Transport Update 11th August 2021

More worrying for some is the news from the Chinese ports of Shanghai and Ningbo. At Ningbo, the container facility on Meishan Island, which handled more than 5m teu last year, suspended operations on Wednesday after a port worker tested positive for COVID. Ningbo is the world’s third largest container port by volume, ahead of Yantian in fourth place, where disruption earlier this year caused ripples that are still being felt in global supply chains.

The ports of Shanghai and Ningbo were already congested following typhoon In-Fa last month, as well as delays caused by increased Covid testing for port workers and restrictions on vessel crew changes. The Loadstar reports there are currently 140 containerships now waiting at anchorage outside the two ports. While lockdown currently only applies to the Meishan area of Ningbo, any spread would likely cause severe delays.

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Ocean

Asia

US market

• Some regions in China are dealing with an outbreak of the Delta variant of Covid-19 and as a result a number of flights have been cancelled. MU/CK are cancelling all flights out of Shanghai into North America.
• We will see more and more cargo departing via charters from airports such as NGB/FOC/CGO/HGH/HFE/CSX.
• Spot rates available for heavy/dense cargo as well as volume cargo.
• For all airports – rates and space must be checked on a case by case basis.

EU market (base airport like FRA/AMS/LUX, etc)

• Some regions in China are dealing with an outbreak of the Delta variant of Covid-19 and as a result a number of flights have been cancelled. MU/CK are cancelling all flights out of Shanghai into CDG & FRA.
• We will see more and more cargo departing via charters from airports such as NGB/FOC/CGO/HGH/HFE/CSX.
• Rates and space must be checked on a case by case basis.
• Spot rates available for heavy/dense cargo as well as volume cargo.

UK market

• Some regions in China are dealing with an outbreak of the Delta variant of Covid-19 and as a result a number of flights have been cancelled. MU/CK are cancelling all flights out of Shanghai into North America and Europe.
• We will see more and more cargo departing via charters from airports such as NGB/FOC/CGO/HGH/HFE/CSX.
• There are good spot rates out there if other, regional airports can be used – but there are restrictions on commodities, so it is always best to check.
• There are direct flights with CA/BA, AIR-AIR by SQ and normal air-truck service.
• Rates and space must be checked on a case by case basis.
• Spot rates available for heavy/dense cargo as well as volume cargo.

Americas

• Rates remain mostly the same this week, into UK, Europe and Asia
• Space remains constricted due to reduced capacity and staff shortages.
• US hauliers are still over capacity. We are facing delays and storage charges due to long turn around times with breaking down freight and then long queues at the airports to collect freight. Main hubs such as ORD and LAX are the worst affected.
• Certain ground handling agents in LAX and ORD are still severely behind with breaking down freight. In some cases this is taking up to 3 weeks. It is important to ask advice from a US agent when choosing your carriers into these airports as the ground handling agent is determined by the carrier.

Europe

• Rates into North America and Asia remain stable this week.
• Capacity to most regions remains severely restricted