There has been a recent surge in Covid 19 cases in Shenzhen, affecting the ports of Yantian and Shekou, as well as neighboring ports Guangzhou and the port of Nansha.
Below is also a translation of the current report from the DVZ:
"
The Suez Canal crisis has not yet been properly digested, but there are already signs of another massive disruption to maritime supply chains. Rising numbers of cases around the southern Chinese metropolis of Shenzhen are leading to severe handling bottlenecks in the ports of Yantian and Shekou as well as in Nansha (in neighbouring Guangzhou). Maersk is talking about delays of up to 14 days. Delivery stops and restrictions for export cargo as well as cancelled ship calls are the order of the day. It is therefore only a matter of time before the wave reaches the ports in Northern Europe. German seaport freight forwarders are therefore already alarmed.
With regard to the situation in China, Frank Huster, Managing Director of the German Freight Forwarding and Logistics Association (DSLV), said at the association's annual press conference on Thursday morning: "We are concerned about this." No data has yet been received that there is a problem. But if the problem continues to develop, there could be another setback in the supply chains.
Lars Jensen, CEO and partner of the consultancy firm Vespucci Maritime, fears that the situation will escalate further. He estimates that the impact will exceed that of the Suez crisis. According to him, Maersk is already referring to 64 ships from the 2M alliance that have to avoid the ports of Yantian and Shekou. One refers to 52 ships from THE Alliance. OOCL cites 26 units and CMA CGM 11 that are affected.
Ship delays at Yantian Port, a deep-water harbour in Shenzhen, have worsened over the past week, according to Project44. Based on its container dwell time data, the US-based supply chain platform provider expects the port to remain congested throughout the month. According to the data, dwell times in Yantian fluctuate greatly. The minimum is one day. The median, i.e. the measured value that lies exactly in the middle of all the individual data, is given by Project44 as almost 18 days for containers waiting to be loaded (as at 7 June).
The authorities in Guangzhou, the industrial city north-west of Shenzhen, have also imposed restrictions on business activities. "Nansha Port will also feel the effects of these restrictions, which will further exacerbate the congestion problem in Yantian," Project44 continues. According to the experts, 47 ships are approaching the port of Yantian as of 7 June. According to the analysis, a third of the ships are already delayed.
"The recent rise in Covid-19 cases in China has led to a shutdown that could drive the already record-breaking cost of shipping goods from China even higher," says Josh Brazil, responsible for marketing at Project44. According to the company, freight costs between China and the US West Coast rose 156 percent last year, while the trade lane between China and the US East Coast saw an increase of 162 percent. Freight prices between China and Northern Europe rose the most, by 535 percent.
Tense situation intensifies
The German Association of Materials Management, Purchasing and Logistics (BME) in Eschborn is concerned about this development. "The pandemic has not yet been defeated and we will have to live with coronavirus for some time to come," says Carsten Knauer, Head of Logistics/SCM at the BME. Further delays or failures in the supply chains will impair the already tense situation on the transport markets. "In the short term, it is hardly possible to find alternative routes for transport from China. Trucks, rail and air freight are already working at full capacity," Knauer continues. The BME continues to advise establishing suppliers in additional markets and regions in the medium and long term in order to diversify the risk of cancellations or delays.
The obstruction will mean additional empty sailings from Yantian to Hong Kong and the US West Coast in June, Project44 predicts. The port's container capacity could be reduced by around 50 percent and there could be restrictions on shipping companies being allowed to release high-value shipping containers. For the trade routes between Asia and Europe, shipping companies have announced that they will no longer call at ports in the north, such as Tianjin and Quindao, citing congestion problems as the reason.
Difficult planning for importers
Nathan Resnick, CEO of the US B2B procurement platform Sourcify, told business channel CNBC that supply chains have been severely impacted by the sudden and severe restrictions. He added that the situation would make it difficult for companies to plan ahead in the coming quarters. "Especially with the holiday season coming up, many large importers are trying to plan their supply chain for Q3 and Q4." When asked which industries are likely to be most affected, he replied: "At the moment in Guangzhou and Guangdong, it is mainly household goods, footwear, consumer electronics and many other types of products." He continued: "These delays at the ports will lead to a further increase in freight rates and this is something we see continuously throughout the year."
The shipping movement data up to the end of May already indicate a slight drop in China's imports and exports compared to the previous month. TheKiel Trade Indicatorof the Kiel Institute for the World Economy (IfW) shows a negative sign for both exports (minus 1.7 percent) and imports (minus 1.0 percent). Vincent Stamer, head of the leading indicator for global trade, said on enquiry that it is not yet possible to make any further statements. He refers to the next update of the figures on 22 June. (sr/cs/rok)
"
If you have any questions or require individual coordination, the Dörrenhaus team is always happy to help.
