Fuel price

Chinese New Year: Impact on logistics

In 2021, Chinese New Year falls on February 12, it is the biggest festival in China where people celebrate the beginning of a new year with their families. The week-long national public holiday has consequences on global supply chains. 

The following information provides an overview of some key facts of the festival and its possible impacts on logistics.

Dates and key facts

• February 12, 2021 marks the start of the Chinese New Year (the year of Ox).
• Chinese national holiday begins on February 11 and ends on February 17, meaning that most of the businesses, including DACHSER branches in China, will be closed and resumes on February 18.
• Factories and manufacturing sites used to be closed for a longer period of time. Production might pause already one week before Chinese New Year, some factories will only resume one month after.
• The long holiday allows workers in the city to travel back to their hometown for a family reunion, though it might not be the case this year due to the pandemic.

Impact on supply chain

• Extensive holidays in China can lead to delays to your shipments for up to one month.
• Due to the abovementioned closing period of manufacturing industries, there will be no productions from China for at least a week. Even though factories will be restarting gradually, operations will not resume to full swing immediately.
• Productions from other countries in Asia will also be impacted as some parts might come from China or the assembling processes are done there.
• Most shippers will stock up inventories that are sufficient to cover the Chinese New Year period, this leads to a pre-holiday cargo rush; it will also take some time after the festival to normalise the market conditions.

To avoid unnecessary price hikes and delays, it is strongly recommended to place bookings well in advance. At DACHSER, our logistics experts can help you to plan together. Feel free to discuss with us about your needs and we can work out the best to maintain your supply chain uninterrupted throughout the Chinese New Year.

Sea Freight: Disruptions at Ningbo and Tianjin Ports

Regarding the disruptions at Ningbo ports, we would like to give you an update. Recently, a Covid outbreak has occurred in Tianjin. Below we offer you an overview of the current situation.

Ningbo

• At Ningbo, the authority has downgraded the emergency level. Correspondingly, the temporary closure of the Beilun district is lifted, except the centre of the epidemic.
• Currently, most of the trucking companies are granted permits to enter the Beilun district. In general, our operation of FCL and LCL are mostly back to normal with some delays of vessels due to port congestion.
• There are isolated Covid cases reported in the cities within the Zhejiang province, but it is not affecting the operations in Ningbo, except for pick-ups and deliveries from those locations.

Tianjin

Over the weekend, multiple Covid cases were reported in Tianjin and some of the cases were tested positive to the Omicron variants. In response to this incident, a mass PCR test campaign has been conducted for all residents in the city.

• It is reported that four out of the eight sea freight terminals in Tianjin are closed, only vehicles with special permits are granted access to enter.
• Pick-ups and deliveries in and from other provinces are unlikely under the current situation.
• Pick-ups and deliveries within the city are also at a halt, as the residents of the whole city will be staying at home until the mass PCR test campaign is completed and the results are available.
• At the DACHSER branch in Tianjin, our employees will work from home until the negative results are available.

We will continue to monitor the situation and rest assured that you will be informed of the developments. In case you have any questions, please contact your local representative of DACHSER for a discussion of possible transport alternatives.

Packaging suitable for stress and transport to prevent damage

Packaging appropriate for stress or transport, taking into account the shipping load, route, duration and transport load, ensures that the packaged goods reach the recipient without damage and also functions to protect the salability and function of the packaged goods. Packaging is the responsibility of the sender, insofar as the goods can only be transported in packaged form for the agreed type of transport and means of transport. In case of a proven packing defect, which is the cause of damage, the Freight Forwarder is therefore not liable and is also not obliged to repair defective packing or to repack the goods. The shipper knows the special characteristics of his products and how best to protect them against damage. The packaging must protect the goods against the expected, foreseeable influences such as typical vibrations, centrifugal forces in tight curves, braking effects, the effects of heat and cold or the stress resulting from multiple transshipments. Warning symbols affixed by the shipper do not replace the packaging. This may even be inadequate if it was used. If the goods are shipped in the sales packaging, which must not be damaged, the goods are "unpacked" in the legal sense.

Packaging suitable for transport in general cargo transportation by truck should meet the following requirements: Protection of the goods against the dynamic loads during transportation and multiple handling and the form-fit of the package. Packages must also be packed in such a way that access to the contents is possible only by leaving external traces, in order to ensure protection against theft. Smaller packages in a consignment should be grouped together to form larger units, and packages heavier than 1,000 kg must be marked with appropriate weight markings. In case of special characteristics of the goods, the standardised handling instructions must be attached.

Incorrectly dimensioned packaging, exceeded performance limits, packaging of inferior quality, lack of instructions for proper handling or labeling of the goods, poor load unit securing on the pallet, defective foiling, goods protruding beyond the pallet or completely unpackaged are among the frequently identified defects in packaging.

In addition to the obligation to pack, the consignor also has an obligation to provide information and labeling. Information on all factors known to the consignor and affecting the execution of the order, such as addresses, type and nature of the goods, gross weight, value of the goods or delivery times, must be provided by the principal in good time. Likewise, the packages must be correctly marked so that the carrier can check the goods for completeness and identity and deliver them to the correct recipient.

Only the adaptation of the entire packaging cycle can lead to an economical and damage-free transport. Packaging optimisation starts with the development of the sales or product packaging, which influences the size and stability of the transport packaging.

When taking over the consignment, the forwarder must then check the number and type of packages taken over and the external condition of the packaging, as well as carrying out interface checks. Excluded from this and not to be confirmed is whether the packaging used is suitable for transport, the contents of the individual packages, the number of individual cartons on a pallet or the weight of the packages.

If you have any questions, please contact your local contact at the respective DACHSER branch.