Global
Container Services and Shipping Industry News
14th
August 2009 - Far East / India Freight Rates
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.
14th
August 2009 - EORI
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.
19th
May 2009 - AEO Status
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.
19th
May 2009 - Far East Freight Rates
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.
19th
May 2009 - Changes to Saudi Packing Requirements
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.
