By Ashley Kao     photo：Anna Shvets

The variant of Covid-19, Omicron attacked, there are more empty containers situations, and the freight rates rise again.

Due to the global supply chain crisis, Collapsible containers are also come out, and it will be launched soon in the route of Shanghai – Chicago. It reduces the need for storage of empty containers, the container size is only one-fifth of the ordinary container, it provides high flexibility, convenience, economic benefits. However, due to the complexity of the design, it costs twice expensive than general containers. Besides, China Shanghai port is expected to exceed last year’s volume, hitting a high record, as the world’s largest trading port.

The freight rate increases 10 times! Vietnam export companies have been under severely impacted by the high rates. The reasons caused high freight rates because of lacking vessels, lacking warehouses, which caused many agricultural and food export companies to come to a standstill. The main reason is lacking empty containers, the situation has been over one year, and it’s getting worse.

Feedbacks from China and Southeast Asia branches,

Shenzhen

Seaports: To avoid the port congestion, the port still restricts for the export laden container gate-in will be accepted only 7 days prior to vessel ETA, and only after the terminal confirms the advance reservation. Due to many blank sailings, which caused the tight space issue, and the freight rate increased.

Airports: There are currently no flights from Shenzhen, Guangzhou, Hong Kong to South Africa.

Hong Kong

Seaports: The operations are normal in Hongkong. You can make an appointment for picking up the container in advance. No special restrictions on returning the containers. COSCO spaces is tighter than others.

Airport: There is no sign of resuming air service between HKG and South Africa yet. Air space is critical out of HKG to worldwide. Air freight rate is soaring sky high with frequent adjustments with/without prior notice.

Shanghai

The space is tight, and the freight rate increased. Due to the impacts of Covid-19, Shanghai is a medium risk area. Drivers need to do Covid-19 test before 48 hours if they are going other cities to get cargos. The trucking fee also increased. Besides, from 12/13/2021, Shanghai maritime safety administration will not accept the DG businesses.

Tianjin

Many vessel schedules have been cancelled.

Ningbo

There are still many empty sailing schedules, the freight rates still increased. This week, there’s outbreak of Covid-19 in Zhenhai district of Ningbo and Xiaoshan district of Hangzhou. The areas has been implemented enclosed management. No cars allow to enter unless the emergency needs.

Qingdao

Due to the holidays of Christmas, New year, Chinese lunar year, the spaces are tight, especially for US IPI points. The current situation of vessel delays continuously happened.

Xiamen

Because many vessel schedules have been canceled, the spaces situation are extreme tight.

Vietnam

Seaport: Due to previous delays at Cai Mep terminal /Cat Lai port/HPH ports, departure continuous delays from POL. Shippers/factories need to be updated timely to avoid DEM/DET charge.

Airport: The volume for export increased at the end of the year, which led to congestion at warehouses. Drivers/ shippers are requested to deliver cargos to warehouses NO SOONER than 24 hours before ETD, to avoid waiting time and traffic jam.

Thailand

Thailand export and import increased but the shortage of container have not been resolved and happened since Jan 2021 together with tight space, the freight rate is high. The spaces to Europe and USA fully booking until end of Jan. The delay schedule is still a problem due to port congestion from origin port. For import shipment, the vessel delays around 5 days until 1 month. And for import LCL, the carriers take around 3-5 days for un-stuffing process.

Appreciate if you could share TGL Blog among your friends who are interested in first-hand market information of supply chain and updated economic incidents.