In the next week the Covid restrictions will be lifting off and hopefully we can have some normality back in our lives. KTL Europe wanted to let you know the current market developments.
The space and rate issues continue in the Far East, M East and Americas however we have seen a slight decrease in the rates in the recent week. We are expecting the rates to follow a downward movement in July and maybe beginning of August before rocketing again for peak season. As a result of covid restrictions easing off in many countries the PPE shipments will reduce ex Far East, textile industry in the middle of seasonal change along with major automotive manufacturers in Europe will be going on their annual leave in August which will release some capacity for other industries ex Far East ports. Besides some of the shipping lines bringing in new vessels into the service which will offer a short term rate and capacity options. If you are holding back any stocks you may consider this period to plan some shipments?
The changes in the sea freight will also impact the air freight in a positive way, especially with more passenger flights scheduled after the Covid restrictions easing off globally which will allow some belly freight capacity.
As well as sea & air, China to Europe rail and trucking options available for urgent shipments, however the cost of those services are higher compared to current sea freight rates.
On European shipments, the capacity will reduce as of the end of this month due to many European drivers going on their annual leave. The service frequency will reduce to some countries i.e Italy , Spain due to summer holiday period . This will reflect on the import / export prices. The customs challenge still remain across Europe. Without completing all paperwork and submitting pre customs entries many hauliers are not willing to collect the goods. So, if you are planning to ship goods to and from Europe please allow sufficient time to sort out the shipping / customs documentation.
If you are experiencing difficulties with your current shipping requirements or would like to improve your rate and service options, why don’t you give us a call? We will be happy to share our knowledge and expertise to help you to achieve your business goals.
Please email us the details of your forthcoming shipments along with the dates in order to able us to secure best rates and space for your cargo.