Metro Archives | Page 29 of 34

Critical Christmas considerations

Dec 16, 2021 | Metro, Supply Chain

Current supply chain stresses and Christmas holiday dates are combining to create specific festive challenges, that may impact your supply chain, which is why we have compiled those most likely to have an operational or financial impact.

As we come towards the close of the year we are faced with challenges across the board, on all modes of transport, in all directions. With this year’s festive holiday period basically offering a two day delivery window, between the 24th December and 4th January.

Issues that are being experienced and expected to escalate during the 10 day holiday period include:

Ports, airports, rail heads will be lightly staffed, slowing vessel unloading/ loading with potential for delays, backlog of vessels or UK ports being omitted.
Hauliers and drivers taking holiday will restrict vehicle availability and capacity.
Clients’ warehouses/ DC’s will be closed or working on restricted staff numbers, with reduced booking windows.
Vessels continue to arrive off schedule and are still changing daily on ETA/ETD or omitting ports.
Airlines are cancelling large numbers of scheduled flights due to falling travel demand creating a shortage of cargo capacity, especially on long haul routes such as North America and Asia creating a spike in prices.
Hauliers and shipping lines currently are primarily only accepting transport transactions after January 4th 2022.
If ports become congested due to a slow down in equipment release and acceptance it is highly likely that they will not be able to receive either laden or unladen containers and these will be redirected to other interim holding areas/ ports as a consequence.
Customs authorities will be operating with skeleton staff throughout UK and Europe – for any urgent brokerage requirements please ensure that these are highlighted as soon as possible.
Shipping lines and Ports are not giving any extended free time or detention and demurrage days resulting in additional costs being incurred. These are likely to be incurred 5 to 7 days after arrival of vessels, when they do eventually berth.
This list is by no means exhaustive and these observations are without the growing effect of the Omicron COVID variant, which looks likely to massively impact the UK infrastructure over coming weeks, leading to working restrictions and possible firebreak lockdowns.

Metro are doing everything that we can to mitigate additional costs but the reality is with a 10 day ‘virtual closure’ of the logistics sector in the UK and the growing influence of Omicron, additional costs may be unavoidable, whether as a recovery of issues as they occur, or through storage charges that are applied after free time periods are exceeded.

We will continue to keep you updated and advised on the conditions and events as they occur and we will advise on additional costs that are incurred, or likely to be incurred, as soon as we are aware of these.

We are asking customers to advise on their own arrangements for the festive period, in relation to warehouse availability, office attendance and out of office contact details so that we are able to communicate everything with you during the Christmas and New Year holiday season.

Metro will continue to operate, as key workers, from the office and remotely from home with the statutory holidays being observed, when we will be closed, like most other organisations. We understand the need for proactive and high level communication during the period, and as always, we will ensure that you are kept advised of the situation down to consignment transaction level.

Thank you for your support, Merry Christmas and Happy New Year.

Port congestion eases, but challenges will continue to remain

Nov 25, 2021 | Metro, Sea, Supply Chain

Asia’s largest ports are showing signs that congestion is easing ahead of the Christmas holiday season, with Shanghai traffic declining 0.2%, Hong Kong ship count dropping 10.4% and Singapore dropping 14.7% according to an analysis by Bloomberg.

While any easing of volume is welcome, Bloomberg’s results are based on a single week’s traffic and the latest data from the World Container Index shows basically no changes in pricing at all compared to the previous week.

It would be great to think that Bloomberg’s advisory, that a drop in volumes, is the beginning of a large decline and a reversal to normal rate levels, but we would suggest caution in concluding this just yet. Or for the foreseeable future – as there are many mixed messages currently – and most are based on short term data and not considering the long term effects and impact, as an observation.

It seems more likely that the worst pressure on the trans-Pacific trade might have been alleviated, but the global capacity shortage persists and we cannot see a similar impact on Asia-Europe or Europe-North America.

