MARKET BRIEF | August 2021
A BRIEF look at what’s happening in the logistics and shipping industry.
CHINA TRANPORTATION REGULATIONS & CANCELLATIONS
With the latest COVID-19 outbreak in Nanjing, Zhangjiajie, and Zhengzhou, the Chinese government has implemented stricter rules on transportation. For instance, all truck drivers are required to show a negative COVID-19 test covering 48 hours, and China aviation regulations now require crew members to take nucleic acid tests, which limits their ability to fly. Additionally, China Eastern Airlines has cancelled belly flights from August 10 through August 30, which includes flights from Shanghai to LAX, JFK, ORD, and SFO. Southern China Airlines also cancelled all of their flights in August. Because of these, and other cancellations in that country, capacity is expected to drop 30% in the China market.
PORT CONGESTION UPDATE
U.S. ports continue to experience extreme congestion, due to increased imports and labor shortages. The current vessel wait times are:
East Coast
• New York: 24-48 hours
• Savannah: 72-120 hours
• Charleston: Up to 12 hours
West Coast
• Long Beach/Los Angeles: 6-9 days
• Seattle: 10-14 days
• Oakland: 6 days
Gulf Coast
• New Orleans: 24 hours
• Houston: 24-72 hours
TRUCKING UPDATE
There is currently lateral movement in the van market, a decrease in the flatbed market, and a surprising increasing in the reefer market. The cooldown in the flatbed market is somewhat expected, as the seasonal trend usually sees a tapering off in the second half of the year. However, the unanticipated reefer market increase has been caused by warmer-than-normal temperatures around the U.S.
The Commercial Vehicle Safety Alliance will be conducting their Brake Safety Week August 22-28. The results from their International Road Check, which occurred in May, can be found here.
TAKING A TOUR OF AN ANTONOV
Members of Aeronet Worldwide’s executive office had the opportunity to tour the Antonov An-124 Ruslan heavy transport plane. You can read about, and see pictures and video of, this behemoth here.
With the latest COVID-19 outbreak in Nanjing, Zhangjiajie, and Zhengzhou, the Chinese government has implemented stricter rules on transportation. For instance, all truck drivers are required to show a negative COVID-19 test covering 48 hours, and China aviation regulations now require crew members to take nucleic acid tests, which limits their ability to fly. Additionally, China Eastern Airlines has cancelled belly flights from August 10 through August 30, which includes flights from Shanghai to LAX, JFK, ORD, and SFO. Southern China Airlines also cancelled all of their flights in August. Because of these, and other cancellations in that country, capacity is expected to drop 30% in the China market.
PORT CONGESTION UPDATE
U.S. ports continue to experience extreme congestion, due to increased imports and labor shortages. The current vessel wait times are:
East Coast
• New York: 24-48 hours
• Savannah: 72-120 hours
• Charleston: Up to 12 hours
West Coast
• Long Beach/Los Angeles: 6-9 days
• Seattle: 10-14 days
• Oakland: 6 days
Gulf Coast
• New Orleans: 24 hours
• Houston: 24-72 hours
TRUCKING UPDATE
There is currently lateral movement in the van market, a decrease in the flatbed market, and a surprising increasing in the reefer market. The cooldown in the flatbed market is somewhat expected, as the seasonal trend usually sees a tapering off in the second half of the year. However, the unanticipated reefer market increase has been caused by warmer-than-normal temperatures around the U.S.
The Commercial Vehicle Safety Alliance will be conducting their Brake Safety Week August 22-28. The results from their International Road Check, which occurred in May, can be found here.
TAKING A TOUR OF AN ANTONOV
Members of Aeronet Worldwide’s executive office had the opportunity to tour the Antonov An-124 Ruslan heavy transport plane. You can read about, and see pictures and video of, this behemoth here.
For more information on Aeronet Worldwide, visit Aeronet.com.
