The new DACHSER magazine is here!
The economy, logistics, and people all over the world—no matter where you look, we’re all still trying to find our way through very uncertain times. We have yet to tame the coronavirus, as the massive outbreak in the international trade hub of Hong Kong recently made clear. Meanwhile, the world is staring with disbelief at what’s happening in the heart of Europe. The terrible war in Ukraine is causing huge numbers of people to flee their homes.
DACHSER update on the Russia-Ukraine conflict
DACHSER is following the news from Ukraine with great concern and dismay. We are deeply moved by the suffering that the war has brought to the people in the country and to all those who have had to flee their homeland in recent days. The fighting, mutual sanctions and airspace closures are also having a massive impact on supply chains and the supply of goods in the region.
Russia – Ukraine conflict: Impact on DACHSER’s global air & sea freight operations
We would like to inform you about the impact of the Russia – Ukraine conflict on international air freight, sea freight and rail operations. Moreover, we would like to share with you which measures we had to take to safeguard supply chains as much as this is possible.
We are suspending any bookings from or to the Ukraine until further notice. Furthermore, we can no longer accept bookings on our rail services between Asia and Europe. The same booking stop applies to intercontinental trucking between Asia and Europe whenever such shipments would be transiting Russia, Belarus or Ukraine. The reason for these measures is that we can no longer guarantee the safe transit of our customers cargo via the aforementioned countries.
We still accept bookings originating from or destined to Russia and Belarus provided that airlines and shipping lines continue to provide capacities on these routes. We are observing first carriers and airlines suspending their activities related to transportation to/from these countries. Needless to say, that bookings to/from Russia and Belarus have to be fully compliant with the most recent governmental sanctions imposed on these countries.
Besides these specific measures we do expect additional implications on our operations. The conflict region respectively the countries involved in the conflict have great significance in the international oil and energy markets. This is already causing some very dynamic developments of oil prices and therefore oil related surcharges such as BAF and fuel surcharges. We will closely monitor further developments and keep you informed. Furthermore, we are already seeing what could be the onset of a capacity crunch in the airfreight market, as European airlines are banned from Russian airspace and Russian airlines are banned from European airspace.
As of now, it is not foreseeable how long this situation will last or how the situation will develop. We will continue to make every effort to provide solutions for our customers and keep you abreast of future developments to ensure the continuation of your international supply chains.
Our teams worldwide will be in touch with you but please do not hesitate to reach out to your DACHSER contact person to evaluate your particular situation and to discuss further arrangements for your air freight, sea freight & rail shipments.
Statement by Dachser CEO Burkhard Eling on the military conflict in Ukraine
Peace and the free movement of goods are fundamental prerequisites for the positive, free development of all societies. In this spirit, Dachser has grown as an international logistics provider over the past decades. We therefore deeply regret the escalation of the military conflict in Ukraine. Among other things, the conflict will also have a substantial impact on supply chains in Eastern Europe.
Our first priority is the safety of all drivers transporting consignments on behalf of Dachser. We have therefore today imposed an immediate takeover and loading stop for all shipments to Ukraine. This applies to all European transports of our Cargoplus service segment, which specializes in FTL and LTL transports to the CIS countries, among others, as well as to all transports from the European Logistics network that are handled in Ukraine by our partner ACE. Regular traffic from our platform Strykow (Poland) to Kiev will be discontinued. All trucks that are currently still on their way to Ukraine have to be returned in coordination with the customers. We are in close contact with our Ukrainian partner, who has also closed his warehouses.
In air freight, the airspace over Ukraine has been closed in a wide radius. Take-offs and landings are not possible here, so that congestion at the alternative airports is to be feared.
Our European Logistics and Air & Sea Logistics teams are closely monitoring developments in the situation and are in close contact with our customers. This also applies in particular to restrictions on the movement of goods that may arise in the coming days as a result of the sanctions announced against Russia.
- Background - Dachser's activities in Ukraine and Russia.