Your Dörrenhaus team
Newsletter: Port crisis in southern China
There has been a recent surge in Covid 19 cases in Shenzhen, affecting the ports of Yantian and Shekou, as well as neighboring ports Guangzhou and the port of Nansha.
Below is also a translation of the current report from the DVZ:
"
The Suez Canal crisis has not yet been properly digested, but there are already signs of another massive disruption to maritime supply chains. Rising numbers of cases around the southern Chinese metropolis of Shenzhen are leading to severe handling bottlenecks in the ports of Yantian and Shekou as well as in Nansha (in neighbouring Guangzhou). Maersk is talking about delays of up to 14 days. Delivery stops and restrictions for export cargo as well as cancelled ship calls are the order of the day. It is therefore only a matter of time before the wave reaches the ports in Northern Europe. German seaport freight forwarders are therefore already alarmed.
With regard to the situation in China, Frank Huster, Managing Director of the German Freight Forwarding and Logistics Association (DSLV), said at the association's annual press conference on Thursday morning: "We are concerned about this." No data has yet been received that there is a problem. But if the problem continues to develop, there could be another setback in the supply chains.
Lars Jensen, CEO and partner of the consultancy firm Vespucci Maritime, fears that the situation will escalate further. He estimates that the impact will exceed that of the Suez crisis. According to him, Maersk is already referring to 64 ships from the 2M alliance that have to avoid the ports of Yantian and Shekou. One refers to 52 ships from THE Alliance. OOCL cites 26 units and CMA CGM 11 that are affected.
Ship delays at Yantian Port, a deep-water harbour in Shenzhen, have worsened over the past week, according to Project44. Based on its container dwell time data, the US-based supply chain platform provider expects the port to remain congested throughout the month. According to the data, dwell times in Yantian fluctuate greatly. The minimum is one day. The median, i.e. the measured value that lies exactly in the middle of all the individual data, is given by Project44 as almost 18 days for containers waiting to be loaded (as at 7 June).
The authorities in Guangzhou, the industrial city north-west of Shenzhen, have also imposed restrictions on business activities. "Nansha Port will also feel the effects of these restrictions, which will further exacerbate the congestion problem in Yantian," Project44 continues. According to the experts, 47 ships are approaching the port of Yantian as of 7 June. According to the analysis, a third of the ships are already delayed.
"The recent rise in Covid-19 cases in China has led to a shutdown that could drive the already record-breaking cost of shipping goods from China even higher," says Josh Brazil, responsible for marketing at Project44. According to the company, freight costs between China and the US West Coast rose 156 percent last year, while the trade lane between China and the US East Coast saw an increase of 162 percent. Freight prices between China and Northern Europe rose the most, by 535 percent.
Tense situation intensifies
The German Association of Materials Management, Purchasing and Logistics (BME) in Eschborn is concerned about this development. "The pandemic has not yet been defeated and we will have to live with coronavirus for some time to come," says Carsten Knauer, Head of Logistics/SCM at the BME. Further delays or failures in the supply chains will impair the already tense situation on the transport markets. "In the short term, it is hardly possible to find alternative routes for transport from China. Trucks, rail and air freight are already working at full capacity," Knauer continues. The BME continues to advise establishing suppliers in additional markets and regions in the medium and long term in order to diversify the risk of cancellations or delays.
The obstruction will mean additional empty sailings from Yantian to Hong Kong and the US West Coast in June, Project44 predicts. The port's container capacity could be reduced by around 50 percent and there could be restrictions on shipping companies being allowed to release high-value shipping containers. For the trade routes between Asia and Europe, shipping companies have announced that they will no longer call at ports in the north, such as Tianjin and Quindao, citing congestion problems as the reason.
Difficult planning for importers
Nathan Resnick, CEO of the US B2B procurement platform Sourcify, told business channel CNBC that supply chains have been severely impacted by the sudden and severe restrictions. He added that the situation would make it difficult for companies to plan ahead in the coming quarters. "Especially with the holiday season coming up, many large importers are trying to plan their supply chain for Q3 and Q4." When asked which industries are likely to be most affected, he replied: "At the moment in Guangzhou and Guangdong, it is mainly household goods, footwear, consumer electronics and many other types of products." He continued: "These delays at the ports will lead to a further increase in freight rates and this is something we see continuously throughout the year."
The shipping movement data up to the end of May already indicate a slight drop in China's imports and exports compared to the previous month. TheKiel Trade Indicatorof the Kiel Institute for the World Economy (IfW) shows a negative sign for both exports (minus 1.7 percent) and imports (minus 1.0 percent). Vincent Stamer, head of the leading indicator for global trade, said on enquiry that it is not yet possible to make any further statements. He refers to the next update of the figures on 22 June. (sr/cs/rok)
"
If you have any questions or require individual coordination, the Dörrenhaus team is always happy to help.
