FIATA AND MEMBERS
Nigerian Freight Forwarders want to be involved in Review of Port Concession Agreement
In an interview Increase Uche, National President, National Association of Government Approved Freight Forwarders (NAGAFF), spoke on the need for the Federal Government to review the port concession agreement of 2006, and why stakeholders, including the freight forwarders, should be included in the review committee.
He said it was no longer news that the issue of port concession, which was carried out in 2006 had generated concerns and reactions from almost every sub-sector of the nation’s economy and maritime industry sector, particularly, the freight forwarding sector.
For more details, please visit: https://www.independent.ng/freight-forwarders-should-be-involved-in-review-of-port-concession-agreement-uche/
Not a lot for Freight Forwarders in UK budget
The British International Freight Association (BIFA), the trade association for UK freight forwarding companies and logistics service providers, issued a statement on the UK budget.
Robert Keen, Director General of BIFA said: “Whilst the investment in road transport infrastructure might make a difference to our members, we should not forget that back in November 2015, the Government announced that funding would be provided for the largest road investment programme since the 1970s. I am not sure that the country’s network of A roads and motorways has become any less congested since that announcement.”
He went on saying: “BIFA has said repeatedly that it is imperative that new road building and road reconstruction projects are not only implemented, but developed in such a way as to maximise their functionality to the BIFA members, which as freight forwarders, use them to move Britain’s visible domestic and international trade.
Hopefully this talk of infrastructure investment will cease to be just talk and we will see some spades in the ground.”
Warning to forwarders: Stay clear of switch bills of lading
Forwarders are being warned to stay clear of switch bills of lading (SB/Ls) following increased fraudulent activity. While BIFA has had no enquiries on SB/Ls for a year or so, online freight forwarder iContainers and forwarder network WCA have indicated that the problem is on the rise.
The WCA has sent a note to members saying it cannot get involved in disputes between them where there is a switch bill of lading, owing to the challenges of determining the problem where there could also be a non-member third party involved, and without sight of the original bill.
For more details, please visit: https://theloadstar.co.uk/stay-clear-switch-bills-lading-warning-forwarders/
Asia-Europe ocean rates stabilise after September crash
Spot freight rates from Shanghai to Genoa dropped by just $14 per feu to $1,378 in the third week of October, and prices on the benchmark Shanghai-Rotterdam lane remained stable at $1,247 per feu, up 14% compared to a year earlier, according to the World Container Index assessed by Drewry.
“China-Europe prices continue to stabilize after crashing through September, when several large carriers cut their FAK rates,” said digital rates specialist Freightos. “Prices had dropped by $715 over four weeks, from $2,201 on 9 September to $1,486 on 7 October. Despite last week’s small further decline on the Shanghai-Genoa box trade, rates on the trade are still up 17% compared to a year earlier, according to Drewry. However, Freightos noted that prices on both the China-North Europe and China- Mediterranean lanes were currently less than 70% of their 2018 peaks.
Sulphur cap should prompt only negligible rise in consumer goods' costs
Despite an estimated annual cost to container shipping of more than $11bn, the 2020 sulphur cap will have only a minimal impact on consumer good pricing, according to Denmark-based SeaIntelligence. Their research showed that while the cost of the low-sulphur implementation appears ominous, in reality “it implies that a consumer should pay 39 cents more for a $150 television”.
The analysts pointed to how the focus so far from both carriers and shippers has been on the high cost of the new legislation, but if considering the huge amount of goods moved by box lines there is a relatively small cost for the end consumer.
Contship looks to expanded La Spezia terminal for 20,000 teu ships by 2022
Italy’s La Spezia Container Terminal (LSCT) in southern Europe will be ready to handle 20,000 teu ultra-large containerships (ULCs) by 2022, stepping up from its present capacity of accommodating 16,600-teu boxships.
