EU | UK news digest. 19 June
Left out and ignored – carriers strike the last nerve of European shippers
It is tough times for both – customers and consumers – as carriers are being accused of welching on newly signed contracts to go after more lucrative premium business. As more pressure adds up, carriers no longer want to respect the MQCs of new contracts with shippers making the latter feel frustrated and abandoned. Overall, customer relations continue to deteriorate. The shippers are forced to send a percentage of their contracted volumes at highly elevated rates, plus premium fees and surcharges. The UK forwarders complain that they are getting a few boxes released under rates only due to long negotiations and “pleading”. Is there more to come? So far, there is no light at the end of the tunnel since the chronic congestion in Asia increases rates on some directions for the 10th consecutive week. Spot freight rates to move a 40ft on the headhaul transatlantic lane from Rotterdam to New York increased by around 16% to $4,607 per FEU, with spot rates on New York to Rotterdam growing 11% to $1,121 per 40ft box. Meanwhile, continuing strong Asia-Europe demand saw rates from Shanghai to Rotterdam a further 6% to reach $11,196 FEU. Major delays at Yantian have seen other carriers, including Hapag-Lloyd, Ocean Network Express, and MSC, shift service calls to Nansha. According to the recent data, there are 304 ships in front of ports around the world waiting for berth space to open up. In total 101 ports have reported congestions.
The impact of the COVID and post-Brexit trade has hit the UK in a particularly severe way. Statistics show that the country’s food and drink exports to the European Union (EU) fell by 47% in the first quarter of the year compared to the corresponding period in 2020. The industry experts set out a plan to mitigate the effect of the disruptors by boosting support for exporters. The initiative has been backed by the Trade and Agriculture Commission. Additionally, they advocate for the government to take a more active role, otherwise, the situation will get even worse. The extreme shortage of HGV drivers in the UK has already reached a crisis of national importance. Suppliers state that if things do not improve, Supermarket shelves and restaurant plates are going to be empty. However, it is not all a one-way decline: the EU exports to the UK were also down across the board, with wine shipments down 20%, for instance.
Maersk pushes forward by organizing another eastbound block train, connecting South-Eastern Europe and China. It is a win-win move since besides strengthening the giant’s presence, it satisfies the needs of the chemical industry. Departing from Madrid in Spain, the train’s final destination in China is Nansha. Rail Cargo Group has made some other advances and launched a new TransFER connection between Verona in northern Italy and Regensburg in southern Germany. It is open for those goods that are currently banned from the road, such as wood, scrap and grain, thus contributing to the modal shift across the Alps.
The green agenda is still up and thriving. Deutsche Bahn will reduce its climate impact faster than initially planned, moving the previous target of being climate neutral forward from 2050 to 2040. The company has announced that will use 100% green electricity for factories, office buildings, and train stations. To reach the target, Deutsche Bahn aims to emit less CO2 in the coming years with significantly younger train fleets in long-distance, regional, and freight traffic and investments in operations.
German speed logistics company Time: Matters has introduced its measures regarding intra-European air cargo capacity by offering additional dedicated air freight capacity between Germany and the UK and Ireland. Its primary objective is to offer the customers flexible solutions for maintaining supply chains. In a separate, recent development, Time: Matters has “significantly” expanded its Sameday Air service between Europe and the US via Paris.
