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Industry News

The latest news from BIFA
  1. Over the past 18 months, BIFA has been supporting a trailblazer group of employers from the freight and logistics sector to develop a standard for a specific International Freight Forwarding Specialist apprenticeship.

    Set at Level 3 (A Level) with a minimum duration of 18 months, the new apprenticeship will provide students with core knowledge and skills including; industry awareness, customs procedures and commercial skills.

    At the beginning of the programme, apprentices will also be given one of three pathways; air freight, ocean freight or road freight, to reflect the focus of freight forwarders’ operations. Whichever pathway apprentices take, specific knowledge and skills will be acquired in addition to the three mandatory modules.

    Carl Hobbis, BIFA's training development manager, says: “This really is great news and a significant milestone and will definitely help us to attract more young people to the industry,

    “It is a feather in the cap of those in the trailblazer group, which has been resolute in recognising the importance and potential value of a relevant apprenticeship that is specific to the forwarding sector.

    “With customs legislation getting more complex, and the unknown landscape post-Brexit, it will be even more important to promote careers in our industry in many ways – and there’s no better way than through a relevant apprenticeship, which we now have.

    “The trailblazer group has worked hard to demonstrate to the Department of Education (DoE) and IfA that the processing of international trade documentation is vital to the UK economy and the demand for international trade skills is forecast to rise.

    “The new apprenticeship will give new entrants a valuable structure for their learning, whilst helping to close the skills gap and address the acute staff shortage faced by the sector.

    
“BIFA will now help to promote the availability of the new apprenticeship and encourage employers and potential entrants to consider this apprenticeship as a route into the industry.”

  2. In the Eye of the Storm. We continue to believe the container shipping sector is set to benefit from a rapidly improving market balance, with capacity growth projected to peak at 9% in 2Q18E, after 8% growth in 1Q18, followed by a slowdown to low-single digit capacity growth for 2H18E-FY21E, based on today's record-low order book. Any new vessel orders are unlikely to be delivered before FY21E, in view of a focus on relatively larger fuel-efficient vessels with LNG powered engines ahead of IMO 2020. Container demand is expected to grow by 4%-5% this year, with some downside risk in view of increased protectionism (although the targeted products for increased tariffs are estimated to account for only c6% of container trade between China and the US). Demand is currently tracking ahead of expectations, with East-West volume growth of 10.0% in 1Q18 (vs. 2.0% in 1Q17).

    New vessel ordering. Our capacity projections include all recent large vessel orders from MSC, CMA CGM and Evergreen, with a combined capacity of 680,000 TEU, as well as the planned Hyundai order for 352,000 TEU, with delivery expected in FY21E. We estimate the Hyundai order is worth c$2.5bn, which will likely be funded with support from the Korean state, as Hyundai's balance sheet looks stretched. Relatively high leverage in the sector, with net debt at around 6.0x FY17 EBITDA, should limit further vessel ordering. Note that CMA CGM announced it will take a 25% stake in CEVA Logistics (along the lines of Maersk's strategy), which is expected to be valued at over $3.0bn according to recent press reports.

    Resilient container freight rates. Container freight rates have remained relatively resilient so far this year, with the SCFI 10% lower y/y and CCFI relatively stable, reflecting higher Asia-Europe contract rates. According to Hapag Lloyd and Maersk, Asia-Europe contract rates more than compensated for higher bunker prices, which are up 12% y/y and 5% q/q. With capacity expected to tighten from 2H18E, we believe the outlook for container freight rates is favourable, and are still assuming a relatively stable rate for FY18E, followed by a 5% higher rate for FY19E. We assume a 2% higher net freight rate for FY20E, after higher bunker costs under IMO 2020 sulfur regulation.

    1Q18E expected to be profitable. We are projecting strong 1Q18E earnings momentum on the back of recent M&A, with EBITDA growth of 60% for Hapag Lloyd (due 14 May) and 53% for Maersk Line (due 17 May). After higher D&A following recent M&A, we are projecting EBIT just ahead of break-even at €17m for Hapag Lloyd (0.6% EBIT margin) and $67m for Maersk Line (0.9% EBIT margin).