LSCT, operated by asset-based intermodal firm Contship Italia Group, is considered by the group to be the southern gateway port called at by major lines and alliances, with four Asia-Mediterranean services every week, backed by robust trade between Asia and Italy as both import and export volumes remain strong.
For more details, please visit: http://www.seatrade-maritime.com/news/europe/contship-looks-to-expanded-la-spezia-terminal-by-2022.html
Trucking costs to halve by 2030, study predicts
The digitization and automation of processes and delivery vehicles will reduce logistics costs for standardised transport by 47% by 2030, with lead times and vehicle utilisation set to massively improve, according to a new report from PwC’s ‘Strategy&’ consultancy.
The Global Truck Study 2018 has found that around 80% of these savings will be attributable to the reduction of personnel in the transport and logistics industry. In addition, there will be enormous increases in efficiency. Autonomous lorries, for example, will be able to travel 78% of the time from 2030 onwards. This will be because there will be no breaks for drivers and idling time will be reduced through the use of algorithms. It also predicts that delivery lead times will fall by 40%.
For more details, please visit: https://www.lloydsloadinglist.com/freight-directory/news/Trucking-costs-to-halve-by-2030-study-predicts/72988.htm#.W9m5-mj0ldg
Canadian National Railway makes rare move into trucking with deal for Trans X
Canadian National (NYSE: CNI) is doubling down on its intermodal and refrigerated business with the acquisition of Winnipeg-based carrier Trans X Ltd.
One of Canada's largest and oldest carriers, Trans X's business lines span truckload, LTL, intermodal, warehousing and freight forwarding. Terms of the acquisition were not disclosed.
For more details, please visit: https://www.freightwaves.com/news/canadian-national-acquires-trans-x
IATA Outlines Urgent Priorities to Minimize Brexit Impacts
The International Air Transport Association (IATA) has called for urgent action by the UK and the European Union to put in place contingency planning for the continuation of air services in the event of a ‘no-deal Brexit’, and to move much faster to bring certainty to three critical air transport issues:
For more details, please visit: https://www.iata.org/pressroom/pr/Pages/2018-10-24-01.aspx
Air freight market heating up fast as the peak season gains height
Forwarders are reporting limited capacity on Asia-US, with rates from Hong Kong into New York now hitting HK$36 per kg (US$4.58) on major carriers such as Cathay, Cargolux and Asiana. Los Angeles rates are marginally lower, hovering at between HK$30 and HK$35++.
“The air freight market is very busy in China and Asia,” said one Asia-based forwarder. “The rate is increasing every week. But space is still extremely tight, even with high rates.”
For more details, please visit: https://theloadstar.co.uk/air-freight-market-heating-fast-peak-season-gains-height/
Implementation of sulphur 2020 limit - carriage ban adopted
An amendment to support consistent implementation of the forthcoming 0.50% limit on sulphur in ships fuel oil was adopted by the International Maritime Organization (IMO) on 26 October, during the current session of the Marine Environment Protection Committee.
The new 0.50% limit (reduced from 3.50% currently) on sulphur in ships' fuel oil will be in force from 1 January 2020, under IMO's MARPOL treaty, with benefits for the environment and human health.
For more details, please visit: www.imo.org/en/MediaCentre/PressBriefings/Pages/19-Implementation-of-sulphur-2020-limit-.aspx
Green shipping standards could add $1.3b in costs to Australian economy
The global maritime sector's embrace of a new set of climate change-driven emissions standards is going to see the Australian economy forced to absorb the biggest pass through of shipping costs in a generation.
Two of the world's biggest shipping companies, Maersk and MSC, have indicated that the shift to low-sulphur-emitting fuels would add $US2 billion ($2.8 billion) to their annual cost bases and that they would introduce substantial new surcharges to recover those increases.
In a September statement, Maersk put the global cost of compliance with the new International Maritime Organisation's emissions standards at $US15 billion ($21 billion).
