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Dr. Tobias Burger becomes COO Air & Sea Logistics at DACHSER
Focus on growth in global markets and integrated groupage transport
Since the turn of the year, Dr. Tobias Burger (46) has been the new Chief Operations Officer (COO) Air & Sea Logistics and a member of the Executive Board at logistics provider DACHSER. The former Deputy Director Air & Sea Logistics replaces Edoardo Podestà (61), who has retired from active professional life after a career at DACHSER spanning more than 20 years, the last four of which he spent leading the air and sea freight business.
"The thoroughly prepared handover at the top of the Air & Sea Logistics business field reflects the targeted and long-term oriented further development of our intercontinental network," explains Bernhard Simon, Chairman of the Supervisory Board at DACHSER. "Edoardo Podestà has built up our Asian business since 2003 and has made a significant contribution to the growth of our company over the past four years as COO Air & Sea Logistics. With Dr. Tobias Burger, we now have an experienced logistics strategist at the helm of our Air & Sea Logistics organization who has a deep and holistic understanding of the complex challenges facing the global logistics markets now and in the future."
The central task of Tobias Burger as COO Air & Sea Logistics is to drive DACHSER's growth in the global markets. “We are convinced that the main impetus for our future growth will come from our business in Asia and the Americas,” says Burkhard Eling, CEO of DACHSER. “By closely interlinking intercontinental transport with our efficient European overland transport network, we want to offer our customers a comprehensive solution for groupage services around the world. This Global Groupage offering, delivered by an integrated network with comprehensive contract logistics capabilities, definitely calls for a powerful air and sea freight organization with a global presence.”
This Global Groupage offering, delivered by an integrated network with comprehensive contract logistics capabilities, definitely calls for a powerful air and sea freight organization with a global presence.
Burkhard Eling, CEO of DACHSER
Burger holds a doctorate in business administration, and he began his career as a strategy consultant at Siemens Management Consulting. He joined DACHSER in 2009. After working in controlling and strategy development, he was given responsibility for Corporate Governance. At that time, he was already overseeing the strategic development of the global air and sea freight network. Burger was appointed Deputy Director Air & Sea Logistics in 2019, becoming Podestà’s right-hand man. During this time, he was initially global sales manager for the air and sea freight business. In 2021 and 2022, Burger led the ASL EMEA business unit’s operations as Managing Director with great success.
Edoardo Podestà: Two decades of growth and profitability for DACHSER ASL
Podestà concludes his successful career as a logistics manager by handing over the reins to Burger. An Italian who has lived in Hong Kong for many years, Podestà joined DACHSER in 2003 following its acquisition of a joint venture. As Managing Director, he was initially responsible for Greater China; as DACHSER’s Asian business grew, he soon took on responsibility for the entire Asia-Pacific business unit. Since 2019, he had also been at the helm of the global air and sea freight business as COO Air & Sea Logistics. “Against the backdrop of an extremely volatile market environment, he applied his depth of experience and his creativity to always chart a clear course for growth and profitability,” Eling says.
In 2021, Chinese New Year falls on February 12, it is the biggest festival in China where people celebrate the beginning of a new year with their families. The week-long national public holiday has consequences on global supply chains.
The following information provides an overview of some key facts of the festival and its possible impacts on logistics.
Dates and key facts
February 12, 2021 marks the start of the Chinese New Year (the year of Ox).
Chinese national holiday begins on February 11 and ends on February 17, meaning that most of the businesses, including DACHSER branches in China, will be closed and resumes on February 18.
Factories and manufacturing sites used to be closed for a longer period of time. Production might pause already one week before Chinese New Year, some factories will only resume one month after.
The long holiday allows workers in the city to travel back to their hometown for a family reunion, though it might not be the case this year due to the pandemic.
Impact on supply chain
Extensive holidays in China can lead to delays to your shipments for up to one month.
Due to the abovementioned closing period of manufacturing industries, there will be no productions from China for at least a week. Even though factories will be restarting gradually, operations will not resume to full swing immediately.
Productions from other countries in Asia will also be impacted as some parts might come from China or the assembling processes are done there.
Most shippers will stock up inventories that are sufficient to cover the Chinese New Year period, this leads to a pre-holiday cargo rush; it will also take some time after the festival to normalize the market conditions.
Get prepared
To avoid unnecessary price hikes and delays, it is strongly recommended to place bookings well in advance. At DACHSER, our logistics experts can help you to plan together. Feel free to discuss with us about your needs and we can work out the best to maintain your supply chain uninterrupted throughout the Chinese New Year.
The development of the global ocean freight market showed a further deterioration at the end of 2021. Continuing unreliable schedules, COVID 19-related restrictions and overstretched port staff, do not lead to any relief at congested major ports worldwide. This situation will continue to challenge us for an extended period of time.
To counter this, DACHSER's sea freight teams around the world are working with great flexibility and commitment on finding new alternatives and solutions in close coordination with our customers and shipping partners.
Review 2021
In March 2021, the global shipping misery worsened with the Suez Canal incident of vessel ‘Ever Given’, that has caused hundreds of vessels being stuck for six days at the Suez Canal.
