BIFAlink September 2021

BIFAlink

News Desk

www.bifa.org

cranes for Terminal 1 at the Port of Liverpool to further support growth from intra-European feeder networks and increase its service offering by increasing the height and reach capabilities of the terminal. North-South routes drive rising reefer freight rates Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business

ON THE OCEAN Reefer container freight rates have risen sharply through 2021 – and in contrast to dry cargo rates are forecast to rise further in 2022, driven by catch up on North-South routes, according to Drewry’s Reefer Shipping Annual Review and Forecast 2021/22 report. It adds that the resurgence in reefer freight rates has not been uniform across all trades, with pricing recovery particularly strong on the main East-West routes, but less so on the North-South trades. The new DFDS ferry Côte d’Opal, which made its maiden voyage on the Dover-Calais route in early August, can carry 3,100 lane metres of freight, making it the longest ferry on the short straits route. With two engines instead of four, the vessel will offer reductions in fuel consumption and CO 2 emissions and have a service speed of 20-22 knots. Containers have proved a lucrative business for the multipurpose sector, which faces a boom in all business areas, say a number of the sector’s major carriers. A shortage of new vessels may put a damper on the supply of vessel capacity but keep rates high.The risks of placing container cargo on bulk carriers and general cargo ships are explained in an article on the Gcaptain website, which can be read at: https://tinyurl.com/y4wjvms7 GOING OVERLAND Ti and Upply’s most recent European Road Freight Rate Benchmark (Q2 2021) stood at €1,147, up 3.2% year-on-year or 0.4% quarter-on-quarter, as a result of rising demand levels and supply chain disruption. UK outbound rates were 16.8% higher year-on- year as carriers price in disruptive

IN BUSINESS The National Crime Agency has warned companies with operations at the UK border, such as port and airport operators, contractors, couriers and freight operators, that their staff with detailed knowledge of border controls and processing could be targeted by organised crime groups that are seeking to exploit the COVID-19 crisis. A recent Gartner survey found that 17% of chief executives and senior business executives in supply chain- intensive industries believe cost optimisation is the main issue that chief supply chain officers should focus on. Supply chain resilience was cited as the next most important issue, named by 16% of the 199 chief executives surveyed. The global contract logistics market declined by 3.3% in 2020, ending a decade-long growth streak, according to new research from Transport Intelligence (Ti). However, the post-pandemic economic rebound will be sufficient to drive strong contract logistics growth of 6.5% in 2021, says the consultancy, which forecasts the global contract logistics market will be 24% larger by 2025 than before COVID-19. CUSTOMS MATTERS HMRC announced in early August that at the end of March 2023 it will close the Customs Handling of Import and Export Freight (CHIEF) system that handles declarations. The new Customs Declaration Service (CDS) will replace it in a phased withdrawal whereby 30 September 2022 will see the ending of import declarations via CHIEF and 30 March 2023 will see the full closure of CHIEF/National Export Systems (NES).

new Brexit procedures, compounded by an increasingly acute driver shortage problem. Leeds City Council, West Yorkshire Combined Authority and Bradford Council have secured a Department for Transport and Energy Saving Trust grant to fund 32 new electric- cargo bikes to the value of £160,000. This is part of the latter’s £2 million fund aimed at helping businesses and local authorities purchase cargo bikes in an effort to combat congestion and pollution in city centres. IN THE AIR According to IATA’s latest World Air Transport Statistics report, the top 25 cargo airlines last year saw traffic in terms of scheduled cargo tonne km (CTK) decrease by 3.3% year on year. This was better than the overall industry decline of 9.1%, although it should be noted that IATA’s statistics only include scheduled services and not charter operations.

In the Baltic Exchange monthly market summary, Bruce Chan, vice president of global logistics at investment bank Stifel, writes that the use of passenger aircraft in an all-cargo configuration is unlikely to offset rising air cargo demand for the peak season. He adds that the inflow of passenger-to-freight conversions — so-called preighters — to provide incremental capacity, are insufficient to meet the demand and that, ultimately, these conversions are temporary and will be reversed when rates decline. ON THE QUAYSIDE A record volume of cargo was handled at DP World’s two UK ports in the first half of 2021. London Gateway saw throughput of 888,000 teu, a more than 23% increase on the previous first half year record set in 2020, while DP World Southampton achieved throughput of 995,000 teu.

Peel Ports has invested in two new ship-to-shore (STS) container

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September 2021

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