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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: 30 December, 2021

We’re talking about fluctuating rates and ports and factories in China grinding to a halt during the Winter Olympics and CNY, in our latest market update

Macro Update:

Transpacific air freight rates into the US have finally begun to fall as the market softens before the holiday week.

The year has seen some exceptionally high prices, with many reports of airlines “trying to keep rates up”. Rates out of China to Europe increased slightly this week, but are at a lower level than transpacific eastbound. 

The alarming rise in Covid cases in Europe has led to an increased demand of Covid test kits and other pandemic-related equipment, at a time when high prices to North America had encouraged European airlines to divert services there.

Lockdowns in Europe could trigger an increase in consumer spending which might mean rates will remain elevated. The Winter Olympics, hosted by China this year from 4-20 February which also falls during the Chinese new year holiday, means port operations and work in factories may come to a halt. In addition, forwarders expect there will be few charter approvals. Also, China banning the use of cargo in cabins from 1 January, except for Covid equipment,  as previously reported, indicates further limits on capacity.

Items sent to and from the Philippines may be affected by disruptions and delays due to Typhoon Rai, which is causing flooding and mudslides. The local postal service cannot access or deliver to locations such as Visayas and Mindanao.

Post in Malaysia is delayed due to heavy rains and extensive flooding. The postal network has been severely affected and some post offices are closed.

Service Updates:

Australia

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

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: Parcel deliveries to Canada will remain suspended until further notice, although Courier and letter services will continue. 

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: New Zealand post is experiencing delivery delays of one working day in Manawatu. Over the holiday period there will be no deliveries on Christmas Day, Boxing Day, 27th & 28th December, New Year's Day, 3rd & 4th January.

The country’s phased border reopening was delayed again this week to the end of February, in order to “slow Omicron’s spread”.

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: 

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.

Direct injection

B360 has its own Direct Injection network that runs from Sydney to the US, Hong Kong to Europe, Hong Kong to Australia and Hong Kong to the US. These channels are still very reliable, with transit times on average being 4-8 days, we see no changes as per the SLAs at this time.

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

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