{"id":884,"date":"2020-03-14T12:20:26","date_gmt":"2020-03-14T12:20:26","guid":{"rendered":"https:\/\/phoenixglobalgroup.com\/mi-katigoriopoiimeno\/major-retailers-are-planning-to-opt-for-sea-air-transports-to-get-their-goods-out-of-china\/"},"modified":"2024-02-27T09:52:09","modified_gmt":"2024-02-27T09:52:09","slug":"major-retailers-are-planning-to-opt-for-sea-air-transports-to-get-their-goods-out-of-china","status":"publish","type":"post","link":"https:\/\/phoenixglobalgroup.com\/el\/nea\/major-retailers-are-planning-to-opt-for-sea-air-transports-to-get-their-goods-out-of-china\/","title":{"rendered":"Major retailers are planning to opt for sea-air transports to get their goods out of China"},"content":{"rendered":"
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By Alex Lennane
\nMajor retailers awaiting their spring-summer stock are planning to opt for sea-air to get their goods out of China.The garment industry wants its new season launches into shops before Easter, in eight weeks\u2019 time, but \u201csome 70% to 80% of Chinese factories are still not back up to speed,\u201d said Grant Liddell, business development director for Metro Shipping.<\/p>\n

\u201cSo there will be at least another week\u2019s delay in production, and a lot of distressed sea freight.<\/p>\n

\u201cLots of importers don\u2019t want to pay for the expected air freight spike in one or two weeks\u2019 time. It is likely to be $4-$5 per kg, up from about $2 per kg. That makes sea-air a very attractive option, as it would come in at about the $2.80\/kg mark.<\/p>\n

\u201cMajor retailers are now looking at sea-air; as soon as production is up and running, it will be the answer. It recovers the delay in production and is cheaper than pure air.\u201d<\/p>\n

Metro plans to use smaller feeder vessels of about 2,300 teu to get goods out of China, bypassing the mega-ships, many of which have blanked sailings which has led to some port congestion.<\/p>\n

\u201cIntra-Asian trade is still pretty buoyant,\u201d added Mr Lidddell. \u201cAir freight outside of China is not affected, the schedules are all OK, and there is still belly capacity.\u201d<\/p>\n

He said the best transit points for sea-air would be Singapore and Dubai.<\/p>\n

\u201cThen there may be some convoluted routes like Korea and Taiwan, but those air carriers will really stick their rates up.<\/p>\n

\u201cSingapore historically is a stable market, at a lower cost, whereas in Hong Kong and China rates can spike overnight. Singapore works well normally, but it could get congested; we are already well-positioned in Singapore for capacity.\u201d<\/p>\n

Sea-air has fallen off forwarders\u2019 radars in recent years \u2013 low rates last year, for example, meant there was little benefit.<\/p>\n

\u201cBut it works well when rates go sky-high,\u201d added Mr Liddell. \u201cAt the moment airlines aren\u2019t even quoting, the demand just isn\u2019t there, Asian carriers in particular work on supply and demand.<\/p>\n

\u201cBut it\u2019s a time of opportunity for air cargo operators \u2013 some importers still see sea-air as a risk, so they will opt for pure air freight. Others will be trying to get capacity anywhere.<\/p>\n

\u201cThe freight still has to move. The demand has just been displaced into March and April, so instead of being 70%-full planes will be 90%-full. So a dip in February will mean a sharp recovery in March\/April.\u201d<\/p>\n

It is as yet unclear exactly when factory production will re-start on China. Many staff, including forwarders, are still working from home, although they are starting to return in some cities, such as Beijing and Suzhou.<\/p>\n

\u201cIt\u2019s not just the central government making decisions, but provincial governments and manufacturers, and it\u2019s the workers\u2019 choice too. Just because the central government says something, doesn\u2019t mean it will happen.\u201d<\/p>\n

Once production is up and running, air freight should enjoy huge demand, he said, and carriers may be able to make up the losses of the past few weeks.<\/p>\n

\u201cThere are lots of unknowns still on the demand side, and the product still isn\u2019t there. But in two weeks the reality will kick in.\u201d<\/p>\n

One forwarder in China said\u00a0 Chinese carriers were currently the \u201cmost stable\u201d, and another source said the timing was in fact relatively good for carriers.<\/p>\n

\u201cOcean freight is using the excuse of the virus to blank sailings, but some don\u2019t actually have the vessels as they are in the yards awaiting scrubber fitting. Airlines couldn\u2019t wait to cancel over Chinese new year anyway, so in some ways it was good timing.\u201d<\/p>\n

However, one sea freight expert said: \u201cThat\u2019s right to a very limited extent, but the shipping lines have chartered-in to replace the scrubber installations, and they can\u2019t even half-fill the others. Eventually they will get some of the losses back as rates spike when the all-clear is given, but in the meantime some of them are at risk if it goes on much longer.\u201d<\/p>\n

Source:
\nhttps:\/\/theloadstar.com\/retailers-now-believe-sea-air-the-best-way-to-get-their-goods-out-of-china\/<\/a><\/p>\n<\/div>\n<\/div>\n

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By Alex Lennane Major retailers awaiting their spring-summer stock are planning to opt for sea-air to [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[30],"class_list":["post-884","post","type-post","status-publish","format-standard","hentry","category-nea","tag-2020-el"],"yoast_head":"\nMajor retailers are planning to opt for sea-air transports to get their goods out of China - PHOENIX GLOBAL FREIGHT GROUP S.A. - Since 1991<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/phoenixglobalgroup.com\/el\/nea\/major-retailers-are-planning-to-opt-for-sea-air-transports-to-get-their-goods-out-of-china\/\" \/>\n<meta property=\"og:locale\" content=\"el_GR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Major retailers are planning to opt for sea-air transports to get their goods out of China - 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