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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 May, 2022

UK ports now charging “customs clearance fees”, DPEX in Hong Kong begins a 33.25% fuel surcharge and COVID-19 restrictions continue to affect services in Shanghai, Beijing and Hong Kong.

Macro Update:

UK ports have begun charging “customs clearance fees” ' in what has been claimed is an effort to recoup lost investment in border control posts due to delays to phytosanitary procedures. Ports in London, Southampton, Teesport and Tilbury are levying the new fees, ranging from £17-£25 ($21-$31) per entry. Sources suggest the percentage of shipments undergoing customs examinations is less than 1%, despite the fee being levied. One source claims “not a single examination in the whole of 2021”. 

Despite anger at the level of the charges, there seems to be unanimity that ports are due recompense, after the government announced at the end of April it would be scrapping implementation of phytosanitary controls in July.

DPEX in Hong Kong is levying a 33.25% fuel surcharge, this will affect our operations in Hong Kong. Read more here.

Our US warehouses are closed today for Memorial Day. From Thursday 2nd of June until Monday 6th June, UK warehouses are closed for the Queen's Jubilee.

Shifting COVID-19 restrictions continue to affect services in Shanghai, Beijing and Hong Kong. Read more detail in our Asia section below.

Service Updates:

Australia & New Zealand

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

Direct injection International services at this time: No delays

Australia Post: Due to rail service delays into Western Australia, customers may experience delivery delays of 1 to 2 days.

Aramex: Services are affected in Perth, Melbourne and Wollongong. Read more about Aramex disruptions here.

New Zealand Post: 

Mail item delays:

Due to precautionary maintenance on some of their electric mail buggies, delays of up to 3 days are expected for mail items across the country. These delays only impact mail delivered through their Paxster fleet – not Courier or Rural items. As their posties continue to deliver mail with a reduced fleet and through other means of transport, there is a small backlog forming. This will clear once the Paxters are back up and running.

Parcel item delays

In the North Island, we are experiencing delays of up to 2 days for parcel delivery in Palmerston North. In the South Island, we are experiencing delays of up to 2 days for parcel delivery in Christchurch, Dunedin, Invercargill and the West Coast.

Asia

Shanghai

  • Shanghai reopened a small part of the world’s longest subway system on Sunday after some lines had been closed for almost 2 months, as the city paves the way for a more complete lifting of its painful Covid-19 lockdown this week.
  • The city of 25 million expects to lift its city-wide lockdown and return to more normal life from June 1. Most restrictions on movement will remain in place this month. 

 

Beijing

  • Lockdown in the Haidian district along with Chaoyang, Fengtai, Shunyi, and Fangshan districts.
  • The residents across five districts in Beijing were asked to work from home until May 28.

  

Hong Kong

  • Several major European airlines have warned that they will not be able to add  more flights to Hong Kong if the city’s Covid-19 restrictions remain while the rest of the world opens up rapidly following the decline of the pandemic. 

 

FedEx: Pickups for previously paused International Priority Freight (IPF) and International Economy Freight (IEF) will resume Monday, May 30th, except in the U.S., where pickups will resume May 31st due to the Memorial Day holiday. All TNT Services continue to be suspended until further notice.

US

Our US warehouses are closed today for Memorial Day. Operations will resume tomorrow.

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: Operational and as per SLAs.

Canada

Please be advised that strong wind storms have hit the Ontario and Quebec provinces of Canada, which has led to power outages and disruptions around these areas. As a result of this, please expect delivery delays to the above regions.

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

UK

From Thursday 2nd of June until Monday 6th June, UK warehouses are closed for the Queen's Jubilee, in observance of the public holiday.

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

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

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: Hellenic Post have updated that they are currently experiencing an IT system issue. The post are working to resolve this issue as soon as possible, however items destined for Greece may experience delays until this has been fixed. 

Fulfillment services: Operational and as per SLAs.

Inbound Receiving services: Operational and as per SLAs.

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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