Posted on August 19, 2024
Ocean and Key Ports Update
In Europe, recent observations suggest that the traditional peak season will be a lot sooner than seen in previous years due to a number of possible factors. We’ve seen that businesses have been strategically getting cargo to European shores earlier in attempts to avoid any potential future disruption, while consumer spending increases have contributed to increased demand.
And as widespread disruption in key trade lanes has had an impact on ocean freight rates and capacities, companies have looked to secure space early to ensure the necessary inventory levels at target markets. This will have a knock-on effect on the likes of cargo storage in Europe, and we encourage customers to reach out to their local Maersk representative to discuss options.
In Bangladesh, political instability led to disrupted logistics operations in an out of the country. The situation has started to improve but remains fluid, so Maersk teams are keeping a close eye on developments and taking action to ensure the safety of employees and the functionality of customer supply chains. Please visit our dedicated advisory page to stay up to date with the latest developments.
As summer holidays continue around Europe, many of the Hubs and terminals are faced with the traditional reduced labour availability seen in summer months. Our teams continue to see a limited impact on operations and keep monitoring the situation and remain in contact with terminal authorities across the continent.
In Rotterdam, the overall operations in Maasvlakte II are showing a stable performance, however due to weather disruptions around the Cape of Good Hope, we expect some delays on westbound vessels arriving into Europe.
To mitigate further disruptions to services and other vessels in the line-up, our teams are focusing on safeguarding the reliability of services and eliminating the ripple effects of these delays on services out of Europe. At the terminal yard, density remains high, and customers are urgently asked to help clear them at the earliest.
For Hutchinson Port Delta II, the summer labour shortage along with concentrated vessel delay from Cape of Good Hope are incurring around 24 hour waiting time, and the full recovery is anticipated as of week 35.
In Bremerhaven, we are seeing good terminal performance and healthy yard density in both facilities, vessel waiting times are meanwhile improving where MSC Gate is facing a slower recovery compared to North Terminal Bremerhaven. Collective Labour Agreement discussions between terminals and unions have resulted in strike actions in July, and while the negotiations are still ongoing, no further strike actions have been announced. Our teams continue to monitor the situation and will keep customers informed of any developments.
In Felixstowe, we continue to see some congestion pushing the vessel lineup between two and four days. Our teams have concluded a series of omissions in the past weeks in an effort to recover the schedules and increase service reliability.
In Mediterranean Hubs, overall situation is stable, though at some terminals vessels are arriving outside of the pro-forma schedules. In Algeciras, for example, productivity and lineup will be affected by crane maintenance and pavement repair work until the end of the year, meaning our teams are closely monitoring load and discharge patterns as well as yard density to minimise disruptions for our customers.
Port of Barcelona has seen an improvement in congestion levels, however yard density remains high, and customers are kindly asked to pick up their import containers as soon as possible after discharge, as well as to follow gate-in times for export containers.
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Air Freight Update
Last month, Maersk took delivery of the first of two new Boeing 777 freighter aircraft and in doing so became the first Danish airline to have a 777 in its fleet.
The new additions will serve customers on the existing route between Hangzhou, China, and Billund, Denmark, initially three times per week and later increasing up to six weekly flights. Maersk customers can enjoy the benefits of increased capacity, shorter transit times and state-of-the-art technology that caters to oversized and temperature-controlled cargo. Read more about the 777 additions here or listen to our expert’s thoughts here.
Temperature-controlled air cargo is nothing new for Maersk, but expanding capabilities will continue to bring benefits to customers worldwide. Read our case study with Mowi – the world’s largest producer of Atlantic salmon – to find out how temperature-controlled air freight allows the company to reach customers all over the globe.
Elsewhere, we are seeing increased demand both in and out of Europe, mainly driven by the continued e-commerce boom in China. In fact, Europe had the highest regional share of global import volumes in May 2024, at 28%, and continued its positive import growth year-on-year since January.
Rate levels continue to be very competitive and down year on year from Europe to India, Middle East and Africa (-11%) and North America (-15%), however rates remain high from Asia into Europe (+24% year on year) and India, Middle East and African to Europe (+77%).
Please click here to find helpful information about our air freight network and our services to and from Europe.
Inland Update
In September, East Midlands Gateway will see a reinforcement with UK’s first Maersk-owned inland container depot. The 57,000 square meter depot is located within the Midlands Freeport Zone and has a capacity for 4,500 TEUs. Find out more about the benefits of freeport areas here.
