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Oversea situation, October update

In general, the Asia situation is stable. Still recurring issues as congestion, lack of containers, lack of capacity, delays, and high cost.

In addition, we follow the Covid-situation closely due to new coronavirus outbreaks in several countries, also in Asia.

Situation in China

Sea freight

Capacity and equipment availability remains tight.

Port congestions and vessel delays particularly in Europe and North America are causing reduced capacity and delayed arrival back to Asia. Delays in most ports.

While power restrictions in certain provinces in China may slow production, the demand remains very strong.
 

Air freight

The markets are likely to tighten from October. The rates for lines as China to North America and Europe remain elevated. Rates increased by nearly 30 percent in the last two weeks, according to major carriers.

Rates will remain high due to huge demand against limited capacity. Demand is expected to continue to increase, as the upcoming peak season approaches.

Also, upgraded sanitizing processes and strict operation restrictions due to Covid-19 limits operational capacity and increased rates. 

 

Rail freight

Rail rates remain stable but are subject to the capacity and equipment availability in general.

Congestion and equipment shortages can lead to delays in departure and transit time. Covid-19 also causes delays in some areas, such as Shaanxi. For example, the departure time is usually delayed by 7 days at Xi'an station.
 

Situation in India

In India, all the ports, factories, and offices are full-time operational with no closure or restrictions. But suffers from the situation as all over Asia - lack of containers and capacity, delays and high rates.

Container shortage on inland ports (as well) within India. And urgent shipments are not being carried out - so there is no extra service for express shipments or urgent matters.

In addition, India experiences difficult communication with the port authorities. Very challenging to secure bookings, as ports are rarely answering calls or responding to emails.

Sea freight is especially difficult, due to lack of equipment.

 

Our recommendation is to take precautions in order to reduce the impact on your supply chain
 

  • share your logistic needs and shipment deadline enabling us to offer you the most suitable solution

  • communicate with your suppliers and customers to avoid possible delay

  • place booking as early as possible

  • prepare the accurate shipment plan and indicate the most urgent shipment if possible

 

For any questions please contact your regular contact persons within ColliCare, we will be happy to help you