The new DACHSER magazine is here!
It’s not often that logistics topics feature as prominently in the daily and business press as they have over the past few months. The global economy is recovering from the shock of the pandemic and in many places production is once again running at full speed. However, articles about the shortfall in raw materials and products, too few containers and pallets, the driver shortage, and a lack of storage space on overland, sea, and air transports are putting a damper on this revival.
Chinese Golden Week holiday 2021: Impact on Logistics
The October Golden Week holiday in China is soon approaching. In this update you will find all the information as well as some market forecasts.
Air Freight: Shanghai Pudong Airport (PVG) status update
Regarding the disruptions at Shanghai Pudong Airport (PVG) in China, we would like to give you an updated overview and current status.
Sea Freight: Current situation in the USA
The existing bottlenecks in the US ocean freight market, which are lasting for quite some months already, will continue for a longer period. We would like to give you an overview of the current situation.
Port and rail congestion
Already for months, the USA is experiencing historical congestions in sea freight business. The reason for this ongoing situation is well known: COVID-19 impacts and a high volume demand creating bottlenecks at all major ports and terminals throughout the country. Port and rail operators are operating with reduced staff, which delays loading and unloading of vessels, increases dwell time and slows down transportation processes to the terminals. Ocean Carriers are also overwhelmed with the situation and struggle to provide the needed service and timely response. Ocean vessels are having several days of delay and we experience port omissions on a regular basis. Schedule integrity remains almost non-existent.
US trucking situation
Trucking companies suffered heavily at the beginning of COVID-19 and were forced to let go many of their drivers due to the drop of volume and demand. Then, the boom of freight and demand hit the US market and at this point, not enough drivers were available. The driver situation improved over the last months but the current trucking fleet does still not cover the strong demand. Truckers are overbooked for the next 3-5 weeks. To accelerate the pick-ups and deliveries, LTL and FTL can be an option to arrange transloads into/from containers at designated warehouses.
Chassis in the US
It becomes a great challenge that almost all containers are stuck somewhere on chassis, waiting for transport. That leads to the problem that empty chassis are hardly available to arrange a pick up. Chassis are fully used and become a rare commodity in the US.
US inbound freight
The ports and rail terminals infrastructure in the US is simply overwhelmed by the current import volume. Inbound containers are parked on certain spots to make room for the new vessel / train loadings. In many cases, these "parking lots" are completely overstocked and containers are buried and not available for immediate hand over. In order to arrange a pick-up, the terminal provides appointments to truckers ONLY once the container is available and customs released - which can take days and even weeks in many cases.
US outbound freight
The main challenge is to find the desperately needed container equipment as well as the chassis for the transport. Ports and rail terminals are also full of export containers and the stations are not simply accepting export loads that easily. The situation is tight and almost every shipment is experiencing severe delays.
We estimate that the situation in the US will not improve this year. Even 2022 will continue to be challenging but the team of DACHSER is aiming to provide our clients a good service and solutions despite the challenging times in the USA.
High Priority Cargo
Currently, it is possible to achieve better transit times and shorter turnaround times at the US terminals by using LCL services for prioritized shipments instead of FCL services. DACHSER operates regular premium LCL services on both ex-Asia and Europe trade lanes. Transit times ex China, for example, are even shortened from overall 28 to 18 days. And further, new pipeline services including Atlanta and Los Angeles aim to reduce booking windows immensely. The continuing tight situation in the US ocean freight market will also require that desperately needed freight will have to be loaded more often by air. DACHSER offers regular premium capacity with its own Air Network, for example with weekly connections on the Frankfurt - Chicago route in both directions and the option of connecting to other US airports.
We are in close contact with carriers and service providers on a daily basis and do our best to make your supply chain as smooth as possible. For individual advice, please contact your local representative of DACHSER so that we can implement the best logistics solution for you.
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Natural remedies on safe paths
Healthy international supply chains are vital to the pharmaceutical sector. In its collaboration with A.Vogel, a manufacturer of natural remedies, DACHSER has applied its own interdisciplinary, quality-driven consulting approach to designing and implementing a value-added logistics solution.
