Life Style

Fares continue to rise: DHL Global Forwarding Niki Frank

Container loading on a freighter equipped with an industrial crane and Niki Frank (inset). Photo: Shutterstock and DHL respectively.

Continued congestion at major ports (both supplying and importing countries), which have the largest backlog of orders this year, and demand exceeding supply means higher than normal freight rates for both sea and air freight. It means that there is ever. According to Niki Frank, CEO of South Asia and CEO of India of DHL Global Forwarding.

“Most companies are budgeting for 2022 at this time of the year. When talking to many customers over the past few weeks, most companies have realistic expectations for next year’s freight market. Unfortunately, some customers still expect a “return to normal” fairly naive, Frank said in a comment from LinkedIn.

“In my view, the” normal “no longer exists, but rather we need to talk about the” new reality. ” And for at least 2022, the reality is that freight rates will continue to rise as demand exceeds supply for both sea and air freight. “

Continued congestion at major ports (both supplying and importing countries), which have the largest backlog of orders this year, and demand exceeding supply means higher than normal freight rates for both sea and air freight. It means that there is ever. Became Niki Frank, CEO of DHL Global Forwarding in South Asia and CEO of India.

To alleviate container ship congestion, the US government has recently decided to shift the port of Los Angeles and the nearby Port of Long Beach to a 24/7 schedule. The two California ports, which handle 40% of all freight containers entering the United States, have been facing problems for months. The Joe Biden administration hopes that night operations will eliminate log jams, reduce transportation delays, and unleash the capabilities of the rest of the supply chain, including highways, railroads, and warehouses.

Meanwhile, the passage of a typhoon compass in the South China Sea this month disrupted operations in two of China’s busiest ports, Shenzhen and Hong Kong, adding to the existing unprocessed portion. If you believe in experts, the congestion of these two ports could continue until the Chinese New Year holiday of February 1, 2022.

Currently, the average time it takes for goods from Asia to reach their destination in the United States is over 70 days. In other words, it is about 80% longer than the time before COVID. As a result, some deliveries may not arrive on the American coast in time for the holiday season unless the goods are shipped faster.

Freighters wait at both ends for unloading and loading, which increases travel time and further increases the shortage of shipping containers. This leads to higher fares. With this “new reality” in mind, DHL Global Forwarding India is “a new innovation for our customers that enables them to plan reliable, guaranteed space and equipment at affordable, long-term fixed rates. I’ve introduced you to some of the best solutions. “

Fiber2Fashion News Desk (RKS)



Fares continue to rise: DHL Global Forwarding Niki Frank

Source link Fares continue to rise: DHL Global Forwarding Niki Frank

Back to top button