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Issue 2 2018 - Freight Business Journal


services in the freight industry


generally are not an entirely new idea. Companies have existed in the past that aimed to offer freight customers on ferry services at lower rates copmpared with direct booking with the ferry operators and the concept is also being used in the express sector by firms such as Parcel Hero, Parceltogo and Interparcel. Damas said that the concept


should be welcomed by the container operators: “If the Ocean Buying Group helps shipping lines with simplified, automated


processes and additional volumes, we hope that they will not stop our initiative to level the playing field between the rates and conditions secured by large shipper and small or medium shippers via the group.” He predicted that the reduction


in freight rates would be typically $200 per container, but will vary by trade route. Also: “The reduction in rate volatility will be 100% on all the routes where we have signed fixed rates with carriers.” The service is aimed only at direct shippers, not forwarders.


Damas said it would be a global initiative but, given Chainalytics’ and Drewry’s geographic footprints, most contract


rates


and volumes will initially be to and from the US and Europe. US legislation has contained


tariff-filing provisions for many years, under which


all tariff


rates and contract rates must be filed but, since 1998, contracts with lower and fixed rates for bigger shippers are permitted and are not published. This, said Damas, had leſt small and medium shippers with uncompetitive deals.


Brussels pours cold water on May’s Brexit trade plans


The EU would be able to offer the UK only a “classic” free trade agreement aſter Brexit, said the European Commission in its draſt guidelines published on 7 March. While there would be


no tariffs or quotas on UK goods there would be only limited concessions in other areas such as services. The guidelines were a response to calls by prime minister Theresa May on 2


Electronic customs


plans are fantasy, says Labour transport chief


Suggestions by the government that an electronic system can solve all the problems of customs clearing trucks in and out of the country are “fantasy”, said Shadow Transport Secretary, Andy McDonald. In answer to a question at the All-Party Parliamentary Maritime


and Ports Group on 26 February about whether any progress had been made with numberplate- reading systems, as mooted in Government white papers on the post-Brexit customs regime, he said that ports such as Dover had been involved in discussions about many possible types of


March in which she called for a more bespoke deal. EU Council chief Donald Tusk


said however that the EU would be able to offer only a free trade deal along the lines of that agreed


soſtware. But he had concluded: “We are in fantasy land.” Moreover, with barely a year to


go until Brexit: “No work has been done to put any infrastructure in place,” he warned. McDonald told the Group: “The


uncertainty we face over customs is of huge concern” and the country faced “doing untold self-inflicted damage to our own economy”. He also commended his leader


Jeremy Corbyn’s speech on the same day which said that any future Labour Government would maintain a customs union with the


DHL set for bigger helping of Brussels market


DHL Express opened its new regional hub at Brussels Airport on 22 February, quadrupling its capacity at the Belgian gateway to 42,000 shipments per hour, and making it the fiſth largest hub in the global DHL network. DHL says that its Brussels


operation is now busier than ever, despite the move of its main European international hub to Leipzig ten years ago by its German post office owner. The €140 million, 36,500sq m


hub offers air and ground links to destinations throughout Europe and has 42 direct flights a day, to Cincinnati, Bahrain and Lagos, as well as throughout Europe. Leipzig


will however remain DHL’s main hub for Asian flights.


He said the Ocean Buying Group is structured so that


it


has the flexibility to provide “big shipper” fixed rates and direct carrier contracts to small and medium shippers and also provides special rates on requests to specific shippers. Damas added: “In all cases, the rates are transparent and the shippers pay the ocean carriers directly, with no mark-up, so it is a complete departure from the way small and medium shippers previously secured ocean freight from ocean carriers and from forwarders.”


between the EU and Canada but with less market access than that currently enjoyed by Norway, which conforms with most EU rules as a member of the European Economic Area. The EU warned that


completely frictionless trade would be impossible aſter Brexit and that some controls such as rules of origin would apply.


European Union. However, he poured cold water


on the idea of the UK developing freeports and free trade zones aſter Brexit.


