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Logistics newest information from Asia weekly.

03 Aug 2022

By Nick Lung.     Photo:Screeny 42

Freight forwarder Dimerco said the city's daily cross-border truck traffic has been reduced from 3,500 to 1,500 due to the outbreak in Shenzhen and other places. The restrictions began on July 25 and reduced truck capacity to around 10-20% of normal levels. In addition, stricter testing policies have been put in place. Truck drivers must show proof of a negative test result within 24 hours from July 24 to July 31, compared to the previous 48 hours; Dimerco said. Due to truck restrictions, Dimerco expects a surge in demand for marine feeder services that transport cargo to Hong Kong. Flexport also warned of delays for Shenzhen shipments via Hong Kong. Shenzhen-Hong Kong cross-border business has also been affected due to the surge in Covid cases and subsequent quota reduction of at least 50%, it said. Goods that need to be trucked to Hong Kong take longer to travel. Changsha opens first international freight route to Africa On July 26, under the supervision of Changsha Customs, the first cargo plane from Changsha to Addis Ababa took off from Changsha Huanghua International Airport. This is the first international cargo route to Africa opened in Hunan Province, and it is currently planned to fly twice a week. The cargo plane carried 95 tons of export goods, mainly clothing, mobile phone cases, shoes, backpacks, etc.

 

The opening of the Changsha-Addis Ababa cargo route further enriched the international route network of Changsha Huanghua Airport and built a convenient air bridge between Hunan and Africa. In order to support the smooth maiden voyage of this route, Changsha Customs understands the airline's needs in advance, provides policy guidance and information, helps them quickly complete the relevant filing and declaration work, and formulates corresponding supervision plans to ensure the efficient customs clearance of export goods.This year, Changsha Customs has fully supported the restoration and new international cargo routes of Changsha Airport. Up to now, 6 international cargo routes to Osaka, Manila and Bangkok have been restored and added. At the same time, actively promote the reform of regional and port linkage, realize the free flow of customs-supervised goods across venues and regions, and sharing resources and facilities; between venues, effectively improving the airport's air cargo support capabilities.

 

The below is the feedback from China and Southeast Asia branches in week 25,

Shenzhen

SEA: Rates on the U.S. line are still falling, and the congestion in the east coast is getting worse. It takes at least 2-3 weeks to berth. Yantian Terminal still implements ETB-7 days to pick up containers. Due to the unstable shipping schedule and the unstable epidemic situation and other factors, additional costs have become the norm.

Air: Spaces and prices are relatively stable.

 

Hong Kong

Seaport: Due to the epidemic, transportation through the port is still hindered. Currently, there is a limit for vehicles in the two places, which requires ranking, and needs to be unloaded in the warehouse and then connected by vehicles. The cost is high.

Air Freight: At present, the shipments in the market are weak, so the space is abundant and available and not tight.  - CX plans to withdraw planes parked in the deserts of the US, they have cancelled some flights to the US in order to serve the market

 

Shanghai

Seaport: The market fluctuates greatly, but the spaces are full. Only the routes that can be allocated by popular routes are limited.Shanghai current epidemic policies are constantly changing, and the impact on truck transportation is still great. Air Freight: Pickup Fees Stable U.S. prices were flat this week compared to last week. Air China (CA) flight to ORD cancelled this Monday. Air China (CA) to JFK cancelled this Tuesday. This weeks flight delays are more serious. (ATD flies 1 to 3 days later than ETD).

 

Ningbo

The decline in domestic demand in the United States leads to a weak market, and the price of the US line continues to decline The instability of the ship schedule seriously affects the sailing time LCL warehouse entry has returned to normal Truck drivers still need a 24-hour nucleic acid report, green code plus travel code, and some areas need to report or apply for a pass one day in advance.

 

Xiamen

The Xiamen market and price of this week is basically the same as last week. Learned that from the market and trucking company that the market is very weak at present, and many trucking companies say that there is basically no business.

 

Dalian

This week's shipping schedule prices tend to be stable In terms of transportation, truck drivers still need a 48-hour nucleic acid report. In terms of imports, according to the changes in the epidemic prevention and control situation, the protection requirements for the consignees of imported non- refrigerated container goods have been changed: It is mandatory to wear disposable medical surgical masks and above, and it is recommended to wear disposable medical gloves (latex, rubber), and cancel the original requirement of wearing protective clothing. According to the new regulations of the customs, the taxpayer should pay the tax within 15 days from the date of the issuance of the customs payment notice or before the end of the fifth working day of the following month. A late payment fine of 5/10,000 of the overdue tax will be charged on a daily basis.

 

Qingdao

1. The price was slightly lowered in August, and the positions were abundant

2. All vessels have delay around 3-7DAYS recently.

3. Trucks are currently abundant, and drivers need to provide nucleic acid test certificates, health codes, etc.

4. The LCL warehouse is still very congested, and it takes a day to queue up.

5. The overall U.S. cargo volume is reduced, and the South African cargo space is not nervous anymore.”

 

Tianjin

slight decrease in the US West, and the US East capacity was fully loaded and the price remained unchanged.

Air Freight: The volume of goods to the US line has gradually increased this week; the volume of goods on the European line has not changed significantly, and the price has maintained a downward trend. CX and QR launched the intermodal service from Beijing Airport this month. The first trip is to carry CX from PEK to HKG, connecting QR's flight at HKG to DOH and transfer to the final destination.

 

The service areas are as follows:

Import by air: For imported goods at Beijing Capital Airport, enterprises outside Beijing no longer require a reply from the competent industry authority for the record. They only need to write down the contact person and telephone number of the competent authority of the industry in the letter of commitment.

 

Thailand

1.Thai Airways International launch first flight to Saudi Arabia for 32 years in August with 4 direct flight per week to Jeddah on Mondays, Wednesdays, Fridays and Sundays .

2.The Fuel surcharge of ex Thailand by air will be revise effective from August 2022.

 

Vietnam

1. Tân Cảng-Hiệp Phước (TCHP) Port situated in HCM City’s Nhà Bè District has huge potential to become a logistics centre in the south of the city. Saigon Newport Corporation, the port’s operator, said it was investing more into the port, including in 300 hectares of storage space, container terminals and a general port. It is the only port operating container cargo in the south of the city, and is considered the best extension arm for Cát Lái and Cái Mép port clusters in Bà Rịa- Vũng Tàu Province.

 

2. Japan’s Sharp Corporation would build another large-scale project in the southern province of Bình Dương, specialising in smart, high-tech products. Bình Dương now counts 29 concentrated industrial parks, with a combined area of 12,662 hectares.The locality has increased investment in infrastructure, covering transport, water and electricity, to attract more investors.More new business from Binh Duong / Ho chi minh Port can be seen in the near future.

 

3. Falling petrol prices have given cheer to people and businesses and may stimulate consumer demand in the near future.While fuel prices soar, fuel costs in the cost structure account for 35-45 per cent, and many transport enterprises in provinces and cities across the country have not yet increased their freight rates.For freight transport, the survey showed that with the current gasoline price, freight rates should increase by 10-20 per cent depending on the route and type of goods to offset the increase in fuel prices.

 

4. Ocean rate in Aug is stable, space from mother vessel is limited so shipper need to arrange booking 2 weeks in advance:

USWC : 5500 – 7000 USD per 20’-40’

USEC : 8000 -10,000 USD per 20’-40’

 

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