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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: 18 April, 2022

Service delays expected following Easter Public Holidays, 45 Chinese cities locked down due to COVID-19 restrictions and extreme flooding in Durban and Australia impact services.

Macro Update:

Flooding and extreme weather conditions across New South Wales and Queensland continue to affect our ability to transport mail and parcels in both states. Read more in our Australia section below.

Access roads to South Africa’s largest container port, Durban, remain impassable following massive flooding in the province of KwaZula-Natal, with the death toll now exceeding 400. A massive recovery operation is underway, amid calls for a state of disaster to be declared. It could be weeks before the flow of exports and imports resumes at Durban.

Forty-five Chinese cities have implemented full or partial lockdowns this week. Restrictions have hit the industrial city of Kunshan and the logistics and manufacturing hub Guangzhou, and one district in the port city of Shenzhen is under a new lockdown.

The lockdown in Shanghai has impacted South China shipping schedules by delaying vessel arrivals at Hong Kong and Yantian. Read more about Covid restrictions affecting services below in our Asia section below.

Amazon will implement a 5% fuel and inflation surcharge on its fulfillment services for third-party sellers beginning April 28, the company announced Wednesday. The surcharge, a first for Fulfillment by Amazon, comes after Amazon hiked fees in January to help offset higher operating costs. The e-commerce giant is among companies passing on added costs in an inflationary environment — FedEx and UPS' fuel surcharges remain elevated since the start of the year.

Service Updates:

Australia & New Zealand

Flooding and extreme weather conditions across NSW and Queensland are causing delivery delays for items coming in and out of these regions. Local deliveries in flood-affected areas continue to be impacted. 

Fulfillment services: Operational and as per SLAs.

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

Direct injection International services at this time: No delays

Australia Post: Local deliveries in flood-affected areas continue to be impacted. Read about Australia Post disruptions here.

Aramex: Services are affected across the country. Read more about Aramex disruptions here.

New Zealand Post: We are experiencing delivery delays of up to 3 days in Wellington, Waikato, Hawkes Bay and Palmerston North, and up to a day for parcels being sent across the rest of the country.

New Zealand post services will be suspended over the Easter and Southland Anniversary public holidays. You can read about the suspensions here.

Asia

Current measures taken to try and contain the recent Covid-19 outbreak in China are causing significant disruptions, extending from logistics and production all the way along the supply chain within China. Shenzhen and Hong Kong have been battling their own on-and-off Covid testing and restrictions for months, disrupting normal manufacturing and trade levels.

FedEx:

Due to the COVID-19 lockdown in Shanghai, China, and impacted operations at Shanghai Pudong International (PVG) Airport, all inbound services into Shanghai, Jiangsu, Zhejiang, Anhui, and Jiangxi are temporarily suspended. All shipments destined to these impacted areas that are currently in transit via the FedEx network, including those collected as of April 8, 2022, will be held at origin.

US

Winter Storm Silas has created hazardous operating conditions across North Dakota. The state is implementing contingency plans to minimize delays and provide the best service possible, but delays are expected.

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. 

Canada

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

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: Suspended services throughout the Easter period, expect delays as the mail provider catches up following the break.

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

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

FedEx: Due to internal and external events, FedEx is currently experiencing service disruptions, which could result in temporary delays to services in Europe. You can read more about which services are affected here.

Greece:

Due to IT issues/customs system issues, Hellenic Post is unable to process items requiring customs clearance (items from outside the EU). We are continuing to work closely with Hellenic Post to resolve this issue as soon as possible. We will provide an update as soon as this is available. Please ensure you’re providing complete and accurate electronic customs data and customs documentation (CN22/23).

Freight Forwarding Update:

Sea freight - Asia to north America

We’ve seen a slight drop in pricing for LCL and FCL, 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

COVID-19 and Russia’s invasion of Ukraine continues to impact services and limit capacities globally.

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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