I;n answer to a question from UK


Major Ports Group chief executive, Tim Morris, McDonald said: “I have concerns about freeports, in which current regulations might not apply and which would have a different tax regime.” However, he said he would not reject the idea out of hand and was aware of the recent papers and arguments in their favour.


never been easier for small firms to get involved in international trading, he said. DHL says the new hub will cut


its carbon emissions by 768 tons and it is also certified to the TAPA ‘A’ security standards. The hub also has what vice president of DHL Brussels Hub, Koen Gouweloose, described as ‘airlocks’ that allow freight to be transferred between landside and landside without human intervention, with a weight detection system to prevent tampering or unauthorised access. New security scanners, costing


It is also served by 250 of


DHL’s own vehicles and 50-100 subcontractors. The hub also has AEO, TAPA, process and environmental certifications. DHL chief executive Ken Allen


said that business was currently booming, with a strong recovery


in the business to business segment, even in sectors such as personal computers which had been relegated to the slow lane by newer technology. He also praised Belgium’s


“exceptional environment” for international business. It had


€1m each, use similar technology to hospital MRI machines and can simultaneously scan and X-ray around 96% of all consignments without further intervention by human operators. Better


ergonomics has also


been built in which, DHL hopes, will help counteract the effects of an ageing workforce.


News Roundup


Members of THE Alliance - Hapag- Lloyd, Ocean Network Express, and Yang Ming – have revealed further details of their planned new schedules for April, after a preliminary announcement in December. Two services from the Far East to Europe will call in Southampton (FE 2 and FE4), and one at London Gateway (FE3). Four Transatlantic services (Al1 to 4) will also call at London Gateway.


Hapag Lloyd is adding Mombasa and Dar es Salaam to its schedule with a new weekly feeder to and from the Saudi Arabian port of Jeddah. It will initially deploy four vessels, each with a capacity of 1,200teu, with the first sailing planned for early April. Hapag-Lloyd has also opened its own office in Tema, Ghana, a port served by its West Africa Express and Mediterranean West Africa Express.


Associated British Ports (ABP) has bought family-owned port operations business WE Dowds (Shipping) for an undisclosed sum. Established in 1960, Dowds operates ten warehouses with a combined area of over 50,000sq m based at ABP Newport, South Wales.


ABP has started work on a £4.5 million project to build additional warehousing at Newport to accommodate growth in agri cargo. The new 21 Shed will provide an additional 70,000sq ft of covered bulk storage. Newport saw year-on year growth of 14% in bulk fertiliser imports during 2017 and a 54% increase in animal feed imports.


ABP has taken delivery of two cranes worth £10.5 million for its Hull Container Terminal. They will double capacity to more than 400,000 units per year and are part of a recent £15 million investment which also includes reach stackers and tug trailers, and the creation of 9,000sq m of new storage.


Fruit importer SH Pratt Group has started building a 108,555sq ft multi-temperature facility at DP World London Gateway. Fit out is due to be complete by the end of the third quarter of 2018. It will be the port’s first temperature-controlled, chilled and frozen supply chain centre, handling multi-temperature products and will include regimes from frozen to ambient with IT systems to aid monitoring of products.


Stena Line has signed a contract with Callenberg Technology Group to turn its Gothenburg/Frederikshavn ferry, Stena Jutlandica into a ‘battery powered’ vessel. The 1 MWh power plant will be used for ‘in port’ operations although Stena’s ultimate target is for battery propulsion to power vessels up to 50 nautical miles.


The INTTRA shipping electronic transaction platform and information provider has added four new carriers, including Evergreen, bringing its total to 60. All of the top ten world lines now use the platform. The other additions are European shortsea line Unifeeder, intra-Asia operator Namsung Shipping and Antillean Marine Shipping, which links the US to the Dominican Republic and Haiti. INTTRA says it orders grew by 12% in 2017 and it is now processing 45 million containers a year.


All Steels Trading, one of the UK’s largest operators in the sector, has signed a new five year deal with PD Ports at Groveport, the inland port complex on the River Trent. The company imports steel from all over the world and sells to both stockholders and end users and can deliver steel products in the UK and Europe within 48 hours from the time of order. Groveport, which has direct access to the Humber and the sea, has a 19,200sq m covered warehouse with direct quay access, an additional 41,000sq m of covered warehousing and a surfaced open storage area totalling 450,000sq m.


///NEWS Sea


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