    Valuation / risk factors. Hapag Lloyd and Maersk are trading at 8.2x and 6.8x FY18E EV/EBITDA, implying discounts of 24% and 36% to container shipping peers. We are projecting surging equity FCF yields to 12% for Maersk and 18% for Hapag Lloyd by FY19E, assuming a 5% higher container freight rate. Risk factors include irrational vessel ordering (with state support), overcapacity, escalating protectionism, increasing fuel costs under IMO 2020, acquisition integration risks and general macro economic risks.

    Source: Jefferies International Limited

     

  3. Predicting containership fleet growth is probably the most contentious and hardest task for any forecaster. The orderbook is constantly evolving as deliveries are made and new orders come in, while demolitions and the occasional cancellation also reduce the pot. Furthermore, quite often the scheduled delivery date does not match with the actual delivery date, making pinning down a baseline like trying to hammer a nail in jelly.

    According to different commenters, 2018 is either going to bring a tsunami of new capacity that will drown the container market’s nascent recovery, or newbuild deliveries will largely be manageable. The latter is Drewry’s opinion, as explained in more detail in the latest Container Forecaster.

    Read More >

    Source: Drewry

  4. Documentation, is that something new?

    One of the less talked about areas of GDPR is the need to keep documented records of your data processing activities that relate to data protection. The Information Commissioners Office (ICO) has indicated that in any investigation their first request will always be to review your documentation. If you have no records relating to data protection they will take a dim view and assume you have been cavalier in handling people’s personal data. The documentation required to prove you have given thought to the issues and have put measures in place in not onerous or complex.

    At this stage no-one knows how the ICO will police the GDPR when it comes into force, however, it is very likely that they will want to consider whether an incident is accidental and to some extent unforeseen or whether it is as a result of negligence or much worse, recklessness. The value of documentation is that you can demonstrate that you have considered the issues and may move you down the scale from the reckless and negligent categories in terms of sanctions against you.

    Privacy Policy

    A privacy policy is a document that outlines the approach taken by the whole business in regard of data protection across all areas of the business where peoples personal data is held and processed by the business. This doesn’t have to be a large cumbersome document as it describes the overall policy and not necessarily the detailed procedures that you may need to implement to carry out the policy.

    You should consider having separate Privacy Statements in place to cover outward facing parts of the business, for example your website. This would describe your policy in the context of data you collect or use on the website. You will also need to consider detailed Privacy Notices at the point where data is actually collected or used, for example a sign-up form for your mailing list. The need for privacy notices at the point you collect data is a specific requirement under GDPR and the ICO has some good examples on their website.

    Data Processing Record

    It is in fact a legal requirement under GDPR that you have documented recordscovering all areas where you process personal data. This is not a record of each time you process data but an overall description of what you are doing, the legal basis for doing it, whose data is being used, what type of data, how long you will keep the data, contact details within your organisation, whether third parties are involved and security measures to protect the data. This type of document has many names, but we prefer to call it a Data Processing Record (DPR) and you should have one for each type of data processing that you do.

    Data Protection Impact Assessment

    Alongside each DPR you may need to document an impact assessment of the risks to the privacy of the people whose data you are processing. It is not an absolute requirement of the GDPR that you carry out a Data Protection Impact Assessment (DPIA) except in specific situations. If you process sensitive data about people’s finance, health, criminal records or political affiliations then you must. If you are processing data relating to children or carrying out large scale or regular processing then again you must, sadly the terms large scale and regular don’t have hard definitions and so can be interpreted in many ways. It is probably sensible to document some form of impact assessment for all but the most trivial sets of data as this demonstrates that you have considered the issues.

