Global Container Services and Shipping Industry News Archive

Port of Felixstowe Development – June 2011
The Port of Felixstowe which is the largest port in the UK and one of the largest in Europe has been extended!

The Felixstowe South project, which has been built on the old dock basin, has two new Berths, 8 & 9 and is near completion and ready for use. The new quay is 730 metres long, with currently five quayside gantry cranes each capable of handling vessels with 24 containers in width, with another two cranes under construction in China and are scheduled to be delivered later in 2011. Initially these berths have been dredged to 16 metres, but are capable of being increased to 18 metres in the future. This new terminal is capable of handling the world's largest container ships on order, the only facility like it in the UK currently.

With a phase 2 planned, giving a Berth 10 and a further 265 metres of quayside, Felixstowe is investing for the future needs of the country.

Felixstowe now has a total quayside length of 3508 metres (2.2 miles), can stack up to 118,000 TEU's and operates 1,806 reefer points.

China / Far East Update – 12th May
At the beginning of this month, most carriers announced rate increases which would commence from 15th May, either by implementing a General Rate Increase (GRI) or Emergency BAF (EBAF). We are pleased to announce that any rate increases mentioned have now been suspended until the 1st June.

As capacity in this market continues to outweigh supply, we are yet to see whether any increases will be successfully implemented. However it is a fact that current ocean freight rates are below cost price and combined with record fuel prices, freight rates are likely to increase within the next 3 months. This would also be in line with the traditional peak season starting within this period.

Japan – 30th April
Operations at Japan’s main ports have returned to business as usual following the devastating 8.9 magnitude earthquake and tsunami which hit the country on 11th March.

Main ports such as Tokyo, Nagoya, Osaka and Kobe are all getting back to normal operations, although due to backlog of vessels, delays in cargo processing are to be expected.

However, the smaller feeder ports North of Tokyo, are said to have suffered so much damage that they are not likely to return to operation for some considerable time.

The long-term effect on the global supply chain is yet to be judged, but it is likely to be felt for many months to come. This is because although relatively few finished products are from Japan especially when compared to China, the Chinese electronic manufacturers use large quantities of electrical components (transistors and capacitors) which are mainly made in Japan.

Cargo Insurance – 11th April
We would recommend to all of our customers that they check the documentation of their shipments to ensure that these are covered by a comprehensive ‘all risks’ insurance policy.

If you trade under terms FOB or CFR, the risk transfers from seller to buyer at the time that the goods are loaded onto the export vessel at origin port. Therefore the buyer / importer has the greater risk. In these instances, you should check whether you have specifically insured your goods or whether you hold an annual open policy.

Trading under CIF makes the responsibility of insurance mandatory for the seller, but often these policies are very restrictive. You should double check any insurance policies that are sold at origin with your supplier, to ensure that your goods are fully covered for all risks.

Both carriers and freight forwarders are protected under their terms and conditions for ‘limited liability’, and you would have to prove liability against these companies should you wish to make a claim. But remember this is limited liability and not insurance, therefore if you make a successful claim the terms and conditions in operation will limit the liability to a rate per kilo, which in most cases will not cover the cost of damaged or missing goods.

If you require assistance with insurance or just need some helpful advice, please contact us. The cost of a good insurance policy could be much cheaper than you think.

China / Far East Summary - 7th March 2011
The traditional peak period in the few weeks run up to Chinese New Year was as busy as ever, yet there were no recorded problems with space or equipment. As is quite normal this time of year, the majority of the carrier's removed one of their scheduled vessels from service, meaning that in week 6 there were very limited space and sailing opportunities. Most of the cargo which was ready that week, was therefore rolled over for week 7.

Since Chinese New Year, bookings have remained strong and have seen an increase in business when compared to the same period of 2010.

Basic Ocean Freight rates have continued to decline so far in 2011, with more savings being offered in March. However the BAF and UK fuel surcharges are increasing each month with the high rise in oil prices, and with unrest currently in the Middle East & North Africa, the trend is likely to remain in an upward direction.

Carriers are concerned at current market conditions which are pushing the basic freight rates down, and are considering what other options are available to them so that rates do not decline any further. Although slow-steaming programmes have worked over the last few months, it is unlikely that they will be able to slow the vessels any further. We currently have no indications of April rate levels, but will update you nearer the time as usual.