Dachser does not have its own locations in Ukraine, but works there with its partner ACE Logistics. The Estonian company is also Dachser's partner for the Baltic states and joint venture partner in Finland. The Cargoplus service segment handles additional full truckload services.
In Russia, Dachser has been represented by its own national company since 2008 and provides services in the Road Logistics and Air & Sea Logistics business segments. Around 160 staff are employed at seven locations. In 2020, Dachser Russia handled around 17,000 consignments and generated revenue of EUR 21.6 million.
DACHSER maintains strong position in European Top 100 Ranking
In the new “TOP 100 in European Transport and Logistics Services 2021/2022” study by the Fraunhofer Center for Applied Research on Supply Chain Services (SCS), DACHSER has once again ranked well in its relevant logistics segments.
The new DACHSER magazine is here
“Nothing is more constant than change”—wise words that seem to be everywhere at the moment. As the world turns faster and faster, the pace of innovation and the pressure to change are increasing in logistics as well. In the latest issue of the DACHSER magazine, we report on what our company and our customers are doing to address pressing problems of the future.
Market info update on Brexit: Phase 3 of the UK Border Operating Model
Last year, the British government presented how the import of goods should proceed after the end of the transitional phase of the Brexit. With the so-called "Border Operating Model" guide, a three-stage plan for the introduction of customs controls was concretized.
With the entry into phase 3 of the guideline, the UK customs procedures set in motion as part of the Brexit take another important milestone. DACHSER is continuously adapting to these changes in customs and transport procedures so that goods are transported across the border largely smoothly. From January 01, 2022, border controls will be strengthened. In the future, an electronic export declaration will then be required at the border. In addition, a new IT system for goods movements to and from the UK, the Goods Vehicle Movement Service (GVMS), will be introduced.
The manual EIDR (Entry Declarants Record) procedure, which allows goods to be moved across the border using the trader's EORI number, will no longer be permitted from 01 January 2022. Instead, an electronic Simplified Customs Declaration Process (SCDP) must be followed. The GVMS is already used for transit movements. However, starting January 01, 2022, the customs declaration will be assigned to a Goods Movement Reference (GMR) created in GVMS, automating the border control process. The Automatic Number Plate Recognition (ANPR), in turn, links the customs declaration and GMR, so that vehicles no longer need to stop at the border.
Unless you instruct us otherwise, DACHSER will take care of linking the customs declaration and GMR. If you wish to take care of the customs declaration yourself - either in-house or via an external customs service provider - please inform DACHSER of the customs declaration number for import clearance. DACHSER enters the so-called Import Release Reference (IRR) into GVMS so that the goods can cross the border.
In addition, from 01 January 2022, imports of products of animal origin (POAO) and certain animal by-products (ABP) from the EU into the UK must be pre-notified via the “Import of products, animals, food and feed system” (IPAFFS). These product categories, as well as plants and plant-based products, do not need to be physically inspected until 01 July 2022. Their inspection will be gradually introduced for each product category from 01 July to 01 November 2022. Please refer to the attached document for details. Please inform DACHSER if you would like to use the above additional services for your products. Should you wish to make the customs declaration for POAO, ABP or plant or plant-based products yourself, you are also responsible for the declaration in IPAFFS.
Over the course of 2022, additional changes will gradually come into effect. Of particular note are import safety and security declarations, also known as ENS, beginning July 1, 2022. As implementation approaches, more information will be required on ENS and inspections on POAO, certain ABP, and plant and plant-based products.
This information provided applies to network shipments carried on our groupage service and part and full trailer load movements. In order to be prepared for the new control procedures, the DACHSER network has collectively reviewed its processes and adapted them where necessary. HMRC, the UK's HM Revenue & Customs, has set up a hotline for questions about customs and international trade: Call 0300 322 9434 for help with imports, exports and customs reliefs. The hotline is staffed from 8:00 a.m. to 10:00 p.m. Monday through Friday and from 8:00 a.m. to 4:00 p.m. UK time on weekends.
