EU | UK news digest. 7 July
The multimodal shift: when a former dystopia can become a reality.
The sad soundtrack for ocean freight might be coming to end with experts predicting $100bn profit for carriers this year due to a paucity of supply. Despite that the flood of orders for newbuild containerships stemming for delivery in 2023 will break records for an injection of liner capacity – and potentially tip the supply-demand scales back in favor of shippers – carrier profits in the interim will see them set up for a long time in the future. Meanwhile, CMA CGM and Hapag-Lloyd are going to implement the new Peak Season Surcharges in Europe. The German shipping carrier will apply a PSS of US$500 per TEU and US$1,000 per FEU from the Middle East and Indian Subcontinent to North Europe. For the big players, it is a bearable move; however, smaller shippers are again the ones suffering the most. For them, the matter is about not only spiraling freight rates but also the widening spread in the market that has become a critical competitive parameter for importers. It is especially difficult to handle in the light of continuous disruption in global liner schedules. On the brighter side – the situation at Yantian is improving and companies are reporting upcoming repatriation of their ships to the port.
Alternatives are coming from different frontiers. The new multimodal link, with a shipping link between the UK and Kaliningrad, will be launched from Xi’an to the port of Immingham with its availability for eastbound services. In turn, freight forwarders and cargo owners are shifting some containerized cargo to bulk vessels. They are trying to find affordable and available capacity to move shipments. However, the solution seems as a short-term means as it will have a limited effect on the current capacity squeeze. Who knows, perhaps, with all the skyrocketing rates hyperloop concept will become a pretty much mundane alternative? HyperPort aims to use high-speed capsules to transport containers between ports and inland destinations.
Maersk comes into the green spotlight becoming one of the few companies that are undertaking particular, beneficial steps orientated at more sustainable future. The majority has not even released their SR reports and those who have, do not include the ships they charter, which is absurd from an environmental point of view. They have to be taken into account for an accurate evaluation of the environmental performance of a carrier's fleet.
The e-commerce boom can bring a positive change into UK ports that can use it as an opportunity to improve efficiencies and remove bottlenecks in inland logistics through a more regionalized business model. For example, the Port of Liverpool has expanded opening times and improved handling capacity to alleviate bottlenecks. Consequently, the aftermath spreads over hauliers – there has been a remarkable turnaround in access to the Mersey gateway with the Port of Liverpool releasing additional slots through its hourly resource checks.
A significant milestone has occurred for Hellmann Worldwide Logistics as it has acquired the overnight express provider Innight Express, based in Hungary and Romania. The company aims to expand the Central and East European markets.
The train locomotive of the industry obtains a new connection between Cosco’s CSP Zeebrugge terminal and Strasbourg in eastern France with daily roundtrips thanks to cooperation among Naviland Cargo, CSP Zeebrugge, and Zeebrugge port authority. There is also a stopover in Antwerp. Moreover, InRail completed its first train trip connecting Škrljevo in Croatia and Creutzwald in north-eastern France in a unique route. This step can surely be counted as the company’s international benchmark. However, not everything is stress-free for rail. The Iranian government is not clear on its decision to build the railway line between Astara and Rasht, as it is hoping for other infrastructure through Armenia and Azerbaijan to play a leading role. As the result, the missing link on the railway corridor from Russia to India is likely to remain underdeveloped for much longer.
Not only rail will see a strengthening presence of women, but the shipping sector too. The UK Chamber of Shipping has confirmed that Sarah Treseder will succeed CEO Bob Sanguinetti. Currently, she is the CEO of the Royal Yachting Association, where she has been for more than 10 years.
