News Alert – COVID-19 Causing Ocean Freight DelaysOctober 28, 2020
As the COVID-19 global outbreak continues, we sincerely hope that your teams, families, and friends remain safe and well.
Since the outbreak began to become well known in late-January 2020, there have been numerous interruptions and impacts to our business and certainly to assignees. We sincerely appreciate your support along the way.
Just as so many MNCs have had to adjust, Arpin International Group has also been as resilient and as flexible as possible. In good faith, we decided early on to continue to serve our clients up to this date with no “Pandemic Surcharges”.
Recently, we have begun to experience significant delays in obtaining ocean freight bookings (containers available 3-4 weeks out) from several countries in Asia, particularly to USA and European locations – as well as to India.
- SS Lines are not operating their maximum fleet capacities, which means that the shipping lines have parked the vessels at the docks and are not utilizing their full fleets. We are also seeing significant freight rate increases.
- Recently, export cargo from China is increasing leading steamship lines to focus their fleets to serve the increased China demand, hence increasing steamship lines’ profits. Cargo from several Asian countries have limited space and the feeder vessel and connecting vessel are already full.
The countries which are expected to face shortages of containers for export include Japan, South Korea, Malaysia, New Zealand, Thailand, Philippines, Hong Kong, and to some extent, Singapore.
We are consistently looking for alternative arrangements by several carriers; however, it seems that they are all facing a similar situation at the moment.
Arpin Group has been in business for over 120 years and continues to work hard during this crisis to maintain overall stability and to deliver an uninterrupted, high caliber of service to our customers and their assignees.
Your Arpin service team remains available during this time and will continue to keep appropriate parties apprised of the situation and will be in contact with impacted parties directly to establish contingency plans.
In the meantime, wishing you continued health and success in all corners of the globe.