Chinese ports have broken throughput records, and foreign trade has fully recovered?

"Yantian Port (6.320, -0.11, -1.71%) processes a TEU in an average of 2.4 seconds, and a ship departs to the United States every 4 hours. This year, the port throughput will set a record for the port in the past 20 years."

Lin Qingwen, managing director of Yantian International Container Terminal Co., Ltd., introduced that one out of every four containers imported by the United States from China comes from Yantian Port in Shenzhen, which has set a global single terminal throughput record for two consecutive months this year.

As the world's largest container port, Shanghai Port also set a monthly historical record of container throughput in July and October this year. According to data released by the China Ports Association, in October, the container throughput of China's eight major hub ports increased by 11.1% year-on-year, and the growth rate hit a new high this year.

At the same time, an unprecedented "container shortage" is sweeping across the country and has become an "immediate emergency" for foreign traders. Behind this, has China's foreign trade fully recovered?

 

Chinese ports have broken throughput records, and foreign trade has fully recovered?

From the macro data, the answer seems to be yes.

According to data released by the General Administration of Customs on December 7, China's foreign trade imports and exports in November were US$460.72 billion, an increase of 13.6%. Among them, exports were US$268.07 billion, an increase of 21.1%; imports were US$192.65 billion, an increase of 4.5%. Both the total value of imports and exports and the value of exports in November set a monthly record since the statistics were available in 1979. Excluding seasonal factors, the growth rate of exports in November also set a new high in the past nine years. The scale of China's imports and exports in the first 11 months also hit a record high over the same period in history.

This greatly exceeded expectations at the beginning of the year. At that time, due to the impact of the epidemic, a large number of orders were cancelled, and the foreign trade market was full of grief. However, after entering the second half of the year, the plot quickly reversed: a large number of foreign trade factory orders surged, and news of exploding orders, exploding cabins, lack of cabinets, overtime, and enrollment expansion was endless.

This is because the economic recovery of various countries in the epidemic is not synchronized : China has quickly resumed work and production after the epidemic was controlled, while the epidemic in many other countries has continued to repeat, and there have been signs of accelerated rebound in recent days, and factories in some countries have been forced to stop production. , The production chain is broken, the market supply of these countries can only be solved through imports, and the dependence of the international market on Chinese trade has increased.

In this process, the global manufacturing industry has a tendency to return to China . For example, some foreign trade orders from countries such as India, Bangladesh, and Vietnam are being transferred to China.

On the other hand, the measures taken by countries to stimulate the economy are not the same: Europe and the United States focus more on stimulating the consumer side, while China pays more attention to the resumption of work and production on the supply side and the integrity of the industrial chain.

Therefore, the income level of consumers in European and American countries has not dropped significantly. Affected by the epidemic, although overseas consumers have drastically reduced their consumption of services such as tourism, they have increased their physical consumption in renovating houses, replacing furniture, and home appliances.

Correspondingly, China's exports of building materials, furniture and home appliances have grown rapidly recently . As the first country to survive the epidemic and resume normal production, with a complete domestic supply chain and a huge manufacturing scale, China quickly responded to overseas consumer demand and brought about a surge in exports.

In addition, foreign trade exports, which set historical records recently, also have traditional seasonal factors. Near Christmas and New Year, foreign centralized purchases need to be stocked in advance. This is the peak season for Chinese exports, and this year is no exception.

It is worth noting that the epidemic is profoundly reconstructing the product structure and trade mode structure of China's foreign trade.

As Bai Ming, deputy director of the International Market Research Institute of the Ministry of Commerce, said, the recovery of China's foreign trade after the epidemic is not the overall recovery of the entire industry, but there is obvious industry differentiation.

Among them, the export of anti-epidemic materials such as masks and ventilators, household products such as furniture, home appliances, fitness equipment, and electronic products related to online transformation performed the most strongly.

According to statistics from the General Administration of Customs, in the first three quarters of this year, China exported 880.8 billion yuan of "home economy" commodities such as notebook computers, tablet computers, and home appliances, an increase of 17.8%, driving a 1.1% increase in exports. China’s exports of textiles, medical equipment, and medicines, including masks, totaled 1.04 trillion yuan, an increase of 36.5%, driving an export increase of 2.2%.

According to Helen Feng, the business director of Dongguan Jiamu Packaging Materials Co., Ltd., due to the closure of a large number of restaurants, the company that mainly exports packaging boxes suffered a serious setback before April. However, the company quickly adjusted its production line and changed its production protection. Face masks, the latter accounted for 40% of its total exports.

"This year, our foreign trade should be able to reach RMB 80 to 90 million, achieving positive growth, but if we do not export anti-epidemic materials, our traditional business may experience a sharp decline."

Helen Feng pointed out that after the outbreak, the division of foreign trade industries was very obvious. "In Dongguan, factories that used to make clothing, shoes, handbags and other industries are basically closed now; however, factory orders for epidemic prevention materials, furniture, bicycles, and 3D printers have skyrocketed. They Schedule is very busy."

Xie Hua, the person in charge of Zhangjiagang Keen Machinery Co., Ltd., felt the same way. She said that the export orders of many furniture, home appliances and daily necessities in the Yangtze River Delta have grown rapidly, but the company that she works for is mainly engaged in plastic extruders this year. The foreign trade orders are less than half of previous years.

She believes that this is because the epidemic has interrupted the traditional trade process. For example, in the machinery industry, overseas customers need to go to the site to see the equipment before placing orders. This year, customers can't make it through, and orders have naturally declined. "Products such as daily necessities do not require on-site inspections. Many only need a sample, and even transactions can be completed online."

The epidemic has also accelerated the migration of China's foreign trade online . Under the epidemic situation, China's two consecutive Canton Fairs have been held online, and whether it is B2B or B2C, multiple cross-border e-commerce platforms have doubled.

Liu Hua, a sales manager of a daily necessities company in Zhangzhou, believes that an important reason for the intensified "container shortage" is the surge in e-commerce exports.

She said that traditional export logistics demand is basically stable, and the biggest variable is e-commerce exports. “This year a large number of factories have switched to online, which has brought a large market increase. In previous years, factories that could receive 100,000 orders were transferred to It is very likely that 200,000 orders have been received online. Now our company's e-commerce orders account for nearly 80% of the total foreign trade orders. Online orders are much more than expected, but the cabinets on the market have not prepared so many."

The "container shortage" will eventually pass, and the question facing China's foreign trade is how long can such a boom last?

