June 2022

Greater China

• Shanghai has announced a gradual reopening of transport and business starting June 1. Many residential compounds are now open, although some with Covid-19 cases may be locked down. Shanghai residents require proof of a negative Covid-19 test taken within the last 72 hours in order to access public venues and transportation. The Röhlig team is fully operational and implementing a gradual return to the office, under local guidance. The city is classed as a 'medium-risk area'.

• Be aware of a rising number of Covid-19 cases in Beijing. The city is currently classed as ‘medium-risk’, however increased testing and tracing is in force. The Röhlig Beijing team are working in-office.

• Following a brief period working from home, the Röhlig Tianjin team have returned to the office.

SEA

• Shanghai sailing schedules have started to recover although port congestion from the last two months will firstly need to be cleared. Sailing schedules may vary according to routing and the division of ports, and it may be 1-2 months before we see a return to normal operations.

• Delivery backlog for import LCL cargo that arrived in Shanghai during the lockdown.

• In Shanghai, an appointment is required for delivery cargo to Yangshan. The Waigaoqiao warehouse has resumed operations and no longer requires closed-loop management. The import warehouse is working through a backlog of containers from April and May. Operational efficiency may be affected by increased health checks.

• Bunker costs have been rising significantly. Currently no significant reduction in rates or FEWB and TPEB spot pricing.

• Rates and demand for vessel space in Hong Kong decreasing in Q2 since mid-March.

• All terminals and local transportation in Hong Kong operating relatively normally, but subject to limited working hours or some staff working from home due to the pandemic situation.

• Our Taipei office recommends 3-4 weeks advance booking. Covid-19 continues to impact production lines and delays in Taiwan.

AIR

• Cargo flights into Shanghai PVG are on the rise while costs are decreasing.

• PVG, PEK, CAN, SZX, TAO, DLC, WUH, CGO, CTU, XMN, HGH, TSN airports are operational, however there is a buildup of import cargo due to operational slowdowns and trucking restrictions under Covid-19 regulations.

• Air export resources currently include WNZ-MXP, CTU-MST, NKG-AMS-EU, CDU-MST-EU, CGO-CGN-EU, NKG-ORD, and other airports close to Shanghai to JFK and LAX. Cargo can also be delivered to other airports further afield in China for export elsewhere. For air import, WUH and HGH are close to Shanghai.

• In Hong Kong, roughly 70% of cargo is using cross-border feeder service due to trucking limitations under Covid-19 regulations.

• Röhlig Taiwan reports a 10% increase in fuel surcharges since May.

ROAD

• Trucking between cities and provinces often requires a Covid-19 test to be conducted within the last 48-72 hours, and in some cases special licenses may need to be obtained in advance.

• In Shanghai, both FTL and LTL still require trucking permits. Other regions may restrict the entry of trucks with Shanghai plates or recent travel history in Shanghai.

• LTL trucking from Shenzhen to Hong Kong is still in operation, but FTL trucking to Hong Kong needs to be booked 2 days in advance. Trucking services between door and airport needs to be checked case-by-case, with cost increases subject to origin and destination.

• Pick-up services between China and Hong Kong are severely reduced as there is a labour shortage and delays caused by strict pandemic prevention measures in China.

RAIL

• Rail demand is picking up, advanced booking is recommended.

• Our Truck-Air service via Almaty is running smoothly with available space, stable rates and door-to-door transit times around 15-19 days. Contact our Rail Team at CN.RC.RAIL@rohlig.com to learn more.

WAREHOUSE

• Our Waigaoqiao, Jiading and Yangshan warehouses in Shanghai have resumed operations from June 1.

South Korea

SEA

• An 8-day trucking strike at major ports has now come to an end following an agreement between the government and unionized truckers. Manufacturing production can now continue as normal.

• After China lockdowns lifted, shipments from China are on the rise again, with available space for shipments from Korea decreasing as a result.

• Schedules remain unstable due to nearby congestion in China.

AIR

• The fuel surcharge is expected to increase as of June 15.

• With cities in China such as Shanghai gradually reopening after lockdown, restrictions on DG or perishable cargo from South Korea to China are also lifting. However, rules remain in place, with DG cargo to Tianjin TSN Airport still limited.

SEA

• The region is largely getting used to a new normal with pre-Covid-19 workforce arrangements and no large upcoming national holidays.

• Overall market space remains open with no significant signs rush shipments. No majority plan for blank/void sailing on major head haul trades for June as carriers are focused on recovery from earlier blank/void sailings during the recent Shanghai lockdown.

• Uncertainty over the upcoming peak season in view of slow demand at destination and Covid-19 impacting operations in China. However, we’re unlikely to see any chaos as seen in previous years.

• Pricing and capacity for Intra-Asia trade remains stable with drastic capacity changes unlikely.

• Schedule reliability has improved on routings with low port-calls, but remains to be seen for vessels involved in long haul trade or calling at North China.

• Some local manufacturers have reduced their production running hours or are sourcing from alternative suppliers other than China due to sporadic equipment shortages.

AIR

• CX is resuming freighter flights into the EU due to easing restrictions.

• Oil inventories remain low as the war in Ukraine continues. While rates remain steady, carriers are starting to implement higher fuel surcharges.

• Airport backlogs and staff shortages are affecting operational efficiency.

• The resumption of PAX flights has increased capacity over Southeast Asia trade lanes.

• Recent lockdowns in China have impacted manufacturers’ forecast volumes and thus the available market capacity. Market recovery is expected to be slow and demand will likely remain stable.

Indonesia

SEA

• 40’ container shortage at Semarang due to trade imbalance.

AIR

• Rates expected to remain at a low level.

Malaysia

SEA

• Gradual improvement on Port Klang congestion.

AIR

• Rates remain low but fuel surcharges are on the rise.

• More capacity is now available, especially to North America.

Singapore

SEA

• Congestion easing but still reports of backlogs and shipments being rolled over 2-3 weeks.

AIR

• Rates are stable. An increase in passenger flights is expected to ease tight capacity.

Thailand

AIR

• Rates remain stable as carriers begin to increase their flights into Thailand.

Vietnam

Almost all Covid-19 measures have been lifted. However, China’s recent lockdown is still affecting the import/export market.

SEA

• 40’ container shortage at Ho Chi Minh City due to trade imbalance.

AIR

• Stable rates and available capacity, in particular to US/Asia. However, prices are still higher than pre-Covid, especially for small volumes (+100/+300kg).

SEA

• All ports, CFS, ICDs are working as normal across the country.

• Sea Freight equipment is being released on the basis of forecasts received at least 4 weeks in advance.

• Shipping lines continue to apply blank sailings, and we will update customers in the event of any congestion.

• Congestion in Colombo is impacting trade in the South and East of the country.

• Due to recent port strikes at Hamburg, Emden, Bremen, Bremerhaven and Wilhelmshaven in Germany, bookings/transit are being diverted to neighboring ports where possible.

• Import and export LCL is currently available at competitive rates.

AIR

• Space is available for export, but with no reduction in rates so far.

• Import remains a challenge