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Issue 1 2021 - Freight Business Journal


transporters and ferry companies were


seeing


their already slim margins eroded by the customs problems, Flynn added. Before Brexit, FTAI had called


for an adjustment period. While this had been rejected at the time by the European Commission, it would not be too late to introduce such a period post- event if the problems proved to be overwhelming, he said. It was fortunate that some of the


ferry operators had introduced new direct sailings between Ireland and Continental Europe, he added. However, those services had been oversubscribed and it was clar that Ireland still did not have enough ro ro and lo lo connections with Europe. The fact that passenger travel is still at a low ebb because of Covid had however allowed ferry operators to move tonnage around to the routes where it was most needed for freight. Airfreight had been used to


calls for action as ro ro traffic slumps


Welsh Minister for Economy and Transport Ken Skates has written to the UK Government calling for action to help ports cope with a 50-70% slump in traffic as the result of Brexit. He says that hauliers are


avoiding the land bridge route via Great Britain and also that freight traffic which used to travel between Wales and Northern Ireland via the Republic of Ireland is now rerouting through the north of England or Scotland direct or is not travelling at all. He said: “The Welsh


Government is committed to doing what we can to help businesses navigate and become confident with new border processes which have


resulted from the choices the UK Government made about how to leave the EU. These processes are not teething troubles, they are the permanent consequence of the UK Government’s choices. “The systems involved are the responsibility of


the UK


Government, and we need to see detailed support and training to make sure businesses and hauliers are confident using new border processes to keep goods moving as efficiently and effectively as possible.” He said that he had written to


the UK Government to ask what its plan was for reversing the reduction in traffic and how they propose to compensate those communities most impacted.


Welsh government


some extent by companies trying to beat the customs blockades, although services and capacity was currently limited. However,


there was scope for air services into Ireland to be increased when Dublin airport’s second runway opens, still scheduled for late 2021.


UK/Europe trade gropes towards Brexit normality


Traders and transporters between the UK and Continent are slowly getting to grips with realities of Brexit, reports BIFA, although many issues remain, it says. On


Brexit-related customs


issues, there is an element of self- regulation, with any cargo likely to lead to a delay is being treated very carefully by trucking firms before being accepted. There has also been a big increase in the number of trucks going back to the EU empty. At the same time, there has been a big increase in the use of the transit procedures, in part driven by hauliers who are looking to use one model for all routes wherever possible. The Kent Access Permit system


is working quite well, with 6,500 issued on Thursday 21 January for example, with only 10% of vehicles having to go to one of the holding facilities. There has been significant


confusion over VAT; especially on e-commerce business. BIFA report a large number of enquiries from members. The Association also warns: really need to start


“Traders thinking about 1 July, only just


over six months away, when all the easements are over and full controls will be in place.” BIFA meanwhile expects to


see an influx of new members that only offer customs brokerage services. A problem that has arisen in


airfreight is the EU not recognising regulated UK agents, so cargo going to the EU to catch flights forward is being re-screened; adding to cost and delays. Some carriers are not re-charging for re-screening, but are absorbing it into their transfer fees. Truck drivers are also getting


used to the idea that they need a negative Covid test to get on to ferries, it says, and the system is now working reasonably smoothly.


Chairman of customs soſtware


firm Agency Sector Management, Peter MacSwiney commented: “The systems seem to be standing up pretty well, the NCTS system has had some issues but are getting sorted. The main problem is


trader ignorance and this


includes intermediaries as well as importers and exporters. There are a surprising amount of people out there who, frankly, should know better.”


News Roundup


UPS’s Polar Speed arm has opened a new 100,000sq ft healthcare logistics facility in Birmingham to help address the increasing need for last-mile Covid-19 vaccine delivery and other healthcare logistics support. The combined hub, depot, and warehouse facility will be staffed by more than 100 employees, with capacity to store 8,000 pallets or 25 million vaccine doses at temperatures ranging from -80°C to 25°C.


///NEWS Air


DB Schenker has launched new own-controlled air freighter services connecting the US, Europe and Asia to cope with a lack of capacity on passenger flights. The first route, operated by National Airlines, is from Chicago via Munich to Tokyo and Seoul before flying back to Germany and from there again to the US. It offers a combined weekly capacity of 400 tons. The second connection will be launched in late February and alternates from Munich to Chennai and Chicago with a combined weekly capacity of 300 tons. Both routes will run for one year to provide stability in a challenging environment.


Low-cost cargo-carrying airline Norwegian has axed its long- haul network, making 1,100 people redundant at its Gatwick Airport base. Its entire Boeing 787 Dreamliner fleet has been grounded since March 2020. A further 1,000 jobs will be lost at its long-haul bases in France, Italy, Spain and the US.


British Airways is to cancel over 15 long-haul routes next year. The cull includes Pittsburgh, Calgary and Charleston in the US, and Seoul, Kuala Lumpur and Osaka in Asia, plus Muscat, Jeddah and Abu Dhabi. The carrier said it would also “temporarily suspend” flights to Sydney, Bangkok and San Jose in summer 2021.


IAG Cargo has promoted Daniel Byrne and Freddie Overton as regional commercial managers for UK and Ireland and Europe and Africa, respectively. Overton was previously regional commercial manager for Benelux, Germany and Switzerland while Byrne has been with IAG Cargo since 2017 and has spent the last ten years in the logistics sector.


Lufthansa Cargo has launched a COVID-19 Temp Premium service bookable from 11 January for vaccine transport. It will provide monitoring of shipments throughout and a 24/7 after sales support. It also includes high priority capacity access, Lufthansa Cargo’s fastest speed option available for temperature-controlled cargo and comprehensive security.


Qatar Airways restored three times a week 787-8 flights between Doha and London Gatwick on 15 December a month after temporarily suspending the route. The service was halted on 13 November as England entered national lockdown. The carrier also serves London Heathrow four times-daily, Manchester three times daily and Edinburgh three times a week.


Cathay Pacific is to restart flights from Hong Kong to London Heathrow in January on selected days. While all flights departing from the UK to Hong Kong will continue to be suspended for passengers until 25 January in line with the Hong Kong Government’s entry restrictions, belly capacity will be available in both directions for essential goods and supplies.


Virgin Atlantic Cargo started its first ever flights between the UK and Pakistan in December with 787-9 services from Heathrow to Islamabad, Heathrow to Lahore and Manchester to Islamabad. The new services will add over 66 direct flights to Pakistan each month, expanding the direct UK to Pakistan market by 90%. Virgin Atlantic Cargo will increase its freight- only flights by 60% in January, boosting cargo-only rotations from 21 to 33 per week. It includes daily flights between London and Brussels, offering same day European connections.


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