Air Archives | Page 29 of 31

EU launch customs pre-advice regime for air cargo

Feb 16, 2023 | Air

On the 1st March 2023, the European Union is launching a customs pre-loading and pre-arrival safety and security programme, which will require the pre-advice of mandatory information and failure to provide the correct data in good time may lead to goods being rejected by the airline.

The EU’s Import Control System (ICS) processes large-scale advance cargo information to monitor the security of the EU´s external border and automation of the process means that data can be exchanged more efficiently between carriers and EU member states.

ICS2 is an automated entry process that will apply to all air cargo moving to and via the EU from the 1st March 2023 and requires customs pre-acceptance and pre-arrival security and safety clearance.

We are preparing for the new requirements by adapting our processes and systems to meet the new EU requirements, but compliance with ICS2 changes will depend on the active participation of shippers.

Carriers will require full airway bill data, which we will provide them with, before acceptance to fulfil their responsibility for the pre-loading filing (PLACI).

The carrier’s pre-loading and pre-arrival information data set, including the journey details, is sent to ICS2, where it is automatically reviewed for possible security threats. The pre-loading and pre-arrival messages are collectively referred to as the Entry Summary Declaration (ENS).

We will require the following information, so that we can ensure the pre-loading data is made available to the carrier in good time:

Shipper Name

Shipper Address

Consignee Name (including EORI number for cargo staying in Europe)

Consignee Address

Cargo Description (including 6-digit HS codes)

Total Quantity

Total Weight

EU Customs analyse the data and return approval to load, request for information or Screening, or direct not to load.

When the ENS information is not provided to EU customs, shipments will be stopped and will not be processed for customs clearance, which will lead to delays and potential fines.

We are working closely with our airline partners, test-submitting these new data elements in our airway bill and consolidation lists, to ensure the smooth implementation of this new EU customs process.

If you have any concerns or questions, regarding the ICS2 roll-out please EMAIL Elliot Carlile.

US freight market round-up

Feb 16, 2023 | Air, Sea, Supply Chain, United States

There was no pre-CNY transpacific rush this year and with China re-opening, factories are expected to open again in the second half of February, which is why carriers have tried to maintain rates. The CNY has given US ports a respite and most are now clear, with hardly any ships waiting outside West Coast ports and very few off the East Coast and Gulf.

Asia

The traditional ex-Asia space and volume crunch around Chinese New Year was extremely muted and market capacity remained higher than previous years, so we expect blank sailings to continue, as the lines attempt to stabilise rates.

Maersk’s 2022 Q4 volumes were down 14% on 2021 and it announced on Monday the “temporary suspension” of its TP20 transpacific loop, while OOCL’s North American liftings were down 16% over the year.

Despite US retail sales performing well in 2022, amidst higher inflation, global economic turmoil is adding to the uncertainty as to how strong demand from Asia will be in the second half of this year, with the lines struggling to balance transpacific capacity, if demand does not pick up in the summer-fall peak season.

In the current transpacific environment in which spot rates and demand have fallen dramatically, the focus is now on cutting additional fees, such as detention charges for the late return of equipment, which can add hundreds of dollars to the total transportation cost.

Shippers want more free storage days and the container shipping lines say (off-the-record) that they’re willing to be flexible on detention if they receive compensatory freight rates.

The container shipping lines claim that their problems have been amplified because their operational and administration costs increased significantly during the pandemic, and while freight rates have been dropping, the carriers’ per-unit costs have increased. On the eastbound transpacific trade-lane the lines claim units costs are up by >40% due to vessel backlogs and inland bottlenecks that add delays and costs to the supply chain, rising prices for bunker and diesel fuel, and administrative costs.

Detention charges normally kick in after four or five days and the daily costs for chassis, which the lines lease from intermodal equipment providers, vary depending upon the contractual relationship they have with the equipment lessor. Other costs are more nebulous, such as the potential revenue that is lost when the equipment sits idle at a warehouse for days or weeks.

