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Logistics newest information from Asia weekly.

01 Feb 2023

By Benny Lim

The Indian government and industry stakeholders are increasingly focusing on supply chain efficiency, and customs authorities at Nhava Sheva Port in India are taking proactive steps to speed up the flow of goods.

The latest measures allow exporters to obtain a "License to Export" (LEO) permit without presenting the usual complicated Form-13 documents when driving laden trucks into a parking area notified by port customs.

Form-13 verification often delays the movement of trucks, which in turn creates port congestion. Customs said the LEO permit would only be required when trucks left their parking spaces, including coolers, hoping the measure would simplify transport.

This practice aims to ensure that containers can be transported directly to the port terminal after leaving the centralized parking area. Export container/trailer shipments should be planned by the exporter to arrive at the port closest to the ship's likely outage date, with some extra time to avoid last minute congestion.

Pre-submission of Form-13 through an integrated online system, including vehicle and driver details, container number, seal details and route, is a prerequisite for previous cargo clearance into LEO. Truck drivers who are found to have mismatched information often must face delays at entry, preventing shipments from moving at the terminal.

The change comes amid complaints from shippers that the process of moving fully loaded containers to obtain customs permits has caused delays and incurred additional costs.

 

The below is the feedback from China and Southeast Asia branches.

Shenzhen

Sea Freight:

Due to the warehouse explosion before the Spring Festival, there was a traffic of trailers and bulk warehouses, and it was difficult to make an appointment to return the containers and deliver the warehouses in time. Therefore, many containers missed the deadline and could not catch up with the ship.

At the same time, the shipping company has a lot of blank sailing due to the Spring Festival holiday, so the goods that did not catch up with the ship and the warehouse dumped will be directly delayed for two weeks.

 

Ningbo

The price of the US line is stable. For the Chinese New Year holiday, some shipping companies have extended the benefits of free containers use. Vessels have been cancelled during the holiday.

The Beilun port area, fleets, warehouses, etc. basically take turns to work to ensure normal operation. However, due to fewer workers, efficiency has decreased.

This week, the factory has basically started to have a holiday, and most of them will not start to work until after the eighth day of the Lunar New Year

 

Shanghai:

Air Freight: This week's US freight rate has risen compared with last week.

The price of ET going to Africa this week remains unchanged. But positions are very tight.

Most factories have been on holiday this week and cannot pick up the goods.

Sea Freight:

The price of the US line tends to be stable. As the shipping company reduces the number of liner voyages, YML positions need to be booked in advance.

And accompanied by subject to roll.

As the Spring Festival is approaching, manufacturers in Jiangsu, Zhejiang and Shanghai will have early holidays and generally only work until 1/14. It is hard to find a truck.

 

Tianjin:

Sea Freight:

The shipping rate is relatively stable, and the space is slightly tense before the festival. The goods will be scheduled to ship out after holiday if the space are currently full capacity.

With the unblocking of the epidemic, many drivers from other places went home early to celebrate the New Year, resulting in fewer cars before the festival, and the freight rate of truck fleets has skyrocketed this year.

The storage yard also encountered the same situation. Although the packing fee did not increase, the phenomenon of truck crushing was serious. All the goods that needed to be handled at the port during the festival were not guaranteed to be completed on time, and all additional costs incurred had nothing to do with the storage yard.

 

Vietnam :

Exporters face the pressure of a "carbon tax."

Recently, European Union (EU) member states announced that they will implement the Carbon Border Adjustment Mechanism (CBAM). Accordingly, a carbon tax will be imposed on all goods exported to this market based on the intensity of greenhouse gas emissions in the production process in the host country...

The EU said the CBAM would initially apply to imports with a high risk of contamination such as steel, cement, fertilizers, aluminum, electricity, and hydrogen. These are sectoring that account for 94% of EU industrial emissions.

Importers will have to report emissions contained in imported goods, if these emissions exceed EU standards, they will have to buy "emissions certificates" at current carbon prices in the EU. It is expected that 27 EU member states will start piloting CBAM from October 2023.

 

Thailand:

Air freight:

After Thailand opens the country and other country start open, the most of carrier will operating regular flight from/to Thailand. Thai Smile Airways (WE) will be operating REGULAR FLIGHTS to RGN, PEN, SGN, VTE, PNH, HAN, REP and KHH since 1st Feb 2023. And Air Canada’s are operated non-stop flight from Vancouver to Bangkok. Royal Bhutan Airlines operated Mon to Sat flight from Bangkok to Bhutan.  For update fuel surcharge, the carrier revise fuel surcharge again on 23 Jan 2023. 

 

Ocean Freight:

 

The schedule from Thailand to USA delay for a week due to the congestion at China transshipment and effect  case effect with the Thailand - USA route and also import shipment to Thailand also delay.

 

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.

 

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