(Apr 09, 2020) – Carriers reacted quickly to the dropping demand on volumes and thus a global blank sailing program emerged quickly during the course of last week. More than 200 blank sailings have been announced so far. This stretches over all alliances and over all trades. Market capacity on trunk routes in average have been cut down by 20-25% over the next four to six weeks. Capacity withdrawal program also include measures of slow steaming and re-touring of routes with the aim to burn less costs and longer transit times.
A month worth of inventory is still on the vessel towards the cargo receivers.
In order to prevent boxes clogging up the ports and causing congestion, several carriers have officially launched a delay in transit options. Boxes can be kept in yard storage in defined transshipment ports in order to avoid (higher) costs at destination due to operational obstacles at the receiving end.
Carriers have advised that there will be a potential need to adjust agreed transit times, routings and prices. We will continue to support our customers proactively with arranging allocation and making equipment available. At the same time, we are in contact with customers on the ability of receiving incoming volumes as we observe trucking shortages and a congestion of equipment at terminals, which could come costly.
Our advice for ensured uplift and forced delay of cargo:
➢ Please communicate with us: Forecast, Forecast, Forecast (6 to 8 weeks in advance are advisable, in particular for special equipment including food grade and reefer).
➢ Please consider to make use of SchenkerOcean Delay in Transit options in all trades as idling of boxes in the port will become costly.
➢ Please identify cargo of priority.
➢ Please consider to accept de-tour for the cargo: SchenkerOcean alternate routing options to ease bottlenecks (e.g. ship North Asian cargo via SEA to OCE).
(Apr 09, 2020) - There is a very strong export booking situation in the market which is foreseen to come to an end due to PO cancellations starting as well as factory production sites closing down. The closing of private and public sectors all over Europe has started to affect port productivity. However, no impact on port operations reported. Vessel utilization is at 100% with roll-over scenarios during early April; rates have moved up significantly on trades to the East. Weeks 15-20 show dramatic capacity decreases of up to 54%. Significant capacity increases follow during weeks 21-23, however these services are under carriers’ review and we have to anticipate severe service changes. All European Ocean Freight Branches are fully functioning operationally.
(Apr 09, 2020) – Ports in India are facing further congestion but as government is relaxing transport regulations, there is the expectation for some easing of the situation in coming days.
Japan has announced a state of emergency. Ports and transport companies will continue to operate as classified as essential industry.
For all APAC countries, customers are encouraged to use seawaybills to avoid reliance on original B/Ls as courier companies may not deliver timely in the coming weeks and most companies, including Schenker, are operating increasingly with working from home based on health concerns and strict government regulations.
Philippines has extended the lockdown and we continue to discourage the use of Manila North Port due to severe congestion. Furthermore, delays in customs clearance continue.
(Apr 09, 2020) - Blank sailings in the GCC due to India’s lock down and slow demand. In order to minimize the impact to our customer’s supply chain and provide predictability, the ocean freight team in the region is equipped with a service plan and alternative routings. Please get in touch with your Account Manager for more information.
(Apr 09, 2020) - 95-100% vessel utilization out of Asia to MEA due to the pre-Ramadan rush. Also, strong utilization is seen ex North America to MEA.
(Apr 06, 2020) - 100% vessel utilization ex MEA especially to EU and North America has led to increased rates, PSS application and equipment shortage in all ports: Especially Oman is concerned as well as 20’ supply in UAE. Priority is given to perishables. All port operations are working fine. Our ocean freight offices in the countries continue to serve customers since logistics and supply chains are considered business critical as per local government directives. Moreover, we are closely monitoring the situation as the Ramadan season is around the corner.
(Apr 06, 2020) - As an alternative for airfreight and land transportation in GCC, DB Schenker is offering weekly less-than-container load (LCL) consoles from the port of Jebel Ali (AE JEA) to Abu Dhabi, Bahrain, Kuwait, Oman, Pakistan, Qatar, and Saudi Arabia.
(Apr 09, 2020) - TPeb bookings start to drop, however vessels during week 15 and 16 are still well utilized: First additional blank sailings to kick-in during week 15. No high hopes for the PSS / GRI announcements the week of April 15 and May 1.
Vessels leaving North America still sail extremely full: Equipment inventory status remains tight in all inland locations affecting US inland sites (HOU, MSY, OAK, CHI, MES/STP, CMH, CLE, CLT, LU 0I, MEM, and OMA). Peak bookings are expected to last until the end of April with successful GRI / PSS implementations. However, with fading volumes, fading rate levels are expected in parallel for the second half of April. Possible truck driver shortage.
Vessels leaving Lat Am due to dry fruit cargo rush until early May: Reefer in Chile extremely tight. Pressure on free times with no extension continues.