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Global Logistics Market Update

Keeping you up to date and informed on the global landscape of the logistics industry

Global Logistics Market Update: 20 December, 2021

Prices and demand are set to remain high in the new year and mass destruction caused by Tornadoes in Kentucky, Illinois, Missouri, Arkansas and Tennessee are on our radar this week.

Macro Update:

Freight forwarders aren’t expecting cargo demand or prices to go down in the new year.  Even the Chinese New Year (CNY) holiday, from 31 January to 6 February, could stay busy, according to one Shanghai-based forwarder. “Due to the Beijing Olympics, there is a strict quarantine regulation and, I guess, it’s most likely that the government will again encourage people to reduce unnecessary travelling during CNY. That means some factories will still produce goods, so we might not expect a very quiet moment, like previous CNYs.”

Similarly, a sea-air specialist in Dubai said the market was robust, adding: “The peak season is continuing and this is unexpected. We are seeing a lot of sea-air shipments moving to the EU, during and after Christmas and new year. There is no break and we suspect this will continue until June.”

Strong tornadoes and storms hit several states in the USA last weekend, causing mass destruction. As a result of this, please expect delivery delays in states such as Kentucky, Illinois, Missouri, Arkansas and Tennessee. We are continuing to monitor the situation and will update as we have further information.

Service Updates:

Australia

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: A slight delay of 3-5 days.

Shipping services: Deliveries are experiencing extended delays in Adelaide, Geelong, Melbourne and Perth. You can read more about domestic delivery times across Australia’s regions here

Australia Post: Following a brief suspension, International air services to Malaysia, Pakistan, Philippines and Sri Lanka will resume on Friday 17 December 2021. Additionally, the suspended service to China and India will resume on Friday 24 December 2021. Parcel deliveries to Canada will remain suspended until further notice, although Courier and letter services will continue. 

Christmas delivery: Australia Post has posted their Christmas delivery cut off days which can be seen here. For WA and NT, the date is December 8 for parcel post and 15 December for Express services. For all other states the cut off is 13 December for parcel post, and 20th December for their Express services.

Direct injection International services at this time: No delays

International to postal providers: Australia Post is still experiencing delays internationally due to limited air freight capacity. 

New Zealand: Domestic deliveries within New Zealand with NZ Post are experiencing delays, particularly in Auckland and Hamilton where delays are up to 4 working days in Hamilton and 2 working days in Auckland. Across the rest of the country delivery delays have been reduced to 1 working day.

US

Fulfillment services: Remain unaffected by delays and same day dispatch is being met as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

Shipping services: We are seeing slight delays with Ground services in the USA. Average wait times of 3-5 days. 

Please be advised that tornadoes and storms have hit several states in the USA. As a result of this, please expect delivery delays in states such as Kentucky, Illinois, Missouri, Arkansas and Tennessee. We are continuing to monitor the situation and will update as we have further information.

UK

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

Yodel and Royal Mail services:  No disruptions or delays

Royal Mail: There will be no mail collected or delivered on the 1st of January 2022. Ofcom has granted an exception to the universal service throughout the United Kingdom.

International from the UK: We are seeing slight delays for DDU, not DDP deliveries, where there is an IOSS number. Average delivery times of 5-8 day are now taking 8-11 days. We encourage all customers to have their IOSS number as this helps with improving the clearance process to deliver into the EU.

Christmas delivery: Royal mail has released their Christmas delivery cut off dates which can be viewed here. For UK inland economy deliveries, the cut off date is 17th December, rising to the 22nd for tracked deliveries. Western Europe delivery cut offs are as early as November 29th.

EU

As COVID-19 cases surge in the region, continued lockdowns and imposed restrictions could impact deliveries. 

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

Canada

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

Vancouver, Canada continues to experience disruption to its mail services. The port has not been directly affected by flooding, but rail shipping has been suspended, and the highways that act as arteries to Canada’s interior have been closed. The extent of the damage is still being assessed and could take months to resolve.

PSS

As we are currently within the Peak Season, surcharges are in effect. However to ease financial burdens on our customers, we pass on all surcharges at cost.

You can read more about current surcharges in place on our Helpsite here.

Freight Forwarding Update:

Sea freight - Asia to north America

We’ve seen a slight drop in pricing for LCL and FCL. Hopefully this will continue to improve in Q4, however rates are still elevated. 

Space: We continue to experience space issues with most carriers

Booking: We recommend booking well and truly in advance (5-6 weeks), we cannot guarantee that the space will always be available.

Sea Freight - Asia- Europe

Rates are still at record highs, although they have gone down slightly. 

Space: Continues to be a concern

Booking: We recommend booking well and truly in advance (5-6 weeks).

Sea Freight - Asia - Australia

Pricing is still relatively elevated.

Space: Continues to be a concern

Booking: We recommend booking in advance (4-5 weeks).

Air freight

There is limited space availability and freight may be moved off and put on other later flights, in the run up to peak season. We are seeing issues with carrier reliability and capacity at the moment, meaning we cannot always guarantee services at this time.

To learn more about any of our updates or to make carrier changes, please reach out to us today.

Wishing you all a wonderful festive season!

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