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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: 12 January, 2022

This week we’re talking about how Omicron’s surge across the world is affecting the transport sector in Australia and the US and cancelled flight routes in Hong Kong.

Macro Update:

Post-Brexit border policies could mean intensified pressure for UK importers this week as volumes start to rise following the Christmas break. The new IT system, the Goods Vehicle Movement Service (GVMS), crashed on day one of the first week of new import controls on EU goods, creating extra delays tied to Goods Movement Reference (GMR) production.

The logistics sector in Australia is under increased strain following skyrocketing staff shortages caused by the Omicron variant. Industry sources say the country’s testing rules, in addition to a lack of test kits for transport workers, is at the root of the disruption to supply chains.

Neil Chambers, director of the Container Transport Alliance of Australia (CTAA) said, “container transport operators across Australia have reported to CTAA that they are experiencing between a 5-20% reduction in available staff, including heavy vehicle drivers, warehouse staff, forklift drivers, container unpack crews and administrators, due to Covid infections and isolation requirements. In extreme cases, this rises close to 50% of available labour.”

Hong Kong’s government has banned more international routes in response to an increase in Covid-19 cases. Two week flight bans began on Saturday, affecting all flights from the US, Canada, the UK, France, Australia, the Philippines, Pakistan and India. And, in a separate announcement, the authorities barred flights from South Korea. In less than six weeks, Hong Kong has imposed flight bans on 24 routes. 

The explosive surge of the COVID-19 Omicron variant has caused a temporary shortage of available crew members and operational staff in the US. Additionally, severe winter weather across the country has placed a strain on operations.

Post in Malaysia continues to be delayed due to heavy rains and extensive flooding. 

The postal network has been severely affected and some post offices remain closed. 

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. Byron Bay letter deliveries may be delayed due to a COVID-19 disruption.

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. 

The country’s phased border reopening is delayed until 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. 



Wildfires are causing hazardous conditions in parts of Colorado, leading to delays. Furthermore, winter storms in the western region of the U.S will cause anticipated service delays and disruptions.

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: No disruptions or delays

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.

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.

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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