While our colleagues in China and Hong Kong enjoyed their Golden Week holidays the latest Container Trade Statistic have been released.
The Lunar New Year 2019 or Spring Festival, is the biggest Chinese celebration of the year, taking place 3rd to 9th February, with its usual profound impact on supply chains.
The port of Shanghai has retained its status as the world’s business container port for the ninth consecutive year, must to the delight of our colleagues in China’s biggest city.
The ongoing disruption at Britain’s biggest container ports shows no signs of ending and is now exposing fundamental weaknesses in the container haulage industry, that look endemic, putting the future of the industry in doubt, without immediate change and reform.
China is getting ready for Golden Week, a seven-day festival, for which the country goes into virtual shut-down. Factories close and forwarders, logistics providers and other supply chain participants also shut their doors as China and Hong Kong celebrate this holiday.
Ocean and air carriers are benefitting from massive increases in demand ahead of the traditional peak season, as US shippers try to deal with President Trump’s tariffs. The question is what impact (if any) this will have on the China-Europe trade lane.
Vessels diverted from Felixstowe, in the face of ongoing service disruption, have resulted in ‘horror show’ delays for hauliers trying to collect containers from the port.
Shocking shipping line reliability is a direct result of the low freight rates that shippers have benefited from for years, says Drewry Shipping Consultants, so they should not be surprised that service levels have continued to fall.
Operational problems and delays continue at Felixstowe, leading to delivery disruption and Hamburg Süd announcing it will divert ships to Southampton for five weeks.
Three lines have already imposed surcharges effective from 1st June, with more announced. As shipping executives say that rises in bunkering bills need to be passed on to shippers, because further slow steaming is not an option.