By Ashley Kao.     Photo：Johannes Plenio

What is the impact of Russia's sanctions on China-Europe Railway Express?

The China-Europe Railway Express needs to pass through Russia and Belarus and is still in operation. Russian Railways is on the U.S. sanctions list, although shipments of goods through Russia are not currently under sanctions.

Shippers and forwarders are taking steps to reduce risk, even if sanctions haven't forced shipments through Russia. Many companies immediately stopped booking trans-Siberian rail services, and intercontinental routes to and from Russia were suspended.

Shippers have started canceling bookings due to sanctions and insurance concerns. There are also concerns that its cargo could be stuck on the Russian-Polish border. All shippers, carriers and forwarders need to have plans for possible suspension of services in the Russian region. 

Major Chinese ports container volume falls 10.6% during the Lunar New Year in early Feb

Export container volume declined 8.3% while the domestic volume dropped 20.2% due to many factories were closed for the Lunar New Year in early Feb. Cargo throughput at major coastal ports declined 7.5% while international trade cargo throughput dropped 7.6%. Export crude oil shipments at major coastal ports declined 11.6% while the port inventory increased 2.3%. The Lunar New Year brought about further decrease of cargo volume at three major Yangtze river ports. Nanjing, Wuhan and Chongqing’s cargo throughput for early Feb declined 26% while the container volume dropped 32.2%.

The below is the feedback from China and Southeast Asia branches in week 9,

Shenzhen

Seaport: The current market cargo volume is still low, the freight rate fell slightly.

Airport: Air freight rates increased in Europe and USA, freight rates change frequently, and the space is tight.

Hong Kong

Seaport: The transportation from China to Hong Kong was affected due to the Covid-19 issues, causing delays for delivery.

Shanghai

Seaport: The current market volume is low, the freight rates have begun to decrease.

Airport: The air cargo volume increased; the space is tight. Air freight rates are expected to increase more next week. Due to the Covid-19 situation in Wuxi and Suzhou, the delivery fee has risen slightly (drivers must have a 48-hour test report to pick up the goods) 

Ningbo/ Xiamen

Ningbo:

The cargo volume didn’t increase this week, the freight rates maintain stable. There were 2 new Covid-19 cases in Wenzhou Cangnan on 3/4, which may have an impact on tow trucks in the direction of Wenzhou.

Xiamen:

The market space is available, the freight rates slightly decrease than last week.

Dalian/ Qingdao

Dalian:

The freight rates maintain this week and is expected to increase after 3/15. Due to some carriers (COSCO/ ONE/ OOCL/ HMM) reduced spaces, there are few spaces to IPI points.

Qingdao:

There was no port congestion in early March. Qingdao was also under control of the Covid-19 situation. The carriers canceled the booking to Russia, and space of each route are sufficient.

Tianjin

Seaport: The freight rates maintain this week, MSC freight rates will decrease on 3/15, but the freight rates of MSC was at high level in the market. After the rates correction, the was the same or slightly higher than the market rates. Due to the outbreak of Russian- Ukrainian war, carriers may increase the freight rates on after another.

Airport: PEK: Affected by the Russian-Ukrainian war, SU/RU can only fly to Moscow now, and other transit points are suspended; NH/JL related European transit points cancel flights.

TSN: Affected by the outbreak of the Covid-19 in Dongli District, Tianjin, many flights departing from Tianjin have been cancelled this week, and the flights have not yet resumed. Most of the airport-related operators need to work from home.

Thailand

Seaport: For USA route, the space issue is still tight. For import shipment to Thailand, the route direct to Bangkok port, the delay of transit time is less than last period, but if the shipment through Laem Chabang to Bangkok port by barge, it will take 5 – 10 days delay to Bangkok port (PAT).

Airport: Most airlines resume normal operations from Thailand, and space is available.

India: India's wheat exports set to surge amid Black Sea supply uncertainty 

The Black Sea belt is the world’s largest provider of wheat, however, Russia’s invasion of Ukraine threatens to disrupt provides from the 2 main producers, the demand would shift to India of the current uncertainty situation. India, which exported 6.12 million tons of wheat in 2021 and 1.12 million tons a year earlier, is more likely to reach 4 million tons of the grain within the first half of 2022. Other than India, within the face of any long-term Black Sea provide disruption, Australia might grow to be another provider.

Kyiv has considerably climbed the ranks of grain exporters during the last decade and was more likely to take third place this year, however the battle with Russia has left markets doubting whether or not it will possibly preserve its export effort. Ukraine’s navy has suspended industrial delivery at its ports, threatening grain and oilseed exports.

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