Warning shipping delay problems to continue this year

Warning shipping delay problems to continue this year

26.1.2022 | Industry matters

Warning shipping delay problems to continue this year

Global supply chain disruption and shortages caused by the Covid pandemic are set to continue well into 2022, according to a report.

Digital supply chain experts project44 say average delays on shipping from China to Europe rose to 6 days in December, after falling for months.
Delays on routes from China to the west coast of the US have also been increasing steadily since October.
Congested ports and production delays have disrupted schedules for months.
“Delays are likely to continue well into 2022,” project44 said, “as Covid breakouts continue throughout supply chains and consumers continue to buy at a healthy rate.”

Huge Impact
The report said Covid continues to have a huge impact on global trade, as shipping costs have soared, delays have become routine, and empty shipping containers across the world are in the wrong place.
It means the number of blank sailings – when container ships cancel routes or miss out ports on their normal schedule – has been increasing.
“Blank sailings will continue well into 2022, as ports work down backlogs and consumer spending remains strong,” said Josh Brazil, vice president of supply chain data insights at project44.
Ships are also having to wait longer than expected at port to load and unload.
As of 0800 GMT on 25 January, for example, according to Lloyd’s List Intelligence, there were 82 container ships off the ports of Shanghai and Ningbo in China, waiting to take cargo on board. Further south, near Yantian and Hong Kong, another 61 ships were waiting.
On the other side of the Pacific, outside the ports of Long Beach and Los Angeles, 68 ships were waiting to unload their cargo. And in Europe there were 19 ships off Rotterdam and Antwerp.
At certain points last year, those numbers were higher, particularly in the US, but the strain on supply chains is still severe.
Ports around the world have been trying to speed things up. Rotterdam, for example, handled a record number of containers in December, and several ports have moved to 24/7 working patterns to try to keep up with demand.

Zero-Covid
But China’s zero-Covid policy isn’t making it any easier, and things will slow down anyway over Chinese New Year in the next few weeks. So, disruption is forecast to continue for the foreseeable future.
“Most of the delays and queues in China are a result of land-based restrictions imposed by port authorities at key exporting ports,” said Michelle Wiese Bockmann, markets editor at Lloyd’s List.
She added: “The zero-Covid policy has led to a roster system for port workers, with only half working at any one time and confined to the port, while the others are off.”
There is a reason port authorities are doing this: if any infection spread through the terminals it would lead to their closure, causing even greater delays. But lower handling capacity means longer waiting times for vessels at their berths.
The main beneficiaries of this shock to the system have been shipping lines, which are making huge profits from massive demand, amid fierce competition for space on container ships.
The cost of sending a container from Asia to Europe or the US has sky-rocketed, and the maritime consultancy Drewry estimated that the shipping industry made record combined profits of $190bn in 2021.
Drewry said that the record could be broken in 2022, and the knock-on impact is pretty obvious – the soaring cost of shipping goods around the world is fuelling rising inflation for everyone.

Source/credit: BBC News

The Chinese New Year effect?

The Chinese New Year effect?

26.1.2022 | Logistics

THe Chinese New year effect

Will the Lunar New Year holiday strain the already fragile supply chain?

With Chinese New Year falling on 1st February, Porttalk caught up with two local organisations to see what effect this event, that significantly impacts the global freight market in any typical year, is likely to have in 2022.

Mark Bennett, operations director at VKVP Haulage, says: “We would expect a possible downturn in volumes in early March due to Chinese New Year. However, we didn’t notice it so much last year, so who knows?

“We certainly haven’t had any communication from the Port on the issue, but speaking with one of the most prominent container shipping lines last week, they thought that the current high levels of cargo would continue for the next 18 months at least.

“As in previous years, we’re expecting a lull, and if we have to do so, will be looking to source short sea work (mainly trailers, traction only) and cast our net to other ports for a few weeks.”

Jason Flower, chairman of the Felixstowe Port Users’ Association, continues:
“I believe we will continue facing space issues for some time yet, but Chinese New Year isn’t the problem, as containers are continually rolled to following vessels.

“Whilst we haven’t received any direct comments from members on Chinese New Year, we can’t say it’s business as usual. We are still in the throes of dealing with Brexit round 2 and the collapse of GMVS on its first day of use. Coupled with the withdrawal of CHIEF and the introduction of CDS keeping us all busy.”

The New Year brings a new set of important deadlines,

The New Year brings a new set of important deadlines,

25.1.2022 | Tax

New year brings new deadlines

From crucial tax returns to lofty savings on electric vehicles. Andrew Diver, Head of Taxation at Beatons Group, looks at some of the key dates in 2022.

With so many important deadlines approaching, it is vital people stay on top of their taxes and accounts.

This is set to be a busy year – even before we begin considering any stand-out policies implemented in Rishi Sunak’s spring and autumn budgets.

Here are a few dates to consider when filling out your calendar this year.

Self-assessment
Self-employed workers and freelancers have already been granted an extra month to submit their self-assessment tax returns online, but the new February 28 deadline is fast approaching.

Those who fail to submit their return on time will face a £100 penalty should they not submit it by March 1, when further penalties are added – eventually reaching the thousands if not complete.

Remember, those filing returns for a partnership, a trust or an estate cannot submit theirs online via the HMRC website. Likewise, those who have lived abroad as a non-resident or need to report multiple chargeable gains should have submitted theirs on paper.

Save on going electric
Elsewhere on the calendar, households will have their last chance to claim grant funding for 75% of the cost of installing electric car chargers at their home.

The government incentive comes to an end on March 31, five days before the end of the 2021/22 financial year.