In the short term, the current overseas consumer goods inventories are still low, and the contradiction of insufficient foreign production capacity is still prominent. Due to the base problem, China's fast-growing foreign trade is expected to continue to advance by leaps and bounds, and may set a higher growth rate in the first quarter of next year.

In the medium and long term, China's foreign trade will eventually return to a normal range. The future foreign trade prosperity depends on the strength of external demand on the one hand, foreign currency tightening, employment income and other factors are crucial; on the other hand, it depends on the recovery of the global industrial chain, which is still spreading no matter what. The epidemic is the biggest uncertainty.

For China, the reversal and expansion of foreign trade this year is neither anticipated earlier nor the result of active pursuit. China has not set a specific growth target for foreign trade for many years, and has replaced it with the requirement of "improving quality and efficiency", which is still a long-term goal.

DHL, the world’s largest logistics company, began to consider chartering ships and opening routes, and it was difficult to find one container for more freight forwarders to take unconventional actions

The sky-high freight rates, and the hot availability of space and empty containers, are forcing freight forwarding logistics companies to charter ships and open shipping routes.

Last week, it was reported on Souhang.com that freight forwarding giant DSV Panalpina bypassed the shipping company and leased three ships and a batch of empty containers to open a new China-Denmark route. The latest news is that another freight logistics company giant DHL Global Forwarding also Is considering stepping in.

Dominique von Orelli, executive vice president of DHL Global Forwarding, confirmed to the media that the company is evaluating charter plans.

 

DHL, the world's largest logistics company, began to consider chartering ships and opening routes, and it was difficult to find one container for more freight forwarders to take unconventional actions
DHL considers chartering for customers

 

DHL, the world's largest logistics company, began to consider chartering ships and opening routes, and it was difficult to find one container for more freight forwarders to take unconventional actions

A large freight forwarding company considered direct control of ship assets, but actually entered an industry that is different from its core business in terms of operation and culture. On the other hand, it also shows how popular it is to ship containers from Asia to Europe and North America. And freight forwarders desperately provide customers with adequate services.

"There may be more freight forwarders to follow suit ." Anil Vitarana, former president of United Arab Shipping, said in a post on LinkedIn.

"If there is a continuing shortage of ship capacity and containers, and major logistics providers and 3PL find it feasible to use internal resources to integrate the economic benefits of the entire supply chain, shipping companies may regret the beginning of this trend." Vitarana wrote.

He added that the logistics provider/third-party logistics provider (3PL) team includes former executives of the shipping company and can help his current employer provide the services provided by the shipping company.

Vitarana also stated that shipping companies can also cooperate with 3PL to improve service capabilities. He pointed out that CMA CGM acquired CEVA Logistics in 2019 and Maersk included DAMCO in its integrator strategy, which has further promoted the supply chain solutions of shipping companies. Program.

 

DHL, the world's largest logistics company, began to consider chartering ships and opening routes, and it was difficult to find one container for more freight forwarders to take unconventional actions

But not all freight forwarders consider it necessary to provide shipping services to customers.

Two other large freight forwarders, Kuehne + Nagel and DB Schenker, said that although the container market is extremely tight, they do not think such a move is necessary.

Freight forwarding giant Kuehne + Nagel expressed confidence in products based on digital solutions and cooperative relationships with shipping companies, able to provide services to customers, and will continue to provide leasing services for project cargo, rather than container customers.

DB Schenker does not believe that chartering is one of the solutions for capacity. The current shortage of ships and chartering costs have also increased. Alphaliner, a maritime analysis agency, pointed out in mid-November that most ship charters are tight. The daily charter price of 3,000-3,500 TEU ships is US$18,000, an increase of US$2,000 from the end of October.

Thorsten Meincke, DB Schenker's board member responsible for air and ocean freight, said that the resources needed to charter and manage ships are often underestimated, which will distract attention from the reliable and robust services provided by freight forwarders.

 

DHL, the world's largest logistics company, began to consider chartering ships and opening routes, and it was difficult to find one container for more freight forwarders to take unconventional actions

"Once you have ship assets, you have to fill them up. This will become your focus, rather than providing customers with the best solutions," Meincke said. "The current challenge facing the maritime market is largely the shortage of containers, not just the space of ships."

Indeed, other sources also believe that despite Maersk’s efforts to redefine its business model by integrating traditional shipping and freight functions, there are still huge differences in operations and culture between freight forwarders and shipping companies.

Ship asset owners must keep their ships full and require functions and costs such as ship planning and container repositioning, and freight forwarders usually rarely consider these daily affairs.

In addition, the source said that the shipping capacity chartered by DSV is small, and its cost is far from competitive with ships of 20,000 TEU or more that travel between Asia and Europe. This is why freight forwarding and shipping are almost always in different organizations, even in larger shipping companies.

Air freight is waiting for warehousing and freight rates are skyrocketing!

1. What is the current air cargo situation?

Air cargo has ushered in the traditional peak season again. Not only has the volume of cargo increased sharply, but also the phenomenon of warehouse explosions and queues. The air freight prices of some routes have also increased or even doubled.

Katie Griley, vice president of operations at Griley Air Freight, revealed that the peak season is coming. Even if the cargo arrives at the local airport, it will take 4 to 8 hours for truck drivers to pick up the cargo from Los Angeles International Airport.

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

 

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

Query URL: https://www.newsbreak.com/news/2103446982404/peak-season-congestion-traps-truckers-for-hours-at-lax-cargo-terminals

In this regard, the International Air Cargo Association (IATA) stated that during the surge in e-commerce in recent months, the continuous shortage of capacity due to the lack of passenger aircraft services will cause a particularly serious blow to the air cargo industry.

So what is the current domestic situation?

An executive vice president of international freight in Shanghai said that it is now in the traditional peak season for air transportation, and the recent traffic jams and queues in the unloading area of ​​the airport logistics storage area are very serious. The liquidation should start in mid-October, and not only the volume of cargo has increased significantly, but the freight prices of major routes have also increased a lot.

In fact, not only the domestic but also the international air cargo market has been in a high boom this year. The freight rate has also been at a high level for a long time. Some routes have also risen to the highest prices in history.

2. The reason for the explosion of air freight and the skyrocketing freight?

According to a report from CCTV Finance, Dexun Group East China Managing Director Fu Keqiang said that from the second quarter to the present, the four main products that have contributed to the growth of air freight are electronic products, e-commerce channel products, personal protective equipment and auto parts. , These four products accounted for the main growth factors.

