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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: 06 June, 2022

Lockdown in Shanghai finally ends, Hong Kong ramps up air freight capacity as restrictions ease and across the UK thousands of postal workers go on strike.

Macro Update:

Lockdown in Shanghai has ended, however, residents must have a negative 72-hour Covid test to access offices, public places and transport. In addition, manufacturers can now operate without special permits or being hampered by closed-loop conditions. However, given the extended disruption, it could take weeks, if not months, to come back to anything considered normal for the industrial output and shipping container volumes.

With more Covid restrictions easing in Hong Kong, Cathay Pacific is ramping-up its freighter flights and focusing on sea-air cargo. Last week, the city government relaxed some testing requirements for inbound passengers, providing a glimmer of hope for tourism and increased belly capacity for air cargo.

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

Across the UK, thousands of postal staff are striking in an ongoing fight for a pay rise. Members of the Communication Workers Union (CWU) walked out on Saturday and will continue to strike until Monday, resuming services on Tuesday. The strike will affect Crown post offices – 114 across the country. Post Office bosses refused to award any pay rise at all for 2021/22 and have put forward what the union describes as a “derisory” proposal for 2022/23 consisting of a 2.5 per cent wage increase and a £500 lump sum.

Our UK operations remained closed Thursday and Friday last week in observance of the Queen’s Platinum Jubilee, some backlogs may occur in processing orders on Monday.

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: Items sent to South Africa between 29 May and 10 June may be delayed by up to 10 days due to local processing delays on arrival.

Aramex: Services are affected in Perth, Melbourne and Wollongong due to widespread leabour shortages. 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

  • Life in Shanghai largely returned to normal last week when the lockdown was officially lifted 
  • All forms of public transportation have resumed operations. 
  • Many venues in the city now require visitors to show proof of a negative COVID-19 test within 72 hours prior to entry.

 

Beijing

  • Two of the districts will end work-from-home rules, while public transportation will largely resume in three districts including Chaoyang, the city’s largest.

  

Hong Kong

  • Travelers still need a COVID-19 test within 48 hours of the scheduled departure of their flight to Hong Kong
  •  

 

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

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

Our UK operations remained closed Thursday and Friday last week in observance of the Queen’s Platinum Jubilee, some backlogs may occur in processing orders on Monday.

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.



Global surcharges: Price excludes all surcharges (including fuel) which will be charged out at cost.

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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