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Customer Advisory

Dear Valued Customer,

Peak season is underway and expected to place a further strain on global logistics. Unitrans Worldwide, Inc. continues to monitor conditions and work diligently with our ocean, air, and ground transportation partners to meet customer requirements. It is important that you provide your shipping forecasts to allocate our space properly. Booking lead times should be initiated 4-6 weeks in advance. To minimize the potential impact of warehouse shortages, vessel availability, longer truck and chassis turnaround, we can provide alternate services, including Air Freight, LCL Express, or Ocean/Rail/Air combination services. 

Below is an overview of the market situation across major shipping trade lanes. Don’t hesitate to contact your Unitrans Worldwide, Inc. for any questions you may have.

Sincerely,

Lindsay Barich, CEO
Unitrans Worldwide, inc.
WWW.UWINC.COM

ogistics Market Update SEPTEMBER 2021

GENERAL OVERVIEW

  • Chassis shortages in the Midwest and Southeastern region and trucking capacity constraints are causing delays on all cargo as both steamship lines, and rail carriers struggle with high import volumes. All carriers are emphasizing quick turnaround of containers. 
  • With the Covid Delta variant still spreading rampantly, the outlook of current high prices will continue through to 2022
  • With Peak Season upon us, all U.S. ports are seeing severe congestion with certain inland rail points leading to a tipping point. LAX/LGB ports are seeing over 37 ships awaiting berthing. Read more>>
  • With new COVID regulations, Chinese air-ground handlers are quitting leading to chaos. This is adding to the burden of ocean freight, where demand is already at an all-time high. Read more>>
  • Shanghai Airport had a shut down due to COVID related issue. We are expecting a strong surge in ocean volumes further impacted by this shutdown. Read more>>
  • Ningbo Port had a critical container terminal shut down due to COVID related issues, which has a ripple effect leading to at least 30 vessels awaiting berthing outside Ningbo Read more>>
  • According to some estimates, Europe is seeing a driver shortage of around 400,000 drivers. Poland, Germany, and the U.K. facing 
  • Hyunday (HMM) is in labor talks with its union for salary increase. Talks about imminent strike should the matter not be resolved by end of the month is on the table. Read more>>

TRANSPACIFIC EASTBOUND (TPEB)

  • Shanghai and Ningbo ports have been impacted by COVID cases discovered at the airport and Marine Ningbo Terminal.
  • Shipping Lines are releasing premium space on an ad-hoc basis and based on specific vessel/port pairs. With severe congestion, blank sailings are expected as vessel rotation becomes an issue. Premium rates only give the chance to get space; however, it does not guarantee a roll.
  • Rates are expected to increase as Peak Season, and stringent Covid restrictions throughout Asia are imposed. Some $5000 Premium fee levels are being applied on top of the general cargo rates.

TRANSPACIFIC WESTBOUND (TPEB)

  • Supply chain bottlenecks also stubbornly remain, with chassis availability becoming a top concern as ports/terminals are flooded with import equipment. Rail dwell is also significant as both carriers and rail providers continue to struggle with volume. This is evidenced by the UP’s move to temporarily suspend U.S. West Coast – Chicago hub service, a move that was supposed to alleviate some interior backlog. While local overburdened C.Y.’s may have benefitted, pushing the congestion problem back to the ocean terminals may have unintended consequences.
  • Quick turnaround of containers continues to be emphasized by all carriers.
  • Available vessel space has been tight off the U.S. West Coast while the East Coast has shown signs of improvement. Out of the Gulf, capacity has been more readily available.
  • Bookings should be initiated 4 -6 weeks in advance. 

TRANSATLANTIC EASTBOUND (TAEB)

  • With congestion and capacity constraints still present, carriers have continued omitting ports and/or revising rotations for schedule recovery.
  • While vessels awaiting berth at Oakland has declined, this is more due to carriers avoiding the port rather than systemic improvements.
  • Space has been tight off the U.S. West Coast, while off the East Coast, vessels are being more tightly managed; however, if granted enough lead time, space should able to be obtained.
  • Rates have been steady, and GRI activity relatively muted with Cosco’s small $50/container ex U.S. East Coast and Gulf to North Europe put into place on Aug 8th. 
  • Booking lead times should be initiated 4-6 weeks in advance.
  • Space constraints on the TAWB tradelane continue as equipment continues to be prioritized towards the long haul tradelane.

LATIN AMERICA SOUTHBOUND (LATAM)

  • Carrier utilization feedback continues to be mixed, with some carriers claiming to be full while others state they have space.
  • Space constraints are seen on the Northbound tradelane.

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Reduced service to the Far East creating cargo backlogs and higher air freight costs.