Southampton Infrastructure Surcharge - 1st March 2011
With effect from 1st April 2011 import entry declarations, an infrastructure surcharge of £ 3.50 per import container will be levied in addition to the current Port Security Fee. Network Rail have made major improvements to the rail network from Southampton to Nuneaton which allows for high cube containers to be moved more cost effectively, whilst also reducing the carbon footprint. The total project cost £ 43m, and Southampton port have advised that this new surcharge will be applicable until the investment cost has been recovered.

EU Import Control System - 22nd February 2011
Further to our notification back in December, the new ICS system which was introduced for all imports originating from outside the UK, is now in full flow. Please note that for any business controlled by Global Container Services (usually FOB terms), we take care of these declarations on your behalf and you need not take any further action. However for movements under terms CIF / CFR which are controlled by your suppliers, they may request additional information from you which will include your EORI and Tariff Code number information. If you need any help with this information, please contact us and we will be happy to assist you.

INCOTERMS 2010 - 1st February 2011
Please note that INCOTERMS have now been revised to the 2010 version, it is therefore recommended when entering into contracts with your suppliers that you make reference to the correct and valid version, for example: FOB Shanghai (subject to INCOTERMS 2010). Ensuring that you clause your contract correctly in this manner, will make all parties aware of their responsibilities and could avoid unnecessary disputes.

It should be noted that as well as term additions and removals in this latest version, another key change is where the risk transfers. For example, under FOB/CFR terms in INCOTERMS 2000, the risk transferred from seller to buyer when the goods passed the ships rail, this has now been amended to 'Loaded onto Vessel'. A relatively small change, but important none the less.

New EU Import Control Syste - 6th December 2010
The European Union is implementing an Import Control System (ICS), which is designed to enhance the security & safety manifesting systems currently in force. The legislation will become law for importing from outside of the European Union for vessels which sail from 31st December 2010 onwards.

For seafreight movements, data has to be submitted as Entry Summary declaration (ENS) 24 hours before the vessel is scheduled to leave the origin port. This submission is done at load port, and is submitted to the Customs authority at first entry into the EU. For example, any seafreight shipments which are from Shanghai to Felixstowe via Antwerp, the data will need to be submitted to the Belgium Customs.

For your movements which are controlled by Global Container Services or our appointed local agent, you do not have to do anything at this stage as we will automatically supply the information and complete the declaration on your behalf. Please note however, that there is likely to be a charge for making these declarations and will depend on the carrier used. It is expected to be between USD 25 and USD 40 per Bill of Lading. We would recommend that if your supplier is asking for this information, but your goods are moved on Global's service, you refer your supplier back to our local agency office or direct to us. Supplying this information will only cause confusion and potentially miss declare cargo.

For any movements which are controlled by your supplier (terms CFR / CIF etc), they should be asking you for additional information. As a minimum requirement, they will need your EORI registration number and commodity code. If you need any assistance with this information, please let us know and we will be happy to assist you.

INCOTERMS 2010 - 3rd December 2010
Incoterms are international recognised terms of trading and should be incorporated into all contracts when buying or selling your products overseas. Due to global changes within the industry over a period of time, these are normally updated every 10 years.

Incoterms 2010, will take effect from 1st January 2011 and will replace the 2000 version which should no longer be used.

The terms will now be split into just two groups, those which are applicable to all modes of transport and those which are specifically designed for sea.

A total of four terms have been deleted, DAF, DDU, DEQ and DES and it is recommended that these are no longer used beyond 1st January 2011, otherwise you risk disputes with your supplier which could be difficult to resolve.

There are two new terms, DAP (delivered at place) and DAT (delivered at terminal). For both terms, the seller is responsible for delivery of the goods to the named place or terminal and the risk will transfer from seller to buyer at the same point. Cargo insurance should be considered by the seller, as they take the largest risk. DAP should be used instead of DDU from 1st January.

There are 11 Incoterms in total and have indepth requirements. If you need any assistance or more information on specific terms, please contact us.