In the further course, pandemic-related disruptions in the global ocean freight market continued to dominate. COVID-19 outbreaks and terminal shut downs of several weeks at the port terminal of Ningbo in August, followed by lockdown situations at port Xiamen and Dalian led to delays of vessel schedules. Resulting in an increasing schedule instability and congested ports on important trade lanes to North Europe and the Transpacific.
The congestion situation at the US-westcoast ports Los Angeles and Long Beach had worsened during the year with tremendous berthing delays due to the transpacific imbalance as well as COVID-19-related staff shortages at the terminals.
The consumer demand grows due to economic recovery and funding programs which lead to an ongoing shortage of capacity and equipment. Huge backlog volumes are stressing supply chains even if consumer demand would get periodically softer.
Trade Lane Update
Europe
Europe - Far East The space availability is improving while the equipment situation is still tense, especially in the inland depots. Carriers Equipment Imbalance Surcharges are still in place.
Europe - South America East & West Coast Depending on the carrier, space is available, but subject to equipment. Yet it is still recommended, to place the bookings 6 weeks in advance. Peak Season Surcharge and Equipment Imbalance Surcharge are still in place.
Europe – Mexico Services into Mexico are being impacted by port omissions on the US East Coast and Gulf. Capacity is tight and with no new or additional services, being added in the near future it is expected to remain.
Europe – Indian Subcontinent Empty equipment situation in North Europe is further stabilizing in the ports; still high demand in the hinterland areas. Space remains available; carriers are trying to counterbalance the equipment stocks in India.
Asia
Port Congestion ASIA · Mainland China Ningbo / Shanghai / Dalian / Qingdao / Xingang / Yantian / Shekou / Nansha, Hong Kong: 7-10 days. Xiamen / Nanjing and PRW: no congestion. · Korea Busan / Incheon: 7-14 days · Indonesia Jakarta / Surabaya / Semarang: 2-3 days · India Subcontinent Chittagong: 1-2 days. All other ports: no congestion · Malaysia 2-3 days · Singapore 2-3 days due port congestion. Transshipment cargoes rolling 7-14 days in Singapore, depending on carrier. · Taiwan Keelung / Kaohsiung / Taichung: 2-3 days · Thailand Bangkok: 5-7 days. Leam Chabang: no congestion · Vietnam Hiphong Export/Import: 4-5 days. Saigon Export: 7-10 days
Far East - Europe The space remains tight and especially the empty equipment shortage remains unchanged very limited for all carriers and all types of container and there is no forthcoming improvement. Schedule recoveries and port omissions in Asia will further decrease space and allocation.
Far East - South America East Coast Constraints in load capacity and equipment are still in place, especially for 40’ Container DRY and 40’ Container HC. Some carriers are willing to accept bookings only for light cargos with 8 tons per TEU. A reduction of cargo backlog is expected during December. There is already some space available on short term, but limited due to previous backlog. Pre-bookings of 4-5 weeks ahead are still necessary.
Indian Subcontinent – Europe Empty equipment situation has not improved further. Space situation is still very tight, therefore it is recommended to place bookings 3-4 weeks in advance. Especially in South East India East equipment and capacity remains tight and the situation is not improving.
Transpacific Eastbound Port congestion in US is main cause of ship turnaround time and impact schedule integrity. Space remain tight but also not getting worse until the end of 2021. Port Authority of Los Angeles / Long Beach introduced Emergency Fee for long standings which will be passed on to cargo owners, but it already has been postponed until December 13, 2021 effective. As an alternative to the equipment shortage for full container shipments, DACHSER is offering its expedited LCL service on the transpacific route. The weekly scheduled direct expedited LCL service brings average dwell time down from 14-25 days to 3-7 days. Please do not hesitate to contact your local DACHSER sales team to get further information about the LCL service.
America
Transatlantic Multiple port omissions and congestions in the US continue to impact schedule integrity. Peak Season Surcharges increases are being announced. Vessel space situation improved slightly. However, early bookings are required and additional space outside allocations are not being granted.
Outlook 2022
Due to the global sulfur regulation, by the International Maritime Organization (IMO), which already came into force last year in January, most container ships will have to go into dry dock in 2022 to make technical adjustments that will reduce CO2 emissions. This leads to further limitation in the sea freight market.
However, by the end of 2022, six new MGX vessels are expected to be launched, with a capacity of 21,000 TEU, which will relieve the ocean freight market.
Rates on the main trades are reaching its peak now because of year end and Chinese New Year in February 2022. It is likely that in March rates will decrease a bit but will still remain high.
The carriers are announcing that “their books are full” and due to the fact that only at the end of 2022 new ships will come into service it can be expected that throughout the entire next year rates will stay at a high level and clearly above “before Covid” times.
Container Indexes
Click the button below to read the current development on World Container Index and Shanghai Containerized Freight Index.
If you would like to discuss your transport needs, please feel free to get in touch with your local DACHSER representative to work out the best logistics solution.
The first customers are using the DACHSER platform for their day-to-day business
The first customers have been working with the DACHSER Platform since the end of August last year. After several intensive test phases, real customer data is now flowing through the system. This way, we learn daily which of the platform’s features are working smoothly and where there is a need for individual adjustments. The feedback helps to improve the platform step by step.
Fighting the pandemic with vaccine, PPE, and intelligent logistics. Berlin’s senate is procuring its vaccine logistics services from a tried and true partner: DACHSER’s Berlin Schönefeld branch.