Carriers tend to be more bullish about demurrage charges, which are levied by the terminals when inbound loaded containers are left on the docks after their free days.

Transatlantic

The number of blank sailings from Europe to the U.S. has been minimal despite demand and rates softening and capacity is set to increase as MSC and Maersk are adding more vessels in the Mediterranean loops in the next few weeks.

Falling volumes has assisted the easing of congestion in U.S. East Coast (USEC) and U.S. West Coast (USWC) ports, with equipment availability getting better as congestion eases.

Low empty stacks at inland depots are becoming established in some areas, but we still recommend equipment pick-up from the Port of Loading if possible and early shipment booking.

From the U.S. to Europe there is plenty of USEC capacity available, but services from Gulf and USWC ports remain tight and the market is stable. Gulf Coast to Europe services continue to have medium to high utilisation levels, though this is softening with the reintroduction of capacity.

ILWU

During the nine-month-long impasse in negotiations, between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) dockworkers have engaged in unofficial actions at ports in Southern California, Northern California, and the Pacific Northwest that, although limited in scope and duration, have nonetheless caused disruptions in cargo handling.

Shippers will continue to route cargo away from the West Coast, until the PMA and ILWU reach a contract settlement.

Since last Autumn, Los Angeles-Long Beach and the Northwest Seaport Alliance of Seattle and Tacoma have registered year-over-year declines in imports from Asia, while imports through major East and Gulf coast ports have increased.

Air

Capacity from Asia continues to outstrip demand, which export demand from the U.S. remains steady to all markets, with airports running at a normal pace.

Capacity is opening up further, especially into Europe and rates remain stable week over week.

We negotiate long-term and FAK contracts with shipping lines across all three alliances to secure space and rates, so that we can provide the best alternatives and options, whatever the situation.

We have avoided huge detention and demurrage costs over the last few years for our customers, through slick entry to and from the USA markets and utilising our own facilities, or partner container yards, to limit the impact.

To learn how we can support your trade with the United States, or to learn more about our ocean and air solutions, please EMAIL our Chief Commercial Officer, Andy Smith.

Foreign currency block sees airlines cut Bangladesh services

Feb 2, 2023 | Air

Leading garment manufacturer, Bangladesh, has withheld over USD $200 million of airline funds for repatriation, reportedly using the funds to shore up its depleted treasuries, leading foreign airlines to scale back their services and discouraging new market entrants.

The International Air Transport Association warned last month that the amount of airline funds for repatriation being blocked by governments has risen by over 25% in the last six months to USD $2 billion.

Over 27 countries and territories are blocking funds from repatriation, the IATA said, with Nigeria topping, followed by Pakistan and Bangladesh coming in third position.

By the middle of 2022, Bangladesh’s Hazrat Shahjalal International Airport, in the capital Dhaka, was operating 140 international flights daily, on average.

Turkish Airlines usually operates 14 flights weekly in Bangladesh, but has been operating only seven flights a week since November as it cannot remit around USD $24 million and most other foreign airlines including Malindo Air, Kuwait Airways, and Cathay Pacific face the same issue and have slashed their flight frequencies to and from Bangladesh.

Fund repatriation by foreign airlines operating in Bangladesh has remained suspended since March 2022, with IATA calling on governments to remove barriers to airlines repatriating their revenues, in line with international agreements and treaty obligations.

Moreover, carriers are having to pay for refuelling their aircraft in Bangladesh by bringing in dollars through inward remittances, having been asked to pay it in dollars several years ago.

The country’s tourist trade body has predicted that the number of flights by foreign airlines from Bangladesh may decrease by 60% in the next six months to one year.

Around 80-90 international flights currently operate from Dhaka airport each day, equivalent to a 40% drop on last year.

Willie Walsh, Director General of IATA said, "No business can sustain providing service if they cannot get paid and this is no different for airlines…and it is critical for any economy to remain globally connected to markets and supply chains.”