And a third major carrier, CMA CGM, estimated that the move to reduce sulphur emissions from 3.5 per cent to 0.5 per cent would add an average $US160 ($225) TEU (twenty-foot equivalent unit) to the cost of shipping. The shipping company indicated that the additional cost would be "taken into account" when adjusting its existing fuel surcharges.
DHL research shows 75% of companies believe investment in ground transportation will directly support their company growth
DHL report reveals that the fast-paced evolution underway in the sector is changing the way that shippers think when purchasing a transportation solution. The global survey of transport buyers and operations professionals found that 83% of businesses are willing to pay more for better and value-added services as long as they provide a measureable return on their investment.
The report found that across sectors and regions, companies are increasingly viewing ground transportation as being more than a tactical commodity, with 71% now considering it to be a strategic component of their businesses. Companies agree there is a direct correlation between ground transportation and business performance with three quarters (75%) believing investing time and resources in ground transportation will directly help their company sales.
For more details, please visit: https://www.logistics.dhl/global-en/home/press/press-archive/2018/75-percent-of-companies-believe-investment-in-ground-transportation-will-support-their-company-growth.html
GRA revokes licenses of 20 freight forwarders
The customs division of the Ghana Revenue Authority has revoked the operating licenses of 20 freight forwarders for falsifying the port of loading documents from India to other countries.
Out of the 20 freight forwarders being sanctioned, 13 are said to have diverted transit goods while seven are being punished for falsifying the port of loading documents from India.
For more details, please visit: https://www.myjoyonline.com/business/2018/october-30th/gra-revokes-licenses-of-20-freight-forwarders.php
E2open Acquires INTTRA, the Top Ocean Freight Platform
Cloud-based supply chain software company E2open announced Monday that it will purchase INTTRA, the leading neutral booking platform for containerized freight. The two firms say that their integration will "streamline the information flow between manufacturers, suppliers, shipping service providers [and] carriers."
The benefits of joining the two networks will extend to carriers and shippers alike, says INTTRA president and COO Inna Kuznetsova. Carriers will be able to gain more visibility into shippers' forecasting for future shipment volumes, allowing them to plan their capacity needs, and BCOs and forwarders will get better visibility into the details of their container shipments.
For more details, please visit: https://www.maritime-executive.com/article/e2open-acquires-inttra-the-top-ocean-freight-platform
WiseTech Global Acquires CargoIT in Third Deal of the Month
The global logistics solution group has made more than two dozen acquisitions since January 2017 as part of its strategy to accelerate long-term organic growth. WiseTech Global announced Tuesday the acquisition of CargoIT i Skandinavien, a customs management and logistics solutions provider in Sweden.
This is WiseTech’s third acquisition in October, following transactions with DataFreight and SmartFreight. The global logistics solution group has made more than two dozen acquisitions since January 2017, including acquisitions in Argentina, Australasia, Belgium, Brazil, Canada, France, Germany, Ireland, Italy, the Netherlands, North America, Spain, Taiwan, Turkey, the UK and Uruguay.
For more details, please visit: https://www.sdcexec.com/transportation/news/21029950/wisetech-global-acquires-cargoit-in-third-deal-of-the-month
IBM and Maersk Struggle to Sign Partners to Shipping Blockchain
It's hard enough to get enterprises that compete with each other to work together as a team, but it's especially tricky when one of those rivals owns the team. Shipping giant Maersk and tech provider IBM are wrestling with this problem with TradeLens, their distributed ledger technology (DLT) platform for supply chains.
In a nutshell, the IBM-Maersk joint collaboration needs more carriers. The platform is designed such that Maersk's rivals will act as "trust anchors" and run full blockchain nodes on the network. Moreover, large shippers of goods use multiple carriers and freight-forwarders, and the value proposition involves managing cargo and inventory across all of them.
For more details, please visit: https://www.coindesk.com/ibm-blockchain-maersk-shipping-struggling/