Update on the current market situation

Thanks to the coronavirus, the world has been upside down since March 2020. The effects can still be felt strongly in spring 2022, and there is no end in sight. Rather, the opposite is the case. In addition, there are significant effects of the war in Ukraine, which are also impacting the transport industry.

We would like to give you another update on the tense market situation and revise on our reports from the previous year.

 

Situation around the world:

Since February 24, 2022, a war has been waged between Russia and Ukraine. The effects are strongly felt around the world. Especially due to the extreme increase in oil and fuel prices, transport costs have risen enormously. Various surcharges have to be paid and passed on by freight forwarders and transport companies.

The transit times for air freight are in some cases considerably longer, also due to the airspace closures over Russia. In addition, freight capacities are severely reduced due to the high volume of cargo and the pandemic. Furthermore, a shortage of raw materials everywhere is driving up prices for wooden pallets, dunnage, and other packaging, for example.

Another major coronavirus outbreak in Shanghai is being fought by the Chinese government with a strict lock-down.  The whole city of Shanghai has therefore been under curfew since the end of March. As a result, transport capacities at the ports and airports have been cut way down; at the same time, factories in Shanghai and the surrounding area have had to shut down most of their operations. Work can only be resumed slowly here. Many ships have not called Shanghai for recent weeks or are still lying in the roads outside the ports.  This is leading to enormous port congestion. The result is further worldwide bottlenecks. For example, many empty containers are currently no longer available to the market, causing further reduction of transport options.

Air traffic has also been significantly affected and temporary closures of the Shanghai and Beijing airports have caused major backlogs as well.

The situation at US ports also remains unchanged. A large proportion of US ports are completely congested and ships must wait several weeks in some cases to be discharged. This is hampering American imports and exports equally. Vessels are severely delayed in arriving from the US to Europe or Asia, which throws the schedule there into disarray as well. In addition, onward transportation domestically faces further major challenges, as a lack of truckers delays the on- carriage and empty containers are delayed.

Impact on the transport market in Germany:

Because the factors in the transport world correlate with each other, the consequences are unfortunately also felt in the German transport market. Thus, ship delays in Asia and the US also mean delays in Germany and Europe. If ships depart too late in Asia, this also influences the schedules in Europe. Ships must deal with long waiting times in order to be able to berth at the terminals. Due to the many delays and the high freight volumes, the ports are extremely busy and overcrowded. As a result, goods for export may be delivered only at very short notice, sometimes as little as 48 hours before they are scheduled to be packed. Containers even have to be temporarily stored outside the port for an extra fee, if a lead time cannot be rescheduled when the delivery window changes. Nevertheless, very long waiting times are happening at the terminals and packing stations, which causes high demurrage charges. If schedules are then changed at short notice and departures are brought forward if necessary, goods can even miss the scheduled departures.

Storage areas in the ports are almost full and complicate the entire logistic chains. Overcrowded storage areas at the terminals means the distances to be covered by the port workers are much longer and the same work takes more time. Russian goods stranded by the sanctions also block capacities at the terminals. Everywhere, the high COVID19 case numbers are leading to increased staff absences and thus reduced productivity. Ports are unable to cope with the handling of the vessels. As a result, many vessels are currently anchored in the North Sea. Hamburg and Rotterdam are particularly affected.

The result is a shortage of empty containers for future shipments.

This is one of the reasons why there is a lack of empty equipment in the inland depots. Seaport round trips are therefore almost obligatory and make transport even more expensive.

In addition to standard containers, reefer containers are also particularly affected. This special equipment is almost unavailable and the necessary connections in the port are occupied by delayed containers. As a result, booking for export to Asia, for example, is almost impossible. Shipowners are simply refusing these bookings.
Freight rates remain at a very high level. Only exports to Asia are currently stagnating. Shipowners are justifying the enormous increases with the strong demand and the high cost increases due to the problems listed previously. However, the tremendous profits of the shipowners make these justifications appear questionable.  Even high priority surcharges offered do not necessarily guarantee a slot on the booked departure.

Another link in the transport chain are the packing sheds and warehouses. Here, the situation is also becoming more challenging. Storage areas are exhausted, so goods can only be accepted shortly before the planned stowage or must be stored temporarily at another location, for example at the truck companies, for an additional fee. Loading and unloading planned at short notice is almost impossible. Staff is in short supply and absences related to COVID19 can quickly lead to long delays.

Furthermore, pre- and onward carriage by truck in Germany and Europe are also affected by the difficulties. The high volume of freight, the lack of truck drivers and rising fuel prices are increasing both transit times and costs.  A considerable proportion of truck drivers come from Ukraine, so their absence further exacerbates the driver shortage. It is nearly impossible to predict the changes in fuel prices in the longer term. Therefore, transport prices are valid only in the short term. Based on the constantly high demand, these factors make planning transports even more difficult.

The high demand for transport and the lack of reliability in sea freight also have a strong impact on air freight. At the beginning of the pandemic, air traffic was drastically reduced, resulting in an extreme shortage of space on aircraft. Air freight became increasingly unreliable and freight rates rose massive as well. In the meantime, significantly more aircraft are in service again and airlines are also ordering long-haul aircraft again. However, it is still a long way from a return to longer-haul and cheaper air freight rates. In addition, originally planned sea freight is increasingly being switched to air freight due to the above-mentioned reasons, which also reduces capacities.

