New LCL services between Rotterdam and Asia

DACHSER's air and sea freight division is significantly expanding its services. This involves new fixed LCL connections between the port of Rotterdam and various ports in Asia with fixed departure times.     

The groupage of the seas

Attacks on cargo ships in the Red Sea and the associated detours and shipping delays are increasingly becoming a threat to the smooth transportation of goods and therefore also to international trade. In this interview, Christian Kruse, Head of Global Ocean Freight LCL, explains the role of intercontinental groupage, LCL (Less-than-Container-Load) services, and the specific advantages they bring for customers.

Ahead with foresight

LCL smart routing: DACHSER launches new direct consolidation service from China cities to Karlsruhe in Germany

DACHSER expands Sea Freight LCL network portfolio, offering new weekly direct consolidation services from Shanghai, Ningbo and Shenzhen to Karlsruhe in Germany.

Step by step toward the goal — Sea freight groupage containers facilitate the continuous flow of goods

In turbulent economic times, sea freight groupage containers are becoming increasingly popular. Production bottlenecks, fragile global supply chains, and a container shortage have further increased the demand for small and predictable shipment sizes in sea freight. Michael Kriegel, Department Head DACHSER Chem Logistics, explains the service that enables a reliable flow of goods in sea freight. He also talks about why a good network connection is crucial, especially for goods with high security requirements.

Winning endurance

In logistics, the pandemic is making dispatch processes more complex, especially for sea freight. As Ocean Freight LCL Manager Asia Pacific, Carolin Choy sees these challenges as opportunities. Luckily, she has a hobby that helps her.

Sea freight market update | June 2022

DACHSER expands its sea freight LCL network portfolio to include China to Denmark and Sweden

Starting March 2022, the direct LCL service departs once per week from Ningbo and Shanghai directly to Copenhagen and Gothenburg. Eliminating deconsolidation at the transit terminal reduces the handling time, making this service a particularly fast transport option.

Sea freight market update | March 2022

Lockdowns in China softened the global market demand at the end of March, while the Russia-Ukraine conflict has an impact on fuel price.

• Lockdowns in China

Throughout the second half of March, several major cities in China reported an increased number of COVID-19 cases. With its ‘zero-tolerance’ policy, local authorities implemented strict measures to curb the spread of the pandemic. During the lockdown in Shenzhen, Dongguan and Shanghai, even factories were not allowed to open. Overall, the production level in China has slowed down, which leads to reduced export volume and a softer market demand.

• Russia-Ukraine conflict

DACHSER, as well as most of the international companies and carriers, decided to  stop operating services to and from Ukraine, Russia and Belarus. The suspension of shipping services calling at Russia and Ukraine is resulting in a significant re-routing of cargoes. The backlog of containerized freight in ports and terminals is exacerbating, many ports and terminals are already suffering from severe congestion issues. In consequence, more shipping capacities are held up which causes further pressure on the supply of tonnage. Freight rates are expected to keep at sky-high levels.

Additionally, the skyrocketing fuel price has forced carriers to adjust their bunker surcharges. In April, the adjusted bunker surcharges will have an impact on the overall rate level.

• Trade Lane Update

EUROPE

Port Congestion EMEA

• Belgium                  Antwerp 5 days
•                                  Zeebrugge 1 day
• Germany                Bremerhaven 12 days
•                                  Hamburg 5 days                                
•                                  Wilhelmshaven 3 days
• Italy                         Trieste 2 days
• Netherlands           Rotterdam 7 days
• Slovenia                  Koper 7 days

Europe - Far East

Space is available, but empty equipment is tense, especially in some of the inland ports.

Europe - South America East & West Coast

Space is partly available,  however, the West Coast becomes more tight in space. Empty equipment availability in North Europe is more or less stable but slightly tight in the hinterland area. It is recommended to place bookings 4-6 weeks in advance.

Europe – Mexico

Empty equipment availability in North Europe has been worsening, driven by a lack of supply from one of the carriers, which leads to shortages across the market. The situation is expected to improve at the end of March. Space is still under pressure and rates are increasing. Vessels’ turnaround is still slow and capacities are not yet restored to normal.

Europe – Indian Subcontinent

Space is available and empty equipment availability in North Europe is improving.

ASIA

Port Congestion Asia

• China Mainland             Dalian / Hong Kong / Nansha / Ningbo / Shanghai / Shekou /                                          Qingdao / Xingang / Yantian: 7-10 days
•                                          Nanjing / Xiamen: no congestion
• India Subcontinent       Chittagong: 1-2 days. All other ports: no congestion
• Indonesia                       Jakarta / Surabaya / Semarang: 2-3 days
• Korea                              Busan / Incheon: 5-7 days
• Malaysia                         5-7 days      
• Singapore                      2-3 days due to port congestion
•                                          Transshipment cargoes rolling 7-14 days in Singapore, depending on 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 very limited, as well as empty equipment availability. With the lockdowns in Shenzhen and Dongguan and most recently in Shanghai, the overall productivity from China is slowing down at the end of March. As a consequence, production delays and disruptions are to be expected.

