CARGO DEMAND EXCEEDING CAPACITY
With Yantian international Container Terminal, one of China’s biggest container port slowly resuming operations, there is still a backlog of containers at the port which could take weeks to clear.
Yantian international Container Terminal was partially closed as an increase number of COVID cases were recorded in part s of the major city Shenzen where the port is located.
As DHL Global Forwarding Asia Pacific closely monitors for developments, they are encouraging its customers to where possible divert shipments to Shekou, Chiwan, Nansha or Hong Kong.
Fiji Ports Terminal Limited chief operations Salesh Kumar said Fiji has enough capacity to accommodate the current trade volumes.
“However, as the trade increases the need for yard storage space too will increase. Currently both
Port of Lautoka and Suva can accommodate over 3500 TEU’s at any given time,” said Mr Kumar.
Freight rates
Head of Ocean Freight Karsten Michaelis said they are expecting freight rates to continue to rise with surging demand.
“The combination of a year of disruption, lack of containers, port congestion and a shortage of ships in the right positions is creating a situation where cargo demand far exceeds available capacity.
“With container shipping services still struggling to cope with demand and aftershocks from the disruption at the port of Yantian due to a COVID-19 outbreak, inventories of retailers and manufacturers will continue to be low until at least the fourth quarter,” he said.
Port congestions
He adds with port congestions in the U.S. and Asia, DHL is not seeing an impact to the overall volume compared to the same period last year.
However, the freight forwarding specialist will continue to assist its customers and provide alternative solutions such as diverting shipments to other ports and switching transport modes.
“The increasing ocean freight cost will eventually normalize as supply chains continue to move. We are still seeing high volumes from e-commerce growth and companies looking to build up inventories,” said Mr Michaelis.
Digitalization
Meanwhile the pandemic has also acted as a catalyst for digitization as DHL has saw a massive demand for myDHLi which saw online bookings and sales rose by 56 per cent. myDHLi is a fully integrated online platform for freight forwarding customers which was launched during the pandemic period last year.