- Current Situation
Air freight market update | June 2022
DACHSER has extended its charter program on the route between Shanghai and Frankfurt. A clear signal of reliability and stability in times of continuing challenges on the global trade markets.
Demand for air cargo softened in March and April due to ongoing supply chain disruptions and global inflation. China’s zero-covid strategy with massive lockdowns in Shanghai and other Chinese cities, as well as the continuing conflict between Ukraine and Russia led to limited flight capacities, supply bottlenecks, and a rapid increase in fuel and energy prices. In 2022, jet fuel prices increased by more than 70%.
It is a challenging operating environment for all businesses. But with the easing of restrictions in China on June 1, it will now become even more difficult. It is expected that demand for cargo capacity will increase in the coming months.
Therefore, DACHSER Air & Sea Logistics has already extended its charter program on the route between Shanghai and Frankfurt to cover the period from May 2022 to April 2024. Thus, DACHSER is able to continue offering its customers reliable transport capacities. Two days a week, DACHSER flies between Asia and Europe with a wide-bodied aircraft, transporting 33 tons each way.
With this premium service, DACHSER can respond to market capacity changes at short notice and ensure its own stable air freight network.
On Wednesday, June 1, 2022, Shanghai lifted the restrictions on COVID-19 after a two-month lockdown. However, the city is still far away from normal:
· Residents from COVID-19 low-risk areas are free to move within the city.
· Resumption of public transport.
· A number of businesses and retailers are still closed and will gradually reopen.
· Factories and production sites located in COVID-19 low-risk areas are gradually resuming
to normal over the next few weeks.
· Transport logistics services are also resuming to their normal capacity step by step
as the restrictions on roads, workers, and drivers are lifted.
During the lockdown period, DACHSER’s consolidation warehouse at Shanghai PVG Airport Cargo City was closed. As of June 1, 2022, the warehouse is operating again and the transitional warehouse outside of the Cargo City has been decommissioned again.
- DACHSER Air network
The flexible and constant structure of the DACHSER Air network, in combination with the worldwide DACHSER gateway locations, serves all requirements of global supply chains.
The weekly network capacities from Asia (Hong Kong & Shanghai) to Europe and between Europe and the USA (rotation) are an integral part of DACHSER's air freight portfolio. If necessary, additional capacities are booked at short notice.
- Supply & Demand Indices and Oil Development
Please click the button below to read the latest Indexes on Supply & Demand and Oil Development.
We are looking forward supporting you in stabilizing your supply chain and are at your disposal for an individual consultation. Please do not hesitate to contact your local DACHSER representative.
Sea freight market update | June 2022
- Strikes at Germany and South Korea
In the German ports of Hamburg and Bremerhaven, the four-hour warning strike did not lead to major vessel delays, however the suspension of handling operations at the terminals led to massive backlogs and later on the roads. This is expected to take a while to be resolved. In Asia, the eight-day strike in South Korea has come to an end and road transportation is returning to normal, but the it will take more time to clear the backlog.
- Easing of COVID-19 restrictions in China
Lockdown relief in Shanghai will lead to an increase in export container volumes into Europe and on Transpacific Eastbound, which might cause space issues, empty equipment challenges and rising rate levels. On the Transpacific trade, rates are stable and space is adequate. Carriers expect a new rush of cargo to the US once the factories in China return back to normal.
Trade Lane Update
Port congestion in Northern Europe continues to worsen. Very high slot densities at Northern European container terminals and bottlenecks in inland transport are aggravating port congestion problems in the trade between the Far East and Northern Europe.
Container ships operating on this route currently take an average of 101 days to complete a full round voyage. This means that on average they arrive 20 days too late in China to start their next round trip, forcing carriers to blank sailings because no ship is available.
Port Congestion EMEA
- Belgium Antwerp 2 days
- France Le Havre 1 day
- Germany Bremerhaven 3 days
- Hamburg 6 days
- Wilhelmshaven 0 days
- Italy Trieste 3 days
- Netherlands Rotterdam 2-3 days
- Slovenia Koper 1 day
- Spain Algeciras 1 day
- Valencia 1 day
Europe - Far East
Space is currently available but empty equipment is likely to be running short in the upcoming weeks.
Europe - South America East & West Coast
Space is overall tight but to South America East Coast it is slightly better than to South America West Coast. The empty equipment situation in Northern Europe is tight, especially the lack of containers in Inland Depots. Vessels often face large delays due to congested terminals. Carriers continue with schedule recovery measures, such as port omissions and blank sailings. The situation in Northern Europe Ports, including Hamburg, Bremerhaven, Rotterdam and Antwerp are getting worse, due to strikes . It is recommended to place bookings well in advance, ideally 4 to 6 weeks before sailing.
Europe – Mexico
Space is very tight. The empty equipment situation in Northern Europe is tight, especially the lack of containers in Inland Depots. It is recommended to place bookings at least 5 to 6 weeks before sailing. Rates remain at a very high level and no rate reductions are expected in Q3. Vessels are frequently heavily delayed on all services. Especially if vessels have their first port call in the US. Carriers are looking into options to improve schedule reliability, but there are no service changes announced yet.
