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Issue 4 2020 - Freight Business Journal


Government promises light touch for post-Brexit imports


The UK government will take a pragmatic and flexible approach to import customs checks from the EU aſter Brexit next year. There will be a temporary light- touch regime at ports such as Dover, regardless of whether a deal is done with the EU or not. According to a statement by


the Cabinet Office, the new border controls


will be introduced in


three stages between January and 1 July 2021. From January 2021, importers of ‘standard’ goods, such as clothes or electronics, will need to prepare for basic customs requirements, such as keeping sufficient records, and will have up to six months to complete declarations. While duties will eventually need to be paid on all imports, payments can be deferred until the customs declaration has been


made. Businesses will also need to consider how they account for VAT on imported goods. Last year, ahead of the earlier


29 March 2019 deadline for the UK’s departure from the EU, HMRC revealed plans for pre- lodged


non-inventory linked


declarations for goods arriving at Dover or the Channel Tunnel, ahead of the ferry or shuttle arrival. On arrival,


the trader


would ‘arrive’ the declaration and, only if the goods are selected for examination, would the vehicle have to report to Customs. Otherwise, the driver would be free to continue to destination. Under the present plans, the


Cabinet Office said there will be only be checks on controlled goods like alcohol and tobacco, along with physical checks at the point of destination or other


approved premises on all high risk live animals and plants. From April 2021, all products


of animal origin – for example meat, pet food, honey, milk or egg products – and all regulated plants and plant products


will also


require pre-notification and the relevant health documentation. From July 2021, traders moving


all goods will have to make declarations at the point of import and pay relevant tariffs. Full Safety and Security declarations will be required, while for Sanitary and Phytosanitary (SPS) commodities there will be an increase in physical checks and the taking of samples: checks for animals, plants and their products will then take place at GB Border Control Posts. There will also be a new £50 million support package to boost


Brexit talks drag on


BIFA is concerned at the slow progress of negotiations between the UK and EU on the procedures that will apply from 1


January 2021. Keen


said: “With very little progress to date on key negotiating points in the formal talks and with many of the civil service resources previously assigned to


support negotiations


reallocated to deal with the coronavirus emergency response,


it would be very


risky and unwise not to seek an extension. “Even before the pandemic,


our members were concerned that the 11-month transition wouldn’t leave enough time to prepare for a potential no deal. Having had their businesses


affected badly by the effects of the pandemic, I really do wonder whether they, and the clients they serve, will have the capacity to increase readiness for a sharp change in trading practices and conditions from the start of next year. “When 72% of the 400 BIFA


member companies which completed the survey call for


the capacity of customs brokers, freight


forwarders and express


parcel operators ahead of the new processes taking effect in July 2021. It will include recruitment, training and supplying IT equipment to help handle customs declarations. Rules will also be changed to remove barriers for intermediaries taking on new clients. The Government says it has


now provided £84m to grow the customs intermediary sector, following the earlier tranche of training and IT grants this year. It has also committed to


building new border facilities in Great Britain for carrying out required checks, such as customs compliance, transit, and Sanitary and SPS checks, as well as providing targeted support to ports to build new infrastructure. Where there is no space at ports, it will build new inland sites and it is consulting with ports across the UK to agree what infrastructure is required.


an extension of the transition period, we can only hope that the Government will again be listening.” BIFA is encouraging its


members to write to their local MPs and the Chancellor of the Duchy of Lancaster, Michael Gove, to request an extension to the transition period should no trade deal look like being achieved. The Freight Transport


A ss ocia ti o n (FTA) has also


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News Roundup


Geest Line is starting a direct service between Portsmouth and Willemstad, Curacao. A joint product between Geest and Seatrade, it will be marketed by the latter line. The service is also open for inter-island trade between the Eastern Caribbean to Willemstad.


///NEWS Sea


The ‘THE’ Alliance group of container lines - - Hapag-Lloyd, Ocean Network Express, and Yang Ming - say that the FE4 service between Asia and North Europe will remain merged with FE2 until the end of September 2020. FE2 will continue to serve Pusan, Shanghai, Ningbo, Yantian and Singapore along with Southampton and north-west Continent ports. FE3 will extend to cover direct calls at Central China ports from July to September and will serve Ningbo, Shanghai, Xiamen, Kaohsiung, Hong Kong, Yantian and London Gateway.


Laminate surface manufacturer Formica Group has signed a deal with Port of Tyne to move its UK import operations to South Shields generating around 500 containers a year, via Felixstowe or Rotterdam before being transferred to South Shields on feeder vessels. Containers will be unloaded into a port warehouse, which will store about 2,500 tonnes of paper before being called off for delivery on a Port of Tyne vehicle to Formica’s North Shields production site.


Ocean Network Express has added 5,000 40’ boxes to its reefer container fleet. They include 200 units equipped with advanced Controlled Atmosphere (CA) technology, which slows down the respiration and ripening process to maximize the shelf life of fruits and vegetables. It follows last year’s procurement of 6,000 units.


Hutchison Ports has become the first major UK port to gain Women in Maritime Charter Certification. Sue Terpilowski, chair of Maritime UK Women’s Taskforce, presented the certificate and joined Port of Felixstowe staff at an event to mark the achievement and to celebrate International Women’s Day 2020. Clemence Cheng, Hutchison Port’s Executive Director said the initiative would provide businesses with the tools and support to affect the changes necessary to improve gender diversity within the industry.


The Nigerian Ports Authority (NPA has commissioned two new Mobile Harbour Cranes at Apapa Lagos, bringing its total to ten. It also operates 23 rubber-tyred gantry cranes; six empty handlers; 48 specialised truck terminals, six reach stackers and 11 forkliſts.


German-based logistics firm Imperial has sold its 90% holding in inland waterway operator Multinaut to its managing director, Peter Jedlicka. The latter sold the stake to Imperial in 2008, retaining 10% of its shares; and is now again the sole owner of the business, which operates 25 vessels of750 to 2900 tonnes capacity on the Rhine- Main-Danube system.


Shipping Line Hapag-Lloyd says 2020 got off to a good start, despite the coronavirus pandemic. Earnings before interest and taxes were US$176 million (€160 million), only somewhat below the corresponding prior-year figure of US$243 million (€214 million). The Group net result declined to approximately US$27 million (E€25 million). Earnings before interest, taxes, depreciation and amortisation decreased slightly to US$517 million (€469 million). There was a 4.3% increase in transport volumes, to more than 3 million TEU, and an improved average freight rate of US$1,094 per teu, although transport expenses increased by almost 10%, due mainly to higher bunker costs as a result of the transition to low- sulphur fuel. However, the line anticipates that the pandemic will have very significant impacts from the second quarter of the year. .


The first container ship has arrived at Sweden’s newest port, Stockholm Norvik on 27 May when Unifeeder’s SCA Tunadal market the start of operations at the Hutchison Ports-operated terminal. A new ro ro terminal is due to open in autumn.


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