You can send HMRC your import and export questions at the following link. You will also find a webchat function here.
HMRC has set up a dedicated support service for exporting traders to help them with practical questions about exporting from the UK to Europe:
HMRC's YouTube channel also features other helpful videos and webinars on customs procedures.
Information security at DACHSER
Insufficiently protected information represents a considerable risk factor, even one that threatens the company's existence, as it provides a target for the increasingly frequent cyberattacks. In logistics, which is particularly dependent on functioning IT at many points, reliable and secure supply chains are currently more important than ever. Protecting and trusting your data is therefore a top priority for DACHSER.
From Poland to Haifa – Steel colossus for the Mediterranean
The new container bridges for the Port of Haifa made their way from Poland through Hamburg and on to the Mediterranean Sea. DACHSER Air & Sea Logistics took on the job of transporting these disassembled ship-to-shore container bridges, consolidating various parts from suppliers all over Europe—a project of epic proportions.
The new DACHSER magazine is here!
It’s not often that logistics topics feature as prominently in the daily and business press as they have over the past few months. The global economy is recovering from the shock of the pandemic and in many places production is once again running at full speed. However, articles about the shortfall in raw materials and products, too few containers and pallets, the driver shortage, and a lack of storage space on overland, sea, and air transports are putting a damper on this revival.
Sea Freight: Current situation in the USA
The existing bottlenecks in the US ocean freight market, which are lasting for quite some months already, will continue for a longer period. We would like to give you an overview of the current situation.
Port and rail congestion
Already for months, the USA is experiencing historical congestions in sea freight business. The reason for this ongoing situation is well known: COVID-19 impacts and a high volume demand creating bottlenecks at all major ports and terminals throughout the country. Port and rail operators are operating with reduced staff, which delays loading and unloading of vessels, increases dwell time and slows down transportation processes to the terminals. Ocean Carriers are also overwhelmed with the situation and struggle to provide the needed service and timely response. Ocean vessels are having several days of delay and we experience port omissions on a regular basis. Schedule integrity remains almost non-existent.
US trucking situation
Trucking companies suffered heavily at the beginning of COVID-19 and were forced to let go many of their drivers due to the drop of volume and demand. Then, the boom of freight and demand hit the US market and at this point, not enough drivers were available. The driver situation improved over the last months but the current trucking fleet does still not cover the strong demand. Truckers are overbooked for the next 3-5 weeks. To accelerate the pick-ups and deliveries, LTL and FTL can be an option to arrange transloads into/from containers at designated warehouses.
Chassis in the US
It becomes a great challenge that almost all containers are stuck somewhere on chassis, waiting for transport. That leads to the problem that empty chassis are hardly available to arrange a pick up. Chassis are fully used and become a rare commodity in the US.
US inbound freight
The ports and rail terminals infrastructure in the US is simply overwhelmed by the current import volume. Inbound containers are parked on certain spots to make room for the new vessel / train loadings. In many cases, these "parking lots" are completely overstocked and containers are buried and not available for immediate hand over. In order to arrange a pick-up, the terminal provides appointments to truckers ONLY once the container is available and customs released - which can take days and even weeks in many cases.
US outbound freight
The main challenge is to find the desperately needed container equipment as well as the chassis for the transport. Ports and rail terminals are also full of export containers and the stations are not simply accepting export loads that easily. The situation is tight and almost every shipment is experiencing severe delays.
We estimate that the situation in the US will not improve this year. Even 2022 will continue to be challenging but the team of DACHSER is aiming to provide our clients a good service and solutions despite the challenging times in the USA.