Pick-ups and deliveries in China are also a challenge due to COVID-19 related measures, some truck drivers are quarantined, and highways are heavily restricted with checkpoints to verify drivers’ testing reports.

DACHSER launches a new LCL service from Ningbo/Shanghai to Copenhagen/Gothenburg. The direct LCL service effectively cuts down transit time and saves logistics costs. Read more.

Far East - South America East Coast

Space remains tight, as well as empty equipment availability, especially for 40’ equipment in North China. Therefore, it is recommended to place bookings 4 weeks in advance.

Indian Subcontinent – Europe

Space remains tight,  and carriers strictly control it. Empty equipment availability is still tight on India East Coast, whereas it is improving on India West Coast.

Transpacific Eastbound

Equipment availability remains under pressure in China. However, the lockdowns in China are slowing down the overall productivity at the end of this month. Production delays and disruptions are to be expected. Rates remain at a high level and may increase in the coming weeks as COVID-19 restrictions are lifted and production rebounds. Capacity is tight; therefore, it is recommended to place bookings 4-6 weeks in advance.

Schedule integrity remains unsteady, as the turnaround time of the vessels is still slow. Port congestion has spread from Los Angeles to the East Coast. Charleston and Norfolk started to be heavily congested and therefore should be avoided. The development of a possible rail strike in Canada may have an impact on shipments to the US West Coast. As an alternative to the equipment shortage for full container shipments, DACHSER is offering its expedited LCL service on the transpacific route.

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.

AMERICA

Port Congestion in North America

West coast

• Los Angeles                   20-25 days waiting time to berth
• Oakland                         20 days waiting time to berth
• Tacoma                          waiting time insignificant
• Seattle                            35 days waiting time to berth

East Coast

• Boston                           Situation fluid
• New York                       11 days waiting time to berth due to bad weather
• Baltimore                       Situation fluid
• Norfolk                           10 days waiting time to berth
• Charleston                     16 days waiting time to berth
• Savannah                       waiting time insignificant
• Jacksonville                    Situation fluid
• Miami                              Situation fluid
• Mobile                             Situation fluid
• Houston                          waiting time insignificant

Transatlantic

Empty equipment availability in North Europe has been worsening, driven by a lack of supply from one of the carriers, which leads to shortages across the market. The situation is expected to improve at the end of March. Space is still under pressure and rates are increasing. Vessels’ turnaround is still slow and capacities are not yet restored to normal. Overall, US container transports remain challenging, as the availability of chassis is still an issue and trucking costs are increasing.

• 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.

Rising case numbers in China: impact on operational activities

Last weekend, several major cities in China reported an increased number of COVID-19 cases, which led to intensified measures. This has an impact on DACHSER's operating activities:

Shanghai

As the epidemic has reached significant levels in Shanghai districts, rigorous actions have been taken, including massive COVID-19 testing and a lockdown of affected communities and residential areas. Airports, seaports, warehouses and depots are operating as usual, subject to the following:

• Due to the aforementioned measures and quarantine regulations, Shanghai is currently experiencing a significant shortage of workforce in all sectors, including administration, warehousing, and driver personnel.
• Neighbouring cities to Shanghai, including Suzhou, Taicang, Kunshan, Changzhou, Suzhou, and Hangzhou, are imposing restrictions on trucks coming from Shanghai and drivers must present a negative test result. Therefore, it is expected that pickups from and deliveries to Shanghai will become more difficult in the next 1-2 weeks.
• At this stage, we have not received any carrier announcements about vessel omissions. All barge operators are performing at normal levels, to ensure the connection to mother vessels in Shanghai. However, as the situation is developing rapidly, carriers may react accordingly if the driver shortage or truck restrictions lead to a serious container bottleneck.
• The locations of DACHSER in Shanghai, including the downtown office, the PVG Airport office, and the Huaqiao Warehouse, have established special working arrangements since March 14, whereby employees alternate between working from home and the office.  The local contact at DACHSER can be contacted through the usual communication channels.

Shenzhen

The authorities of Shenzhen city are implementing a lockdown from March 14 until March 20.  Precautionary measures include COVID-19 mass tests, suspension of public transport, shutdown of shops, production and business activities. Staff are only allowed to work from home.

