Global Market Insights This document is for informational purposes only. It does not constitute legal advice. Information herein was obtained from government, industry, and other public sources which are subject to change and have not been independently verified by UPS and is subject to change. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to the recipient's specific circumstances. October 06 th , 2021 10/7/2021
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Global Market Insights
This document is for informational purposes only. It does not constitute legal advice. Information herein was obtained from government, industry, and other public sources which are subject to change and have not been independently verified by UPS and is subject to change. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional
advice regarding its applicability to the recipient's specific circumstances.
This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
Air Freight Updates
Inland Transportation
• Lufthansa Cargo has joined the German Federal Ministry of
Transport’s new air cargo digitalization project, created to
help improve the networking within the industry.
• CMA CGM Air cargo plans to increase available capacity
with two new Boeing 777 widebody freighters. The new
planes will likely begin operating next spring.
APAC Westbound:
Demand is continuously exceeding supply and rates have remained relatively
stable during September.
Overall space and equipment situation is extremely poor.
Booking premium options and pre-booking 4 to 5 weeks prior to planned
vessel departure are both recommended when possible.
Transatlantic Westbound:
Capacity remains tight for both North Europe and Mediterranean services.
Optimal equipment availability is at loading port, shortages continue at inland
depots.
Tight capacity and equipment shortages continue.
It is recommended to pre-book 5 or more weeks prior to planned vessel
departure.
Ground:
The UK government has appealed to European tanker drivers for help
resolving the country’s fuel crisis.
A truck driver shortage in the UK may have a spillover effect in Europe,
with a shortfall of 400,000 truck drivers.
Rail:
China’s Golden Week holiday and power shortages impacting factory
production have caused a dip in demand for China-Europe rail.
Despite the reduced demand, ongoing rail congestion in Poland and
rising Covid-19 cases in the Chinese city of Khorgos are causing delays
and increased transit times.
• Peak season may come early as consumers are
encouraged to shop early to avoid the effects of supply
chain disruption.
• As demand and cargo volumes continue to grow, capacity
This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
Air Freight Updates
• Shippers have begun turning to air transportation in an
attempt to avoid the ongoing congestion at ocean ports in
Asia.
• Taiwan announced plans to impose a cap on air cargo to
allow for more rigorous inspections as part of Covid-19
prevention efforts. The new limits will take effect on
December 1.
• Some of the additional Asia-Europe capacity recently added by
carriers for the fourth quarter is already being lost to port
congestion holding up ships across Northern Europe and the
Mediterranean.
• This month, Ocean Network Express (ONE) will launch the first
dedicated intra-Asia service to connect South Korea, Eastern
China, Singapore and Malaysia.
• Singapore's Pacific International Lines (PIL) will begin operating
its South China India Express (SIX) service this October 22.
• China: Factories in China continue to struggle due
to government efforts to save energy. Reduced
production will likely have a widespread effect on
the global supply chain.
• Japan's Covid-19 state of emergency was fully
lifted on October 1. The country also reduced
quarantine periods for vaccinated tourists from 2
weeks to 10 days.
• On October 1, Australian Prime Minister Scott
Morrison announced that an 18-month ban on
Australians travelling abroad will be lifted next
month, easing one of the toughest Covid-19
restrictions imposed globally.
• In Singapore, the Stay-Home Notice (SHN) for
anyone who has recently traveled to Category III
and IV countries/regions, including the UK and US,
This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
Air Freight Updates
• Oman: As of October 3, all flights to and from
Muscat International Airport (MCT) have been
rescheduled due to Cyclone Shaheen.
• Kuwait Airways appointed ATC Aviation Services
as its cargo general sales and services agent in
several regions of Europe, including the Czech
Republic, Germany, Hungary, Poland,
Switzerland, and Slovenia. The airline hopes that
the relationship will bring enhanced and
expanded cargo services to its European
business.
The International Maritime Organization (IMO) and
Saudi Arabia have partnered on agreements aimed
at reducing ocean shipping emissions. The three
signed proposals secure funding for “eco-friendly”
sailing and shipping processes, environmental
awareness campaigns, and litter prevention
initiatives.
Port congestion and less availability of space making
This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
Air Freight Updates • USA: Due to high demand for freight capacity and fewer
passengers, American Airlines has resumed all-cargo
flights.
• Canada: Air Canada announced a $16 million investment
in its Toronto Pearson International Airport cargo hub.
Funded renovations will focus on cold freight for
pharmaceuticals, fresh food, and perishable products.
• USA: An estimated 144,000 gallons of oil spilt off the
California coast near Huntington Beach. The spill does
not appear to be affecting cargo operations at Port of Los
Angeles.
• Dry bulk shipment rates reached their highest recorded
levels since 2009.
• The number and value of US exports continues to
rise, despite high numbers of blank sailings. If the
This update contains information we have gathered from various public sources and share with you to the best of our knowledge, but we cannot guarantee it is complete or in all cases accurate. Moreover, the market is changing rapidly currently; statements in this document may quickly be superseded, despite our best efforts. Nothing in this document can be taken as a contractual undertaking.”
