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Rail service market updates | Jan - Feb 2021

The rail services between China and Europe are still under influence by pandemic restrictions. However, it is considered as a more stable option compared to sea freight, which is now in a critical situation.

Westbound

  • China Railway is still publishing the departure schedules just one week prior to each departure, which leads to a more critical space situation and rate fluctuations.
  • The overall Container availability in east china is slowly improving in comparison to the end of December.
  • The Congestion on Alashankou is nearly solved as the Border Teams are working 24/7.

Eastbound

  • As per instructions from the National Health Commission of the PRC all trains that are crossing the border between Kazakhstan, Mongolia and Russia into China need to be disinfected accordingly to the anti-covid rules.
  • This will have an impact on the overall clearance and transit time of each eastbound train of at least 1-3 days. 

Outlook February

  • Major platforms plan additional departures prior to Chinese New Year to move out the cargo which was not moved in January due to the general sea freight situation.
  • For that reason, the overall departure amount will increase, however the rate level will remain high.

DACHSER Block Train China – Europe

The first westbound block train from China to Europe organized by DACHSER reached Ludwigshafen, Germany in late December. Read the news.

 

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Contact Katrine Cheng
katrine.cheng@dachser.com

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Lunar New Year 2024 - Key dates and impact on logistics

 “Year of the Dragon” begins on February 10, 2024. It is the biggest festival in Chinese communities where people celebrate the beginning of a new year with their families.

During the festive period, most businesses and factories in mainland China will be closed, and production will be suspended.

Impact on logistics
 
  • Chinese suppliers start to wind down operations one to two weeks in advance of the public holiday. Even though the official holiday only lasts for a week, most factories close for an entire month and some even longer.
  • While businesses are closed and there are minimal production from mainland China, carriers will deploy less capacity to and from mainland China.
  • Holiday impact is about two months. Therefore, companies that are dependent upon Chinese or Asian suppliers are likely to stock up inventories, this leads to a pre-holiday cargo rush, and it will also take some time after the festival to normalize the market conditions.
How to minimize the impact of Lunar New Year holiday?
 
  • While we try our best to minimize any possible interruptions to your supply chain, you can also help us by considering the following:
  • Communicate with your suppliers and customers to make arrangements for sufficient stock and manage expectations
  • Discuss your planning with us and prepare an accurate shipment forecast for long-term planning, so we can offer you the most suitable solution that fits your budget and schedule
  • Place your booking earlier and pay attention to the cut-off dates.
    • For sea freight, it is recommended to book 4-6 weeks before the start of holiday
    • For air freight, it is recommended to book 1-2 weeks before the start of holiday
Holiday closure schedule for DACHSER Air & Sea Logistics Asia Pacific branches
 

Apart from Mainland China, other regions in Asia Pacific also celebrate the festival, please refer to below public holidays where DACHSER branches will be closed:

  • Mainland China - February 9 - 17
  • Hong Kong - February 10 - 13
  • Taiwan - February 8 - 14
  • Indonesia – February 9-10
  • Korea - February 9 - 12
  • Malaysia - February 10 - 12
  • Singapore - February 10 - 12
  • Vietnam - February 8 - 14

If you have suppliers or production lines in China or in APAC countries, please get in touch with us to work out an operational logistics plan, and we can collaboratively make a robust forecast through the Lunar New Year period and beyond.

At DACHSER, we work at our best to ensure the flow of goods before, during and after the Lunar New Year holiday.

If you have any questions, please get in touch with your local DACHSER representative to plan the next steps together.

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