Europe – Indian Subcontinent
Space is available. Congestion and vessel delays are overall still ongoing in Northern and Southern Europe. The empty equipment situation in Northern Europe is improving while it is still tight in Southern Europe . Congestion in Sri Lanka is still not improving due to the political situation.
Port Congestion Asia
- China Mainland Ningbo: 7-10 days
- Dalian / Shanghai: 7-10 days
- Qingdao / Xingang: 7-10 days
- Nanjing / Xiamen: no congestion
- Yantian/ Shekou / Nansha: 7-10 days
- Hong Kong 7-10 days
- India Subcontinent Chittagong: 3-6 days.
- Colombo: Delays for containers going into Cochin.
- All other ports: no congestion
- Indonesia Jakarta / Surabaya / Semarang: 2-3 days
- Korea Busan / Incheon: 5-7 days
- Malaysia Port Klang / Pasir Gudang / Tanjung Pelepas / Penang: 5-7 days
- Singapore No congestions for FCL containers,
- some delays for LCL shipments depending on the carrier.
- Taiwan Keelung / Kaohsiung / Taichung: 3-7 days
- Thailand Bangkok: 7-10 days
- Laem Chabang: 2-3 days
- Vietnam Haiphong Export / Import: 4-5 days
- Saigon Export / Import: 7-10 days
Far East - Europe
Space is generally available, depending on the carrier and loop. The empty equipment situation in Asia is still tight.
Far East – Mexico
The market is heating up, and space to Mexico is becoming an issue. Rates have increased, and for July further upward rate adjustments are expected.
Far East - South America East Coast
The empty equipment situation in Asia is very tight, especially in the North, affecting large ports like Tianjin and Qingdao. As the situation in Shanghai gradually resumes to normal, space is becoming very tight. It is recommended to place bookings well in advance, ideally 3 to 4 weeks before sailing. Since June 01, 2022, rates have been increasing on a weekly basis.
Indian Subcontinent – Europe
Space is available and the empty equipment situation is further improving. Please consider congestion and delays when transporting shipments via Colombo.
- DACHSER LCL service India - Spain
DACHSER is launching its own Less-than-Container-Load (LCL) consol service from Nhava Sheva to Valencia. The LCL service offers frequent departures and reliable transit time. Please contact your DACHSER representative if you are interested.
Due to the easing of COVID-19 restrictions in China, space and equipment decreased . The situation is predicted to tighten again in July and August due to potentially high volumes. Supply and demand are currently under control, but this could change in the next month due to the predicted pick up of containers towards the US.
In South Korea, the Truckers’ Union went on a strike at the ports for eight days. Currently, the situation is that the Union will not strike but it is unknown if the situation will change in the next few weeks. Negotiations between the Union and the government are still ongoing, but signs are showing that both parties will come to an agreement.
US Port congestion is ongoing but decreasing due to the decreased volumes from Asia.
- DACHSER expedited LCL Service
DACHSER offers an expedited LCL service from China to the U.S. West Coast, which is a reliable alternative for customers to avoid congestion issues. The weekly scheduled direct expedited LCL service reduces transit times by 3-7 days. Please do not hesitate to contact your local DACHSER sales team to get further information about the LCL service.
Port Congestion in North America
- Los Angeles 9 days waiting time to berth
- Oakland 8 days waiting time to berth
- Tacoma waiting time insignificant
- Seattle Situation fluid
- Boston Situation fluid
- New York 5 days waiting time to berth
- Baltimore Situation fluid
- Norfolk 2 days waiting time to berth
- Charleston Situation fluid
- Savannah 5 days waiting time to berth
- Jacksonville Situation fluid
- Miami Situation fluid
- Mobile Situation fluid
- Houston 5 days waiting time to berth
Currently, there is space available depending on the destination coast. But this is expected to tighten once cargo flows in Asia are picking up again. It is recommended to place bookings 2 to 3 weeks in advance. New York remains to be congested and delays at the NYC Ports are up to 10 days. Montreal is facing heavy delays as well and all transfer loads (to inland points) are affected combined with truck and rail shortages.
In general, most destination ports are volatile. The empty equipment situation in Northern Europe is still challenging across the region. The lack of 40-footers is a main issue.
- Container Indexes
Click the button below to read the current development on the World Container Index and Shanghai Containerized Freight Index.
If you would like to discuss your transport needs, please get in touch with your local DACHSER representative to work out the best logistics solution.
DACHSER renews CEIV Pharma certification
At the end of May, DACHSER’s airport locations Hyderabad and Mumbai renewed their certification for the transport of life science and healthcare products. The certification is granted by IATA’s Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma).
International Freight Forwarder of the Year 2022
DACHSER India won the highly acclaimed “ International Freight Forwarder of the Year Award”, in an eventful evening on day 2 of the event, Air Cargo 2022.
Knowing where and how
Shipment tracing and transport management in the Internet of Things: with GPS location tracking using 5G/LPWAN technology and telematics, DACHSER Road Logistics is setting new standards in real-time tracking, arrival-time prediction, and visualization of long-distance groupage shipments.
