- Ocean services an alternative for commodities grounded by soaring air freight rates.
- ECU Worldwide launched xpress service to offer a faster maritime link across the Pacific.
- ECU uses Matson Navigation for a 10-day transit between the two ports and claims the fastest port-to-port time on the route.
- Express service with a day-definite arrival, and all-inclusive simplified fee structure.
- CMA CGM launched Seapriority Go, offering priority allocation and loading for containers and includes a money-back guarantee.
- Many PPE shipments move via airfreight to provide immediate relief.
Ocean services offer an alternative for commodities that remain grounded as the result of soaring air freight rates, reports The LoadStar.
Link across the Pacific
LCL express service between Shanghai and Los Angeles towards the end of last month.
Less-than-container load (LCL) consolidator ECU Worldwide launched the xpress service to offer a faster maritime link across the Pacific.
10-day transit
Its Xlerate offering uses Matson Navigation for a 10-day transit between the two ports and ECU claims this is the fastest port-to-port time on the route.
Unloading and moving to trucks
- The traffic is unloaded in Los Angeles at the company’s bonded container station, 24 hours after its arrival, and
- moved on ECU’s bonded express truck service to eight inland container stations.
ECU’s commitment
ECU Worldwide chief executive Tim Tudor said Xlerate reiterates commitment to provide an expedited LCL product to their freight forwarding clients from Shanghai to final container freight stations in the US.
Benefits
- It combines the benefits of an express service with a day-definite arrival, and
- an all-inclusive simplified fee structure,
- includes price per kilo on freight-on-board Shanghai basis and the final CFS destination fees.
CMA CGM’s priority service
CMA CGM has also spotted an opening for a priority offering. Last month it launched Seapriority Go, offering priority allocation and loading for containers and includes a money-back guarantee. The service is available on all sectors in the line’s network.
Expedited handling
Similar offerings have been around to cater to high-value commodities requiring expedited handling and movement, but they are increasing to meet a rising need.
Inadequate air freight capacity
Ken Sine, vice-president North Asia at Crane Worldwide Logistics said “We definitely see a dramatic increase in queries received for expedited services. These requests at this point are more FCL than LCL.”
According to Bob Imbriani, executive vice-president international at Team Worldwide, the below are the reasons that has raised the appeal of such services:
- inadequate air freight capacity,
- soaring rates and
- extended wait times for air freight links.
He added “There isn’t tremendous capacity, but it became an alternative. It’s a good option if it’s available.”
Mr Imbriani said the waiting time while using airfreight is 10 days while the ocean takes 12 days. “Some manufacturing clients can wait and adjust their schedules.”
PPE shipments
Mr Sine added that personal protective equipment (PPE) and medical equipment would be moved on such services before long.
He predicted, “Presently, we see many PPE shipments moving via airfreight to provide immediate relief and once that stock gets to a level that meets the needs of our frontline heroes, we will see a modal shift to these expedited ocean services to continue to feed the demand at a reduced price.”
Sea-air rates
The pricing should beat the rates charged for sea-air, which has become another popular alternative to airfreight.
Some forwarders have reported a marked rise in their clients’ interest in that modal mix. Mr Imbriani said every option has to be explored.
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Source: The LoadStar
