Supporting Africa’s logistics needs with bulk ocean freight

Before seafreight containers took over sixty years ago, break bulk was the main form of moving cargo. Roughly 90% of all goods worldwide are still shipped by sea, of which 70% is now containerised cargo. Break bulk seafreight however still makes up a significant segment of transportation and has several advantages for clients, whether by air or seafreight, says Detlev Duve, managing director of DACHSER South Africa.

Globally, logistics leader DACHSER has undertaken many complex break bulk shipments. Due to Africa’s economic reliance on the extraction of natural resources, logistics operators in Africa will often be required to facilitate the movement of large machinery and parts.

DACHSER charters world's largest cargo aircraft

DACHSER Air & Sea Logistics' international teams have chartered the world's largest cargo aircrafts, the Antonovs AN-124 and AN-225. The aircrafts transport medical goods from China to Austria on multiple occasions for a customer, after which DACHSER redistributed the goods through its overland network.

"We have set the course"

2021 was a year of diverse challenges that DACHSER was able to master with great stability and resilience. At the same time, the company set an important strategic course, particularly with regard to its climate protection activities. Here is a text from CEO Burkhard Eling.

Sea freight: update on the global situation

Due to the ongoing disruption of the sea freight market, the after-effects (container shortages and frequent port congestion) continue to impact global supply chains. Below, we provide an update on all developments to minimize potential disruptions to your business.

US West Coast / San Pedro Bay / Port of Los Angeles

• The situation in the US has improved over the last 6 weeks, but there are still several container ships queuing in San Pedro Bay to enter the port to be unloaded.
• The impact can still be seen in the sea freight inland logistics chain. The constant and high volume of loaded containers flowing into the U.S. continues to make it difficult to relieve the existing backlog.

Suez Canal

• Although this incident occurred more than 10 weeks ago, sea freight traffic is still out of balance due to the so-called "ripple effects."
• After the unblocking of the Suez Canal, European ports were first congested due to the sudden and high inbound volume. This was followed by the Asian ports, especially the Chinese ports.

Ports of Hamburg and Bremerhaven / Rotterdam

• Due to the blockade of the Suez Canal and the aforementioned "ripple effects", operations at the ports of Hamburg and Bremerhaven were also out of balance.
• Due to this congestion, shipping companies were induced to re-route ships to Wil-helmshaven or to Rotterdam.
• Within the Rotterdam operation, delays are now also expected, possibly leading to disruptions in port operations.

Ports of Yantian / Shekou / Nansha

• Delays are occurring in the South China region (Yantian / Shekou / Nansha, etc.) due to restricted port operations. It is expected that the resumption of regular operations will have to be done gradually and that full capacity cannot be reached in the foreseeable future.

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.

“A high degree of stability and reliability”

Even if concrete forecasts are currently difficult, there is cause for cautious optimism. CEO Burkhard Eling on initial trends and an outlook for 2021.

Operational disruptions at the port of Hamburg cause backlogs

With this update, DACHSER would like to inform you that port operations in Hamburg are currently affected in their flow due to various factors.

With this update, DACHSER would like to inform you that port operations in Hamburg are currently affected in their flow due to various factors.

The current situation of congestion in the northern and western ports has become even more acute in Hamburg. The deployment of the explosive ordnance disposal service twice to defuse World War II bombs in construction areas and a demonstration by climate activists, which led to the temporary closure of an important access road last week, are causing disruptions in handling operations.

Please note that this is causing significant delays at all operational interfaces in the port of Hamburg area and has created a backlog that will continue for some time.

For detailed information on possible impacts on your current shipments, please contact your local DACHSER representative.

Current situation in India and the impact on DACHSER’s operations

Regarding the current situation in India, we would like to give an update about DACHSER’s operations in India. The situation as of today, April 28, 2021, is as follows:

DACHSER branches in India:

Most branch offices across India are being kept closed as a precautionary measure due to the sudden rise of COVID cases. Our teams are working from home, with only skeletal staff at the offices and hence there are likely to be delays in responses due to the ongoing crisis.

As a consequence of the lockdown, there are some operational impacts for air, sea, customs clearance and domestic trucking.

Air Freight: 

Most countries have barred passenger traffic from India leading to no passenger carrying flights operating on International routes from/to India.

• This has created some additional constraint on already stressed space availability situation.
• Rates are bound to inch upwards for all sectors.
• Transit times too have increased as a consequence of capacity crunch.