DACHSER India is now Great Place to Work-Certified
DACHSER, one of the world’s leading logistics service providers, has been Great Place to Work-Certified™ in India for the year 2022.
DACHSER secures long-term air freight capacity
DACHSER Air & Sea Logistics is extending its charter program on the route between Frankfurt and Shanghai to cover the period from May 2022 to April 2024. This enables the logistics provider to continue to offer its customers reliable transport capacity. DACHSER flies a widebody aircraft between Europe and Asia two days a week, transporting 33 metric tons at a time.
Efficient management of global supply chains by DACHSER Air & Sea Logistics
In air and sea freight, operational procedures are characterized by a high degree of manual effort and require coordination with numerous contacts. With DACHSER as a logistics partner, customers benefit from digital solutions for more efficient management of their international supply chains. A single point of contact at DACHSER supports and coordinates their simple and fast implementation.
DACHSER appoints Jesper Larsen to lead South East Asia
Larsen has assumed the role of Managing Director Air & Sea Logistics South East Asia effective April 1, 2022. Based in Bangkok, he is responsible for 220 employees in eight locations across Indonesia, Singapore, Malaysia, Vietnam and Thailand. He reports to Roman Mueller, Deputy Director Air & Sea Logistics Asia Pacific.
DACHSER revenue exceeds EUR 7 billion for the first time
2021 was an exceptional year: Increases in volume and high freight rates generated record growth; 78.3 percent jump in air and sea freight
The new DACHSER magazine is here!
The economy, logistics, and people all over the world—no matter where you look, we’re all still trying to find our way through very uncertain times. We have yet to tame the coronavirus, as the massive outbreak in the international trade hub of Hong Kong recently made clear. Meanwhile, the world is staring with disbelief at what’s happening in the heart of Europe. The terrible war in Ukraine is causing huge numbers of people to flee their homes.
Lockdown in Shanghai: impact on operational activities
Due to the COVID-19 restrictions in China, there is an impact on international air and sea freight traffic as well as the domestic transport sector.
- Due to the increasing number of COVID-19 cases in Shanghai, the city will be locked down starting 5 a.m. Monday, March 28, 2022 in order to contain the spread of the pandemic.
- A lockdown will be carried out in two phases: From March 28 until April 1, restrictions will apply to Pudong, the eastern side of Shanghai, and from April 1 to April 5, the same restrictions will apply to Puxi, the western side of the city.
- During the lockdown period, measures will be taken, including massive COVID-19 testing, suspension of public transport, shutdown of stores, halting production and business activities, and employees will only be allowed to work from home.
Impact on logistics
- Air and sea ports remain open and operational.
- Shortage of manpower remains an issue in all sectors due to strict quarantine regulations, especially for freight-related personnel, who have to present a 48-hours negative test report when entering highways, warehouses and ports.
- For air freight, the lockdown impacts the PVG gateway for both import and export. The import Gateway is operational and flights continue to land at the airport. Export flights out of PVG are restricted, the export Gateway is closed and handover is suspended. DACHSER is working on planning new flight schedules through alternative airports. The restrictions are expected to last for 7-14 days. Land transport is restricted as well.
- For sea freight, DACHSER has not yet received any carrier announcements about vessel delays or cancellations. Cargo arrived at CFS within the Pudong area is not affected, but shipments could be delayed due to potential vessel changes or insufficient cargo for consolidation. FCL trucks are allowed to enter Pudong and the port area with a 48-hours negative test report and an electronic Equipment Interchange Receipt (EIR). LTL trucking is yet to have any development.
- Trucking between Shanghai and neighbouring cities is restricted to drivers who can present a 48-hours negative test report. Delays in pickups and deliveries are expected.
- Customs operations are currently reported normal with no interruption.
- DACHSER's locations in Shanghai, including the downtown office and the PVG Airport office, have implemented a work-from-home policy since March 21, while the Huaqiao Warehouse remains open but loading and pickup is restricted. You can reach your local contact through the usual communication channels.
Local representatives at DACHSER will be happy to provide information about shipments and possible alternatives.
Ahead of the curve – customer case Aptiv
Radical upheavals are in store for the automotive industry. Aptiv is a leading technology company innovating at the intersection of disruptive trends in the mobility industries. And intelligent logistics is making a crucial difference.
DACHSER India is the Logistic Visionary Team of the Year
DACHSER India Pvt. Ltd. won the highly coveted “Logistic Visionary Team of the Year Award” at the Logistics world summit award 2022, with distinguished Industry leaders in attendance; held at the Radisson Hotel, Andheri MIDC, Mumbai.
Dachser's Schönefeld logistics center delivers medical supplies to Ukraine
A wave of willingness to help unites Berlin organizations and companies. Together, they are bringing urgently needed goods to the crisis region. For the Berlin hospital group Vivantes, the Dachser logistics center in Schönefeld transported more than 30 pallets of medical supplies to Poland, all the way to the border region with Ukraine.
DACHSER Asia Pacific celebrates women’s empowerment for International Women’s Day
Female employees speak about their views on gender equality