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Freight forwarders said that after a period of relative stability, the “high seas” triggered a new increase in air freight rates.
A freight forwarder called the shipping company “abusive” and its strategy was to send the shipper back to air freight.
“The situation is getting worse. Operators are failing, ignoring customers, providing unacceptable services, and increasing rates every day. At least the air cargo industry is not being abused.”
A Shanghai freight forwarder said that the country’s “Covid” has returned to normal at a rate of “95%”. He claimed that the market has become busier and that “airlines have started to raise interest rates again after two weeks of stagnation.
“I think this is severely affected by the current terrible shipping and rail freight situation. We have seen many seaborne customers switch to air freight, and there will be many large orders coming soon.”
“The transportation company intends to increase the price by US$1,000 per TEU from December and said it cannot confirm the booking.”
He said that rail freight from China to Europe is also struggling. He added: “You only need to fight for a container space.”
A spokesperson for DB Schenker predicted, “The production capacity will continue to be tight throughout December. If … (quantity) is reversed in the air due to very severe ocean conditions, it will become a very heavy Peak.”
A freight forwarder based in Southeast Asia agreed that interest rates were rising and predicted that the “absolute peak” would be the first two to three weeks of December.
He added: “The capacity from Asia to Europe is still limited, coupled with the increase in demand, causing airlines to refuse reservations or require higher rates to pick up goods.”
He said that the scheduled cargo plane operator is full, and many people have a backlog of cargo. But within Asia, charter space for temporary cargo planes is limited.
“They are not operating in the region because airlines have been reserving resources for the former China region where demand and freight rates are higher.”
Southeast Asia freight forwarders explained that maritime aviation is also increasing, but several airlines “cancelled preferential prices without prior notice.” “We expect this will be a temporary issue and will be resolved in late December.”
Shanghai freight forwarder said: “There are many charter flights on the market now, including pure cargo aircraft and passenger and cargo aircraft.” Commercial airlines such as KLM, Qatar and Lufthansa are increasing the number and frequency of flights, although many airlines have already booked.
He said: “There are also many GSA chartered flights, but they represent airlines that we have never heard of.”
As prices begin to rise, many freight forwarders choose to charter ships on a regular basis. Ligentia said it is turning to chartering as the price reaches $6 per kilogram, but it is difficult to find space.
Lee Alderman-Davies, director of global product and development, explained: “You have to wait at least five to seven days for delivery,” he said. In addition to the road and railway routes from China, Ligentia also One or two charters will be issued every week.
“Our prediction is that due to Amazon FBA, technology releases, personal protective equipment, medical supplies, and e-tailers occupy most of the capacity, the peak period will continue. Our goal is to close the capacity gap with the consolidated customer charter by December , Although if the market declines, the charter will become uncompetitive.”
Another British freight forwarder said, “The supply and demand relationship is quite balanced. From booking to delivery, the average stay time is three days.”
The hubs of Heathrow Airport and the Benelux Economic Union are still very crowded and “underperformed and sometimes overwhelmed.” Shanghai is also facing delays in mass shipments.
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Post time: Nov-26-2020