A container security service offered by DACHSER locates stolen container with cargo valued at $500,000
A container security service recently assisted the police in preventing the theft of a container from Port of Callao in Peru with contents valued at more than $500,000. Available throughout Latin America and the US, the container security service offered by DACHSER provides real-time cargo monitoring and data management, which is critical to protecting cargo from theft and damage.
DACHSER invests in its Karlsruhe, Germany location
DACHSER is investing more than EUR 20 million in an expansion of its existing logistics center in Malsch, near Karlsruhe. Construction work on a new high bay storage facility covering 21,800 square meters and with approx. 43,000 pallet spaces is in full swing. The specially equipped facility is also designed to permit the safe storage of chemical products and hazardous materials such as paints, coatings, and adhesives. The facility will become operational in the first quarter of 2019.
Argentine & Chilean varietals continue their appeal to U.S. wine consumption market
A glass of fine wine may be served during special events or sharing with friends or reading a book in a summer evening. Did you ever wonder how it gets from the vineyards in Argentina or Chile to your table in the United States? It takes a lot more than going to your local wine shop. In fact, it takes specialized logistics expertise and planning in order for it to arrive in its delicious condition.
The International Chamber of Commerce (ICC) will release new Incoterms 2020 around the 10th of September, providing certainty and clarity to businesses trading across borders everywhere. The new Incoterms will be effective as of January 1st, 2020.
Every 10 years, the International Chamber of Commerce evaluates and revises the International Commercial Terms, better known as Incoterms, as a means of creating greater uniformity and effectiveness across the shipping industry. The latest version, Incoterms 2010, will stay in effect until January 2020.
What does "Incoterms" stand for?
It is an acronym standing for international commercial terms. Incoterms is a trademark of the International Chamber of Commerce, registered in several countries.
The Incoterms rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”) EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world. These terms hold universal meaning for buyers and sellers around the world.
The main Incoterms changes that are being considered are as follows:
The removal of FAS (Free Alongside Ship) as it is being used infrequently, separating FCA (Free Carrier) into two separate Incoterms, one for land delivery and one for maritime delivery and the committee is also considering bringing back the terms FOB (Free on Board) and CIF (Cost, Insurance, Freight), instead of the FCA and CIP (Cost and Insurance Paid to) used for non-container shipments. There is also a debate about the creation of a new Incoterms called CNI (Cost and Insurance) to bridge the gap between FCA and CFR/CIF (Cost and Freight/Cost, Insurance, Freight). Currently, FCA includes the cost of international insurance on account of the seller-exporter, while CFR/CIF does not include the cost of freight. And lastly, to alleviate questions surrounding the party responsible for paying Customs fees, the ICC will evaluate the creation of 2 Incoterms to replace DDP (Delivered Duty Paid).
Other issues and updates being evaluated during this round include:
- Transportation security
- Regulations on transportation insurance
- Relationship between the Incoterms and the International Sale Contract
We will provide another update once the official Incoterms 2020 rules have been announced by the ICC. Please contact us if you have any questions.
Johnston Logistics to become DACHSER Ireland
Two years ago, DACHSER acquired a majority share in Irish logistics company Johnston Logistics Ltd. The process of fully integrating it into the DACHSER network is now nearing completion with the rebranding and associated name change to DACHSER Ireland Ltd. DACHSER made the official announcement today at the transport logistic trade fair in Munich.
DACHSER Americas relocates Regional Head Office
DACHSER, one of Europe´s leading, family-owned logistics suppliers headquartered in Germany has announced the move of its Regional Miami head office to Plantation, a principal Metropolitan city in the Greater Miami/Fort Lauderdale area. The move took place on August 1.
DACHSER Air & Sea Logistics launches operations in Sweden
DACHSER Air & Sea Logistics launches of an office for air and sea freight in Gothenburg, Sweden, which has the largest export harbor in Northern Europe. Sweden’s top exports include machinery and automobiles.
