EU | UK news digest. 8 June
To take advantage of the full functionality of the multimodal network, enter your profile or register for free.

EU | UK news digest. 8 June

China is tightening the Silk belt around Europe  

The leitmotif of this week seems to be a series of several accusations looming over the horizon that will leave a deep imprint on the industry.  COSCO Shipping Ports (CSP) has begun negotiations with Hamburger Hafen Logistik (HHLA) over a possible purchase of a minority share in HHLA Container Terminal Tollerort (CTT), which signifies a major milestone for Chinese presence in Europe. Although HHLA recorded a 7.2% volume decline in its three Hamburg terminals during the first three months of the year, and the port continues to suffer congestion issues, both companies have expressed expectations for fruitful cooperation. In turn, DP World is heading towards the west of the Indian Subcontinent by using the Unifeeder Group for the acquisition of Avana Logistek, Transworld Feeders, and its unit Transworld Feeders FZCO.

A serious threat of possible consequences of the UK’s Delayed Declarations Scheme admitted not so long ago can face British customs, according to the British International Freight Association (BIFA). Following the end of the Brexit transition, the initiative gave businesses importing into the UK up to 175 days to complete their customs declarations. However, now the country lacks sufficient resources to cover the backlog, and it is not going to be easy to find brokers who could handle it on time. The UK’s failure to prepare for Brexit properly forced it to further extend the option of delaying declarations until 1 January 2022.

Sustainable development is on the roll. Teaming up in the “Green Switch” project, LDZ Loģistika Ltd. and LDZ CARGO Ltd. aim to start regular transportation of the aforementioned trailers anytime soon. Another crucial milestone will be the conversion of the Brussels Express to LNG, with the vessel to complete its first LNG bunkering at Singapore on the next round voyage. Furthermore, Tarmac, one of the largest customers of rail freight in the UK, and their rail freight partner DB Cargo UK have announced an environmentally sustainable fuels initiative. The delivery of construction materials on a key strategic route will be powered entirely by renewable fuel. 

The new rates have been introduced by MSC from European ports from Europe to Canada and Mexico. The increase ranges $500 and $1000 for 20DV and 40DV-HC respectfully.

Following the time charter rates in the past decade, the drastic changes can be spotted for 14000 TEU, 8800 TEU, 4250 TEU, 1700 vessels. They went up to $550,000 for the 14000 TEU in 2010, but ever since (before the COVID-19), remained below $400,000. The same for 8800 TEU vessels that did not go further than $220,000 before skyrocketing to $1.1 mil. in 2021. The rates for 4250 TEU, 1700 TEU vessels used to be the lowest and did not face any significant bounces, staying in the $200,000 lane. The latter is still under this rate, however, the rates for 4250 TEU vessels are as high as $410,000 in 2021.

The railway sector is speeding up, setting up a positive trend on the way to the post-crises recovery. On Friday 4 June, the first train from Nanjing in China arrived in the Dutch hub of Tilburg commemorating the start of a new regular line between the countries. Soon (from mid-June), thanks to Nurminen Logistics, a new blocktrain will connect the Finnish capital of Helsinki and Nhava Sheva, the largest container port in India. It will run via the western wing of the International North-South Transport Corridor (INSTC), which passes Iran and includes a sea leg across the Indian Ocean. Recently completed infrastructure works at Southampton have enabled Freightliner to run new, 775 meter-long intermodal trains for their client DP World. They have become the first in the country facilities capable of handling the longer trains. Terminal Container Athus (TCA) and rail operator Hupac have launched new rail services to and from the Port of Zeebrugge to strengthen intermodal trade across Europe. The terminals will initially offer one roundtrip each week with the possibility to add a second rotation if volumes are increased. Moreover, since September, the rail operator will also offer a rail link between Zeebrugge and the Polish Warsaw/Gadki.

Haropa Port has announced a new ‘Green Dock’ facility that will link directly to the Seine for river-borne and urban distribution for the Greater Paris region. It has become of interest to such freight players as Stef, DB Schenker, and CEVA Logistics.

The XPO Logistics, a leading global provider of supply chain solutions, has renewed its multi-year contract with EIZO Limited, one of the UK’s fastest-growing monitor brands. 

After six years as the chief executive of the UK Warehousing Association (UKWA), Peter Ward has resigned. UKWA said it would name his successor shortly.

EU | UK news digest. 8 June