Zhao Chao, a senior analyst in the transportation industry of Changjiang Securities, said that on the one hand, the shortage of transportation capacity is difficult to reverse in the short term. On the other hand, when consumption in Europe and the United States is the most prosperous, such as Christmas and other shopping seasons, the overall freight rate should still remain. The high position will continue to rise.

So how to explain to customers in English?

1. Peak season demand soars

Paul Molinaro, head of WHO's business support and logistics operations, told Reuters that a series of factors have driven prices up, including the higher-than-usual increase in e-commerce before Christmas.

According to the U.S. Department of Commerce, e-commerce sales in the United States in the third quarter increased by 37% compared with the same period in 2019. According to data collected by Buy Shares, online shopping spending during the Thanksgiving weekend (including Black Friday and Cyber ​​Monday) increased by 20% to $29.6 billion.

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

 

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

Query URL: https://www.globaltimes.cn/content/1208780.shtml

According to data sent to the Global Times by cross-border e-commerce platform DHgate, shipments from China to the US accounted for approximately 68% of the platform's total sales in September. Peak season for Christmas decoration transportation. The best sellers are Santa sack, solar LED string lights, Christmas snowman, artificial flowers and Christmas masks. 

We can tell our customers like this:

Airline body IATA’s chief economist Brian Pearce said that Christmas demand “exaggerates the problem” of a surge in demand for airfreight.

Airline International Air Transport Association (IATA) chief economist Brian Pearce (Brian Pearce) said that the demand for Christmas prompted the explosion of international air cargo.

The COVID-19 pandemic's impact on production in countries around the world and the nearing of Christmas, a peak season for export of Chinese products to Europe and the United States, were part of the reasons for the surge in demand for airfreight.

Due to the impact of the epidemic on the production of countries around the world and the approach of Christmas, which is the peak season for China’s exports to Europe and the United States, this is also part of the reason for the explosion of air cargo.

2. Insufficient capacity

Data from the global air cargo market showed that air cargo demand continued to grow in October, but the growth rate was lower than the previous month.

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

 

 

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

Website query: https://aircargoeye.com/air-cargo-facing-peak-season-capacity-crunch/

IATA Director-General and CEO Alexandre de Juniac (Alexandre de Juniac) pointed out that air cargo demand is picking up, and we believe this trend will continue into the fourth quarter.

We can tell our customers like this:

Alexandre de Juniac, IATA’s director general and chief executive, notes that the biggest problem for air cargo is the lack of capacity, as much of the passenger fleet remains grounded.That will likely be exaggerated with shoppers relying on e-commerce – 80 per cent of which is delivered by air.

IATA Director-General and CEO Alexander de Juniac said: The biggest problem with air cargo is insufficient capacity, because most passenger planes are still grounded. If shoppers continue to shop online, it is no exaggeration to say that 80% of them are delivered by air.

So, the capacity crunch from the grounded aircraft will hit particularly hard in the closing months of 2020 which were part of the reasons for the surge in demand for airfreight.

Therefore, in the months before 2020, the production capacity of grounded aircraft will be particularly severe, which is also part of the reason for the explosion of air cargo.

3. Soaring freight

It is reported that due to the impact of the epidemic, the United States announced restrictions on flights from Asia and Europe, which affected the capacity of transportation and hauling of goods. Global supply chain disruptions and restrictions have forced operators to rely on commercial aircraft, which has led to a sharp increase in the rates of all-cargo airlines.

 

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

 

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

Website query: https://www.supplychaindive.com/news/airfreight-cargo-rates-demand-climbs-near-peak-season/588619/

According to a report from the International Air Transport Association (IATA), the highly anticipated releases of electronic products such as the iPhone and Play Station 5 are traditionally shipped by air during Christmas and Black Friday.

 

Air freight is waiting for warehousing and freight rates are skyrocketing!  How to explain to customers in English?

 

Query URL: https://www.supplychaindive.com/news/ups-raises-surcharges-china-us/587260/

The increase in air freight demand before the holidays caused rates to soar again. From October 12th to November 9th, freight rates between China/Hong Kong and the United States increased by nearly 46%, reaching US$7.40 per kilogram, more than double the same period last year.

American Airlines President Robert Isom said last month: “From August to September alone, we doubled our cargo volume and operated 1,900 flights, serving 32 destinations in the third quarter. Provide services locally."

We can tell our customers like this:

A surge in demand for airfreight during the pandemic, coupled with peak season needs, has pushed UPS/Fedex/DHL to once again raise fees on goods flowing from China to the foreign countries.

The surge in demand for air transportation during the epidemic, coupled with peak season demand, prompted UPS/Fedex/DHL, etc. to once again increase the charges for goods from mainland China to other countries.

With holiday season upon us, shippers are yet again forced to shell out higher prices. Decreased capacity and higher rates have been a staple this year, causing fluctuating prices in air cargo especially, and in order to secure space, shippers have paid higher rates and additional surcharges.

With the advent of the holidays, shippers are again forced to pay higher prices. Declining capacity and rising tariffs are the main things this year, especially because of the fluctuations in air cargo prices. In order to ensure space, the shipper paid higher rates and surcharges. 

The International Air Transport Association Brian Pearce said at a recent press conference that all signs indicate that air cargo volumes will continue to grow for the rest of the year. And manufacturers (the main driving force of air transport) are particularly bullish. In response to this situation, what are the current measures taken by all parties?

3. What are the measures taken by all parties?

domestic

Faced with the huge increase in demand for international air cargo, airlines have also increased the delivery of international cargo flights . According to statistics, China's international cargo flights increased substantially at the end of October, reaching about 2.3 times the same period last year. All airlines have invested more cargo capacity, and the frequency of both all-cargo aircraft and "passenger-to-cargo" aircraft has increased significantly.

Wang Jianmin, deputy general manager of Eastern Airlines Logistics Co., Ltd., said that the number of "passenger-to-cargo" flights increased significantly in October and November, and there were more than 100 more flights in October compared with September. In November, the number of "passenger-to-cargo" flights increased to 1,000. Around, a substantial increase from October. In November, the utilization rate of freighters reached a peak of 14 hours per day, and some exceeded 14 hours.

foreign

Lu Dongmei, China's chief representative of Lufthansa, said that in order to meet the growing demand for cargo capacity, Lufthansa has turned passenger planes into cargo planes and filled their abdominal cavity with cargo that can fly around the world. In addition to the all-cargo operations 20 cargo flights a week, but China also conducted five weekly flights on passenger aircraft turnaround.