    Retention Schedule

    The list above mentions the lifetime of the data, the GDPR expects that you will have specific rules about how long you keep data and the steps you take to delete data you no longer use. This is called Retention and shouldn’t be ignored. You may need to keep some data in your accounting system for up to 6 or 7 years for tax and other reasons however this should be disposed of after the retention period has elapsed. Other data such as personnel records will have a shorter lifetime after an employee leaves whereas unsuccessful job applicants should probably be disposed of very quickly unless you can demonstrate a real reason to keep them. In order to keep track of this you should keep a central document that lists all the data you deal with and identify the lifetime of the data. For each you should describe the process of deleting, archiving or otherwise disposing of the data and keep a record of regular checks to ensure it has been done.

    This information is presented as a discussion and it should not be taken as guidance in the absence of your own legal advice.

    Source: 101Smart Ltd

  5. The Center of Excellence for Independent Validators for Live Animals Logistics (CEIV Live Animals) provides stakeholders across the air cargo supply chain with the assurance that CEIV Live Animals certified companies are operating to the highest standards in the transport of live animals.

    "Last year millions of animals travelled safely and securely by air. Animal owners and shippers rely heavily on airlines to carry their precious cargo. As an industry, we have a duty of care to ensure that standards and best practices are in place around the world to protect the welfare of these animals. For those shipping live animals the CEIV Live Animals program will provide a reliable quality benchmark. Just as CEIV Pharma helped provide quality standards for temperature sensitive healthcare shipments, the new program extends that expertise to the important field of transporting and handling of animals," said Nick Careen IATA's Senior Vice President of Airport, Passenger, Cargo and Security.

    Handling and transporting live animals is challenging. Each type of animal has its specific requirements—not limited to the physical. It is critical to take into consideration the emotional response of the animals when placed in a special-purpose, if unfamiliar, environment by trained professionals. These were prerequisites for the development of the CEIV Live Animals program which is based on the IATA Live Animals Regulations (LAR), the worldwide standard for transporting animals by air. The IATA LAR are based on professional and operational input from industry experts, including veterinarians, animal welfare experts as well as government agencies involved in the regulation of animal transportation and non-governmental organizations with an interest in animal transportation.

    The CEIV Live Animals program increases the level of competency, operations, quality management and professionalism in the handling and transportation of live animals in the air freight industry while reinforcing training and compliance across the supply chain. Independent validators conduct training and onsite audits to ensure the animals' safety and welfare when travelling by air across the world.

    Live Pilots

    Understanding the complex needs of stakeholders involved in the handling and transportation of animals by air was also key in developing the program. The City of London's Heathrow Animal Reception Centre (HARC) and Air Canada Cargo played a key role in helping to pilot the CEIV Live Animal program.

    Robert Quest, Assistant Director, Port Health and Public Protection, HARC said, "Last year some 16,000 dogs and cats, 400 horses, 200,000 reptiles, 2,000 birds and 28 million fish travelled through HARC. Ensuring the safety and welfare of these animals is our main priority. So partnering with IATA to develop the CEIV Live Animals program was important to us. We look forward to continuing to work closely with IATA to further enhance the program and support its worldwide adoption by companies across the supply chain in the pursuit of operational excellence in the handling and transport of live animals by air."

    Air Canada Cargo, Vice President Tim Strauss said, "Whether it is a family relocating with their pet, a flock of sheep relocating overseas or zoo animals travelling to support conservation efforts, transporting animals by air is a complex and highly planned operation. Ensuring that animals travel in safe, healthy and humane conditions requires coordination across the supply chain. Air Canada Cargo is delighted to be part of the CEIV Live Animals program."

    Endangered Species Also Addressed

    CEIV Live Animals also focuses on the importance to comply with the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) requirements including the CITES Guidelines for the Non-Air Transport of Live Wild Animals and Plants available in the LAR. CITES is the legally-binding agreement with 183 Parties (182 States and the EU), regulating international trade in more than 36,000 species of animals and plants.

    "Worldwide international standards and regulations govern the safety and welfare of animals being transport by air. The CEIV Live Animals program helps to ensure that any legitimately traded wildlife adheres to the IATA standards and CITES requirements and we welcome its development. It is through industry working cooperatively together that can we can most effectively implement these agreed standards and requirements, and also identify and tackle illegal trade in wildlife" said John E Scanlon, the Secretary General of CITES.

