Here is an updated information about China and Southeast Asia markets.
By Ashley Kao. Photo：Frans Van Heerden
Tianjin is under more strict regulations due to the Covid-19 cases increased. Expert said, if the situation is not under control, it may affect the Beijing Winter Olympics.
Tianjin city near the capital, Beijing, launched its mass testing last week, including 20 positive Covid-19 cases on the Jan 8th. Meanwhile, they advised residents to stay at or near home to be available for the community-level nucleic-acid screening. Airports, highways, railways, seaports must implement the Covid-19 control and prevention. Expert said, if the situation is not under control and spread to Beijing, it may affect the Beijing Winter Olympics.
Ningbo seaport remains operate, but land transportation turns slow
To deal with another wave of Covid-19 in Ningbo, China’s second busy seaport still operate, but the control and prevention slow the logistics. Only some areas were blocked, the port still operate. People who work there or go to the port need to provide the Covid-19 test result, it slows the operation. However, the container volume didn’t decline, it increased 8.5% compare the same time last year.
The below is the feedback from China and Southeast Asia branches in week 1,
Seaports: There is a serious shortage of containers. However, after the holidays, the current freight rate has a little bit decrease.
Airports: The space is tight, the freight rate increased. The rate is unstable, airlines will cancel flights unexpectedly.
Seaports: Seaport operations are normal, but there is also a shortage of containers. 20’ and SOC containers can be arranged for availability.
Airports: Air space eased down a little bit, it’s not as tight as before. However, Omicron is spreading all over HKG, tighter health control/regulation was imposed, situation might change shortly.
Seaports: The Covid-19 cases increased in Beilun, Ningbo, and the control/regulation increased. The transportation in Ningbo was blocked, the cargo originally planned to go out from Ningbo port will be transferred to Shanghai port. The space in Shanghai is critical.
The vessel schedule is still rare, the space is critical. Even if you have the rate, there may have no space.
Beilun, Ningbo has been closed some areas on 1/1 due to the Covid-19 cases increased, but near the Chinese Lunar Year approaches, the seaports still open, they implemented a green pass and whitelist for truck drivers. However, most truck drivers live in closed and controlled areas, there are still very few trucks on the road, less than one-tenth of the original, and the price of trucks has skyrocketed. However, it seems that the Covid-19 in Beilun has eased and hope the situation will be better soon.
Seaports: Space is tight. MSC USEC route has even been bidding for space. The space is few for general chemical products, the rate is extreme high even if they have space.
Airports: (PEK): Affected by Covid-19, CX has been partially cancelled service of passenger flights to US/Europe since 1/7. UA resumed flights from Beijing last week. Overall, the space is more available than before, the rates stable or even slightly decreased.
The space is still critical. The vessels delayed around 4-7 days.
No space for the entire route. The vessels delayed around 4-5 days. As the Chinese Lunar Year approaches, truck fees have also increased. Many vessels have been cancelled to US, only one vessel left per month.
Ocean rates remain high, and space is tight.
The port of Leam Chabang and all ships passing through the port experienced congestion. Few spaces remain a major issue, and most space are booked until Feb 2022. Some carriers need to book 2 months in advance, but the freight rate has not been announced yet, so exporters must book in advance, but they cannot know the cost in advance.
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