Due the ramifications of the coronavirus, some airlines have reduced or stopped service all together with other US and foreign airlines offering reduced flights to China, Hong Kong, South Korea, and Singapore affecting commerce and has become a logistics nightmare for exporters as well as importers.
 
Freight forwarders have to be very creative as how they book their cargo and use their vast knowledge and experience to get their customers’ air exports moving in a timely manner.
 
Some airlines have cargo embargoes to the far East while others are have tripled their cost and will only accept  “Air Express” cargo costing as high of $4.50 to $6.00 per Kilo.

Unitrans Worldwide, Inc. has over 2 decades of experience and a diverse network of airline carrier contracts to meet our clients demands. Most recently, Unitrans moved 5 skids at 6000 kgs to SIN with door to door service in 4 days!

Ongoing delays with Canadian rail shipments from the West Coast.

Protesters to the Canadian pipelines continue to create havoc for intermodal rail shipments adding additional weeks in transit.
 
Even though the blockage near Belleville Ontario was cleared on 25 Feb, further protests continue to erupt throughout Canada preventing the trains from moving and some have been at a standstill for 3 weeks.  Limited information from the intermodal carriers is creating frustration to importers because they are not able to track their product and plan for arrival.
 
Unitrans is continuing to monitor this situation in eastern Canada closely but with unpredictable and changing variables, it is difficult to provide day specific ETAs for some shipments. At this time we do not know when trains staged across the CN Rail network will arrive at their destinations. In western Canada, recovery plans are underway and are working to resume regular service levels as quickly as possible.
 
Unitrans Worldwide, Inc. is directing its overseas partners to go through US ports, rather than Canada, until this situation is resolved.
 
To learn more about our services please visit WWW.UWINC.COM OR CALL 1-800-459-5119 for a quote or email quote@uwinc.com

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White House Press Release, 3 Dec 2018 – Chinese Tariffs

“President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10% rate, and not raise it to 25% at this time. China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries. China has agreed to start purchasing agricultural product from our farmers immediately.
President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture. Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%.”

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All Standalone Lithium Batteries Prohibited as Cargo on Passenger Aircraft as of April 1, 2016

In February, the International Civil Aviation Organization (ICAO)—the United Nations agency that regulates the transport of dangerous goods aboard aircraft —enacted a ban on transporting standalone lithium ion batteries (UN 3480) as cargo on passenger aircraft. The ban goes into effect April 1, 2016.

Since lithium metal batteries (UN 3090) were already prohibited, the new regulation means no standalone lithium batteries, in any quantity or packaging, may be shipped as cargo on passenger aircraft.

Can you still ship lithium batteries by air? Yes. Batteries packed with or in equipment (UN 3091 and 3481) may still be shipped compliantly, subject to regulations. (Passengers may still transport their own battery powered devices and spare batteries in their carry-on bags—for now. See https://www.faa.gov/about/initiatives/hazmat_safety/more_info/?hazmat=7 for FAA’s guidance)

And all lithium batteries may still be transported on cargo-only aircraft, subject to regulations—see below. However, you need to be aware that airlines may have their own variations in place even though the regulations don’t prohibit them on cargo aircraft.

ICAO has also mandated that, effective April 1, 2016, standalone lithium ion batteries (UN 3480) can only be shipped by air with a state of charge 30% or less. In addition, shippers will be not be authorized to transport more than one package of standalone lithium ion batteries prepared in accordance with packing instruction 965 or 968 Section II per consignment. “A shipper is not permitted to offer for transport more than one package prepared according to Section II in any single consignment.” A consignment is defined as: ” One or more packages of dangerous goods accepted by an operator from one shipper at one time and at one address, receipted for in one lot and moving to one consignee at one destination address.”

No more than one Section II lithium battery package may be placed into an overpack.

Section II packages may not be offered in a unit load device and must be offered separately from other non-dangerous cargo.

So, come April 1st, if you have to ship lithium ion batteries by air which are not packed with equipment, you’ll have to:

Ship them by cargo aircraft only (if the airline hasn’t filed a variation or implemented an embargo)
Ensure they are at a state of charge no more than 30% of capacity
Pack them separately from everything else

How will shippers verify the state of charge of prepackaged batteries? How can you manage the more restrictive packing rules?

New lithium battery markings and labels – You will need to begin using new markings and Class 9 hazmat labels for all lithium battery shipments—but not until January 1, 2019. (Early adopters are free to use them voluntarily on January 1, 2017.)lithbathandlenewnewhazclass9

Rumors of lithium batteries earning their own hazard Class 10 were thus put to rest, at least for the time being.

Authors
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Tags Dangerous Goods, Dangerous Goods by Air, Featured Article, how to ship lithium batteries, IATA, ICAO
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