• The airports and seaports are operating as usual. The air and sea freight operations of DACHSER are not affected. However, similar to Shanghai, there may be staff shortages at certain facilities such as customs due to COVID-19 testing and quarantine.
• Production and manufacturing facilities will be suspended temporarily, which will lower demand for air and sea freight. However, this may have a more far-reaching impact on the supply chain in the near future.
• Most of the warehouses stopped their operations until further notice.
• Sea freight LCL-CFS bonded warehouses are closed until further notice and shipments from Shenzhen are currently on hold. We will contact you directly if your shipment is affected.
• Local trucking within Shenzhen is not subject to any restrictions, and trucking companies are still offering their services, but the industry is facing the problem of a driver shortage due to lockdown and quarantine regulations.
• Truck services to and from Shenzhen is restricted.
• Cross-border trucking between Shenzhen and Hong Kong for non-essential goods is basically suspended. Transport of general cargo (commercial) is most likely to be arranged via feeder services.
• DACHSER employees in Shenzhen work from home and can be reached by email or mobile phone.

Dongguan

The authorities of Dongguan city announced a lockdown, effective from March 15 until March 21. Similar to Shenzhen, precautionary measures are implemented, which include COVID-19 mass tests, suspension of public transport, shutdown of shops, production and business activities, and staff are only allowed to work from home.

• Production and manufacturing facilities will be suspended temporarily, which will lower demand for air and sea freight, and bring substantial consequences to the international supply chain.
• DACHSER warehouses (bonded and non-bonded) in Dongguan are closed and resume operation after the lockdown is lifted.
• DACHSER employees in Dongguan work from home and can be reached by email or mobile phone.

Other major cities in China are mostly normal in terms of daily life and business operations despite some of them reporting a small COVID-19 outbreak.

DACHSER cooperates closely with all relevant parties to ensure that all shipments are handled properly. Local representatives at DACHSER will be happy to provide information about shipments and possible alternatives.

Rail service market updates | December 2021

According to statistics, the number of freight trains running between China and Europe in 2020 has increased 15 times compared to 2015, reaching the number of more than 12,000 trains last year. In 2021, a further increase was recorded and the CRE (China Railway Express) 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 reliable multimodal rail services with an extensive coverage, connecting economic centers of major importance in China and Europe. Via the North Corridor, the so-called Trans-Siberian Route, DACHSER connects Hamburg, Warsaw, Vienna and Bratislava with the Chinese main terminal cities like Changchun, Shenyang, and Suzhou. To and from Duisburg, Hamburg, Neuss, Ludwigshafen, Vienna, Bratislava and Warsaw, DACHSER serves the West 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.

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.

Chinese Golden Week holiday 2021: impact on logistics

The October Golden Week holiday in China is soon approaching. Here is all the information you need, together with some market forecasts.

• What is Golden Week?

Golden Week is a week-long holiday in China. It starts on October 1 which is the country’s National Day, and the holiday extends to October 7. Normal business resumes on October 8.

• What will happen during the Golden Week?

During the seven-day public holiday, almost all businesses, factories as well as government organizations will be closed or low-staffed. This means that production will be slowed down or completely stopped. Airports, sea ports and warehouses will be operating with limited capacity and Customs offices will be closed.

DACHSER Branches in China will be closed from October 1 to 7.

• How does the Golden Week impact transport logistics?

The pre-holiday rush usually starts 3-4 weeks before the October 1 National Day holiday with shippers wishing to speed up production to stock up and ship their cargo out from China before the long break.

-Sea freight

Since the capacity is rather at the lower side and it would affect the normal export / import operations. Shipping lines often announce blank sailings in order to adjust their services to the low market demand. Blank sailings start as early as week 38 for some carriers and normal schedules will resume as late as week 42. This year the situation is very dynamic due to severe port congestions and service disruptions that are already happening, carriers may not have artificial blank sailing programs, service conditions may differ from individual shipping lines and routes, please contact your DACHSER representative for details.

If you have any incoming shipments, kindly ensure they are picked up before the holiday to avoid unnecessary storage or detention costs.

Currently the sea freight market is very tense with port congestions, delays and lack of equipment. The recent Typhoon Chanthu worsened the situation with extreme weather conditions, forcing major ports including Shanghai and Ningbo to close for a few days. Space remains critical and rates could be further soaring until the end of the year. Advance booking of 6-8 weeks is needed to secure a space.

-Air freight

For air import, only shipments with pre-booking notice will be handled. Chinese customs will not accept import clearance during the holidays, therefore, import shipments may not be processed on time.

For air export, it is suggested to send bookings or instructions to us as early as possible before the Golden Week. The cut-off time for economic orders is September 29, 12:00 noon China local time. For emergency orders, the cut-off time is September 30, 12:00 noon China local time.

As it is often that air freight space will be very tight and equipment will be in high demand during the traditional pre-holiday period. This year with the severe disruption at Shanghai PVG Airport with the lack of ground handlers, together with the congestion in all other Chinese airports, the supply chains will be under great challenges due to continuous capacity shortages. This situation will inevitably result in longer lead times and higher rates.

