Plan ahead for the Golden Week holidays in China

China celebrates its National Day on October 1, followed by a week-long holiday. During the Golden Week from October 1 to 7, many businesses will be closed; factories and production sites will stop their operations. Some of them may resume work later than the official holidays.

Therefore, the pre-holiday period is busy for logistics and transportation, as factories tend to speed up their production before the holiday starts. In terms of air and sea freight transportation, space will be getting tight; trucking services will also be in a great demand.

It is important to plan ahead in order to keep your supply chain uninterrupted.

• Impact on sea freight

Most of the sea freight carriers have blank sailings not only during the Golden Week period but also before and after the holidays to adjust their services in accordance with the weak market demand.

Some carriers implement westbound blank sailings as early as week 39. In general, there are blank sailings in week 40 and 41; sailing schedule gradually resumes normal in week 43. It is suggested to place your booking as soon as possible to avoid additional cost and to secure space. Please be aware of the booking cut off time.

You are welcome to get in touch with your DACHSER representative for updates on particular routes and discuss your planning.

• Impact on air freight

During the holiday period, air freight operations in local branches will be either closed or operating with very limited manpower.

For air import, only pre-booked shipment will be handled, please arrange the arrival date as early as September 25 in order to have enough time for customs clearance.

For air export, air freight space will be very tight and shipping equipment will be in great demand during the pre-holiday period. Please confirm with your local DACHSER representative for a precise cut off time.

• DACHSER Branches in China

DACHSER branches in China will be closed from October 1 to 7, and resume work on October 8.

If you have urgent shipment or wish to discuss any questions, please feel free to contact us.

Office closures during the mid-autumn festival

Some countries in the Asia Pacific region celebrate the autumn harvest on the 15th day of August according to the lunar calendar. In 2019, the festival falls on September 13. However, public holidays differ in the region, please refer to the overview below:

• Hong Kong: 14 September, the day after the Mid-autumn festival
• China: 13-15 September, Mid-autumn festival
• Taiwan: 13 September, Mid-autumn festival
• Korea: 12-14 September, Chuseok festival

During the public holidays, DACHSER branches in the related countries will be closed. If you have an urgent shipment, please contact your DACHSER representative as soon as possible. We will try our best to offer the most suitable alternatives for you.

Incoterms 2020

The International Chamber of Commerce (ICC) will soon release the new Incoterms 2020, providing certainty and clarity to businesses trading across borders. 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:

• The removal of FAS (Free Alongside Ship) as it is being used infrequently;
• Separating FCA (Free Carrier) into two separate Incoterms: one for road delivery and one for maritime delivery;  
• 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.
• 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.

IMO 2020 and its impact on sea freight transportation

The International Maritime Organization (IMO) is taking initiatives to promote sustainability and reduce harmful sulphur gases emissions. While the new regulation to reduced maximum sulphur content (currently 3.5%) to 0.5% will be fully enforced on January 1, 2020, it is expected that the adjustment on bunker surcharge will come into effect already at the last quarter of 2019.

• Impact on shippers

With the new regulations to be fully enforced on January 1, 2020, carriers are getting prepared during the course of the year with some options available:

1. Switch to low-sulphur fuel
2. Use Exhaust Gas Cleaning Systems which commonly known as a “scrubber” to clean up the sulphur oxide emitted from the vessel’s engine.
3. Change the fleet to Liquefied Natural Gas Ships that are powered by Liquefied Natural Gas (LNG). LNG is considered as a cleaner fuel with less emission of greenhouse gases including sulphur oxide.

To ensure a smooth transition, carriers have to implement the above changes before January 1, 2020. Due to the investment in clean energy and cleaning systems, there will be an adjustment to the bunker surcharge formula which is expected to be effective from the last quarter of 2019.

• What is IMO 2020?

IMO is proactively taking steps to reduce marine pollution and minimize the vessels’ impact on global warming. Currently, most of the cargo ships use heavy fuel oil which is derived from crude oil and contains sulphur oxide. The gases can cause acid rain and trigger respiratory diseases. Therefore, the tolerant of sulphur oxide emissions has been tightened progressively throughout the past decade.

