Posted on October 14, 2024
Ocean Update
The situation on the East Coast and Gulf Coast of the United States of America continues to be closely monitored by our teams, where negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) brought about strike action at the start of the month.
The two parties reached a tentative agreement on wages and to extend the Master Contract until 15th January 2025, and they will now return to the bargaining table to negotiate all other outstanding issues.
Work resumed at most ports along the US East and US Gulf coasts on Friday 4th October, however some residual delays may occur as port operations gradually return to full capacity. For more information, please head to our dedicated advisory page here.
Last month, Maersk announced an update on the Gemini Cooperation with Hapag-Lloyd and the implementation of the Network of the Future. After thorough consideration, and given the continued safety concerns in the Red Sea, we can confirm that we expect to phase in the Cape of Good Hope network for the commencement of the Gemini Cooperation on 1st February 2025. As the situation remains highly dynamic, Hapag-Lloyd and Maersk will return to the Red Sea when it is safe to do so.
For more information on the new network and services, plus answers to frequently asked questions, please see our dedicated page on Maersk.com.
Elsewhere, reefer season for seed potatoes is fast approaching and is expected to last from the end of October to the beginning of December – with the peak expected in mid-November.
During this period, we expect capacity between North Europe and South-East Mediterranean services to be in high demand. We therefore recommend customers book as early as possible to ensure equipment availability and space.
Key Ports Update
Summer season is behind us, as evidenced by the storms and weather conditions we have seen coming into October. As a result, vessels were delayed coming into the Port of Rotterdam, affecting the lineup of the past weeks, which is expected to recover by the end of week 41. In addition, yard density at Maasvlakte II has been significantly impacted, reaching 100% capacity, resulting in the closure of gates for empty containers starting 1st October.
In Bremerhaven, both terminals remain stable. Due to delays across multiple services, there was some idle capacity over the past week and due to service clashes, part of the vessel lineup was pushed into week 41. Yard levels remain stable across the terminals.
In Felixstowe, some challenges remain with berthing clashes across services. Our teams continue to work with the terminal to mitigate the effects of late vessel arrivals, including introducing extra loaders where possible. Extended port stays are expected for all incoming vessels and our teams continue to keep a close eye on vessel berthing and terminal productivity.
In the Mediterranean, at the Port of Tangier both terminals are running well. In Algeciras, productivity and vessel line up are affected by crane repairs expected to last until the beginning of November, while the pavement works will continue for the rest of the year.
Yard density is currently at high levels due to unbalanced load and discharge patterns, and long layovers are creating further pressure. Our teams continue to work on measures mitigating the disruption for our customers, and kindly ask customers to pick up their import containers as soon as possible after discharge.
In Barcelona, we have seen an improvement in vessel lineup, which has consequently improved waiting time for incoming vessels. Yard density levels remain high, and customers are kindly asked to pick up their import units as soon as possible after discharge.
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Air Freight Update
Drawing inspiration from the national bird of Denmark, Maersk recently officially named its Boeing 777 freighter ‘Maersk Swan’ during a ceremony at Billund Airport, Denmark. The freighter is now operational on Maersk’s route between Billund and Hangzhou, China, offering customers heightened capacity and the benefits of the latest technology.
Our teams are on hand to support with your air freight requirements, including to and from the East Coast and Gulf Coast of America during ongoing operational challenges, and we encourage you to reach out as soon as possible.
We are seeing a growing demand for temperature-controlled air freight solutions, including perishables and chemicals. Maersk offers dedicated reefer air services and is showcasing its capabilities from Latin and Central America to Europe at this month’s Fruit Attraction event.
Please click here to find helpful information about our air freight network and our services to and from Europe.
Inland Update
As most businesses are submitting their tender requirements and expectations to logistics providers, our teams are busy tailoring solutions for moving cargo between ports and inland locations. To lock in the best services and rates for the year ahead, there are several questions businesses need to consider.
One of the key considerations from an inland transportation point of view is the question of carrier versus merchant haulage – the former being arranged by the ocean carrier, and the latter by customer themselves through a third-party provider. When considering the options this tender season, customers should be clear on the scope of their requests, service level requirements, costs, prioritisation of sustainability, as well as key performance indicators for their supply chain.
In carrier haulage, when deciding between single carrier and multi-carrier, customers should again consider the specific needs of their supply chain. Customers looking to simplify their inland transport, streamline demurrage and detention costs, pick-up and drop-off fees, and even add more sustainable transport options will benefit from exploring our product offering – while those with developed in-house capabilities might be more interested in merchant haulage.
To discuss the best options for your business and supply chain, please get in touch with your local Sales Representative, or find out more about our Inland solutions and services across Europe.
When it comes to strengthening our inland offering across the UK, the first Maersk-owned inland container depot is set to open on Friday 11th October as part of the East Midlands Gateway. The 57,000 square meter depot is located within the Midlands Freeport Zone and has a capacity for 4,500 TEUs.
Customs Update
From 31st October 2024, reporting on the EU’s Carbon Border Adjustment Mechanism (CBAM) is changing. Businesses will need to provide actual embedded emissions data for imports into Europe, rather than supplying default values.
This adds another layer of complexity to CBAM reporting, and businesses are advised to prepare for the next stage of reporting as soon as possible.
Click here to hear from Maersk experts on how this change will impact businesses and which solutions are coming in the near future.
Elsewhere, the EU has proposed a 12-month delay to the start of the EU Deforestation Regulation (EUDR), which was set to come into practice later this year. In response to readiness concerns, the start date is expected to shift to December 2025 for large companies and June 2026 for small businesses – giving extra time to ensure industry sectors and global partners are fully prepared.
Click here for more information, including guidance on how to get prepared during the phasing-in period.
Ecommerce Update
Out-of-home deliveries have become part of the standard offering of ecommerce businesses, and they still have potential to grow in adoption, as consumers increasingly make use of pick-up points such as postal service points and parcel lockers. In Belgium, in particular, out-of-home deliveries are getting a boost through the newest legislation.
The new law requires webshops to offer at least two delivery methods to Belgian consumers, and it applies to both domestic and international webshops for all deliveries across the country. It is also not sufficient to offer home delivery from several providers – even if consumers can choose between several providers, it is still considered a single delivery method. Ecommerce businesses failing to comply will risk fines of up to €10,000 or four percent of their annual turnover.
For European businesses, the new regulation in Belgium is an opportunity to reevaluate their offering across the continent as consumers are increasingly looking for options offering more flexibility and sustainability.
With pick-up-drop-off (PUDO) locations, consumers get an increased level of convenience, resulting in fewer missed deliveries and less delays.
Likewise, PUDO deliveries can result in emission reduction. While cost, speed, and convenience of delivery are still the most important delivery features for online shoppers, around five percent of consumers puts green delivery as their top priority in delivery services.
To find out more about how our teams can help provide the best ecommerce delivery solutions for your business, visit our E-Delivery page.