  6. It will use the event to outline some of the work it is carrying out on behalf of its members that are facing significant challenges to their provision of freight and logistics services for international trade.

    Robert Keen, BIFA Director General, says that Brexit is likely to dominate much of the conversation at Multimodal 2018. Mr Keen will chair a Brexit Briefing, looking closely at the position of those on both sides of the Irish border, and the implications upon trade and freight forwarding post-Brexit.

    BIFA will also be using the event to showcase and encourage the take-up of the international freight forwarding specialist apprenticeship, which will soon be available.

    Keen will also join a panel discussion that will address the future of cargo operations at Heathrow airport and consider what constitutes a world-class air cargo operation.

    Keen commented: “The subject of the Heathrow briefing is one of huge importance to BIFA Members. We have consistently identified the need for infrastructure investments to be made at Heathrow, and recently joined the chorus of groups urging parliament to hold an early vote on the recommendations of the Transport Select Committee’s report on the Airports National Policy Statement.”

    In addition to participating in both the Brexit and Heathrow Cargo-related briefings, the trade association for UK forwarders will be exhibiting on stand 7040. BIFA’s senior management team, as well as its five regional consultants will be on hand to meet visitors and provide advice or any information they may require.

    Keen added: “We encourage Multimodal attendees to visit our stand to find out more about what BIFA is doing to resolve issues faced by the UK freight industry. With the International Freight Forwarding Specialist Apprenticeship in its final stage of approval, we urge attendees to visit our stand for details about the new scheme.”

    As Multimodal approaches, BIFA reports that it is in good shape operationally and financially, with significant momentum, a membership of around 1,500 companies, and a clear strategy that leaves it well-positioned to continue to provide effective representation and support for the UK and international freight services industry.

    Against an ever-evolving backdrop, BIFA – through its secretariat, policy groups, regional consultants, and committees, as well as its board and council – continues to serve its membership and delivers on their behalf. Multimodal 2018 gives BIFA a great platform to demonstrate that.

    “Once again, I invite those making their way to Multimodal 2018 to visit us to say “hello” and let us explain how BIFA Membership can be a win-win for them,” says Keen.

  7. In recent months there have been a number of cases of smuggled meat of ungulates (e.g. goat meat) being concealed in consignments of frozen vegetables from Cameroon.

    Such undeclared consignments represent a serious danger to animal health from the introduction of foot and mouth disease into the UK / EU and it has proved necessary to incinerate all the contents of the shipping container to eliminate the risk.

    Please be aware that in such cases the import agent could be liable for the costs of destruction in accordance with regulation 21 of the Trade in Animals and Related Products Regulations 2011.

  8. The trend for employees at transport and logistics organisations to use whistleblowing hotlines has accelerated following last year’s Hollywood harassment scandals. 

    New research shows a 7% increase in calls in 2017 according to Expolink, Europe’s leading provider of outsourced speak up “whistleblowing” services.

    Expolink’s annual Whistleblowing Benchmarking Report includes an analysis of 8,281 reports raised by UK employees in 2017. Expolink hotlines cover over 600 major organisations worldwide employing 5.35 million people, including more than 20 of the UK and Europe’s largest transport and logistics businesses.

    John Wilson, Expolink’s Chief Executive, said: “The tsunami of public whistleblowing that was unleashed in the autumn following revelations in Hollywood, and then elsewhere, has emboldened Britain’s transport employees to increasingly report workplace problems, whether harassment or other issues.

    “The rise is particularly notable in the transport and logistics sector where problems can include Health & Safety/Environmental Safety (HSES) issues, which account for more than 15% of all reports from this sector, almost three times higher than the UK average.

    “However, the percentage of HSES reports has almost halved for the transport and logistics sector over the past year (HSES issues accounted for 28% of this sector’s reports in 2016). This suggests employees are reporting HSES breaches less frequently, which employers need to look into, but a wider range of issues are being reported by employees within this sector. 