Bad weather, accidents, COVID-related work constraints and increasing spending, due to COVID19 related consumer demand, have contributed to Chinese terminal lockdowns and logistical port challenges for almost two years, resulting in record levels of congestion, from manufacturing hubs in China to import gateways in the US and Northwest Europe.

Comparing levels of container congestion across China, 2021 started at similar levels to the previous two years, with the count of vessels waiting averaging just 88 per day between January and April. However, over the past six months, there has been a significant increase in the number of vessels waiting and numbers are still higher than they were at the beginning of the year.

Levels of congestion in China peaked at the end of July at 361 vessels, as typhoon In-Fa struck. With vessels unable to safely enter a port, queues built up and caused further disruptions to schedules. Since then, over the past three months, we have seen Container congestion gradually decrease in China, but there were still around 180 vessels, a total of 936,073 TEU, waiting off China at the end of last month.

Delays are still being felt in the UK, as retailers try to fill shelves in time for Christmas, with 40% of the UK’s containerised imports moving through Felixstowe alone.

The port has received around 45% fewer container ships this month compared to the same period in 2020, and around 50% less than the same period in 2019, which reflects carriers missing Felixstowe on rotation and suggests that the port is struggling with turnaround times, as a severe shortage of HGV drivers and terminal congestion means boxes are not leaving port quickly enough to clear space for the return of empty containers. None of this helps the disruption and challenges being experienced daily, which seem to be relentless.

While the current drop in Asian volumes is most likely a blip, it may be that we will see a lull in demand in the New Year, with the Christmas period ending and Chinese New Year.

This could ease congestion slightly, but if the high number of vessels waiting remains, it’s possible that clearing the backlog of vessels may extend into the second quarter of 2022.

Importers and especially those shipping via Felixstowe stand to benefit significantly from our new 750,000 sq ft and 100K pallet position mega distribution centre, located beside the container port.

The new Felixstowe Mega Distribution Centre offers the smart executive access to plenty of space and the opportunity to cut costs, simplify processes and improve cash flow.

We are creative with our solutions, investments and customer engagement. So that is what you need, we deliver, to build satisfaction in the long and short term.

Please contact Grant Liddell to discuss further – it will be productive and have a meaningful outcome.

Mega Felixstowe DC offers so much more than space – it’s UNIque

Nov 25, 2021 | Logistics, Metro, Supply Chain, Warehouse

With warehouse space becoming increasingly scarce, access to 100,000 pallet spaces would be welcomed by most shippers. The new group Mega Distribution Centre beside Felixstowe port, offers the smart executive access to plenty of space and the opportunity to cut costs, simplify processes and improve cash flow.

The new 750,000 sq ft Felixstowe Mega DC (FMDC) is just 400 metres from the UK’s largest container port, offering shippers all the benefits of port-centric logistics.

Rather than transporting goods away from the port, often hundreds of miles, to inland warehouses, the port-centric model lets you replace costly, time-consuming links in the supply chain, with simple solutions from ship to doorstep.

1. Reduce cost

Immediately remove the difficult to arrange and often costly haulage from port to inland warehouse as well as totally avoiding the high - and often unavoidable - costs of quay rent and container detention.

2. Reduce complexity

Simplify the supply chain by removing handling stages through the storage and distribution process. Holding buffer stocks at the point of import, until call-off and direct delivery, avoids wasted freight miles, provides buffer stock and frees up inland warehouse resource.

3. Quicker access to goods

Port-centric warehousing provides the quickest route for product to inventory, reducing lead times and giving visibility of the quality and quantity of goods in the fastest way possible.

4. Improved cash flow

Bonded storage improves cash flow by deferring payment for duty and VAT until goods are released for sale in the UK. Calling off stock as it is needed provides cashflow control and contingencies back into the supply-chain planning.

Located on a 28-acre site alongside the A14 and Felixstowe, the 750,000 sq ft fulfilment centre opened in the second quarter of 2021. It is British Retail Consortium (BRC) food grade accredited and Customs-bonded for wet and dry goods.

