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Posts Tagged ‘Shipping Overseas’

Brexit Uncertainty: How Will Logistics Be Affected?

Sunday, February 10th, 2019

‘Brexit’ is the buzz word of every news station right now. It’s a massive source of uncertainty to our economy and there is no industry that is sure of the future.

One industry that is more uncertain than most is the logistics sector. Will Brexit change the way we ship parcels? Will it affect the cost or movement of freight? What impact will it have on companies and end users?

With a no-deal Brexit looming, this article looks at what is being said on these matters thus far and what the likely outcomes may mean for the logistics industry.

Deal or No Deal

Should we come out with a no-deal Brexit, there are plans in place to avoid charging a customs duty on 87% of tradeable goods. This plan will be set in place for the next year to make sure we secure the best deals possible moving forward.

Tariffs will still apply to 13% of goods to ensure fair and safe practices, but it seems that the strategy will be to ensure the cost of importing, exporting and shipping in general does not rise in the near future and may even be reduced in the short-term.

Future Tariffs

The following are areas where tariffs will still apply:

  • A mixture of tariffs and quotas on beef, lamb, pork, poultry and some dairy to support farmers and producers.
  • Tariffs on finished vehicles. However, car manufacturers relying on EU supply chains shouldn’t face additional tariffs on car parts imported from the EU to prevent disruption to supply chains.
  • Tariffs to provide support for UK producers against unfair global trading practices, such as dumping and state subsidies. Tariffs should be retained for products including certain ceramics, fertiliser and fuels.
  • Tariffs on sets of goods including bananas, raw cane sugar, and certain kinds of fish. These are designed to ensure preferential access to the UK market for developing countries.

It’s important to note that these temporary import tariffs will not apply to goods crossing from Ireland into Northern Ireland.

The Worst-Case Scenario

Shipping suppliers must prepare for the best and worse-case scenarios and there are several implications to consider:

  • The department of transport has already warned those shipping to the continent and other freight haulers that they may now need EMCT permits post-Brexit.
  • 80% of haulers have stated that Brexit has had a negative impact on their plans for future investment. This likely means they are bracing for added costs rather than putting money into infrastructure.
  • Port delays are a major worry as there is not a sufficient infrastructure to deal with more tariffs and the cost of importing to rise. This may be offset for many items in the twelve months post-Brexit as outlined above.
  • Most companies will no doubt be well into their contingency plans by now as this has been a concern for the past few years. Many are stockpiling non-perishables in order to avoid an added tax bill, but it does still leave the logistics industry in a world of doubt.

The Uncertainty of Continental Shipping

Currently, the EU has its own laws and regulations regarding the transport and distribution of goods. Once we leave the EU, Britain will be able to regulate its domestic shipping but there are many questions left about the future of continental shipping.

If our new transportation regulations are laxer than those established on the continent, it is going to become increasingly time consuming at borders ensuring regulations are met, meaning a likely increase in cost.

This is perhaps the crux of the issue – currently couriers can travel into the EU unhindered and deliver their consignments quickly and safely while keeping cost to a minimum. What’s more, parts can enter the UK from the continent quickly to keep the whole industry running smoothly and, more importantly, cost effectively. This might be a way of the past once the Brexit negotiations are finalised.

Contingency Planning

But it’s not all doom and gloom. As noted, many courier companies have been preparing themselves for any eventuality and should already have contingencies in place to counter the uncertainty surrounding Brexit.

Many companies are investing in their fleet and increasing specialised transports to ensure delays will not hinder fresh or perishable goods.

It will be a learning curve as rules and regulations change but with the logistics industry being an integral part of the UK’s economy, solutions will always be found.

Brexit has been on the horizon for several years now and as it grows closer, logistics providers have been doing their research and know that the guesswork thus far will be somewhat close to the mark. As a result, the ethos of many courier companies will not need to change, and they will find effective solutions to overcome the challenges post-Brexit.

Consult with Your Courier Partners

If you’re concerned about the effects of Brexit on your own logistics, now is the time to discuss it with your courier partners. Your courier partner will be able to answer your questions to the best of their current knowledge and do their best to find solutions to your problems. Creating logistical contingency plans is the best way to prepare your business for the uncertainty ahead.

Moving Forward

Whatever happens, the logistics industry should be positioned to deal with the long and short-term effects. If you are looking for a courier service post-Brexit, look for one that is not willing to compromise on standard and service in the face of change.

This is the basis upon which our services are built and there is no need to compromise this ethos despite the uncertainty of the near future.

If you have any thoughts or concerns about the future of logistics post-Brexit, please do get in touch. Tel: 0800 999 1010. Same Day Dispatch Services would love to hear your views and give our expert advice if we can.

Container Shipping Operators Facing New Challenges in Face of Unstable Economy

Friday, October 12th, 2018

Shipping freight by container has been a staple of overseas delivery since commercial shipping began. The ever-increasing size of shipping containers meant you could measure the confidence in that industry on this metric alone. Still to this day, hulking megaships serve the global industry by shipping goods around the world.

But has their time dominating sea come to an end?

With rising fuel prices, a drop in demand for container shipping, and capacity increasingly out of sync with demand, container shipping operatives are facing new challenges all the time. While it may still seem to be the backbone of global trade, is it finally nearing its end as the number one mover?

