Asia Shipping Update
2020 has put immense pressure on the logistics industry with some trade lanes crashing, port closures, container, equipment and driver shortages, lack of flights as well as increased pricing all impacting the movement of freight.
With a week of 2021 under our belt, it has become clear that, as anticipated, some issues will continue into Q1 of this year.
In late 2020 the UK ports faced significant challenges, in particular Felixstowe, which hit capacity following a surge in ocean freight as a result of the significant reduction in air freight capacity as well as a huge amount of containers of PPE blocking the port’s ability to move any more freight through. This resulted in freight being moved through Southampton creating another bottleneck before resulting in carriers avoiding UK ports altogether.
The movement of containers throughout Asia and Southern China regions continue to be affected. Following the shortage of container equipment at origin as a result of empty containers being stuck at destination points across the globe, carriers decided to reduce routes into the UK by up to 30% in favour of serving more lucrative routes such as Asia / USA.
Consequently, the UK is experiencing significant capacity and equipment shortage, with carriers able to increase freight rates accordingly and prices per container increasing by more than 650% without space guarantee.
The above-mentioned issues are also impacting the UK Trucking market, as the unreliable schedules take their toll on driver and equipment availability.
In order to minimise the impact of the pressures seen both within Asia and the UK, we have a proactive carrier space management programme, own vehicle container and distribution networks in place and our own container unloading and storage facilities, as well as our express rail solution.
To support you as best as possible in minimising any potential delays, please be reminded to book well in advance of sailings and share your container forecasts where possible to aid in securing space and to minimise delays and disruption.
We offer alternative supply chain planning to provide you with a secure, optimised supply chain to suit your needs.
Our teams will continue to work with you on finding the best alternative solutions to keep your supply chain moving. Please don’t hesitate to reach out to your Woodland Group account manager or email us here.