    “The nature of the transport and logistics sector presents organisations with unique challenges when it comes to promoting and managing a speak up “whistleblowing” service. Such challenges include the split of the workforce between warehouse, transport and back office environments. Nonetheless, the leading companies in this sector have successfully introduced a whistleblowing service, using a multi-pronged approach to ensure employees know where to raise their concerns, whether they are in an office or on-the-road.”

    Expolink’s research has shown that in recent years employees have become more comfortable with speaking up and using whistleblowing hotlines where they see unsafe, dishonest or inappropriate activity. This trend has leapt forward since the autumn following the Hollywood and ensuing scandals, which has encouraged employees to examine their own organisations more objectively and speak up if they see unethical behaviour.

    John Wilson added: “Readily available speak-up channels, combined with a culture of listening to employee concerns, is often the best defence for organisations against festering problems that could eventually lead to injuries, staff problems or even damage to the company’s reputation. By having a whistleblowing service in place it helps to identify issues before they escalate, providing management is willing to listen, of course.”

    Complimentary copies of Expolink’s Benchmarking Report are available via this link: https://www.expolink.co.uk/resources/benchmarking-report-2018/

    The top three issues most likely to be reported by UK employees on whistleblower hotlines (2017) in transport and logistics sector:

    Transport & logistics sector

    UK average

    Type of issue

    27.6%

    23.3%  

     HR(including Duty of Care, Grievance with Colleague or Manager, Gross Misconduct and Unfair Dismissal)

    17.1%

    14.4%  

     Bullying, Discrimination or Harassment
    (Including all forms of Discrimination, Sexual and Other Harassment,   Victimisation and Abuse)

    15.3%

    5.9%

     

     Health & Safety/Environmental Safety

    How UK employees were most likely to “speak up” in 2017:

    Transport & logistics

    UK average

     

    52.9%

    60%

     Telephone(Hotline Operator)

    2.2%

    5%

     Telephone(Voicemail)

    34.1%

    23%

     Web

    10.9%

    11%

     Email

    0%

    1%

     Post and Mobile App (mobile app introduced summer 2017)

  9. Agency Sector Management (ASM), the British International Freight Association (BIFA), and HM Revenue and Customs (HMRC) are combining efforts to offer advice and guidance to businesses affected by the implementation of the new CDS system.

    CDS Seminar

    The seminars have been organised in response to concerns about the readiness of the new system, and to provide companies with the opportunity to fully understand what CDS is, why it is being introduced, how it will impact their businesses, and when the system will be fully launched.

    “The move over to CDS marks the biggest change to impact the processes by which Customs declarations are managed since the introduction of CHIEF, which it replaces, and which is needed to enable importers or exporters to comply with the EU's recently introduced Union Customs Code (UCC),” said Robert Keen, Director General, BIFA.

    “There are significant differences between CHIEF and CDS, and still a lot of unanswered questions about what will be required from our industry,” said Peter MacSwiney, Chairman, ASM.

    “These seminars are partly in response to questions we receive from our users when I attend government meetings regarding Brexit and CDS.

    "The seminars will provide insight into those differences and address the issues faced by companies that make Customs declarations, which will need time to adjust their internal computer systems to accommodate CDS.”

    The seminars are being held at a number of locations across the UK during June and July, with the first taking place on June 12th, 2018.

    “We are experiencing high demand for seminar places, and we recommend that anyone looking to attend these highly informative events registers their interest by May 11th,” said MacSwiney.

    “Registering is simple - send us an email providing your name, email address, and the name of your company or organisation as well as the regional event you wish to attend.”

    Parties can register their interest by sending an email to ASM at asm-bifa-hmrc-cdsseminar@asm.org.uk, and invitations with full details will also be distributed this week.

    Full details of the other seminars can be found here.

  10. Decisions over whether to install scrubbers, switch to LNG-propelled ships, or simply bear the extra cost of using more expensive, compliant fuel will be preoccupying all shipowners in light of the International Maritime Organization’s (IMO) proposed new bunker rules that will place a 0.5% sulphur cap on fuel in 2020 (see Table 1).

