International Logistics Summary – August/September
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International logistics has changed since the pandemic, with congestion, equipment shortages and delays being experienced throughout the supply chain. Below is a summary of current market conditions for the main regions.
The emergence of the delta variant has impacted Asia significantly over recent weeks, with outbreaks leading to lockdowns, port and airport closures, and further delays across the board.
A series of major city and full country lockdowns have impacted most of the countries in Southeast Asia, which has slowed down export production significantly.
China has also been impacted due to a strict response policy to regional outbreaks, along with a series of typhoons and storms. We have witnessed port and airport closures in both Southern and Eastern China, which has played havoc with schedules and added to the congestion and backlogs.
Westbound space continues to be extremely tight on both air and ocean freight, with container rates now well beyond previous record levels.
UK & Europe
UK & European transport is severely impacted by driver shortages, which continues to mean delays and high pricing across the board, as equipment with a driver is in very high demand.
To some extent business has become accustomed to the additional complications of Brexit border controls as we approach the second phase of changes in January 2022.
There has been no let up in the port congestion and transport shortages that have been impacting the entire US logistics sector, with Los Angeles regularly recording new records for the number of vessels queued outside of the port awaiting discharge (now over 100).
Hurricane Ida has further impacted logistics in some parts, specifically the Gulf Coast regions served by New Orleans and Houston ports.
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HMRC is gradually introducing the Customs Declaration Service (CDS), the long-term replacement to the current Customs Handling of Import and Export Freight (CHIEF) system.
Hydrogen Peroxide is the suspected cause of a number of blasts in a container depot near Chittagong Port this weekend, that has led to over 40 deaths in Bangladesh.
New rules have been introduced for the movement of lithium batteries by air. Effective from 1st April 2022, the changes were buried in the recent IATA Dangerous Goods Regulations.