Sea Freight:

• Sea freight was already facing the challenges due to the Suez Canal blockage end of March.  Ports and terminals are functioning normally, but vessel schedules are impacted by the Suez Canal blockage as well as the sudden rise of COVID cases in India.
• Therefore delays are expected. Customers are advised to factor in delays of 1-2 weeks while planning their inventories.

Expect more delays in communication or operations due to increasing COVID infections among staff at ports, customs, CFS and shipping lines.

Customs:

We do not have any unexpected disruptions in cargo movement in India, nor is any work stoppage expected at present.

• Customs clearance activities are functional at the movement.
• Customs is working with less manpower, no Customs Brokers is allowed to meet the customs officials, all processes is done faceless and things are moving in slow phase.

At DACHSER, we have undertaken significant measures to ensure our employees’ health and safety, at the same time continue to manage our day-to-day operations with minimal impact to our customers’ supply chains. Our teams are working diligently by all possible means in these testing times to assist and to overcome the challenges being faced.

Please rest assured that we will keep you updated of any changes to the current situation. In case of questions, please feel free to contact your local DACHSER representative in the region.

DACHSER South Africa expands coastal cross-docking facilities

Cross-docking, where inbound cargo is unloaded from an incoming container, sorted and then loaded directly to outbound carriers, is an important logistics strategy that keeps supply chains moving in a productive, effective manner.  Logistics leader, DACHSER South Africa, has recently expanded its Durban operations to a new 3600sqm warehouse in Pinetown, Durban.

“The new off-loading and loading bays have increased our capacity to handle a number of containers at a time, enabling us to offer excellent turn-around times,” says Detlev Duve, DACHSER South Africa, Managing Director,  “The facility provides a dedicated central site for products to be sorted for delivery to multiple destinations in the most productive way, saving costs. Ultimately, our customers benefit from a more efficient supply chain.”

Deidre Smith, DACHSER Sea Freight Imports Manager,  says, “We’re able to consolidate shipments, or even break down larger shipments into smaller loads, for easier delivery. Storage and handling costs can be reduced as products spend less time in the warehouse. Cargo also typically reaches its final destination faster, giving our customers a competitive edge.”

Further to a spacious, well-equipped warehouse, Smith says that experienced staff and effective planning are the foundations of a successful operation. “Skilled staff are vital to the operation and management  of the warehouse.  From expert inventory control using Warehouse Management Systems,  through to our material handling equipment operators and cargo handling teams, we ensure that all our staff are well-trained and clear on the different goods and requirements of our customers.”
 

Smith explains that the goods that are most conducive to cross-docking are those that are in steady demand, usually higher volume, fast-moving products scheduled in regular dispatches to pre-planned destinations. DACHSER also has the experience to handle large or complex items. “Of course, the preferred cargo to handle is stackable, palletised cargo that fits neatly into racks can be easily transported, but we’ve become experts in handling the odd and awkward cargo too.  Taking care of customers cargo and avoiding damages is our top priority, and our Durban handling team has the experience to load the trucks safely and correctly.  We also ensure that the appropriate handling equipment is available when off-loading a container and manoeuvring the cargo around the warehouse.”  
 

The DACHSER team handles both Pre-Distribution, where goods are unloaded and despatched according to set distribution instructions, and Post-Distribution processes, usually for retailers, which entails flexible picking and packing according to demand, based on in-store inventory, sales forecasts and trends.

Duve says it is also essential to partner with reputable transporters that offer a regular and reliable service to move the goods from warehouse to customer door.    

“With all the right foundations in place, cross-docking has become part of the seamless supply chain solution DACHSER South Africa offers to our customers, which further includes contract logistics, value-added warehousing, customs clearance and customs warehousing services,” says Duve.

 About DACHSER:

A family-owned company headquartered in Kempten, Germany, DACHSER is a leading supplier of logistics services worldwide.

DACHSER offers comprehensive transport logistics, warehousing, and customer-specific services in two business fields: DACHSER Air & Sea Logistics and DACHSER Road Logistics. The latter consists of two business lines: DACHSER European Logistics and DACHSER Food Logistics. Comprehensive contract-logistics services and industry-specific solutions round out the company’s offerings. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide.

Thanks to some 30,995 employees at 393 locations all over the globe, DACHSER generated revenue of 5.66 billion euros in 2019. That same year, the logistics provider handled a total of 80.6 million shipments weighing 41. million metric tons. Country organizations represent DACHSER in 44 countries.