China Update - 1st December 2010
The peak season of 2010 has not lived up to carrier expectation, and therefore we have seen rates decline over recent weeks as carriers try to obtain market share. With a traditionally quiet period just around the corner, we are expecting carriers to remove some capacity and run their winter programmes, which may include slow steaming or additional port calls. If successful, the carriers may try to start to increase rates again from 1st January. We will only know the carriers intentions for next year later this month and we will update our customers in the normal way.

Carriers with more Capacity - 26th August 2010
On the Far East to Europe trade routes, some of the major carriers have re-deployed their largest vessels to ensure that the peak season period of 2010 is catered for. Volumes from the Far East this year has been better than 2009 and that of previous predictions. Vessels of up to 14,000 TEU are now operating on this route to meet the expected demand of the industry through this busiest period.

Vessel Collision In Mumbai Harbour - 9th August 2010
Vessel movements are currently suspended in Mumbai Harbour due to a collision between MSC Chitra and Khaljja III on 7th Aug at around 09.50 am. The damage has affected the navigation channel for all ships to and from both Mumbai and Nhava Sheva terminals. One of the vessels appears to have run aground, losing some of the cargo on board. It is expected that the navigation channel will remain closed for up to 6 days, causing major congestion and delays.

Container Shortages in China - 5th February 2010
Ahead of the Chinese New Year, all carriers are facing problems with a lack of equipment from all load ports in China. This is especially effecting 40ft and 40ft high cube containers. The cause of this problem goes back to the bad weather in January, when vessel working time was limited to unloading import containers only, and due to fixed berthing schedules in Europe, had to cut and run. With carriers usually loading around 2500 TEU export containers per vessel, and with increased bookings ahead of Chinese New Year, this problem is likely to remain for the next 2 to 3 weeks.

Chinese New Year - 4th December 2009
The Chinese New Year commences on 14th February 2010, and you should be reminded that freight bookings are likely to be strong up to this date. It is therefore recommended that you give us as much prior notice of new bookings as possible.

Carriers Capacity - 4th December 2009
For carriers on the Far East to Europe trade, we are aware of at least two companies who have announced a slow steaming programme, which will see vessel speeds reduce from 20 to 14 knots. This will of course have an effect on transit times, and these are likely to increase from between 2 and 5 days, depending upon carrier and origin of your goods. By doing this, they will also effectively reduce costs and remove capacity further, ensuring that current freight rates are held or increased further.

Far East Rates - 4th December 2009
Since March 2009, when the ocean freight rates were at an all-time low, carriers have been making regular GRI (General Rate Increases) to bring freight rates to a more realistic level. They have achieved this with such success, mainly due to their capacity reduction programmes. Rate increases which were scheduled to come into force on 1st December, have been suspended, with all carriers announcing increases for sailings from 15th December onwards. We are yet to see whether the proposed increase will stick, or whether they will reduce this to a more realistic level. Customers will be informed of any increases nearer the time, once decisions have been made, and contracts filed.

Aden Gulf Surcharge - 4th December 2009
Any freight movements which effectively enter the Gulf of Aden, will see the piracy surcharge increase from 1st January 2010. This is due to the increased risk that carriers face, and the increased cost to protect the vessel, crew and your cargo. Generally the rate will double from USD 23 per TEU to USD 46. These rates will be incorporated into ‘all inclusive’ contracts from 1st January.

Far East / India Freight Rates - 14th August 2009
As predicted back in May, we are now seeing freight rate increases on a regular basis from all carriers, especially on the Far East Route, but also from India. In the main carriers are issuing contracts for a 1 month period only, however due to shipping industry now being in the middle of a peak season, carriers are issuing additional emergency surcharges mid-month. This is causing rates to rise very sharply, although these are potentially going to be short term, it does mean that rates now are completely different to just 3 months ago. Global Containers are constantly reviewing and negotiating with carriers to keep any increases to a minimum, however with vessels on these trade lanes reportedly at 120% capacity it is likely that further increases will be implemented as published. We have already received notification from some of the carriers, that rates will increase in the region of USD 300 per TEU from 1st September. This along with continued increases in BAF contributions, will have a direct result on customers overall freight spend. Of course we will not know the true cost of any potential increases until the last week of August, and customers will be informed in the normal way. The peak season is due to last until 30th September, and freight rates are expected to start to reduce again by the end of October.