IATA continues to monitor the situation very closely and is engaging with the Bank of Bangladesh. It urged the countries' governments to quickly release all outstanding funds of the airlines to avoid disruptions in the smooth flow of passengers and goods into their economies.

There will be more to feature and share on this subject over 2023 and we will continue to keep you updated with the latest development in any country that you are trading with globally. Unfortunately the situation is not unique to Bangladesh in relation to economies running out of foreign exchange and the impact is likely to increase globally with fallout across the supply chain, regardless of the mode.

Despite the challenges, we continue to get our customers’ shipments lifted from Bangladesh. We work closely with our local partners to monitor the situation, market capacity and new service opportunities that might benefit our customers, such as placing shipments through alternative gateway airports in India or Singapore with a land-bridge or ocean first leg connection.

Evaluating and booking space on viable services early, including cross-modal and cross-border solutions, is a critical factor in achieving our customers’ deadlines.

EMAIL Elliot Carlie to review our time-sensitive solutions for your Bangladesh and Asia shipments.

In a challenging air freight market it’s time to remember the basics

Jan 18, 2023 | Air

With factories closing across China, ahead of Sunday’s start of the Lunar new year holidays, air freight demand on major routes has continued to decline, prompting our commercial team to remind their colleagues what makes Metro’s air freight product stand out from the crowd.

With air freight rates now significantly below 2021 levels, the market is normalising and means that time-sensitive shippers could benefit from some significant opportunities on the most popular trade-lanes…the perfect time to highlight our air freight and time-sensitive credentials!

One of the UK’s leading logistics exporters by air, Metro are recognised as an award winning innovator for air cargo, with strategic relationships at regional airport hubs, including Heathrow, Birmingham and Manchester.

Freight

We ensure that your cargo always arrives on time, at the lowest cost, by using the optimum blend of carriers, service and transit time. Always ensuring that you have the right balance of expected transit and cost and every option available in a turbulent time-critical market.

Charter

We leverage our long-standing carrier relationships, or as we prefer to consider them partnerships, to secure and position cost-effective charter aircraft for urgent cargo and project shipment needs.

Courier

We have access to the most competitive integrator rates and services for valuable consignments and samples, with solutions for the most urgent requirements.

Our team

We share a sense of urgency and attention to detail, anticipating issues and preventing them from happening, or working around them whatever the challenge – we have our finger on the daily aviation pulse. We communicate openly with each other, customers, partners and carriers. Together we are committed to continuous improvement. Optimising every movement and ensuring deadlines are met – in fact that will always be one of our first questions – what delivery date is required?

We operate regular inbound and outbound consolidation services and work with leading global carriers, together with selected regional carriers, and where needed our own dedicated charter flights. Total control.

By integrating carrier schedules, we offer the widest choice of routes, transit and services, to provide the most cost-effective solutions for every need, from next flight out to time-definite and economy.

Key products

We are dangerous goods specialists, for all hazard types and are particularly skilled in the safe handling and transportation of Lithium Batteries.

Our team offer European cross-trade solutions, that complement export and import services. We cover the world with our network – the majority of the air freight movements we carry do not originate or are destined for UK/ Europe.

When market conditions are favourable our Sea/Air solutions via our dedicated Singapore and Dubai hubs are the most cost-effective, reliable, secure and flexible solution available in the market.

We handle all types of cargo, door-to-door, dealing with paperwork and arranging customs clearance anywhere in the world, for a wide range of verticals including garments, food and beverage products, retail consumer goods, automotive and chemicals.

For further details on our time critical movements, air freight products or ‘distressed ocean freight’ please contact Elliot Carlile who will talk you through the current week's solutions, or long term contracted fixed validity rates, that we can deliver throughout 2023. Listening to the requirements, designing and creating solutions is what Elliot thrives on, with his team of cargo aviation experts – proven and proactive.