Demand for Shanghai sea exports may divert to air freight

As COVID lockdown measures are gradually relaxed in Shanghai it is uncertain how quickly export sea freight volumes will rebound, but many experts are anticipating a strong and sustained spike in demand creating a backlog of shipping containers, which could once again result in ocean shipments diverting and putting pressure on air freight, which is already experiencing reduced

Shanghai to return to normal in June? Let’s hope so…

Shanghai is aiming to reopen the city and business operations, with normal life resuming from the 1st June, as all 16 city districts report acceptably reduced ‘zero-COVID’ cases. At a press briefing on Monday, Shanghai’s Vice Mayor announced that 15 of Shanghai’s 16 districts had recorded no new COVID-19 infections for two consecutive days, with all of the city’s

China supply chain pressures relentless

Despite talk of restarting manufacturing and a tiered reopening of Shanghai and the surrounding province, the situation remains challenging and delays are increasing in Ningbo as the volume of cargo diverted from Shanghai continues to grow. The Shanghai lockdown remains for a fifth week, with offices, workplaces, and public transport closed. Airport and container terminals remain

COVID update: Shanghai lockdown impact

China’s economy grew faster than expected in the first quarter, expanding 4.8%, but the risk of a sharp slowdown over coming months has risen as Shanghai’s lockdown is extended indefinitely and further COVID-19 curbs may follow.  Nearly all of Shanghai is now under lockdown, with most residents unable leave their homes, even for food, while

EU remove ‘preighter’ air capacity

Airlines across the European Union are no longer allowed to pack empty passenger planes with cargo as the aviation sector starts recovering from the pandemic. The European Union Aviation Safety Agency (EASA) is putting a stop to converted ‘preighter’ flights after the 31st of July 2022. The temporary conversion of passenger aircraft into ‘preighters’ (mash-up

Shanghai supply chain update– Lockdown extended indefinitely

The lifting of COVID restrictions in parts of Shanghai this week has been postponed after nearly 20,000 new cases were reported on Monday. While the primary port terminals and airport remain open, most workers are in locked-down neighbourhoods and the impact on production and inland logistics is severely limiting supply chain operations. With limited goods available to despatch, demand for air

April global logistics update; Five key supply chain disruptors

Since the early days of 2020, the COVID-19 pandemic has disrupted global supply chains, creating shortages of goods, even though ships, trains, trucks and planes continued to run, to the best of their ability. The infrastructure that supports global supply chain operations has struggled to absorb the continuing impacts emanating from COVID-19; including the need

Bracing for continued fuel surcharge increases – if it moves it needs an engine

Fuel prices were already on the way up before Russia decided to invade its neighbour and the additional volatility and uncertainty created by the conflict in Ukraine are significant enough to drive oil and fuel prices to levels not seen before. Or at least since the 1970’s relatively. Average low-sulphur marine fuel prices had already risen to $726/mt prior to the Ukraine

The sea and air alternative from China

China to Europe rail freight services have grown massively since the advent of the COVID pandemic, with volumes surging 29% last year. But with services transiting Russia and Belarus sanctioned and the Ukraine route halted, the equivalent of 1.46 million TEU needs alternative solutions. Trains are still running along the Trans-Siberian route, but Russian Railways has been

Air freight impact of Ukraine crisis

Capacity from Asia has shrunk by 22% in a week, as cargo planes that provided much needed capacity and capable of transporting heavy goods, are either sanctioned, grounded or destroyed, while airlines consider longer and more expensive cargo flights from Asia. The European Union joined the United States and Canada in closing its airspace to