October 2022
By NNR USA In Uncategorised On 13th October 2022
MARKET UPDATE
Golden Week – impact on global shipping
Ocean shipments are typically backlogged at Chinese ports building up to Golden Week, also known as peak season.
The Golden week holiday is one of the busiest times in China as tens of millions of people make the most of one week of holidays and visits to the family, which runs from 01-07 Oct.
Instead of experiencing the traditional peak season, the global demand for Chinese goods has shown signs of waning as consumers in the U.S. have cut back on spending because of inflation and the shift away from goods to services.
Peak season arrived earlier than usual, and U.S. companies refilled inventories in May and June rather than risk further delays tied to China’s strict Covid policies and other unpredictable disruptions.
This has caused the container shipping industry to trim capacity by canceling sailings to align with customer demands.
We are currently in a spot rate environment, and it remains to see if the softening in shipment levels will ultimately lead to further price reductions and stability in the ocean freight market.
AIR FREIGHT
The air peak season is expected to be muted this year as retailers prepare early for the holiday shopping season. Overall, space, pricing, and transit times remain reliable and stable, with some exceptions. Residual congestion persists at major hubs. Read More
TIP OF THE MONTH
With peak season approaching, extend your lead times in anticipation of delays due to limited space capacity.
When tendering solid wooden crates for air cargo, ensure that they have at least two ventilation holes per side at the base of each crate. This will minimize delays in the cargo screening process.
OCEAN FREIGHT
We are starting to see fewer delays and bottlenecks in the container market. Experts are predicting a market normalization by Q1- 2023. If normalization occurs, equipment and space will be easier to come by, and congestion will be rare and minimal. Read More
TIP OF THE MONTH
Carriers are voiding many services or combining them to maintain balance between capacity and demand.
We recommend customers verify with the NNR team on available services and schedules offered by carriers to ensure booking right one. Schedule as early as possible to reserve a spot.
DOMESTIC TRANSPORTATION & WAREHOUSE
FEATURE ARTICLE
Converting Your Supply Chain to OmniChannel from Multichannel Distribution
Omnichannel is a buzzword that has been around for more than a decade.
Tim Curran, National Business Development Manager - Supply Chain at NNR USA, will give key thought points on transitioning from multichannel to omnichannel distribution.
CUSTOMS BROKERAGE & TRADE COMPLIANCE
A public comment period will open November 15th - January 17th for comments on the effectiveness of List 1 and List 2 actions. Read More
Exports of advanced computing integrated circuits (ICs), computer commodities containing ICs, and certain semiconductor manufacturing items destined for China will be restricted by new and expanded controls starting October 7th. Read More
All entities are being added under the destination of the People's Republic of China. Read More
TIP OF THE MONTH
As the critical focus on trade with China continues, it's important to do ongoing compliance reviews of product and component supply chains up and downstream to ensure your company stays compliant.
FEATURE ARTICLE
The Comedown: Freight Pricing caught in Global Turbulence
By the end of 2020, prices began to skyrocket, peaking that September at over seven times that amount. Today, a significant course correction is underway, leaving us with some important questions:
Will we see pre-pandemic pricing again?
How has all of this affected air freight?
Is this a good time to ship?
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