400,000 sq ft narrow/wide aisle pallet racking
200,000 sq ft eFulfilment zone
100,000 sq ft cold store
80,000 ambient pallet spaces
18,000 pallet spaces of frozen storage
10 levels of racking
4 mezzanine floors
Advanced electrical mechanical handling equipment
Significant green credentials

If you need and desire a strategy that is future-proof, that will deliver your product to the right place, at the right time, please contact Chris Carlie. We can scope and profile your full requirements and aspirations, to demonstrate how we can assist you in a challenging environment.

We recommend a collaborative approach, to identify the many other benefits and opportunities we can offer within your supply chains, that will allow you to focus on distribution and manufacturing of your core business platform.

We would be delighted to arrange a virtual tour, online meeting and ideally a visit and tour of the facilities that truly are market leading and enhancing to our customers.

GVMS, your new frontier control mechanism – January 1st 2022

Nov 25, 2021 | Customs, EU, Metro

On the 1st January 2022 the UK is imposing full border controls and many short-sea ports, including Dover and Eurotunnel have opted to use Goods Vehicle Movement Service (GVMS) as the frontier control mechanism. We have been using it since its launch at the beginning of the year, for GB-NI movements and it works well. Are you familiar – if not you NEED to be. Read on…..

Shipments moving into Great Britain will need an MRN (Movement Reference Number) which must contain at least one of the following:

1. Deferred Entry - EORI number of the EIDR (Entry in Declarant's Records) approved trader who will enter details in their records and submit a declaration later. We have this approval.

2. Simplified frontier declaration (SFD) - Entry number for the SFD. Note: Food, feed and controlled goods need an SFD even if using EIDR and this requires about 80% of the data normally required for a full declaration (normal SFD only requires 40%).

3. Full frontier declaration (FFD) - Entry number for the FFD. As the name suggests a full entry completes the importer's declaration to HMRC and requires no supplementary actions, unlike the Deferred Entry and SFD.

At the moment the pre-lodged import entry is not connected to the frontier and the truck is not delayed if the pre-lodgement is not ready in time. From the 1st January 2022, one of the above must be lodged on the GVMS system (for each consignment) in order to get a Goods Movement Reference (GMR) number or the driver will be unable to check-in at the EU port/terminal and the truck will not be allowed to board.

For vehicles checking at EU ports, the carrier will use GVMS to verify the GMR presented to them and cross-check the details on the GMR with the vehicle. Vehicles will be turned away at check-in if a valid GMR cannot be presented or if their registration number(s) do not match those on the GMR.

GVMS allows for automatic arrival in HMRC’s declaration processing system CHIEF, as soon as goods board at the EU side, so that UK import declarations can be processed by HMRC en route to the UK.

Once the vehicle and/or trailers have embarked on the crossing, the status in GVMS will be updated to EMBARK. The platform sends an electronic notification through CHIEF when inbound goods are successfully cleared before they arrive in the UK, allowing them to quickly pass through customs.

If the GVMS determines that the movement requires inspection, a notification will be sent within 30 minutes after embarkation. Those vehicles must report to a customs inspection point upon arrival, where customs officials will update GVMS once the consignment has been cleared.

For transit shipments, the transit declaration will be automatically updated in the New Computerised Transit System (NCTS) on the basis of the Transit accompanying document (TAD) data entered in GVMS prior to departure in the EU.

Available to new and existing customers, the CuDoS customs brokerage platform automates and submits customs declarations, simplifying compliant border processing, in either direction.

CuDoS safeguards our customers’ EU supply chains from the potential fallout of easement and regime changes, which means that their EU/UK movements will not be interrupted when full UK/EU border controls are implemented on the 1st January 2022.

To discuss your situation and to learn how we automate customs declarations for businesses of all sizes, please contact Elliot Carlile or Andy Fitchett who can talk you through the options.