A new version of the Incoterms will take effect on January 1, 2020, and will include a number of changes. The terms of delivery issued by the International Chamber of Commerce regulate essential buyer and seller obligations in international trade, such as transfer of goods to the buyer, transport costs, liability for loss of and damage to goods, and insurance costs.
With the adaptation of the Incoterms 2020 to current global trading practices, the new version is very up-to-date and practice oriented. The aim of the revision was to make the Incoterms clauses more user-friendly. For example, their presentation has been revised to make it easier for users to select the appropriate clause. In addition, the order of the clauses has been changed, and revised user instructions have been added to each clause.
In terms of contents, significant changes have been made to the Intercoms 2010, in particular the following:
- Different coverage levels in CIF and CIP: As in the past, the seller is still obliged in the Incoterms 2020 to take out transport insurance at their own expense in clauses CIF (Cost Insurance Freight) and CIP (Carriage Insurance Paid). In contrast to the Incoterms 2010, however, the two clauses now provide for different minimum coverages. The minimum coverage to be observed when the CIF clause has been agreed remains unchanged. The transport insurance to be taken out by the seller must continue to at least correspond to the coverage in accordance with the (C) clauses of the Institute Cargo Clauses or similar clauses (insurance of named risks). If the CIP clause is agreed, the seller must now provide insurance coverage in accordance with the (A) clauses of the Institute Cargo Clauses (all-risk coverage). Both the CIF clause and the CIP clause allow the parties to the contract to agree on insurance coverage that differs from this.
- Inclusion of security-related requirements: Security-related requirements for the transport of goods have now been included in Rules A 4 and A 7 of each Incoterms 2020 clause. As with other the Incoterms clauses, it should be noted that the Incoterms clauses only directly apply to the parties to the sales contract and are not the subject of the contract of carriage.
- The Incoterms 2020 contain regulations for transporting with one’s own means of transport in FCA, Delivery at Place (DAP), Delivery at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
- For goods sold under the FCA (Free Carrier) clause and intended for sea transport (such as goods in containers), FCA is stipulating a new option in the future. The buyer and seller may agree that the buyer shall instruct its freight carrier to issue an on-board bill of lading to the seller after the goods have been loaded. At the same time, the seller is obliged to hand over this on-board bill of lading to the buyer. This is typically done through participating banks.
- Renaming of DAT to DPU (Delivered at Place Unloaded). According to the Incoterms 2010 DAT clause, the seller delivered the goods as soon as they were unloaded from the means of transport at a “terminal.” However, according to the Incoterms 2010 application notes, the term “terminal” was not to be understood from a technical point of view but meant any unloading location. This fact was taken into account in the Incoterms 2020 by renaming the previous DAT clause to DPU (Delivered at Place Unloaded) for the sake of clarity. That means that in the future, any (agreed) place can be the place of destination.
The Incoterms apply between the parties of a (national or international) sales contract and address – but are not limited to – special rights and obligations within this contractual relationship. On the basis of a uniform definition guaranteed in this way, subsequent problems of interpretation or discrepancies between the parties to the sales contract are to be avoided. It should be noted that the Incoterms, due to their character as GT&C-like provisions, do not constitute statutory provisions and thus only become legally binding if they have been effectively agreed between the parties to the sales contract by means of a corresponding reference (for the Incoterms 2020, this is also possible before 1/1/2020). Irrespective of this, in individual cases conflicting statutory provisions still take precedence over an Incoterm clause.
The Incoterms were revised by 500 experts from more than 40 countries.The clauses are recognized worldwide and are in use in more than 30 different languages.
DACHSER launches test operations with Mercedes-Benz eActros
The DACHSER vehicle mix for emission-free deliveries in Stuttgart city center is now complete. Martin Kehnen, Head of CharterWay Rental & Major Customer Management at Mercedes-Benz Trucks Germany, has now handed over the keys to the all-electric 18-ton Mercedes-Benz eActros to Markus Maurer, General Manager of DACHSER’s Kornwestheim branch.