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.
Current situation on Suez Canal
As already reported in the media, the container ship “Ever Given” has been freed over the last hours on the Suez Canal.
The new DACHSER magazine is here!
The baton has been passed: the next generation of DACHSER management, led by CEO Burkhard Eling, officially took the helm on January 1 of this year. In the latest issue of the DACHSER magazine, we’ve taken a moment to reflect on this transition at the top.
A crane for Southeast Asia
DACHSER Air & Sea Logistics aided efforts to repair a crane in Indonesia by organizing the tour of a steel jib from Düsseldorf to Jakarta. Measuring 23 meters in length and 3.6 meters in width, the jib spent most of its 55-day trip on board a ship.
Consequences of adverse weather conditions in Spain
Storm Filomena has affected Spain in recent days and especially the Community of Madrid, we would like to give you some information about the restrictions on logistics.
- Difficulties in distribution activities throughout the week, mainly throughout Madrid
- Restrictions on access to industrial estates due to accumulation of snow and vehicles
- Difficulties in collections, deliveries and shipments to other delegations. Journeys to and from Madrid may suffer significant delays
- Traffic restrictions for heavy vehicles (partially open on some roads)
- Temporary reduction of long-distance routes between delegations
- MAD airport starts operating slowly but suffers long delays due to cancelled flights
- Handling personnel are severely restricted and therefore air cargo operations start to run very slowly
- Customs operations are giving priority to express shipments
- Road access to and from Madrid suffer significant restrictions
During this week, the alert is still active due to very low temperatures (in some places below -10ºC), so please expect strong restrictions and incidents in all transport and distribution services.
If you have questions, please feel free to speak to your DACHSER representative. We hope that the situation will normalize as soon as possible, and we will keep you informed.
The new DACHSER magazine is here!
As the year draws to a close, many of us use this time to look back and reflect, but also to prepare ourselves for the new challenges of the future. And that’s exactly what we’ve done in the latest issue of the DACHSER magazine.
Latest update on DACHSER Air & Sea Logistics operations
With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.
For a sustainable society: More and more NGOs are taking action around the world
In the course of globalization, internationally networked non-governmental organizations or NGOs are playing an increasingly important role. DACHSER’s partnership with children’s aid organization terre des hommes demonstrates how a company can support an NGO over the long term.
The new DACHSER magazine is here!
Getting through the crisis together – How DACHSER is forging even closer ties to its customers and partners.
Short update on the general situation in the transport sector
In the second half of the year, the corona pandemic is still the predominant topic in the media. While at the beginning of the pandemic new findings on Covid-19 were being announced almost daily and many updates were also published by DACHSER on loading restrictions in Europe as well as in America and APAC, something like a "new normality" has now returned.
At the moment, there are no longer any universal country or customer restrictions. We would therefore like to ask our customers to clarify individual restrictions such as closures, changed opening hours etc. with the recipients of the goods themselves. We are closely monitoring the further course of the corona pandemic and will keep you informed immediately of any developments. Should new loading restrictions be imposed, these will be published again via our website.
If you have any questions on this subject, please contact your local contact person at the respective DACHSER branch.
King Willem-Alexander visits DACHSER in Waddinxveen
Willem-Alexander, King of the Netherlands, visited DACHSER in Waddinxveen on July 1. During a tour of the branch and subsequent discussion sessions, he was thoroughly briefed on the topic of education and training in companies and how to ensure that it continues, especially in times of crisis.