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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: 20 June, 2022

China's port congestion begins to ease, following COVID-19 relation disruption. The US signs the Ocean Shipping Reform Act (OSRA) 2022 into law and a protest against soaring fuel prices plans to cause mass disruption in Oxford in the UK.

Macro Update:

China’s port congestion is easing as Shanghai’s post-lockdown cargo boom fails to materialize, and the city’s container supply chain recovery seems unaffected by a sudden lurch back to lockdown last weekend.

Meanwhile, airfreight operations at Shanghai Pudong are also reaching near-normal levels of activity. Shanghai International Airport said this week that, among the 34 Chinese and foreign all-cargo airlines operating at Pudong, around 80% were doing so at more than 50%, while nearly half of them were operating at more than 80% capacity.

President Joe Biden signed the Ocean Shipping Reform Act (OSRA) 2022 into law last Thursday. This means the Federal Maritime Commission (FMC) could issue new rules “related to certain fee assessments, prohibited practices”. The National Retail Federation said: “Shippers continue to face significant challenges, including unfair business practices by ocean carriers. Making OSRA federal law helps address long standing systemic supply chain and port disruption issues that existed well before the pandemic by providing the Federal Maritime Commission the additional authority it needs.”

Several importer organizations in the US have joined together to ask the White House to intervene in the talks on contract negotiations between west coast labor and employer groups to ensure a constructive outcome. The International Longshoremen and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), which represent nearly 14,000 port workers at 29 west coast ports, have been discussing terms of a new contract to replace the agreement that expires on 1 July. 

Importers are getting nervous about a possible failure of the talks before the deadline and potential disruption in the aftermath. Previous contract discussions ended in serious disruptions and work stoppages of several weeks after negotiations failed to deliver agreements. We will be watching the situation closely, and will keep clients informed should any disruption occur.

A protest against soaring fuel prices plans to cause mass disruption and bring parts of Oxford in the UK to a standstill. The 'Stand up to fuel prices' protest is being organized by Oxfordshire Street Cruisers (OSC) and is set to take place on July 4.

Service Updates:

Australia & New Zealand

New Zealand post has updated that due to ongoing COVID-19 staff shortages, items destined for New Zealand are currently experiencing delays of up to 5 days. We are continuing to work with New Zealand Post and will provide an update once the situation has improved.

 

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: No delays

 

Aramex: Services are affected in Perth, Cairns, Melbourne and Geelong. 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

Overnight snow in the South Island has resulted in road closures causing widespread delays to South Island Courier items. The extreme weather has impacted Courier items across most of the central and lower South Island – including Central Otago and the West Coast. Contingency routes are in place, and we’re working hard to get all items to their destinations safely.

Asia

 

Fulfillment services: Operational and as per SLAs.

 

Inbound Receiving services: Operational and as per SLAs.

 

Direct injection International services at this time: No delays

 

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.

 

FedEx: Weather conditions and flooding in Yellowstone National Park have prompted suspension of FedEx Freight operations that service the area. 

FedEx Freight service to the following ZIP Codes are currently suspended: 

  • 59020 
  • 59027 
  • 59030 
  • 82190

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.

 

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.



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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