customs declaration and GMR. If you wish to take care of the customs declaration yourself - either in-house or via an external customs service provider - please inform DACHSER of the customs declaration number for import clearance. DACHSER enters the so-called Import Release Reference (IRR) into GVMS so that the goods can cross the border.

In addition, from 01 January 2022, imports of products of animal origin (POAO) and certain animal by-products (ABP) from the EU into the UK must be pre-notified via the “Import of products, animals, food and feed system” (IPAFFS). These product categories, as well as plants and plant-based products, do not need to be physically inspected until 01 July 2022. Their inspection will be gradually introduced for each product category from 01 July to 01 November 2022. Please refer to the attached document for details. Please inform DACHSER if you would like to use the above additional services for your products. Should you wish to make the customs declaration for POAO, ABP or plant or plant-based products yourself, you are also responsible for the declaration in IPAFFS.

Over the course of 2022, additional changes will gradually come into effect. Of particular note are import safety and security declarations, also known as ENS, beginning July 1, 2022. As implementation approaches, more information will be required on ENS and inspections on POAO, certain ABP, and plant and plant-based products.

This information provided applies to network shipments carried on our groupage service and part and full trailer load movements. In order to be prepared for the new control procedures, the DACHSER network has collectively reviewed its processes and adapted them where necessary. HMRC, the UK's HM Revenue & Customs, has set up a hotline for questions about customs and international trade: Call 0300 322 9434 for help with imports, exports and customs reliefs. The hotline is staffed from 8:00 a.m. to 10:00 p.m. Monday through Friday and from 8:00 a.m. to 4:00 p.m. UK time on weekends.

Useful links

You can send HMRC your import and export questions at the following link. You will also find a webchat function here.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/customs-international-trade-and-excise-enquiries

HMRC has set up a dedicated support service for exporting traders to help them with practical questions about exporting from the UK to Europe:

https://www.gov.uk/ask-export-support-team

HMRC's YouTube channel also features other helpful videos and webinars on customs procedures.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/customs-international-trade-and-excise-enquiries

09.11.2021
DACHSER renews IATA CEIV Pharma certification in Frankfurt

Frankfurt Airport branch demonstrably meets the highest service and quality standards in the transport of life science and healthcare products 

Brexit: What remains to be considered

Our Brexit project team has set the course for a functioning and secure logistics network to and from the UK.

Many companies, that depend on the smooth transport of their products, now have to do their Brexit homework to keep their goods moving: Find all the relevant information by clicking on the link below.

LEARN MORE

DACHSER Asia Pacific facts (as of 2020)

485111000
Revenue in EUR (gross, unconsolidated incl. import duties and sales tax)
48
Locations
309500
Shipments
More