Dear Valued Customer,
In the last few weeks, the Covid-19 cases globally have increased tremendously, leading to severe disruption of supply chains. Please read below for the latest regarding impact on logistics:
Similar situation with last week on the export demand that air export demand (masks / medical supplies) ex SHA continues to be extremely strong whereas it is relatively stable ex South China, Hong Kong and Taiwan. There is new regulation from the China Customs imposed on 10Apr that the customs would carry out export commodity inspection for medical products (as per attached) in order to strengthen the quality control over the medical products to be exported. We would closely communicate with overseas and shippers on the changing regulations for the medical products. Please find below the current rate indications for your reference:
As previously stated, the rates for mask shipments are rmb5-10/kg higher than normal cargo. Due to heavy backlog to EU with the reduced capacity, there would be longer transit time of 5-7days and we would try to put priority with our regular customers. New businesses and spot shipments would be subject to market rates and space confirmation. Please contact the respective offices on the space and rate situation as the market keeps changing every day. We would monitor closely on the market development if there are substantial changes on the rates and space.
Plummeting fuel costs is expected to trigger the cancellation of carrier low-sulphur surcharges as well as significant reductions in standard bunker surcharges. This week, CMA CGM announced it was cancelling its low-sulphur surcharge, while Maersk acknowledged that its Environmental Fuel Fee (EFF) would be zero from 1 May (Source: theloadstar.com) Ocean carrier fleet expansion is on hold as the liner industry fights for survival amid Covid-19 lockdowns around the world. Carriers will likely seek to invoke delay clauses in their contracts with shipyards, pushing back delivery for a year or more (Source: theloadstar.com)
As consumer demand in Europe and North America drops significantly, plus the widespread of social lockdowns, for the shipments en-route to the destinations may encounter problems of high warehousing storage costs at destination, demurrage, port congestion. In response, MSC has introduced a suspension of transit (SOT) programme to help shippers and their freight service providers prevent container exports out of Asia building up at ports, by offering terminal yard storage capacity. CMA has the similar approach which is called DIT (Delay In Transit). Here attached the details of these program (Source: msc.com & cma-cgm.com)
RATE DEVELOPMENT/ UPDATE PER TRADE:
FEWB (Far East Westbound)
TPEB (Transpacific Eastbound)
Rhenus Logistics China Ltd.
Zhonghuan Modern Building
No. 468 Xinhui Road, Putuo District
Fon + 86 21 6330 8590
Fax + 86 21 6330 8525