High Priority Cargo
Currently, it is possible to achieve better transit times and shorter turnaround times at the US terminals by using LCL services for prioritized shipments instead of FCL services. DACHSER operates regular premium LCL services on both ex-Asia and Europe trade lanes. Transit times ex China, for example, are even shortened from overall 28 to 18 days. And further, new pipeline services including Atlanta and Los Angeles aim to reduce booking windows immensely. The continuing tight situation in the US ocean freight market will also require that desperately needed freight will have to be loaded more often by air. DACHSER offers regular premium capacity with its own Air Network, for example with weekly connections on the Frankfurt - Chicago route in both directions and the option of connecting to other US airports.
We are in close contact with carriers and service providers on a daily basis and do our best to make your supply chain as smooth as possible. For individual advice, please contact your local representative of DACHSER so that we can implement the best logistics solution for you.
The new DACHSER magazine is here!
One of the key phrases of the last few months at DACHSER was “Keeping the good and shaping agility.” This is also the title of the interview with Burkhard Eling in the latest DACHSER magazine, in which DACHSER’s new CEO explains what these words mean to him.
Sea freight: update on the global situation
Due to the ongoing disruption of the sea freight market, the after-effects (container shortages and frequent port congestion) continue to impact global supply chains. Below, we provide an update on all developments to minimize potential disruptions to your business.
DACHSER Thailand presented speech at GTCC webinar
During the webinar "The logistics market during COVID-19: a forecast for challenges and solutions" organised by the German-Thai Chamber of Commerce (GTCC), representatives from DACHSER Thailand shared insights about the change in the global logistics market under the effect of the pandemic, and gave advice on how shippers can adapt to the new market environment.
Operational disruptions at the port of Hamburg cause backlogs
With this update, DACHSER would like to inform you that port operations in Hamburg are currently affected in their flow due to various factors.
The current situation of congestion in the northern and western ports has become even more acute in Hamburg. The deployment of the explosive ordnance disposal service twice to defuse World War II bombs in construction areas, together with a demonstration by climate activists which led to the temporary closure of an important access road last week, are causing disruptions in handling operations.
Please note that this is causing significant delays at all operational interfaces in the port of Hamburg area and has created a backlog that will continue for some time.
For detailed information on possible impacts on your current shipments, please contact your local DACHSER representative.
COVID-19 update: Impact on DACHSER’s operations in India
Due to the outbreak of second wave of Coronavirus, we would like to give you an update about the impact on DACHSER’s operations in India. The situation as of today, April 28, 2021, is as follow:
DACHSER branches in India
- Most branch offices across India are being kept closed as a precautionary measure due to the sudden rise of COVID cases. Our teams are working from home, with only skeletal staff at the offices and hence there are likely to be delays in responses due to the ongoing crisis.
- As a consequence of the lockdown, there are some operational impacts for air, sea, customs clearance and domestic trucking.
- Most countries have barred passenger traffic from India leading to no passenger carrying flights operating on International routes from/to India.
- This has created some additional constraint on already stressed space availability situation.
- Rates are bound to inch upwards for all sectors.
- Transit times too have increased as a consequence of capacity crunch.
- Sea freight was already facing the challenges due to the Suez Canal blockage end of March.
- Ports and terminals are functioning normally, but vessel schedules are impacted on account of the Suez Canal blockage as well as the sudden rise of COVID cases in India.
- Delays, roll overs are expected. Customers are advised to factor in delays of 1-2 weeks while planning their inventories.
- Expect more delays in communication or operations due to increasing COVID infections among staff at ports, customs, CFS and shipping lines.
- We do not have any unexpected disruptions in cargo movement in India, nor is any work stoppage expected at present.
- Customs clearance activities are functional at the movement.
- Customs is working with less manpower, no Customs Brokers are allowed to meet the customs officials, all processes is done faceless and things are moving in slow phase.
At DACHSER, we have undertaken significant measures to ensure our employees’ health and safety, at the same time continue to manage our day-to-day operations with minimal impact to our customers’ supply chains. Our teams are working diligently by all possible means in these testing times to assist and to overcome the challenges being faced.
Please rest assured that we will keep you updated of any changes to the current situation. hould you have any concerns and/or queries, please feel free to contact your local DACHSER representative in the region.