    Read more >

    Source: Drewry

  11. Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 5.6% year-on-year in February 2018. Demand growth outstripped capacity growth for the 19th month in a row, which is positive for airline yields and the industry's financial performance.

    The continued growth in air cargo demand is consistent with ongoing robust global trade flows. There are, however, signs that the best of the upturn for air freight has passed. Demand drivers for air cargo are moving away from the highly supportive levels seen last year. In recent months the Purchasing Managers’ Index (PMI) for manufacturing and export orders has softened in a number of key exporting nations including Germany, China and the US. And the seasonally- adjusted demand for air cargo which rose at a double-digit annualized rate for much of 2017 is now trending at 3%.

    "Demand for air cargo continues to be strong, with 6.8% growth in February. The positive outlook for the rest of 2018, however, faces some potentially strong headwinds, including escalation of protectionist measures into a full-blown trade war. Prosperity grows when borders are open to people and to trade, and we are all held back when they are not," said Alexandre de Juniac, IATA's Director General and CEO.

    February 2018
    (% year-on-year)

    World share¹

    FTK

    AFTK

    FLF
    (%-pt)²

    FLF
    (level)³

    Total Market

    100.0%

    6.8%

    5.6%

    0.5%

    44.4%

    Africa

    1.9%

    15.9%

    3.9%

    2.9%

    28.5%

    Asia Pacific

    36.9%

     6.5%

    7.2%

    -0.3%

    51.3%

    Europe

    24.2%

     5.7%

    3.8% 

    0.8% 

    47.5%

    Latin America

    2.7%

     8.7%

    6.9%

    0.6%

    33.9%

    Middle East

    13.7%

    7.4%

    7.6%

    -0.1%

    44.2%

    North America

    20.6%

    7.3%

    4.1%

    1.1%

    36.7%

    ¹% of industry FTKs in 2017   ²Year-on-year change in load factor   ³Load factor level 

    Regional Performance 

    All regions reported an increase in demand in February 2018.  

    • Asia-Pacific airlines saw demand in freight volumes grow 6.5% in February 2018 and capacity increase by 7.2%, compared to the same period in 2017. The upward-trend in seasonally-adjusted volumes has returned, with volumes currently trending upwards at an annualized pace of between 6.0% and 7.0%. As the largest freight-flying region, carrying close to 37% of global air freight, the risks from protectionist measures impacting the region are disproportionately high.

    • North American airlines’ freight volumes expanded 7.3% in February 2018 compared to the same period a year earlier, and capacity increased by 4.1%. Seasonally-adjusted volumes are broadly trending sideways. The weakening of the US dollar over the past year has helped boost demand for air exports. Data from the US Census Bureau shows a 10.2% year-on-year increase in air export volumes from the US in January 2018, compared to a slower rise in imports of 6.7%.

    • European airlines posted a 5.7% increase in freight volumes in February 2018. This was almost half the rate of the previous month and the slowest of all regions. Capacity increased 3.8%. Seasonally-adjusted volumes have been volatile in 2018 with the jump in demand in January largely reversed in month-on-month terms in February. The strength of the Euro and the risks from protectionist measures may impact the European freight market which has benefitted from strong export orders, particularly in Germany, in recent years.

    • Middle Eastern carriers’ year-on-year freight volumes increased 7.4% in February 2018 and capacity increased 7.6%. Seasonally adjusted freight volumes continue to trend upwards, however, they have slowed to an annualized rate of 4% since late 2017. This largely reflects the weak conditions on the routes to and from Europe which have seen demand trend downwards at a double-digit rate over the past five months.

    • Latin American airlines experienced growth in demand of 8.7% in February 2018 and a capacity increase of 6.9%. The pick-up in demand over the last 18 months comes alongside signs of economic recovery in the region’s largest economy, Brazil. Seasonally-adjusted international freight volumes are now back to the levels seen at the end of 2014.