Also known as “IMO 2020 fuel sulphur regulation”, IMO 2020 is an initiative from the IMO which aims to reduce sulphur oxide emissions from ships.

By the deadline of January 1, 2020, all carriers will have to comply with the new regulation, which imposes a 0.5% global sulphur cap on fuel content and replaces the current limit of 3.5%.

If you have any questions regarding this topic, please feel free to reach out to your local DACHSER representative.

Hurricane Dorian update

As of September 3 (EDT at the US), Dorian is weakened to a category 2 hurricane. However, it brings significant and damaging impact to five states at the southeast coast of the US this week, from Florida's east coast to parts of Georgia, South Carolina, North Carolina and possibly southeast Virginia, with the peak impact is expected to arrive on September 6.

Port update:

• Wilmington, North Carolina: Port will be closed September 4. 
• Charleston, South Carolina: Port will be closed September 4 and September 5.
• Savannah, Georgia: Port will be closed on September 3 and September 4.
• Jacksonville, Florida: Terminals remain closed to all commercial traffic for the duration of Hurricane Dorian.
• Miami, Florida: Ports are closed to vessels and shore-side operations.

Airport update:

• Miami airport is currently operational and Fort Lauderdale Airport re-opened at noon on September 3.

Our DACHSER offices in Miami and Plantation, FL will remain closed on September 3 and will re-open on September 4.

DACHSER will continue to monitor the developments and will provide updates. Please contact your local representative if you have any questions.

Hurricane Dorian affects Florida sea ports

Dorian, currently a Category 5 hurricane on Sunday night local time, is approaching the southeastern coast of the United States from Florida to the Carolinas.

The storm is expected to affect all Florida seaports on the Atlantic side. Below the ports that are currently affected:

Miami ports:

• South Florida Container Terminal – closed at noon, August 30, for vessel operations.
• POMTOC’s gate closed on August 30 to prepare the terminal for Hurricane Dorian.

Port Everglades:

• Port Condition ZULU in effect since 6pm, September 1 –  sustained tropical storm force winds are expected to reach the port within the next 12 hours. Port Everglades will be closed to all operations unless specifically approved by the authority.

Jacksonville and Tampa:

• Port Condition WHISKEY in effect – still open to all commercial traffic and all transfer operations.

Florida airports are monitoring the path of the hurricane closely, but have not announced any closures yet.

We will continue to monitor the hurricane and will provide updates. Please contact your local DACHSER representative if you have any questions.

Brexit checklist - what should you watch out for?

What should DACHSER customers pay attention to in the case of a hard Brexit?
Delays when it comes to border crossing would be a major challenge in the case of a hard Brexit - the other would be the new bureaucratic burden of goods traffic with Great Britain. First and foremost, longer waiting times through border controls and customs clearance of all goods should be expected under WTO rules. For companies that send shipments to and from the UK, we have summarized them in our Brexit checklist that can be downloaded below:

Flights cancelled due to demonstration in Hong Kong International Airport

There is a massive demonstration taking place in Hong Kong International Airport on Monday, August 12. 

The aviation authorities announced that all remaining flights, inbound and outbound, scheduled on Monday, local time, are cancelled. According to the airport authority, operations are seriously disrupted by the public assembly. 

Road transportation to the airport is also experiencing heavy traffic and there might be possible road closures later.

We are sorry for the inconvenience caused. If you have urgent shipment please get in touch with your DACHSER representatives.

Typhoon Lekima causes service disruptions in East Asia

Super typhoon Lekima has brought major impact to the northern part of Taiwan and the eastern coast of China since August 9, local time.

Lekima made landfall near Shanghai in the early morning on August 10. Over the weekend, the storm brought heavy downpours, strong winds, flooding and landslides to coastal areas of seven provinces in China from Fujian to Jiangsu, including Shanghai city.

While some of the affected areas are still suffering from heavy rains and flooding, land transportation is disrupted. At the same time, seaport operations are disrupted and hundreds of flights are postponed or cancelled. Please expect shipment delays due to the adverse weather conditions.

We are sorry for the inconvenience caused. If you have any questions, please contact your local DACHSER representatives.