CUSTOMS UPDATE
HMRC approves further delay for traders to make customs system migration
HMRC is automatically guaranteeing traders that commit to switching to the new CDS system by the end of October continue use of CHIEF.
The Customs Handling Import and Export Freight (CHIEF) system was due to be switched off on 1st October, with the Customs Declaration Service (CDS) coming into effect as the new UK customs system for imports, but HMRC last week announced a delay. They said those unable to move to CDS could seek temporary permission to continue using CHIEF.
If you need any help, please speak to our Customer Division, who will be happy to advise you.
IN THE NEWS
Tom Wood ran the London Marathon 2022 to support Prostate Cancer UK
Tom Wood, from Kukla UK’s EU Division, ran the iconic London Marathon 2022, supporting the charity Prostate Cancer UK. He completed the 26.2 miles competition in 3h16m56s on Sunday, 2nd October, to raise awareness of the silent killer and actively help and try to make a difference in the lives of thousands of men facing prostate cancer.
Tom said, “Prostate cancer kills 1 in 8 men. That’s one dad, partner, brother, son, grandad, uncle or mate. I’m raising money to help fund lifesaving research and support for men and their families affected by prostate cancer.”
You can visit Tom’s Just Giving page: https://www.justgiving.com/fundraising/london-marathon-2022-10507.
SEA FREIGHT UPDATE
Hurricane Ian, category 4, affected the East coast of the United States
Hurricane Ian made landfall in Florida on Wednesday last week, the ports are now open, but some delays are expected in the short term.
Strikes at Port of Liverpool and Felixstowe cause delays and congestion
Port of Felixstowe was on strike from 27th September to 5th October and the Port of Liverpool dockworkers are to stage a second walkout from 11-17 October. Obviously, this will result in delays and rerouting.
Strike at South African ports causes force majeure
South African terminal operator Transnet has declared force majeure at its ports over workers’ strikes. It operates South Africa’s major ports and its parent’s freight rail network, so the strike will also affect that network.
More on: Transnet declares force majeure at South African ports over strike (seatrade-maritime.com)
On 11th October, the operational status for container terminals remained unchanged in the Ports of Durban, Ngqura, Port Elizabeth and Cape Town. The South African Transport Allied Workers Union (SATAWU) and United National Transport Union (UNTU) initiated the industrial action on 4th October. There has been a decrease in manning levels, resulting in Terminals not being fully operational. However, the container terminals activate business continuity plans to ensure the strike minimally impacts operations.
UPDATE: Transnet and its recognised unions UNTU and SATAWU concluded the first day of conciliation talks facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA). The parties have agreed and signed on the picketing rules and picketing sites and remain willing to find a solution on the wage negotiations under the auspices of the CCMA. The parties to the negotiations are considering alternative proposals and will reconvene on Wednesday, 12th October 2022, to take the process forward.
Massive service cuts as lines try to hold onto profits
Ocean carriers will implement the severest cuts to liner services since the beginning of the pandemic as demand levels plummet across global tradelanes. Due to the recent cancellation of transpacific services, the three vessel-sharing alliances are considering temporarily suspending or merging some Asia-North Europe loops to mitigate the impact of a dramatic slump in bookings.
More on: Dramatic cuts to services as lines battle to hang onto ‘super-cycle’ profits – The Loadstar
Key port updates:
North America to Europe – All ports are reopened following Hurricane Ian on both the West and East Coast. However, there are still severe congestions in most ports, having additional vessel waiting times.
Europe – North America – Port of Houston has import vessel waiting times between 2-20 days due to high imports, staff shortages and congestion.
The empty sea container problem intensifies
From issue 580 of the Sunday Spotlight. “We revisited our analysis of the eventual normalisation of supply chains and the potential ramifications on the flows of empty containers. The underlying data for this model comes from the Flexport Ocean Timeliness Indicator (OTI) data, which measures the time it takes from when the cargo is ready at the exporter until the importer takes delivery. Pre-pandemic, the transportation time was 45 days on average, peaking at a transportation time of 112 days in February 2022, which has since been reduced to 88 days, as per the measurement on 26th August 2022.”
More from: https://www.sea-intelligence.com/press-room/161-empty-container-problem-intensifies
Sea-Intelligence reports imminent downwards pressure on Transatlantic rates
Sea-Intelligence has reported that while freight rates continue to tumble on Transpacific and Asia-Europe, they are holding firm on Transatlantic Westbound.
According to their analysts, the primary question is whether supply or demand leads rates to hold up.
“Secondly, since this presents carriers with an opportunity to make money on the trade, by shifting capacity onto the Transatlantic (like we saw with the Transpacific in 2021), would this inevitably cause a downwards pressure on Transatlantic rates?” wonders Sea-Intelligence.
A look at the spot rates indices shows that rates on Rotterdam-New York have been holding firm since August 2021 and have even increased marginally since then.
ROAD FREIGHT
Maintenance activities at the Mont Blanc Tunnel
France/Italy: maintenance activities at the Mont Blanc Tunnel, which will be closed from Monday 17th October to Monday 7th November 2022
More from: https://en.chamonix.com/road-conditions
RAIL FREIGHT
Britain has a new rail minister
The UK government reshuffle may be a work in progress, but there is one more post holder on board. Kevin Foster may be a new name to the rail fraternity, but he is a well-known face along the corridors of power, soon to take up his appointment as the new rail minister at the Department for Transport.
More on: https://www.railfreight.com/business/2022/09/29/britain-has-a-new-rail-minister/