Canadian officials said that due to the impact of the epidemic, its e-commerce market is growing, and there is a chronic shortage of cargo aircraft. Air Canada plans to convert the Boeing 767, which has recently withdrawn from passenger service, to be able to carry large containers and pallets on the main deck. The premise is that the carrier needs to reach an agreement with the pilot.

DHL Express said that due to the grounding of most passenger aircraft, the abdominal muscle capacity is insufficient, although there are plans to provide air charter services to serve certain major markets. But this year still adds six aircraft, which is to overcome the air cargo capacity restrictions caused during the epidemic.

Finally, remind foreign trade friends who are shipping by air in the near future to communicate with customers on capacity in a timely manner, and to be cautious in quoting (each airline may adjust prices frequently) to avoid unnecessary losses.

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

In recent months, the container market has experienced extreme conditions. High freight rates and container shortages have plagued the market and will continue for some time. In addition to the short plug of the reefer, the import and export of the reefer will also be a new challenge.

Large companies and logistics companies that need to ship refrigerated goods must be prepared, and shipping companies have announced that they will stop receiving freezers.

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

It is reported that the shipping company Hapag-Lloyd announced that it will suspend all 40' freezer bookings in Germany, Austria, Switzerland, Hungary and the Czech Republic until the end of December 2020.

"Our goal is to support all confirmed export orders, but reservations may be cancelled for individual cases. We will try our best to provide all customers with the best service, but we expect that the situation will remain very tense in the coming weeks." Herb Roth wrote in a statement.

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

"This once again shows that the market is facing severe container equipment challenges. This is a prominent problem that affects the supply chain in many places, not just the supply chain in Asia." Shipping analyst and chief executive of Sea-Intelligence Consulting Officer Lars Jensen said.

In addition to Europe, Hapag-Lloyd announced on December 3 that the port was congested due to stricter customs inspection and disinfection of imported food entering Huangpu. From now on, we will temporarily stop accepting reservations for refrigerated containers entering Huangpu Port in China until further notice.

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

In view of the above situation, customers are kindly requested to provide written confirmation as soon as possible. You can have the following options:

(1) If circumstances permit, accept delivery at the current port of discharge;

(2) Transfer your refrigerated container to another port/destination;

(3) Transport your refrigerated container back to the port of departure;

(4) If there is no instruction from the customer, Hapag-Lloyd reserves the right to make all necessary arrangements.

Please note that for any of the above options, all additional costs, risks and liabilities related to storage or transportation of the goods after unloading will be borne by the owner of the goods.

At the same time, Hapag-Lloyd also announced that it will temporarily stop receiving orders for imported reefer containers from Busan, South Korea to Tianjin, China , with immediate effect.

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

 

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

In addition, my country has recently increased its inspection of imported refrigerated goods, making the inspection of refrigerated goods more stringent and time-consuming. Ports are facing problems such as slow pickup of containers and port congestion.

Ocean Network ONE stated in the announcement that it will suspend the delivery of refrigerated containers to Huangpu Port from November 26. In addition to the latest announcement of ONE, Xiamen, Fuzhou and Fuqing have also suspended receiving imported refrigerated containers.

ONE stated that due to the stricter inspection and disinfection requirements imposed by customs on refrigerated containers imported into Xiamen/Fuzhou/Fuqing, the delivery of freezer containers has been slow and is facing congestion.

In view of this situation, from the date of shipment on December 8, 2020, ONE will stop accepting all orders for refrigerated goods destined for Fuzhou and Fuqing, China , until further notice.

Starting from the loading date on December 9, 2020, ONE will stop accepting all reservations for refrigerated cargo to Xiamen, China or for transshipment via Xiamen , until further notice.

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

 

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries

 

 

Refrigerated container transportation is tightening, not only in China, shipping companies also suspend receiving cold container space bookings for these 5 European countries
▲ONE announcement

For containers in transit, ONE strongly recommends that customers consider changing the destination to another port, especially for time-sensitive goods, such as fresh and refrigerated goods.

For refrigerated containers that have been transshipped to Xiamen, or refrigerated containers that have been detained at the transshipment port for further transportation to Xiamen, please note that all related expenses will be borne by the consignee and paid upon delivery.

For containers that have been transshipped to Fuzhou/Fuqing or detained at a transit port, once the Fuzhou/Fuqing feeder space is available, a specific surcharge will be charged at the time of loading.

Severe congestion and long waiting time, Vietnam’s largest deep-water port is waiting for a berth 50 kilometers

The shift of manufacturing from China to Vietnam has also put pressure on the country's container supply chain.

According to the forecast of the International Monetary Fund, Vietnam's gross domestic product (GDP) will grow by 2.4%. As many other countries fall into recession due to the epidemic blockade, Vietnam is expected to become one of the fastest growing economies in the world in 2020.

According to Simon Vandekerckove, general manager of freight logistics giant Geodis Vietnam, procurement in Vietnam is entering a new stage. The factory is overbooked. We see that overseas customers have high expectations for Vietnam, but Vietnam does not have the necessary legal or logistics basis. Facilities to achieve this.

 

"Vietnam needs a lot of investment to increase new productivity and infrastructure to cope with increasing demand, and because customers want to reduce the financial risk of sourcing from only one region, Vietnam is likely to become an outsourcing region for other ASEAN countries such as Thailand and Indonesia. one."

At the same time, the shortage of global capacity and container equipment is putting pressure on Vietnam's main container ports.

A local freight forwarder in Vietnam said that the inland river terminal in Ho Chi Minh City has been congested for a long time, and the current market conditions have increased the waiting time. The export container yard capacity is 120%, and ships need to wait two to three days to find a berth.

He added: “In Cat Lai, all shipping companies’ outbound volumes have increased dramatically, but due to lack of space, about 10%-20% of the cargo must be transferred to the next ship each time.”

Vietnam’s largest deep-water port, Cai Mep, is letting ships wait 50 kilometers away. In October, the Cai Mep International Terminal (CMIT) operated by APM Terminal received the 20,000 teu Margrethe Maersk call, which is 2M One of the direct trans-Pacific routes.

The port used to have very large container ships docked (temporarily docked), but the current demand trend may cause more and more ships to come here. Next year, CMA CGM will cooperate with local operator Gemadept to open the newest terminal in Cai Mep.

Nevertheless, the current shortage of space and container equipment and the sharp rise in costs are still a huge challenge.

Vandekerckove explained: "According to all types of freight FAK and spot freight rates, bookings from Vietnam require two to three weeks in advance to secure containers and space. To the west coast of the United States, freight rates have increased by 140%, and the Mediterranean area has increased by 70%. , The Nordic region rose by 15%."