Conclusion:

In conclusion, the situation remains very tense and logistics will continue to be challenged by the existing capacity bottlenecks.

Since many factors go hand in hand, the constantly high demand will continue to ensure a high utilization of the means of transport in the future. As a result, longer transit times and a decline in planning reliability must be expected in the future as well, despite the higher logistical effort. The organizational effort and costs will remain continuously high.

The current political situation in Europe increases the pressure, as does the uncertain development of the COVID19 pandemic. In particular, the zero-covid strategy in China is causing further uncertainty.

Therefore, we can unfortunately only repeat that Interfracht has no influence on the development of the market and we can only give an overview of the situation.

At the same time, we see it as our duty to continue to assist our customers with all our knowledge and skills, especially in these uncertain times. Our employees are committed every day to achieve the best possible transport solutions for our customers. If you have any questions, please do not hesitate to contact us.

Happy Birthday Interfracht USA

Interfracht USA wird 5 Jahre alt! ?Wir und viele weitere Kollegen und Freunde gratulieren zum Geburtstag! ??

Gepostet von Interfracht am Montag, 11. Mai 2020

Information:

We’ll keep you informed:
Due to the storms, operations at the terminal facilities in the port of Hamburg may be impaired. Possible consequences are considerable delays in ship clearance and delayed ship arrivals. HHLA Container Terminal Burchardkai (CTB) is particularly affected. The article We inform: first appeared on Interfracht Internationale Spedition.

EGLN-conference in Bangkok, Thailand

From October 11th till 14th, around 200 participants had the opportunity to meet new members and to talk about existing contacts. Companies from all over the world came together for this annually conference to discuss existing partnerships and to check if there are possibilities for cooperation with new members. The Interfracht Group attended with 6 participants from four branches (Germany, Sweden & Romania).

All network members are called to evaluate the other partners before this meeting. This year Interfracht received the award “European Best Operations”. We are very happy about this award.

new fumigation requirements Australia

The Australian Government Department of Agriculture and Water Resources has announced a limited period of fumigation for export cargo to Australia. Therefore from September 1st, 2018 until April 30th, 2019 cargo needs to be fumigated to make sure the Brown Marmorated Stink Bug will not be imported to Australia. For further information please check the official homepage of the Australian Department of Agriculture:

http://www.agriculture.gov.au/import/before/pests/brown-marmorated-stink-bugs

As advised by Australian Agriculture Dept., respective goods have to be treated by authorised companies.

EGLN-conference in Ho Chi Minh City, Vietnam

From October 8th till 11th, 230 participants had the opportunity to meet new members and to maintain existing contacts. Companies from all over the world came together for this annually conference to discuss existing partnerships and to check if there are possibilities for cooperation with new members. The Interfracht Group attended with 7 participants from four branches (Germany, Sweden, the Netherlands & Romania). All network member companies are called to evaluate the other partners before this meeting. This year Interfracht Germany received the award “Global Best of the Best”, which we are very pleased about and which we see as an appreciation of our work.

EGLN Meeting 2017

ADSp 2017 / changes by the 1/1/2017

We operate exclusively in accordance with the Allgemeine Deutsche Spediteurbedingungen 2017 (ADSp2017) (German Freight Forwarder’s General Terms and Conditions 2017). Note: In clause 23 the ADSp 2017 deviates from the statutory liability limitation in section 431 German Commercial Code (HGB) by limiting the liability for multimodal transportation with the involvement of sea carriage and an unknown damage location to 2 SDR/kg and, for the rest, the customary liability limitation of 8,33 SDR/kg additionally to EUR 1,25 million per damage claim and EUR 2,5 million per damage event, but not less than 2 SDR/kg. You can download the ADSp 2017 on our website at www.interfracht.de.

EGLN meeting in Bangkok

Within three days from the 2nd to the 5th of October about 200 participants of various member companies had the opportunity to get to know new members and to maintain existing contacts. Yearly, companies from around the globe meet each other and talk about services and possibilities of cooperation. The Interfracht group was represented this year with colleagues from four subsidiaries (Germany, Sweden, The Netherlands and Romania).

EGLN-Meeting in Bangkok

This year Interfracht Germany received the award „Global Best 2016 Communication“. We are glad and recognize this award as an appreciation of our work.

Global Best 2016 Communication

Carshipping by Interfracht – 1971 Ford Maverick

We like to show you the smart Maverick to give you an insight of our Carshipping team.We ship the Dragster around the globe for dragster races and be happy to be a part of it.

Maximum power: 347 Stroker Motor with approx. 800 PS

Carshipping by Interfracht - 1971er Ford Maverick

Carshipping by Interfracht – 1971 Ford Maverick

We love vehicles of all kind and are very glad if you request us for your next vehicle shipment. Our Carshipping experts will help you with pleasure.

To see more references or to get in touch with us, visit our homepage: shipinterfracht.de

Interfracht Air Service reference

During the past days the Interfracht Air Service GmbH has loaded an oversized machines-airfreight cargo from Stuttgart via Luxembourg to Mexico.

The dimensions and declarations of weight of the two biggest stack pieces:

  •    464 x 240 x 232 cm//3.1 tonnes (loading via nose)
  •    328 x 265 x 285 cm//8.6 tonnes (loading via side)
loading via side

loading via side

loading via nose

loading via nose