    • African carriers’ saw freight demand increase by 15.9% in February 2018 compared to the same month last year – the largest increase of any region. Capacity increased by 3.9%. The increase was helped by very strong growth on the trade lanes to and from Asia driven by ongoing foreign investment flows into Africa. While the surge in demand on the route looks to have stabilized, volumes still increased by nearly 24% in year-on-year terms in January.

    View February air freight results (pdf)

  12. “The bad news for carriers is that they are unlikely to see the very strong demand growth rates of early 2017 for the foreseeable future. The good news is that while port handling growth may have peaked, they can still expect more than adequate volumes for at least the next two years,” said Simon Heaney, senior manager, container research at Drewry and editor of the Container Forecaster.

    The latest edition of Container Forecaster includes Drewry’s forecasts for world and regional container port handling, the containership fleet and how those will combine to affect freight rates and carrier profitability through 2019.

    Subtle changes to the orderbook, mainly in the form of delivery deferrals, have softened this year’s new capacity burden and had a positive effect on Drewry’s supply-demand equations for both 2018 and 2019.

    “The top-heavy delivery schedule for 2018 with the majority of ULCVs being delivered in the first quarter has depressed our supply-demand index, but the balance will improve as the year progresses,” said Heaney. “Unfortunately for carriers this won’t come soon enough to erase the negative sentiment for annual contracts, hence why we only anticipate a small uplift in average freight rates for the year.”

    Heaney added that renewed newbuild contracting activity is not yet at the level that risks worsening the supply-demand balance. “For now, we are optimistic that new investment in containerships will be appropriate to the demand needs,” he said.

    Drewry’s forecasts were finalised before the escalation in trade hostility between the US and China. “We did build in some element of trade deflation based on past rhetoric and actions,” said Heaney. “A trade war is not yet inevitable, but given the lack of details, quantifying the risk to container shipping is very difficult. For example, much of the hi-tech goods considered liable to tariffs will be airfreighted rather than move on the water. In a worse-case scenario we believe as much as 1% of the world’s loaded container traffic could be exposed, and were the situation to become real we would clearly have to revise our demand forecasts downwards.”

    Source: Drewry

  13. Transport Secretary Chris Grayling announced the appointment of the team, who will work closely with industry contacts to help make sure the UK stays at the forefront of global shipping over the coming decades.

    He has also launched a call for evidence on Maritime 2050 – the Government’s landmark strategy to make the most of future opportunities for the nation’s maritime industries to thrive, which will seek the views of those within the sector as well as those from outside.

    Maritime 2050 will set out the challenges and opportunities to allow the Government and the UK shipping industry to plan for the long-term, encourage economic growth by giving certainty to investors, and is likely to include digital advances which can help make shipping more efficient, and the use of low-drag paint to reduce fuel consumption.

    Transport Secretary Chris Grayling said:

    “The success of the UK depends on our shipping – it helps put food in our cupboards and fuel in our vehicles.

    “We want to maintain our position as a world leading maritime nation and working with the experts from within maritime, as well as those with broader experience, will help us ensure we take every opportunity open to this vital sector.

    “Maritime 2050 is a once in a generation opportunity to set an ambitious vision for the future of this key sector and I encourage all of those who depend on shipping to have their say.”

    The Call for Evidence, which closes on 16 May, highlights a number of themes fundamental to the growth of UK maritime - technology, trade, infrastructure, environment, people and security/resilience. As part of the strategy, a series of objectives will be set so that progress against each of these themes can be scrutinised.

    The expert panel announced today will be chaired by Hugh McNeal, Chief Executive of RenewableUK, and will also made up of academic and industry leaders, including Lucy Armstrong, Chairman of the Port of Tyne, Sarah Kenny, Chief Executive of the BMT Group.

    Alongside the views of the expert panel, the Department for Transport is also encouraging partners across the UK maritime sector to come forward with innovative and ambitious ideas to secure our maritime future.

    Hugh McNeal, Maritime 2050 expert panel chairman, said:

    “I am honoured to be appointed by the Secretary of State to chair the Maritime 2050 Expert Panel, which will offer advice and look strategically at issues of critical importance to the maritime industry to 2050.