Your Dörrenhaus team
Newsletter: DVZ reports on rate development
11.12.2020
Dear Ladies and Gentlemen,
we would like to provide you with the attached article from the DVZ from December 9th., which describes the current situation for sea and rail shipments.
We hope that this will meet your interest and we will be happy to answer any questions you may have.
Best regards,
Your Dörrenhaus team
The silk road by truck - UPDATE
At the end of August we had already reported about the possibility of loading trucks from China.
In the past few weeks we have already been able to load 15 trucks in China and now deliver them to our customers.
From door to door, including export and import customs clearance, impressive delivery times were achieved:
Wenzhou, CN to zip code 15, Germany = 15 days
Foshan, CN to zip code 47, Netherlands = 15 days
Yiwu, CN to zip code 85, Germany = 14 days
Ningbo, CN to zip code 15, Germany = 15 days
In addition to the short transit time, what should also be emphasized is the great flexibility with which the trucks can be positioned - a clear advantage compared to fixed departures with cut-off times for rail and sea loading.
The trucks have two drivers on the entire route of almost 11,000 kilometers and are equipped with GPS trackers so that permanent monitoring is guaranteed.
Since we expect major capacity bottlenecks on all modes of transport and high freight costs to continue in the coming weeks, this alternative may also be of interest to you.
So don't hesitate to contact us at any time and send your first truck on its way!
Best regards,
Your Dörrenhaus team
The Silk Road by truck
Shipping and air transport capacities have been significantly reduced this year due to the coronavirus crisis and transport costs are rising accordingly.
As a further alternative to air freight or transport by train, transport by truck has now become established on the new Silk Road from China to Europe.
With transit times of 12-16 days from door to door, the transit time of the train can be reduced by up to 2 weeks.
In contrast to the train, hazardous goods such as batteries or temperature-controlled goods can also be transported here.
In addition to the lower freight rates compared to air freight, other advantages are the independence from airports or railway stations, as well as the flexibility of departure days, which can be determined individually.
Various trailers are also available, such as the mega trailer with up to 100 tonnes of cargo. CBMrefrigerated lorries or low-loaders for heavy and large goods.
For further information on this and all other logistics topics, your contact at Dörrenhaus will be happy to help you at any time.
Best regards,
Your Dörrenhaus team
Developments in ocean freight / rail freight in September
In recent weeks, the resumption of global trading activities has led to strong demand for shipping space, particularly in maritime transport from Asia to Europe.
The shipping companies' capacities are currently not sufficient to handle the upcoming volumes in a timely manner. The difficulties are compounded by full ships, rollover risks and the lack of empty equipment.
We ask you to encourage your suppliers to place bookings as quickly as possible.
The earlier the booking is made, the better the chances of obtaining shipping space.
Shipowners will charge a PSS of USD 150/300/300 (20' / 40' / 40'HC) from 1 September 2020 and will also increase freight rates on 1 September.
We are currently still negotiating the final details with the shipowners. However, it should be said that space will be more of an issue in the coming weeks
than the prices to be paid.
We will send you the new instalments for September at the beginning of next week.
If you have any questions, please do not hesitate to contact us
Best regards,
Your Dörrenhaus team
LCL with us on the Silk Road
We would like to inform you that we have been offering a weekly service for LCL rail shipments from South and North China since mid-July.
On the one hand, this is the fast alternative to LCL sea freight shipments or the alternative to FCL rail loading if you cannot get a complete container filled.
The containers arrive in Duisburg after a transit time of approx. 20 days, from where we accept them immediately and then unload them at our warehouse and, if necessary, clear them through customs, palletise them and deliver them in Germany or Europe according to your specifications.
You will be amazed at how quickly and inexpensively this alternative can be realised.
We look forward to receiving your enquiry. Your salesperson or customer advisor will be happy to assist you.
Best regards,
Your Dörrenhaus team
VAT reduction as of 01.07.2020
We would like to draw your attention to some necessary, short-term changes in invoicing resulting from the VAT change on 1 July.
The change poses a challenge for all companies, if only because of the extremely short lead time. The decisive factor for the allocation of the respective tax rate is generally the time at which the respective service is performed. This determines which tax rate is used to calculate the turnover or deduct input tax.
When implementing the changeover on 1 July 2020, we will have to ensure that we charge you the correct tax rate according to the time of performance. For this purpose, it will also be necessary in some overlapping cases to issue two invoices instead of one as before. This serves to clearly delineate the respective time of performance.
For example, this could be a warehouse bill from June until after 1 July or, for example, a sea freight shipment that arrives at the seaport in June but is not delivered until July.
All subsequent deliveries that do not include any services before 1 July can then be invoiced in the usual compact manner with an outgoing invoice.
We ask for your understanding and are available to answer any questions at any time.