-Rail freight

For westbound LCL shipments, the last departure before the Golden Week holiday will be in week 39, and the service will resume in week 42. Other regular services are not impacted but are subject to capacity and equipment availability. Chinese customs will be closed during October 1 to 3 and low-staffed from October 4 to 7, customs clearance may not be performed in time due to limited manpower.

Based on historical records, orders peaked two weeks prior to the holiday. This year, despite the pre-holiday rush, capacity in September is already very tight. As a consequence, the rate level for October is anticipated to increase due to strong demand.

• Our recommendations

Autumn peak season will immediately follow the Golden Week. Given that the current market situation is very tense, we recommend long-term planning and advance booking to avoid disruptions to your supply chain, even after the Golden Week event. Kindly consider the following:

• Communicate your needs and shipment deadline with us so we can offer you the most suitable solution that fits your budget.
• Prepare an accurate shipment forecast well in advance for long-term planning.
• Place bookings as early as possible; the earlier you book the higher the chance you have to secure a space.
• Stay tuned to the latest market news, this will enable yourself to plan proactively and react to sudden changes in a timely manner.

At DACHSER, our team is trying its best to provide you with the latest and most relevant information, so that we plan the next steps together. If you have any questions, please get in touch with us, we will be happy to assist you.

Sea Freight: Current situation in the USA

The existing bottlenecks in the US ocean freight market, which are lasting for quite some months already, will continue for a longer period. We would like to give you an overview of the current situation.

Port and rail congestion

Already for months, the USA is experiencing historical congestions in sea freight business. The reason for this ongoing situation is well known: COVID-19 impacts and a high volume demand creating bottlenecks at all major ports and terminals throughout the country. Port and rail operators are operating with reduced staff, which delays loading and unloading of vessels, increases dwell time and slows down transportation processes to the terminals. Ocean Carriers are also overwhelmed with the situation and struggle to provide the needed service and timely response. Ocean vessels are having several days of delay and we experience port omissions on a regular basis. Schedule integrity remains almost non-existent.

US trucking situation

Trucking companies suffered heavily at the beginning of COVID-19 and were forced to let go many of their drivers due to the drop of volume and demand. Then, the boom of freight and demand hit the US market and at this point, not enough drivers were available. The driver situation improved over the last months but the current trucking fleet does still not cover the strong demand. Truckers are overbooked for the next 3-5 weeks. To accelerate the pick-ups and deliveries, LTL and FTL can be an option to arrange transloads into/from containers at designated warehouses.

Chassis in the US

It becomes a great challenge that almost all containers are stuck somewhere on chassis, waiting for transport. That leads to the problem that empty chassis are hardly available to arrange a pick up. Chassis are fully used and become a rare commodity in the US.

US inbound freight

The ports and rail terminals infrastructure in the US is simply overwhelmed by the current import volume. Inbound containers are parked on certain spots to make room for the new vessel / train loadings. In many cases, these "parking lots" are completely overstocked and containers are buried and not available for immediate hand over. In order to arrange a pick-up, the terminal provides appointments to truckers ONLY once the container is available and customs released - which can take days and even weeks in many cases.

US outbound freight

The main challenge is to find the desperately needed container equipment as well as the chassis for the transport. Ports and rail terminals are also full of export containers and the stations are not simply accepting export loads that easily. The situation is tight and almost every shipment is experiencing severe delays.

Outlook

We estimate that the situation in the US will not improve this year. Even 2022 will continue to be challenging but the team of DACHSER is aiming to provide our clients a good service and solutions despite the challenging times in the USA.

High Priority Cargo

Currently, it is possible to achieve better transit times and shorter turnaround times at the US terminals by using LCL services for prioritized shipments instead of FCL services. DACHSER operates regular premium LCL services on both ex-Asia and Europe trade lanes. Transit times ex China, for example, are even shortened from overall 28 to 18 days. And further, new pipeline services including Atlanta and Los Angeles aim to reduce booking windows immensely. The continuing tight situation in the US ocean freight market will also require that desperately needed freight will have to be loaded more often by air. DACHSER offers regular premium capacity with its own Air Network, for example with weekly connections on the Frankfurt - Chicago route in both directions and the option of connecting to other US airports.

We are in close contact with carriers and service providers on a daily basis and do our best to make your supply chain as smooth as possible. For individual advice, please contact your local representative of DACHSER so that we can implement the best logistics solution for you.

DACHSER expands consolidation services portfolio in sea freight

The logistics industry is going through challenging times, characterized by capacity bottlenecks, continuous shortages of equipment and allocation as well as severe port congestions across the globe, causing a domino effect that is difficult to control.