Industry News
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
UK invests £16 million in improved truck facilities
Netherlands, with Finland and the Baltic States, by deploying two 803 teu container vessels. It has also added a call at the Lithuanian port of Klaipeda, whilst relocating its UK port of call from Hull to Immingham. The ripple effect of growing global trade volatility is impacting the entire logistics chain, not least the movement of empty containers which has grown around 20% in the past few months compared with 2019, according to a study undertaken by maritime consultancy Sea-Intelligence, using data from Container Trade Statistics’ region-region movement of full containers. Credit rating agency Fitch said in mid-March that the short- term profitability of ocean carriers will benefit from increased freight rates, which exceed the cost of re-routing. It added that the current elevated spot rates would affect contract rates, resulting in higher average rates per teu for the full year, helping to protect carriers from the impact of lower demand in what is otherwise expected to be a weak 2024. ON THE QUAYSIDE UK retailers and Peel Ports have called on shipping lines and the government to push for a new port of entry strategy that would see shipping lines utilise both northern and southern ports for delivering deep-sea containerised cargo. Currently 90% of such cargo enters the UK by southern ports, with 60% of it ultimately heading for the north via road and rail. STOP PRESS On 21 March, as this issue of BIFAlink was going to press, BIFA received a letter of confirmation from the Department for Business & Trade stating that the Secretary of State agrees with the CMA’s final decision and that, as a result, the CBER will lapse when it expires on 25April 2024.
OVERLAND The UK government and industry are investing £16million on more parking spaces, better welfare facilities and safer rest areas for truck drivers in England. Upgrades will include new showers and restaurants, better lighting and secure fencing around rest areas, as well as creating around 430 new parking spaces for HGVs. In addition there will be new charge points to power electric HGVs and solar panels on truck driver facilities. Chancellor of the exchequer Jeremy Hunt announced the long-awaited Spring Budget on 6 March 2024, with a freeze
when the world was in recovery mode following the COVID-19 pandemic. IATA attributed the increase to rising e-commerce demand, as well as some modal shift as a result of the Red Sea shipping crisis. The opening session of the IATA World Cargo Symposium in mid-March reviewed progress in digitalisation, safety and sustainability within the air cargo industry, with the aim of accelerating progress on these critical priorities to ensure that air cargo growth is efficient, safe and aligned with achieving net-zero carbon emissions by 2050. Reflecting on how e-commerce is rapidly gaining value in the air cargo sector as it grows in volume, Ludwig Hausmann, senior partner at consulting firm McKinsey, told delegates at the IATA World Cargo Symposium that e- commerce will likely stabilise as a third of total air cargo volumes. He added that the percentage of e-commerce within overall air cargo volumes had jumped 10% in the space of five years, with further growth expected. ON THE OCEAN Sea-Intelligence has reported that global ocean carrier schedule reliability continued to decrease in January 2024, dropping by 5.1% month on month to 51.6%, the same month-on-month drop as in December 2023, and the lowest score since September 2022. It added that only five of the top 13 carriers achieved a schedule reliability above the 50% mark in January 2024. Samskip has increased capacity on its fixed-day weekly sailing schedule connecting the UK and the
in fuel duty at its current rate amongst the policies announced. IN THE AIR Air cargo demand increased by 18.4% year on year in January, IATA reported in March, the highest increase registered since summer 2021
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4 | April 2024
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