Its location in the Golden Triangle means the depot has a direct road link to the M1 and A50 roads, as well as daily rail connectivity to Felixstowe, Southampton and London Gateway Ports. Among services that customers can expect at the depot are laden and empty container storage, bonded storage, container repair, stuffing and destuffing services, cars in containers, and others.
Elsewhere, the railway line between Rastatt and Baden-Baden, towards Rotterdam, is currently closed for construction until 31 August, 2024, impacting our railway services along the route. This has meant that trains need to cross the border between Germany and France at a different location, incurring additional cost due to additional staff, locomotives, and train paths that are needed to continue offering the service.
As such, our teams have had to introduce a temporary surcharge to bookings to and from Rotterdam. Find out more about the surcharge here. Our teams remain at your disposal should you have any questions or wish to discuss alternative transport options during this time.
Find out more about our Inland solutions and services across Europe.
Customs Update
From 30th December 2024, companies in the EU must comply with the EU Deforestation Regulation (EUDR), requiring extensive supply chain due diligence for specific products. If you sell products that are made using cattle, wood, soy, oil, cocoa, or rubber, in or from the EU, you must prove they are deforestation-free.
Here are the key points to factor in to stay compliant.
- Supply chain transparency: Companies must trace their product origins to ensure they aren’t sourced from deforested areas. This may require better tracking and monitoring systems to gather necessary data and documentation.
- Due diligence: Businesses must prove their products are deforestation-free, which will involve risk assessments and mitigation strategies. This means establishing robust due diligence processes, potentially involving third-party certifications or audits.
- Risk management: Non-compliance risks penalties and market bans, necessitating robust compliance strategies. Develop a risk management plan to ensure continuous compliance and mitigate potential violations.
- Increased costs: Compliance with the EUDR may lead to higher operational costs for technology, experts, or new suppliers. Make sure to budget for additional costs and explore cost-effective compliance strategies.
- Supplier changes: companies might need to switch to compliant suppliers, affecting existing relationships and contracts. Evaluate and potentially renegotiate supplier agreements, seeking those that meet EUDR standards.
- Market access: Compliant businesses will maintain access to the EU market, leveraging this as a competitive advantage. Plus, adhering to EUDR will also enhance a company’s environmentally friendly reputation among consumers and investors alike.
Maersk experts are on hand to support you and assist in ensuring your business is fully prepared for the EUDR. Please don’t hesitate to contact us for further guidance, or click here for more information.
Ecommerce Update
Changes to import rules for ecommerce exports have been a topic of many conversations in the European Parliament. While the negotiations are still ongoing in terms of the threshold for import duties, currently set at 150 euros, it has been decided that the change will come into effect by March 2028. This change aims to target online sales of low-value goods and curb substandard imports by levelling the playing field for online retailers. Sellers around Europe can consequently expect a more favourable ecommerce environment when it comes to price-sensitive consumers.
In a similar fashion, Turkey has introduced a new tax regulation for individual ecommerce purchases from abroad. The regulation will see an increase in import fees for goods from European Union and other origins, as well as a decrease in exemption threshold. The import duty on parcels from the EU will increase from 18 to 30 percent, and the exemption threshold will go from the current 150 euros to 30 euros as of 21 August 2024. While the new regulation aims to target low-value goods coming from Asia, it will inevitably have an effect on purchases from European sellers.
European ecommerce businesses should focus their efforts on getting to know their customers better – not only to better understand their preferences, but to also estimate the effect changes in legislation and import duties will have on their bottom line.
Likewise, ecommerce preferences, particularly around returns process, continue to evolve – with many online retailers making returns more difficult and costly for consumers, those that can offer more convenient options can also gain a competitive advantage. Among the various return options available, home collection stands out as a convenient and customer-friendly solution.
Home collection brings convenience to consumers’ doorsteps, offers them a flexibility in timing, and consequently enhances the consumer experience and increases conversion rates – in the UK, 79% of consumers say they would not purchase again from a retailer with a poor returns experience. And although providing home collection services incurs costs, the overall efficiency gained can lead to significant savings in other areas. By facilitating returns directly from the customer’s home, retailers can reduce the expense associated with processing returns at brick-and-mortar locations.
To find out more about how our teams can help provide the best ecommerce delivery solutions for your business, visit our E-Delivery page.