Last year was a record-breaker for the number of new electric vehicles registered in the UK, so this is a great time to make the switch.

Don’t forget dividends changes
As always, with the end of the year fast approaching, this will be the last time to make pension contributions and dividends to obtain tax relief in the year ended April 5, 2022.

This year’s deadline is particularly important as dividends are set to increase by 1.25% from April 5 onwards.

At Beatons, we understand staying on top of dates can be tricky for some, especially those submitting a self-assessment tax return for the first time.

There are also other dates which, if missed, could see businesses miss out on valuable incentives.

Our friendly team are only a phone call away for any in need of our support for all taxation, accountancy and audit support needs.

For more information on Beatons group, visit beatons.co.uk

Maritime Transport strengthens leadership team

Maritime Transport strengthens leadership team

25.1.2022 | Haulage

MARITIME TRANSPORT STRENGTHENS LEADERSHIP TEAM

Four new appointments to support 2022 growth plans.

Introducing Michael Carr as General Manager – Property, and Craig Moore as General Manager – Commercial. Chris Lewis rejoins Maritime’s board of management as Deputy Chairman alongside newly-appointed Fleet Sales Director, Matt Heath.

With nearly forty years of experience in the ports, terminals, and shipping industry, Chris Lewis brings substantial expertise to the board, having previously held senior positions at Hutchison Ports and DP World as UK Chief Executive Officer. Chris has developed a strong relationship with Maritime’s Group Executive Chairman, John Williams, and will support the business to foster closer relationships with the ports industry whilst contributing to the mentoring of the next generation of Maritime executives to prepare the company for its exciting future.

In June 2005, Matt Heath progressed from his operational role at Maritime’s Tilbury depot to commence the fleet sales division, Secondhand Trucks. As General Manager – Fleet Sales, Matt has successfully led Secondhand Trucks for the last sixteen years, establishing it as one of the UK’s leading reselling companies within the sector. A hands-on vehicle operator, Matt understands the requirements of buyers and gives customers the right solution for their business. He will continue to play a significant role in the sale of Maritime vehicles as Fleet Sales Director, whilst focusing on alternative fuels to ensure Maritime is at the forefront of evaluating alternative energy vehicles.

Craig Moore has occupied roles at senior level in a career that spans almost twenty years, including eRetailer, White Stores, where he was Divisional Managing Director overseeing their logistics and warehousing operations, and a fourteen-year spell at Tesco which saw him establish distribution networks in the UK and Central Europe for some of the world’s best-known brands. More recently, Craig worked for DP World as Head of Supply Chain and Commercial, working with leading retailers, FMCG organisations, shipping lines, and third-party logistics companies to reshape UK supply chains and achieve environmental benefits. Reporting to Chris Lewis, Craig’s knowledge of the UK supply chain and property markets will complement Maritime’s teams across all divisions, and support the growth of the business.

Michael Carr is a qualified Civil Engineer with eighteen years’ experience delivering complex, politically-sensitive civil engineering projects involving dams, reservoirs, coastal and river, local authority, and high-speed highways. Michael joined Maritime from Jackson Civil Engineering where he was a Contracts Manager for thirteen years. Additionally, he served the Royal Navy, travelling the world as a mechanical and electrical engineer on board nuclear submarines, carrying out both preventative and corrective maintenance. Michael brings an extensive skill set to Maritime’s property division at a time when the company has ambitious plans to upgrade and expand its depot and rail terminal network.

John Williams, Group Executive Chairman, Maritime Transport:

‘I am pleased to welcome Craig, Michael, and Chris to Maritime, and congratulate Matt on his new position. Collectively, they each bring with them a wealth of talent and experience, and will all play critical leadership roles in our growth whilst increasing our capability, as we continue to deliver a complete, cost-effective, and sustainable road-rail solution to our customers. I wish them all every success with the company.’

Phase 3 expansion at Pentalver’s London Gateway Terminal completed

Phase 3 expansion at Pentalver’s London Gateway Terminal completed

25.1.2022 | Ports

Phase 3 expansion at Pentalver's London Gateway Terminal completed

Plan completed to schedule, growing from nine to 14 acres, increasing overall site capacity from 4,000 TEU to 7,400 TEU.

Pentalver Transport Limited, a subsidiary of Genesee & Wyoming Inc. (G&W), is delighted to announce the completion of the Phase 3 expansion of its container terminal at Berth 7, DP World London Gateway, the UK’s largest automated and fastest-growing deep-sea container port.

Despite ongoing challenges from the pandemic, the extensive Phase 3 expansion work was completed to schedule and sees the operation grow from nine to 14 acres, increasing overall site capacity from 4,000 TEU to 7,400 TEU and providing vital additional storage for customers.

As well as increasing both maintenance and repair and reefer operations, the terminal now operates 24-hours per day, offering access to return and collect both empty and laden containers to feed the vital haulier links that keep the nation flowing.

“With changing customer demand and Covid-impacted inventory, the UK logistics industry has seen huge pressure on container terminal infrastructure over the course of 2021,” said Chris Lawrenson, G&W Managing Director of UK Terminal Services. “Our new 24-hour, expanded facility allows us to add over 40% capacity to one of the UK’s critical mainline Port operations and enhance our crucial support to the UK logistics industry.”

Ernst Schulze, UK Chief Executive of DP World said: “I am delighted that Pentalver has completed their Phase 3 expansion at Berth 7. At London Gateway, we have the space, infrastructure and vision to support customers as they grow. Our partnership approach, logistics expertise, digital solutions and intermodal connectivity, particularly rail, help us to solve logistical challenges and give our customers more control over their supply chains.”