The surge for PPE is beginning to level off, and with the extra capacity in our skies, it’s having a positive effect on air freight costs.
The government will not extend the Brexit transition period, but the coronavirus crisis has forced a rethink on new border processes, with a new easement announced on Friday, that will allow businesses to defer customs declarations and tariff payments until July 2021.
With transits from just 10 days, a new express sea freight service has been introduced for US shippers with time-sensitive cargo from Chinese origins.
Vietnam has ratified a free trade agreement with the European Union, that will cut or eliminate 99% of tariffs on goods traded between the signatories, boosting Vietnam’s GDP and exports by up to 2.4% and 12% by 2030.
With 550,000 additional declarations every day from the 1st January 2021 and 145,000 businesses submitting declarations for the first time, the potential to crash border systems is very real. Taking action now can protect your supply chain.
While air freight rates from China have softened in the last week, we are seeing much bigger price drops across the Atlantic, with savings of up to 40% to and from some US cities offering a significant US/UK air freight opportunity.
Despite the government estimating that 50,000 new customs agents will be needed after Brexit, Robert Keen, director-general of the British International Freight Association (BIFA), the main provider of customs training in the UK, said the country was falling “many thousands short” of the target.
The Government has released the UK’s new most-favoured nation (MFN) tariff regime, the UK Global Tariff (UKGT). This will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Transition Period.
Demand for PPE, face masks and medical equipment will drive air freight demand from China persist into the 3rd quarter and is contributing to airport congestion, exacerbated by limited capacity and strict new export controls.
In spite of the unprecedented numbers of cancelled and blanked sailings from Asia, the impact for our customers has been minimised, as our sea freight teams in the UK and China have leveraged volume contracts and shipping line relationships to get cargo lifted.