Container Capacity Out of Asia at Record Levels

BIFAlink newsletter published that shipping lines were expected to provide greater deep-sea volume out of China for the Chinese New Year holiday which began on 12th February 2021.  In January  2021 The Competition Directorate of the European Commission was advised to take action over the existing procedures of liner shipper carriers. European shippers’ council and CLECAT asserted that carriers are altering supply chains and harming trade growth at a time of economic downturn. From mid-January One Network has proposed two new direct services from North Europe to the East Mediterranean and Turkey, with Southampton as the UK port of call. Image result for air sea road

 

At the start of 2021 Amazon broadcasted that it had bought 11 used Boeing 767-300 aircraft for its delivery service. Amazon will convert them for the exclusive carriage of cargo, joining its air cargo network by 2022 giving it a fleet of 85 aircraft.

Global air freight market saw volumes better in November 2020 compared to October, but remain reduced compared to 2019. Capacity persists to be restrained due to shortage of availability through passenger aircrafts as they stayed parked.

 

Since the termination of the Brexit transition period at the beginning 2021 the cost of sending freight to Europe has sky rocketed. In the first week post the EU-exit it was 39% more expensive to move full truckloads from France to the UK, compared to the pricing in December 2020. According to some logistics companies the intensified prices could be here to stay. Furthermore due to Brexit, road haulage availability on the European spot market has fallen noticeably amidst the excalating prices. The corridors between France and Germany to/from UK are conveying sizeable losses of transport volumes though the prices continue to increase.

 

Shanghai port announced a new record container numbers of 43.5 million teu in 2020, permitting it to maintain the title of the world’s busiest container port for the 11th year running.

 

Where To Find Help – Eu-exit

If you have been importing or exporting to/from Europe recently, you will have experienced the potential customs delays since Brexit officially happened at the beginning of 2021. Our team has been working tirelessly to ensure we can make this transition for our customers as smooth as possible, however it goes without saying there has still been some bumps in the road. You may need more information on this subject, we advise the following helpful links for you.

 

The Government website has a list of helpful articles for both businesses and individuals to use to see what is relevant to them.

 

For Importing

https://www.gov.uk/import-goods-into-uk 

 

For Exporting

https://www.gov.uk/export-goods

 

Other helplines you may find useful;

HMRC Customs & International Trade – 0300 322 9434

HMRC Imports and Exports General Enquires – 0300 200 3700

BEIS Business Support England – 0800 998 1098

 

We keep up with the latest information for all shipping and therefore, do not hesitate to get in touch with your questions.

Port Congestion In The Last 6 months, Why?

The entire supply chain was affected and disrupted in the 2nd half of 2020.

It first started at origin in the spring/early summer in 2020, it later spread to Europe, this subsequently led to re-routing, or cancelling port calls

Image result for port congestion

 

 and sailings, escalating the duration of the round trips.

The condition consequently was exacerbated by extra health checks and prerequisites introduced at ports throughout the globe in effort to fight Covid-19.

Furthermore, the whole pattern of trade was interrupted. Fewer consignments were moved, it was taking longer to clear cargo and resume empties for reuse, proceeding to countless containers being incorrectly placed.

Moreover, a considerable change in consumer expenditure meant there was an intensified demand at an already peak season.

The new unfamiliar pattern of consumer spending, the outcome of opening and closing the economy, the predictable escalation in demand for Christmas, importers over-stocking pre-Brexit, all had momentous influences.

UK ports were unprepared for this unexpected extra spike, combined with the aspect that it had become challenging to get in touch with customers or they were incapable of taking delivery of goods, because their storage facilities were either closed, or fully occupied.

Unfortunately UK ports have a somewhat set capacity hence they cannot increase short-term demand straightforwardly.

All these components lead to the foundation of a “perfect storm” state of affairs.