EORI - 14th August 2009
This is the new trader identification system from H M Revenue and Customs, EORI stands for ‘Economic Operator Registration & Identification’. This new system came into force in the UK from 1st July 2009 and its purpose was to have one unique identification number for all traders which should be recognised by all EU customs authorities whereby they can exchange information between EU member states as well as other government departments. Whilst all existing regular traders would have already applied and received their EORI number, many traders who only ship every few months may not be registered. All companies and private individuals wishing to import products into the UK from outside of the EU must have an EORI number. You should make sure that any application is made in advance to any goods arriving into the UK, to ensure that your form can be processed in time. The Customs form reference is C220 and can be found on the Customs web site www.hmrc.gov.uk. Details on how to complete the form and where to send it are all printed on page 4. For any customers requiring help on completion of this form, please contact our office on + 44 1394 451200 and ask for a member of the import team. Applications should take no longer than 72 hours to process by Customs.

AEO Status - 19th May 2009
We are pleased to announce that Global Container Services has commenced its programme to apply for Authorised Economic Operator (AEO) status. AEO is an international initiative driven by the need for security of trade and audited by HM Revenue & Customs. We believe that by having AEO status, it will ensure that Global Containers are able to maintain our quality of service and ensure that all customers’ freight is handed seamlessly without delay from door to door. It is expected that this process will take no longer than 6 months to fully implement. Further news about AEO will be given on our news pages, as and when they become available.

Far East Freight Rates - 19th May 2009
During the last 6 months, we have seen the prices for ocean freight from the Far East, especially China, tumble. Most if not all carriers are now reporting major losses, some exceeding USD 100 million per month. The reductions in the rates have been as a consequence of two key factors. The current global economic crisis, where volumes from this region are reported to be down more than 20% on last year, has caused the biggest problem. But also the demise of the Far East Freight Conference (FEFC) last October, saw shipping lines for the first time having to work alone in setting parameters for freight reviews, and associated surcharges. Some carriers have got this process wrong, and has lead to more competition than ever. However, with the rates at a level which is well below the cost of movement and carriers loosing hundreds of millions of dollars, it is no surprise that the market is getting ready for increases over the next few months. Most carriers are reporting rate restorations from 1st June and 1st July, with some mentioning a Peak Season Surcharge in August. Traditionally August is the start of the imports ready for Christmas and carriers may want to try to impose this surcharge at this busy time of year. One thing is certain, freight rates currently are very unstable and validity periods are being reduced to either 1 month or even vessel by vessel. Customers will be kept up to date in the usual way, should any increases become reality.

Changes to Saudi Packing Requirements - 19th May 2009
Saudi Customs Authorities have issued new directives that require all cargo imported to their region to show the Country of Origin / Made in …… declaration on each piece of cargo. You must make sure that any markings made cannot be removed and show the exact country, and not European Union.

Any consignments which arrive without the correct markings will be rejected and have to be re-exported back to origin, with all associated costs for the account of the shipper.

If you require us to mark your freight correctly, this can be arranged, but you must advise us at the time of collection. A small charge will apply to cover the cost of materials and labour.

AMS for China (Exports) - 6th January 2009
The Advanced Manifest System to destinations in China will start testing from late January through to March 2009. If successful, it will go live at a date agreed with Chinese Customs. This will mean that for any export bookings to China, full shipment details must be sent with your original booking 24 hours prior to the vessel arrival at the port of loading. In reality, this will require any shippers to send this information 96 hours prior to the ETD of the vessel. Failure to provide correct information could result in your consignment not being loaded to the intended vessel and shipped 1 week later.

Far East Rate Structure - 23rd December 2008
This will be changing for any sailings after 1st January 2009. Rates will now be quoted as a ‘lump sum’ and will be all inclusive of all current surcharges. This will make it much easier for customers to budget accurately their transport costs.

Changes to BAF/CAF and UK Terminal Charges - 19th September 2008
The antitrust immunity to Liner shipping conferences (such as Far East Freight Conference etc) for European Trade will be abolished on the 18th October 2008.

From that date, Conference’s that set rates for such items as BAF/CAF and Terminal Handling charges on trade routes to and from the EU will be prohibited.

This means that Shipping Lines previously limited by their respective conference will be free to set their own tariff charges.