Pre-2008, with an increase of almost 8% annually, many business owners spent billions investing in maritime shipping. However, China’s economy is slowing and Europe is in geopolitical instability surrounding Britain’s proposed withdrawal from the E.U., both negatively affecting the global container shipping industry. One of the world’s leading container shippers by capacity recently told investors they are expecting to see a decrease of 1-3% interest this year alone.

Fuel Prices

Shipping executives predict that uncertainty over cleaner fuels will make price estimates rise. Some have claimed that it has turned the shipping market into a form of casino where owners are gambling with their businesses. It is the persistent imbalance between shipping suppliers and demand that is adding to the uncertainty that surrounds the industry at present.

2019 will bring uncertainties because of the risks of further restrictions on global trade. New regulations brought in by the International Maritime Organization to cut emissions will significantly increase fuel prices further.

In order to offset the rising costs of fuel, it’s projected that shipping operators will pass on about $10billion a year to cargo owners but even then, they will still be absorbing some of the cost themselves.

Ultra-Large Shipments a Solution?

One possible solution that has been forwarded by some of the larger container shipping companies is that ultra-large container ships are put into use. These ships would be capable of moving up to 22,000 boxes at a time, reducing the cost of shipping smaller quantities on several smaller ships and cutting fuel consumption overall.

This does not come without its own problems, however. Not all waterways and destinations would be able to accommodate and receive such a large ship. Plus, with the industry facing uncertainty, there may not be demand for large shipping containers.

When it comes to global logistics, there are many problems currently being faced. Below are some of the major issues and what the future might hold for the container shipping industry.

Communication

Communication between the business, customers and the freight forwarders often cause more problems than it solves. Constant tracking of shipments and update requests are common as the customer wants to know where their package is and what is happening at all times. Communication of businesses from port to port is also vital in order to ensure smooth running of the system. Communication breakdowns need to be addressed if freight container shipping is to take off again or at least make some sort of resurgence.

Security

Security is fast becoming a growing concern for the global shipping industry. This is in part due to the volume in which goods are being passed between suppliers to reduce cost. A single delivery might be exchanged between a delivery driver, a warehouse, another delivery driver, then a port, and so on.

This continued movement between companies means that the security of the cargo is put in jeopardy several times during its journey. Each time it passes hands, that agent may have different security protocols in place, meaning there is no unified security system.

To rectify this, the shipping industry needs to eliminate as much unnecessary handling as possible and implement a more unified security protocol to reignite the trust in global freight shipping.

Demand

The container shipping industries inability to respond to the demand for fast delivery is a major challenge currently being faced. Clients want their deliveries as quickly as possible and so the demand on logistics is under pressure. Even though container shipping involves long distance deliveries, people still demand quick turnaround; even a week can seem like a long time for international shippers. This is exasperated at busy times of the year and difficulties at ports can lead to long delays.

Capacity

Capacity can be an unseen issue for global container shippers. As the volume of shipments increases due to the desire to reduce shipping costs, the available space onboard container ships decreases as it is filled. This ultimately causes problems for shippers – if there is no room on the ship, delays are inevitable. Finding a cheaper, greener fuel source may be key to this issue since it would allow for smaller, more frequent shipments.

Infrastructure

The infrastructure of the industry is also an inherent problem. Global sales and deliveries are increasing and the container shipping industry needs to evolve in order to accommodate this. Some ports, however, still can’t cope with the growing demand or deal with the volume of goods that are being brought through their doors. Increasing the infrastructure’s capacity at major ports will be key to sustaining growth in this sector.

Final Thoughts

The nature of international shipping is changing and while global container shipping was able to upscale accordingly, it now seems unable to downscale or economise sufficiently to keep in line with global trends as well as new rules and regulations.

Although interest is declining, it is not in freefall and there is still demand and desire to ship via container overseas. The major issue facing the industry at present is the cost associated with the volume trying to be shipped due to regulations and fuel hikes.   

Overall, it is not the end for container shipping, but it does stand on a precipice of a changing world in which it must adapt.

Finding International Couriers That You Can Trust

Thursday, May 28th, 2009

There could be many different reasons why you need to use an international courier service. Whether you send vitally important contracts, legal paperwork, purchased goods or stock; from a single sheet document to a large package or even an international freight delivery; all of your items need to arrive at their destination abroad quickly and safely.

Shipping overseas can be complicated, with different laws, duties and taxes payable in some countries. In addition to the possible delays at customs for those not prepared, some international couriers will give you broad delivery guidelines as to when your shipment may or may not arrive, but in today’s cut and thrust business world, that simply isn’t good enough because your very real deadlines need to be met with very real and definite results.

This is where Same Day Dispatch come in. We offer comprehensive overseas shipping solutions to virtually anywhere in the world. We approach each consignment individually, ensuring that our delivery service is tailored precisely to meet your needs, your budget – and your deadlines. We can offer guaranteed express deliveries, which include clearing customs, to over 220 countries worldwide.

If your item is of highly sensitive or critically important, we can provide an On Board Courier service, which entails one of our experienced team taking your consignment overseas in person, straight into the hands of the recipient.

We offer specialised services including out of hours collection times, dedicated vehicles to pick up your shipment and transport it directly to the airline, and the same service at the other end to the ultimate destination. We take the utmost care with every consignment, which is why you can trust Same Day Dispatch as the international couriers to trust for every item you need to send abroad.

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