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Q3 Newsletter
Dan Walker • October 15, 2024
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We are pleased to inform our customers of significant developments in the shipping industry from East China. Major carriers, including MSK, MSC, OOCL, EMC, and THE Alliance (ONE, YML, HMM), have recently announced substantial rate reductions. These adjustments provide a valuable opportunity for businesses to lower their shipping costs and improve profitability. However, it's important to note that these favorable rates may be temporary. With the upcoming Chinese Golden Week (October 1-7), the market is expected to stabilise, potentially leading to a rise in shipping rates once again. We encourage customers with upcoming shipments to take advantage of these reduced rates while they are still available. Early action could result in significant cost savings and help ensure the smooth operation of supply chains during this period. For more information or to discuss your shipping needs, please contact us at quotes@sandfordfreight.co.uk.
It was a pleasure to welcome our valued customers to the DP World London Gateway Port! It’s a fantastic opportunity for our customers to explore the inner workings of this bustling port and gain a deeper understanding of its operations. Big thanks to Ben Swan from Mediterranean Shipping Company for organising this insightful event! And a special shout-out to our hosts, Daniel Walker and Roy Walker! If you would be interested in attending in the future, please email t.siva@sandfordfreight.co.uk
We strive to keep our customers informed, and here are the latest updates on our import challenges from China and other countries. Import rates have surged consistently due to congestion at ports in the Mediterranean, Singapore, Dubai, India and China. Unfortunately, this trend is expected to persist until at least the end of October. In July, to control ocean freight, carriers have arranged blank sailings. The Alliance has scheduled a total of four blank sailings, while the OA Alliance has five. Recently, we've received news that YML and ZIM will increase their General Rate Increase (GRI) substantially in August. Carriers are pushing to arrange these sailings as early and as frequently as possible to avoid high costs in August. Due to the extended transit times via the Cape of Good Hope, the Christmas season shipping will commence in August. Severe terminal congestion is causing significant delays in vessel schedules, leading to longer waiting times at trans-shipment ports and unpredictable shipping schedules. Some shipping lines have even reduced vessel space. To prevent space wastage, shipping lines are now imposing cancellation fees. The ongoing issue of equipment shortages means we cannot guarantee space or rates. All bookings will be handled on a shipment-by-shipment basis. Additionally, due to problems in the Red Sea, transit times have increased, so please plan for additional shipping time to avoid missed deadlines. High demand for air imports is creating space shortages and slight increases in air import rates. We will continue to provide regular updates and manage all bookings individually. Thank you for your understanding and cooperation.
We are pleased to announce the successful handling of a significant project shipment for the Ministry of Electricity in Iraq. This complex project involved transporting several out-of-gauge pieces of cargo and oil in specialised ISO tankers. Meticulous planning and execution were crucial to ensure the timely and secure delivery of these critical assets. Our team worked diligently to coordinate every detail, showcasing our ability to manage large-scale logistics projects with precision and efficiency. Completing this project reinforces our capability to handle complex and specialised shipments to diverse locations around the globe.
Cross trade shipping (triangular trade or third-party trade) refers to a transaction in which goods are shipped directly from one country to another country, with the involvement of a third party acting as an intermediary. In cross trade shipping, the buyer and seller are located in different countries, but the goods are shipped directly from the seller's country to the buyer's country without passing through the intermediary country. This type of trade can be advantageous for various reasons, including cost savings, efficient logistics, and access to markets that might otherwise be difficult to reach. However, it also involves certain complexities and risks, such as potential delays, increased paperwork, and the need to coordinate effectively between multiple parties involved in the transaction. Overall, cross trade shipping plays a significant role in global trade, facilitating transactions between buyers and sellers located in different parts of the world and contributing to the efficiency and flexibility of international supply chains. Through our extensive network, we have agents in most countries around the world, ensuring smooth and efficient coordination at every step. Get in touch if you have any questions - Quotes@sandfordfreight.co.uk
We truly do not like posting negative updates however we have a due diligence to keep our customers updated on the issues we are facing with Imports from China and other countries. Rates are not looking to decrease anytime soon and we are anticipating this to go on until end of October - at the very earliest. They have risen further this June, especially due to the port congestion in the likes of the Mediterranean, Singapore, Dubai and China. Peak Season Surcharges are increasing from second week of June. We are experiencing significant delays in vessel schedules due to severe terminal congestion, which means more waiting time at transhipment ports along with unsteady shipping schedules which are subject to change. Some Shipping lines have cut off vessel space for first half of June. Shipping lines are implementing Cancellation fees to avoid wasting space on vessels. The shortage of equipment is still an issue. We cannot guarantee any space or rates. Bookings remain on a shipment by shipment basis. Transit Times as we know have increased due to the red sea. We highly advise to give plenty of time for shipping to avoid missing deadlines. The demand on Air Import has increased resulting in space issues. We have had slight increase in the Air rates and these are likely to rise. Ne will keep providing regular updates. If you do require more information about the above please email our team.
From 30 April 2024, and in line with the introduction of risk-based identity and physical Border Control Post (BCP) checks set out in the BTOM, the Government will administer a Common User Charge on all eligible SPS imports (from rest of world EU and EFTA countries) entering the UK through the Port of Dover and Eurotunnel in Kent. The introduction of new sanitary and phytosanitary (SPS) import controls are fundamental to protecting the UK's food supply chain, our food and farming industries, and our natural environment from biosecurity risks including the costly outbreaks of diseases. Charges on eligible imports coming into GB are necessary to fund the operation of planned government-run BCP facilities serving Port of Dover and Eurotunnel to make sure physical checks on SPS imports can be undertaken safely and securely. The Common User Charge will apply to imports of animal products, plants and plant products entering GB through the Port of Dover or Eurotunnel which are eligible for checks at a government-run BCP. It will be applied to all eligible imports whether or not the import is selected for a physical check at planned government-run BCP facilities.
Cargo Insurance Simplified Why do you need to insure your cargo? You may not be aware, but you are likely not covered in the event or a loss or damage to your cargo winen i comes to insuring cargo, a lot or businesses assume that they either don t need it or that thei treight forwarder or carriers will cover the risk We want to address some of these incorrect assumptions and show you how important. easy and cost efficient it is to properly insure your cargo. Increase In Claims Cargo claims have skyrocketed in the last 5 years, mainly due to an increase in marine traffic and global trade, supply chain events and extreme weather conditions. Lack Of Coverage Today, around 70% of all cargo in transit is either under or uninsured. Significant Unexpected Losses The Evergiven Suez Canal incident in 2021 caused more than $2bn in losses alone, most of which were uninsured. Through our insurance partners Breeze, we are able to provide you with "All Risk" cargo coverage for each of your shipments (sea/land/air), including General Averge. Such coverage covers all risks, with some exceptions listed. We provide market leading pricing with no minimum premiums, based on the commodity type and cargo value. We provide full coverage flexibility, allowing you to cancel your policy at any point before the arrival date. Get in touch for a quote today!