We are all aware of the changing BAF/CAF rates, especially on some markets where they can vary each month. But a more significant change will be the UK Terminal Handling Charges. This change is likely to affect all UK companies involved in international trade, as the Handling charges for both Imports and Exports are expected to increase. We are aware that the current charge levied by the Port Authorities is, in most cases, more than is recovered by the Shipping Lines.

As soon as we have more detailed information, we will update our news page accordingly.

Please contact us if you require further information.

Peak Season Surcharge - 26th June 2008
The Far East Freight Conference have now confirmed the Peak Season Surcharge level for this year. For sailings from 1st August until 17th October 2008, the rate applied will be USD 158 per TEU. This surcharge is applicable to all movements from Asia, with the exception of Japan.

SAD H - 5th February 2008 -
The procedure for declaring goods to H M Revenue and Customs changed from 22nd January 2008, this effects all UK ports & airports. This is a major change to the old system, which has been in place since the 1980's. Software upgrades & staff training are just two important elements to ensure a smooth transition to SAD H. Global Containers are pleased to confirm that all their systems are fully compliant and it is 'business as usual'.

Crane Collapse at Southampton Port - 5th February 2008
A crane which collapsed at Southampton Port on the 18th January, due to high winds, has caused serious delays over the last two weeks. Due to the delays in Southampton, some vessels have changed their port rotation or missed Southampton all together.

UK Port Congestions Surcharge - UPDATE - 5th February 2008
We are pleased to confirm that the port congestion problems have eased recently and therefore the congestions surcharge has been removed for the time being.

UK Port Congestion Surcharge - 5th November 2007
The growth in cargo carried by the FEFC into the U.K. for the first eight months of 2007 has increased by almost 15% over the same period in 2006, and has averaged 485 TEUs per day for the year to date.

Together with substantial growth seen in other trades, this level of increase has created congestion not only at the major U.K. terminals, but has also caused congestion of the inland transport and delivery systems. On occasions, Lines have found it necessary to by-pass U.K. ports and feed cargo to the United Kingdom, and in some cases divert their vessels to non-scheduled ports and equalise the costs from these ports. This has created even more congestion for an infrastructure that is already overloaded. The infrastructure congestion has also made it very difficult to repatriate much needed empty containers to Asia.

The FEFC has therefore decided that with effect from containers discharging on or after 1st December 2007, a surcharge of USD 145 per TEU will be implemented to all import containers. The costs will be reviewed after 60 days and adjusted as necessary.

Peak Season Surcharge Update - 5th November 2007
We would like to remind our customers that the Peak Season Surcharge currently in force for import containers from Far East at USD 135 per TEU, has been extended to 17th February 2008.

5th November 2007 – Receiving Depots / Warehouse Storage
We are pleased to confirm that we can now offer our customers more receiving depots than ever before. From these locations, we can also provide any short-term or long-term storage.

Our depots now include: Felixstowe, Brentwood, Southampton, Manchester, Bradford & Glasgow.

11th May 2007 – Peak Season Surcharge
The Peak Season Surcharge will begin for sailings from 1st August 2007 until 15th November 2007 for cargo loading from Far East Ports (Excluding Japan). The surcharge will be USD 135 per TEU.

23rd April 2007 – New Services Introduced
We are pleased to announce three new services for our seafreight and airfreight divisions. We can now offer door to door services to and from Dubai, South Africa & Saudi Arabia.

10th April 2007 – 20’ Heavy Container Surcharge
With effect for sailings from 15th April, 20’ containers which have a weight exceeding 14 ton will be subject to a weight surcharge of $ 350 per container. This surcharge is necessary due to the use of bigger vessels and the increase of demand for heavy 20’ containers.

5th March 2007 – April 1st GRI
The Far East Freight Conference has announced a General Rate Increase of USD 200 per TEU as from 1st April. We will of course be negotiating with all our regular carriers to ensure that any increase is kept to a minimum, customers quotations will be updated accordingly.

24th January 2007 – Global Opens Dublin Office
We are pleased to announce that Global Containers have opened a new office in Dublin.

15th January 2007 – Equipment Surcharge from North China
The Far East Freight Conference have announced an equipment surcharge on 20’ containers loading from Yantai, Lianyugang, Dalian, Qingdao & Xingang/Tianjin will increase to USD 150 per container starting from 1st April 2007.