With demand likely to remain high and additional capacity not due for a few more years, the shipping lines look set to reap a revenue harvest until new vessels begin to be delivered in 2023.
Recent Posts by Paul Kelly
Carriers fear weeks of delays and equipment shortages
Congestion in North Europe’s major ports will reach “critical” levels over the next four weeks as container terminals struggle to turnaround ships embroiled in the six-day Suez Canal closure and shipping lines are expecting that many services will miss one to two sailings, which will negatively impact capacity in the second quarter.
Lines stop accepting bookings as Suez blockage bites
The mega-container ship Ever Given has been recovered and the Suez Canal is unblocked, but the real problems for shippers have just begun, with some lines refusing to accept Asia bookings (in either direction) blanked sailings announced and the ripples of disruption likely to touch all aspects of global Maritime trade.
Suez Canal jam will create more than port congestion
The Evergreen Ever Given has been grounded sideways since Tuesday morning, blocking vessels in both directions along the Suez Canal, creating one of the worst shipping jams seen in years and threatening even more chaos, when the grounded vessel, together with those behind it, arrive at their destination.
London road safety scheme increases HGV delivery costs
Transport for London’s new lorry safety scheme, the Direct Vision Standard (DVS), issues permits based on how much the driver can see, but assessment and vehicle modification costs are directly increasing collection and delivery charges in the capital, with many European hauliers not willing to enter London, due to the cost of compliance.
Importers missing out on cashflow benefit
Postponed VAT Accounting (PVA) was announced before the end of the Brexit transition period, so that businesses could avoid the negative cash flow impact of paying VAT immediately on importation, but the simplification is not limited to EU shipments, offering potential cost savings and cashflow benefits on all imports.
Government delay EU border checks
Government ministers confirmed last week that that pre-notification requirements for animal origin and associated products, would be implemented in October, rather than April as originally planned and that the deferred import declaration scheme due to end in July would now continue until the 1st January 2022.
Lack of container equipment may resolve
It is the inefficient circulation of containers that has provided one of the biggest supply chain challenges, as the pandemic-caused slowdown in the redistribution of container equipment, combined with sharply higher volumes, has reduced overall system capacity, driving up rates and creating global delays.
Global supply chain update (week 10)
Supply chains continue to be challenged by the impacts of the COVID pandemic, which is why we have continued to focus on the provision of air, sea/air and sea freight services from Asia and the US for your time-sensitive and urgent shipments.
LCL operations hindered by poor port performance
The port and terminal disruption that began in Felixstowe last Summers, before spreading to Southampton and London Gateway has not disappeared, with congestion continuing to disrupt collections, empty returns and LCL unloading.