Mr. Vandekerckove said that in most cases, air freight is not an option, but road freight provides flexible options for some customers.

From tomorrow, Shenzhen Bay Port will be able to clear goods within 24 hours!

Long queues for Hong Kong citizens? The latest response from Shenzhen Bay Port!

The epidemic in Hong Kong has not been alleviated, and many Hong Kong citizens have gone northward to avoid the epidemic. What is the truth behind the online photo of a large number of people at Shenzhen Bay Port waiting to pass the customs? What are the current changes in Shenzhen's epidemic prevention policies and measures? Let us understand together!

Shenzhen Bay Port responded immediately and left immediately, not full

Regarding the long queue of Hong Kong citizens, the police at the Shenzhen Bay Border Checkpoint responded to the media saying that although the number of people entering the country has increased recently, the border check area remains unobstructed. They are all inspected immediately, leaving no waiting time Need a very long situation. 

 

note!  Hong Kong gets together into Shenzhen?  From tomorrow, Shenzhen Bay Port will be able to clear goods within 24 hours!

Latest policy: Shenzhen Bay Port will provide 24-hour cargo clearance service from the 10th

A spokesperson for the Hong Kong Special Administrative Region Government announced on the 7th that Shenzhen Bay Port will provide 24-hour cargo clearance services from 0:00 on December 10.

The original cargo clearance service time at Shenzhen Bay Port was from 6:30 to 24:00 daily. The spokesperson said that the Chief Executive of the Special Administrative Region announced in the 2019 policy address that the Special Administrative Region government plans to extend the clearance time of Shenzhen Bay Port to 24 hours in phases within 2020, but due to the impact of the epidemic, the Hong Kong and Shenzhen governments agreed to suspend the implementation of the relevant plan.

Under the mechanism of joint prevention and control, the governments of Hong Kong and Shenzhen have formulated effective quarantine measures for cross-border truck drivers. On the one hand, they ensure a stable supply of materials and food to Hong Kong, and on the other hand, they strictly prevent the cross-border spread of the new crown virus.

The spokesperson said that in order to further support the logistics between the two places, and to gradually implement the cross-border freight forwarding layout of “east in and east out, west in and west out”, the Hong Kong and Shenzhen sides decided after discussion to start Shenzhen at 0:00 on December 10. The cargo clearance service time at Bay Port has been extended to 24 hours.

The spokesperson emphasized that after extending the cargo clearance service time at Shenzhen Bay Port, Hong Kong and Shenzhen will continue to strictly implement quarantine measures for cross-border truck drivers to prevent the spread of the new crown virus.

At this stage, the passenger clearance service time at Shenzhen Bay Port is from 10 am to 20 pm daily. The spokesman said that the two governments will consider implementing 24-hour passenger clearance services based on the development of the epidemic situation in the two places.

Warm Reminder: Information for people entering Hong Kong via Shenzhen Bay Port

In order to properly respond to the recent changes in the new crown pneumonia epidemic in Hong Kong, to ensure the safety, health and customs clearance order of people entering Shenzhen Bay Port:

From 10:00 am on August 7, 2020, those entering from Hong Kong through Shenzhen Bay Port must have a qualified testing agency approved by the governments of Guangdong and Hong Kong when entering the country. The nucleic acid test is negative within 24 hours. As a result, the paper report, after entering the country, went to the designated hotel for 14 days of intensive medical observation in isolation at the expense of his own.

The freight rate in Europe and the land will continue to rise after the soaring

After a further surge last week, the spot freight rate for containers from Asia to Northern Europe is now 130% higher than the beginning of the year, up 200% year-on-year. The Far East-Europe trade route is still under tremendous pressure, and the freight rate will continue to rise further.

In the current peak season, the influx of imported goods from Asia into the United States does not seem to have eased. Los Angeles and Long Beach are still in a state of collapse and paralysis. There are as many as 20 ships lining up near the west coast, waiting for the empty space in LA Long Beach Port to unload.

Australian ports remain congested, with more than 75,000 teu stranded in Sydney.

Freight rates in the Asian intra-route market remained stable, but from the same period last year, freight rates across Southeast Asia have increased by a staggering 390.5%.

 

The freight rate in Europe and the land will continue to rise after the soaring, and the shipping companies will continue to gather wool!  Congestion in West America, 20 ships in Long Beach Port line up for unloading

Europe-to-land route : The North European spot freight rate of the Shanghai Container Freight Index (SCFI) just released by the Shanghai Shipping Exchange increased by 13.5% to US$2,374 per TEU, and the Mediterranean freight rate increased by US$165 to US$2384, spot The freight rate increased by 7.4%. It is worth noting that the year-on-year growth rate in Northern Europe was 196.8%, and the year-on-year growth rate in the Mediterranean was 209.2%. But in fact, the market freight rate is much higher than this.

 

The freight rate in Europe and the land will continue to rise after the soaring, and the shipping companies will continue to gather wool!  Congestion in West America, 20 ships in Long Beach Port line up for unloading

 

 

The freight rate in Europe and the land will continue to rise after the soaring, and the shipping companies will continue to gather wool!  Congestion in West America, 20 ships in Long Beach Port line up for unloading

A Shanghai-based non-vessel carrier said that several shipping companies are currently offering more than US$6,000/40-foot container to Rotterdam and more than US$8,000/40-foot container to the UK.

A freight forwarder in China stated that the carriers on this route are now purely focused on maximizing freight revenue, regardless of all other agreements. He said: "Shipping companies only give priority to higher-priced spaces-whoever pays more will get the space."

 

The freight rate in Europe and the land will continue to rise after the soaring, and the shipping companies will continue to gather wool!  Congestion in West America, 20 ships in Long Beach Port line up for unloading

Christoph Baumeister, senior trade manager for Flexport Asia/ISC-Europe, said the situation for Asian shippers was “worse than week after week”. He added: "The Far East-Northern Europe/Southern Europe trade route is still under tremendous pressure, and freight rates will rise further this week."

Moreover, according to data from the freight benchmark company Xeneta, the current average price of short-term market contracts in Asia and Europe of three months or less is 200% higher than a year ago, at $4,831 per 40 feet.

Although Xeneta’s long-term contract freight data showed an increase of 28% to US$1,648 per 40 feet, it pointed out that despite the peak contract season, few deals have been concluded because shippers and carriers think it’s not the time.

In the trans-Pacific region , the spot freight rate remained basically unchanged last week and stabilized at a record level. According to SCFI data, the spot price on the west coast of the United States rose by US$68 to US$3947 per 40 feet, while the port price on the east coast fell by US$8. To $4,700 per 40 feet. The year-on-year growth rates of the West Coast and East Coast of the United States were 161.6% and 78.2%, respectively.