    “The proposed long-term Maritime 2050 strategy is a recognition of the vital importance of the industry to the UK economy. Shaping the future of the sector is not only important for the maritime industry, but also for every UK business that uses maritime services.

    “This is a unique opportunity to have a say in the direction of the UK maritime sector and I encourage the industry, its partners and academics with a stake in the future of UK maritime to respond to the call for evidence.”

    The announcement comes a week before the UK will lead the push for the International Maritime Organization to adopt an ambitious strategy to reduce greenhouse emissions from shipping. This includes calling for zero-emission shipping across the global maritime sector to be achieved as quickly as possible.

    The Government has also helped set up the Women in Maritime Taskforce, run by Maritime UK, which looks to increase the number of women employed in the sector. The current share of women is around 3 per cent but more diversity in the workforce will also help the industry flourish.

    The expert panel is made up of:

    • Chairman - Hugh McNeal, Chief Executive of RenewableUK
    • Dr Panagiotis Angeloudis, Senior Lecturer in Transport Systems and Logistics, Imperial College London
    • Lucy Armstrong, Chairman, Port of Tyne
    • Tom Boardley, Executive Vice President and Global Head of Corporate and External Affairs, Lloyd’s Register
    • David Dingle CBE, Chairman, Maritime UK
    • Professor Costas Grammenos CBE, DSc, Chairman, Costas Grammenos Centre for Shipping, Trade & Finance, Cass Business School, City, University of London
    • Dr Grahaeme Henderson, Vice President, Shipping & Maritime, Shell International Trading and Shipping Company Limited
    • Sarah Kenny, Chief Executive, BMT Group
    • Professor David Lane CBE, School of Engineering and Physical Sciences, Heriot Watt University
    • Dr David Loosley, Chief Executive, IMarEST (Institute of Marine Engineering, Science and Technology)
    • Michael Parker, Global Head for Shipping, Logistics and Offshore Industries, Citigroup
    • Neil Roberts, Lloyds Market Association (LMA)
    • Martin Stopford, President, Clarkson Research

    Source: Department for Transport

  14. BIFA has been advised that as part of the UK’s preparations for exiting the EU, the government will ratify the 1968 Vienna Convention on Road Traffic.

    The Haulage Permits and Trailer Registration Bill will establish a framework that provides:-

    • The powers that will support British hauliers to continue to operate internationally after the UK leaves the EU
    • Gives the Government the necessary framework to introduce new administrative systems if needed after Brexit
    • Provides flexibility to deliver any negotiation outcome

    The key elements of the Bill are:-

    • Arrangements to enable a permit scheme if required post Brexit to ensure that UK hauliers can obtain the necessary paperwork to provide services to and from EU countries
    • The establishment of a trailer registration scheme in line with the 1968 Vienna Convention

    Further information on the proposed legislation can be found at: https://www.gov.uk/government/publications/road-haulage-and-driving-in-the-eu-post-brexit

  15. As of next month there will be three weekly Asia-North Europe services using ships of around 5,000 teu that were previously thought to have been banished from the trade in the era of the Ultra Large Container Vessel (ULCV).

    French carrier CMA CGM has been at the vanguard of this Classic Panamax revival, introducing the fortnightly SEANE service in July last year, before upgrading the loop to weekly this month. Alongside Hapag-Lloyd, CMA CGM also has the longer-established Europe-Australasia NEWMO/EAX service (average ship size of 6,100 teu) that connects Singapore with ports in North Europe on the return leg, although that is not the primary trade of the service.

    Next up will be Hyundai Merchant Marine’s new independent offering, the Asia Europe Express (AEX), which is scheduled to start operations on 8 April with the departure of the 4,728-teu Hyundai Forward from Busan. HMM confirmed the port rotation as: Busan, Shanghai, Ningbo, Kaohsiung, Yantian, Singapore, Colombo, Rotterdam, Hamburg, Southampton, Singapore, Hong Kong, and back to Busan.

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    Source: Drewry