Since mid-September, due to the intervention of Chinese regulatory agencies, the spot market on this route has remained stable, and shipping companies hope to obtain guaranteed income from their premiums.

As the influx of merchandise imports from Asia into the United States during the peak season did not seem to ease, the Port of Los Angeles data confirmed that the port's imports in the 50th and 51st weeks increased by 37% and 54% year-on-year respectively.

 

The freight rate in Europe and the land will continue to rise after the soaring, and the shipping companies will continue to gather wool!  Congestion in West America, 20 ships in Long Beach Port line up for unloading

The continued growth of imports has put tremendous pressure on the San Pedro Bay ports in Los Angeles and Long Beach. Freightos Chief Marketing Officer Eytan Buchman said: "There are reports that as many as 20 ships are lining up near the west coast, waiting for the unloading of empty spaces in the Port of Long Beach, LA. Retailers are eager to put these goods on the shelves before the holidays."

As for Australia and New Zealand routes , with the gradual improvement of the epidemic situation and the continuous growth of transportation demand during the traditional peak season, the market freight rate has increased. According to the SCFI index, the freight rate (sea freight and ocean freight surcharge) for exports from Shanghai to the basic port of Australia and New Zealand was US$2490/TEU, up 2.5% from the previous period. But the Australian shipping business is currently in a "state that has never been so bad."

The continued "chaos" in the Australian container supply chain will mean that some retailers' shelves will be empty during Christmas.

The impact of supply chain delays caused by the Maritime Union of Australia (MUA) strike in early October continues. The shipping company stated that the disruption of shipping schedules caused a backlog of "8 to 10 weeks" delays (8 weeks of delay means that retailers will not have inventory "until January of next year"), but the union denies that this is the reason. Rather, it points to the increase in demand during the peak season.

According to the Freight and Trade Alliance (F&TA), trade imbalances, resulting in a large surplus of empty containers and lack of storage areas for storing these containers, are still the main problems hindering the supply chain. F&TA Director Paul Zalai said: “Currently, it is estimated that the imbalance of containers is 75,000 teu, which is stranded in Sydney’s empty container yard and operator’s warehouse. The surplus of empty containers will cause Sydney’s logistics to fall from the current congestion state to an unsolvable situation. deadlock."

 

The freight rate in Europe and the land will continue to rise after the soaring, and the shipping companies will continue to gather wool!  Congestion in West America, 20 ships in Long Beach Port line up for unloading

The peak season demand has increased the spot freight rate from China to Melbourne to US$2490, compared with US$1648 in mid-October. Paul Zalai believes that the country’s shipping industry has “never seen such a bad situation.” He explained: “Our ports are congested, services are limited, freight prices are at record highs, detention, congestion and terminal access surcharges continue to increase. "At the same time, similar shipping delays have also affected importers in the Tasman region. Due to the chain reaction caused by port congestion in Australia, the Port of Auckland in New Zealand experienced delays this year.

The market freight rates of intra-Asia routes also remained stable last week, but from the same period last year, freight rates across Southeast Asia have increased by an astonishing 390.5%. 

Although these are eye-catching figures, it is important not to forget that 65% to 75% of all goods are transported on the basis of contract freight rates rather than spot market freight rates. However, due to the exhaustion of the number of contracts (many contracts are in unexpected periods when consumer demand is out of control) the rest tends to the spot freight market. When contract negotiations restart next year, the strong bull market will also benefit shipping companies.

Andy Lane of CTI Consulting in Singapore commented: “There is still one month before the new Asian-European contract. This is under the background of record-breaking spot freight rates. Prices may rise sharply, which will have a real impact on the market."

The global port shortage of containers takes turns, the freight rate will rise from next year

Against the backdrop of the global raging COVID-19 pandemic, this year's global container shipping industry seems to be sitting on a magical "seesaw". On one side, there is a shortage of containers and high freight rates, and the other is port congestion . The two issues alternate across oceans and continents, torturing the fragile nerves of cargo owners.

However, although industry analysts sing the recovery of the operating industry, industry insiders are still cautious about the "boom" that occurred during the epidemic, especially after the middle of next year, the market supply and demand trend is still like a fog, and there are still larger ones. Uncertainty.

The problem of shortage of containers has attracted the attention of the Ministry of Commerce. On December 3, the spokesperson of the Ministry of Commerce pointed out that, on the basis of the preliminary work, the Ministry of Commerce will continue to promote the increase of transportation capacity, support the acceleration of container return, improve operation efficiency, support container manufacturers to expand production capacity, and increase The intensity of market supervision, efforts to stabilize market prices, provide strong logistics support for the steady development of foreign trade.

 

The global port shortage of containers takes turns, the freight rate will rise from next year

The epidemic caused port failure

The problem of container shortages is happening alternately across the Pacific and the Atlantic this year.

According to Bloomberg data, in the first quarter of this year, European and American ports such as Hamburg in Germany, Rotterdam in the Netherlands, Antwerp in Belgium, and Long Beach and Los Angeles in the United States have all fallen into a state of extreme shortage of containers. The port container holdings have reached a record low, while Chinese ports are stranded in a large number of containers. Waiting for quarantine. In the third quarter, the situation was reversed. The overseas epidemic was severe and the port was understaffed. According to statistics, the Port of Sydney, Australia had piled up at least 50,000 TEUs of containers to be processed. Many ports were charged with congestion charges. Hard to find" status.

Generally speaking, problems such as shortage of containers and port congestion are routine problems in the industry, which are easy to appear in peak seasons, and are also related to port processing efficiency. However, the failure of port operations caused by the epidemic has undoubtedly extended the loading and unloading time of containers.

According to a reporter from the Securities Times, due to the need for epidemic prevention, the Port of Los Angeles has temporarily reduced the number of dockers and port personnel by about one-third, and the loading and unloading of ships has been greatly affected. Due to the continuing effects of shortages of equipment and prolonged loading and unloading time in ports, a large number of imported containers have been backlogged in European and American ports, congested terminals and poor container turnover, which has hindered cargo transportation.

The global container shortage difference can be seen from the Container Availability Index (Container Availability Index) released by the container source traceability platform xChang: In July, the supply of 40-foot containers at the Port of Los Angeles was insufficient; by the end of September, the port’s container availability index had increased by 4 times. Oversupply; since September, Qingdao Port (6.110, -0.02, -0.33%) usable containers have begun to decline, and by October the usable index of 40-foot containers has fallen by half, and 20-foot containers have also been in short supply.

 

Strong Asian exports become an important driving force for recovery

Looking at the whole year, the geographical imbalance of the shortage of containers is more significant, which is directly related to the timing of the outbreak.

According to data provided by the United Nations Conference on Trade and Development (UNCTAD), in mid-March, the number of global container ship arrivals began to fall below the level of 2019 and did not start to recover until the third week of June. This timetable basically coincides with the World Health Organization’s listing of the new crown pneumonia as a pandemic and the deteriorating epidemic in Europe and the United States. On the other hand, the number of container ship arrivals at Chinese ports has gradually recovered since June, which is also in line with China’s The lock release time corresponds to that.

In terms of absolute volume comparison, most regions started to recover from the third quarter, but globally, the port container ship berthing volume in early August was still 3% lower than the same period last year, and North America and Europe were 16.3% lower than the same period last year. And 13.2%. In contrast, the number of port calls in China (including Hong Kong) has exceeded the level of last year, an increase of 4.1%.

China's shipping import and export took the lead in the recovery. The fundamental factor is that the domestic epidemic prevention and control has achieved major results, and the production side has taken the lead in recovery, effectively making up for the global supply gap caused by the impact of the epidemic, and also supporting the continuous growth of exports.

China Customs statistics show that in the first and second quarters of this year, China’s import and export growth rates were -6.5% and -0.2%, respectively. They were reversed in the third quarter, with a year-on-year growth of 7.5%. The total value of imports and exports reached 8.88 trillion yuan. Stable, the cumulative growth rate turned negative to positive. It is worth noting that due to the changes in lifestyles caused by the epidemic, the export of notebook computers and home appliances has increased; the export of epidemic prevention materials has also risen rapidly. The export of textiles including masks reached 828.78 billion yuan, an increase of 37.5%; medical materials and medicines, The export of medical instruments and equipment increased by 21.8% and 48.2% respectively.

According to information provided by UNCTAD to a reporter from the Securities Times, although China was the first country to be affected by the epidemic, in the first quarter, China’s overseas trade, transportation and exports were not interrupted, so the transportation at Chinese ports remained unobstructed; on the contrary; It was in the second quarter that due to the escalating blockades of various countries, economic activities were restricted, and the transportation of logistics personnel was blocked, leading to a sharp drop in imports from various countries. At this time, the impact on port operations increased significantly. Subsequently, the epidemic situation in Europe and the United States became more and more serious, and the key figures of the centralized transportation industry also bottomed out in the middle of the year. At the end of May, the World Ports Association pointed out that the number of container ships calling at about 45% worldwide dropped by 5% to 25%, and most of the cancelled ships came from the Far East route.

According to data from Alphaliner, an international shipping consulting and analysis agency, the new crown pneumonia epidemic in the first half of the year has reduced the chartering revenue of large container ships by half. Starting in the third quarter, global shipping capacity has recovered, a year-on-year increase of 2.8%, reaching 123 million TEUs, strong exports from Asia Become an important driving force for recovery.

In terms of the capital market, the share prices of listed companies in the A-share centralized transportation industry have also started in June and have risen significantly in the third quarter. CIMC (14.830, 0.20, 1.37%) and COSCO SHIPPING Holdings (9.680, 0.06, 0.62%) The performance of related listed companies also increased substantially in the third quarter.

 

The global port shortage of containers takes turns, the freight rate will rise from next year

Strong demand for containers is expected to continue into the first quarter of next year

Returning to the shipping industry itself, many shipping companies around the world took the initiative to suspend shipping under the influence of the epidemic in the first half of this year.

As the world’s top five airlines, Rolf Habben Jansen, CEO of Hapag-Lloyd, pointed out at the third-quarter performance briefing that in April this year, demand suddenly dropped by 20% and lost 200 million U.S. dollars per month, so it must be suspended to reduce 60% of the cost. He pointed out: "The market at this stage is driven by demand, not by inventory replenishment. The entire market is trying to get empty containers back to where they are needed."

In terms of container freight rates, the Shanghai Export Container Freight Index (SCFI) and China Export Container Freight Index (CCFI) released by the Shanghai Shipping Exchange have set new highs. On November 27, CCFI quoted 1198.72 points, an increase of 4.6% over the previous week; SCFI quoted 2048.27 points, an increase of 109.95 points over the previous week. Under the strong demand, the price of offshore export containers also rose sharply. On November 27, the export container price of Southeast Asia routes was quoted at 995.67 points, an increase of nearly 20% over the previous week.

According to the analysis of China Securities Regulatory Commission, the supply side has not launched large-scale capacity at this stage, while the demand side has continued to grow rapidly, which will become the fundamental reason for the increase in freight rates in the transportation industry. Although the epidemic has led to pessimistic global economic expectations, in fact, the European and American manufacturing PMI index is still in the expansion range driven by policy, which provides economic fundamental support for the increase in freight rates.

However, someone from a shipping company pointed out to a reporter from the Securities Times that in the last 10 to 12 years, the shipping industry has not made any money or even recovered the cost of capital; long-term low-price competition is difficult to promote the healthy development of the industry.

So, can the epidemic promote the long-term recovery of the industry? Most people in the industry are cautious about this.

Rolf Habben Jansen pointed out that the current market is very, very strong, "but it is illogical to think that this situation will continue in the next few years." He expects that the situation will change in the next three or four quarters, and the company needs to be prepared to act quickly.

Container shipping companies and leasing companies also told reporters that the outlook is difficult to predict. Although the strong demand for containers is expected to continue into the first quarter of next year, after the middle of next year, there is still greater uncertainty in the market supply and demand trends. If European and American countries are still under lockdown or vaccine research and development and promotion fall short of expectations, and the macro economy falls into a sustained recession, the good growth momentum of the container transportation industry may not be able to maintain.

Where are the empty boxes that can’t be grabbed?

The port is not the boss, the ship is not the boss, and the cargo is the boss. This is a "golden sentence" circulating in the port and shipping industry. However, the freight forwarder who has been busy in the front line of cargo booking may tell you that at this moment of chaos in this industry, the port is not the boss, the ship is not the boss, and the cargo is not the boss. You can't get the empty space if you grab the head. The box is the boss .

In recent weeks, due to a severe shortage of empty containers, some container ships sailing from Asia to Europe cannot even be fully utilized. A shipping source said, “Recently, we have to vacate some spaces because China does not have enough containers to meet freight demand.” Almost all transport companies have reported that they have a serious shortage of 40-foot high containers (hc) and 40 There is also a shortage of standard containers, and even 20-foot containers are sometimes in short supply.

The latest container availability index report from Container xChange shows that the availability of containers in various ports in China is at a record low. From the perspective of the container availability index, the index higher than 0.5 indicates a surplus of empty container inventory, and lower than 0.5 indicates a shortage of empty containers. The current availability of 40-foot containers in China is only 0.05 CAx points, compared with 0.63 points in the same period last year .

Chinese shippers and freight forwarders all over the world "seeking" empty containers, but where did the empty containers go? The answer is simple, it is blocked in other ports.

While the Asian port and shipping industry is desperately desperate for empty containers, warehouses across Europe, especially in the UK, are filled with "immobile" boxes in troubled ports and overcrowded docks.

Affected by the epidemic, shipping companies have used methods such as suspension of voyages and port jumps to control capacity and adjust freight rates, but to a certain extent they also broke the balance of empty and heavy containers between routes. With the gradual recovery of the economy, the trade demand of various countries has rebounded, and the exports of Europe and the United States have grown strongly. However, under the continuous epidemic situation, the various quarantine and epidemic prevention measures added by the port customs will inevitably slow down the circulation of containers. Coupled with the gathering of festivals such as "Black Friday" and "Christmas", the port operation capacity will not be able to keep up with the number of boxes. , The result is that a large number of containers are blocked in the port, empty containers can not go out, heavy containers can not enter. In some British ports, the volume of container transportation in recent months has even been 30% higher than normal, resulting in too many empty containers throughout the UK, and even the alarming phenomenon of containers being piled "at your doorstep".

A British freight forwarder said, "Even if customers are prepared to pay close to crazy freight rates to ensure that the goods are shipped, we are still busy trying to transport the empty containers because the port is already full. Some empty containers on the dock are already After being placed for more than four weeks, we still don’t know when they will be loaded."

In order to ensure the smooth operation of global logistics, liner companies have adopted some unconventional container deployment strategies, such as shortening the free container usage period to stimulate and speed up the circulation of containers on key routes; key routes and long-distance base ports give priority to container use and priority Vacant containers are deployed to countries and regions such as China, Southeast Asia, etc.; the monitoring of container return is slow. For example, some areas in Africa cannot receive goods normally, resulting in whether the container is returned or not. The liner company will comprehensively evaluate and reasonably release the container; some shipping companies even suspend it Made export reservations to Europe and the United States in order to fill as many empty containers as possible back to Asia. However, due to the empty container regulation of shipping companies, the freight rates on the Asia-Europe routes have also been increasing, and the market seems to be in a vicious circle of chaos.

At the same time, a survey conducted by xChange and FraunhoferCML, a German maritime research consultant, showed that despite the large-scale progress in global port handling technology, the time that containers remain empty in ports is still surprisingly long. This report unexpectedly shows that the global container vacancy phenomenon is very serious. The vacant time of each container in the port is 45 days on average, while the vacant time of containers in empty container shortage areas such as China and the United States is longer, 61 days and 61 days respectively. 66 days.

Obviously, the circulation of empty containers is a problem that the entire industry needs to face squarely, but it has been ignored by the industry for a long time. In the sudden crisis of the epidemic, the "old problems" have further deteriorated and gradually developed into today's thorny problems.

It is understood that CIMC, which accounts for 45% of the global container manufacturing market, said that the company is currently stepping up container building and container orders have been scheduled to the first quarter of next year. However, waiting for the new containers to leave the factory, after all, "far water can't save the immediate emergency", and the situation of "a box is hard to find" is expected to continue for some time. In addition to working overtime and deploying empty containers, what else can shipping companies and ports do? The structural empty container circulation problem may be difficult to obtain an optimal solution in a short period of time, but "it is not too late to make up for it". It is time to put more resources and efforts on solving the empty container problem.

The direct route from Wuhan to Islamabad officially opened

China Southern Airlines Boeing 787 wide-body passenger aircraft numbered B-2733 took off from Wuhan Tianhe International Airport at 9 am on the 30th to Pakistan Islamabad International Airport, marking the official opening of the direct route from Wuhan to Islamabad. This is the first international route opened by China Southern Airlines in Hubei after the epidemic prevention and control has become normal, and it is currently the only direct international passenger route to South Asia in Central China.

According to the staff of China Southern Airlines, the Wuhan-Islamabad route is scheduled once a week. The outbound flight number is CZ8139, and the flight time is about 6 hours and 10 minutes; the return flight number is CZ8140, and the flight time is about 5 hours and 15 minutes.

 

The direct route from Wuhan to Islamabad officially opened

According to the current anti-epidemic policy, passengers who take regular direct commercial flights from Pakistan to China should complete 1 nucleic acid and 1 serum IgM at two different testing institutions designated by the Chinese Embassy in Pakistan within 48 hours before boarding. Antibody sampling and testing, and after obtaining the negative certificate of 2 nucleic acid and 2 serum IgM antibody tests, apply to the Chinese Embassy in Pakistan for a green health code with the “HS” or “HDC” logo. 14 Days of centralized isolation. Passengers entering Pakistan on direct flights from China do not need to provide nucleic acid test reports, but they need to download and install the Pass Track applet and fill in personal information as required.

It is understood that the inaugural flight also carried 12 tons of cargo, the main sources of which were communications products, medical equipment, e-commerce products and traditional trade goods. In terms of cargo security, the Hubei Sales Department of China Southern Airlines Cargo Logistics strictly examines cargo types and packaging, formulates loading plans in advance, and strengthens risk monitoring in the collection and transportation links. At the same time, in conjunction with the epidemic prevention and control policy, understand the imported goods information, formulate elimination measures, standardize the operation process, strengthen the protection training of frontline personnel, strictly control the risk of epidemic transmission in all links, and actively prevent and control import risks.

According to the staff of the Hubei branch of China Southern Airlines, as the resumption of work and production continues, China Southern Airlines uses "passenger-to-cargo" and chartered flights to provide more capacity for Hubei enterprises and personnel to communicate with foreign countries. Since the beginning of this year, as of November 30, China Southern Airlines has opened three international long-distance “passenger-to-cargo” direct flights from Wuhan to New York, London, and San Francisco, guaranteeing 11 direct flights from Wuhan to Osaka, Tokyo, Nagoya, and Seoul. Under the policy guidance and process support of bureaus, customs, border inspection, epidemic prevention and other units, a complete epidemic prevention and guarantee process has been established.