air cargo

2016 ends on a positive note for Air Cargo

According to official data released by The International Air Transport Association (AITA), global freight volumes showed a growth in demand of 3.8% freight tonne kilometres (FTKs) compared to 2015.

This was nearly double the industry’s average growth rate of 2% over the last five years. Freight capacity also increased by 5.3% in 2016. With the exception of Latin America, all regions experienced positive freight growth in 2016. Almost half of the total annual increase in demand came from Europe.

In terms of demand, 2016 was a good year for air cargo. That was boosted by solid year-end performance. Looking ahead, strong export orders are good news. However, there are headwinds. The most significant is stagnant world trade which also faces the risk of protectionist measures. Governments must not forget that trade is a powerful tool for growth and prosperity,” said Alexandre de Juniac, IATA’s Director General and CEO.

“The air cargo industry must also improve its competitiveness. We know that the way forward is defined by digital processes which will drive efficiency and improve customer satisfaction. We must use the momentum of renewed demand growth to drive the important innovations of the e-cargo vision,” said de Juniac.

Asia-Pacific carriers held the highest market share in terms of FTKs at 37.5% followed by Europe 23.5%, North America 20.7%, Middle East 13.9%, Latin America 2.8% and Africa at 1.6%.

 

 

bad-weather

Weather Warning – Strong Winds in the UK Predicted on Thursday 23rd Feb

The MET Office have a severe weather warning in place for Thursday 23rd February covering the Port of Felixstowe with wind gusts forecasted between 60 – 80mph.

Weather Forecast MapsWind speed, 10 m above ground, 51°N 1°W, 2017/02/23 08:00 (UTC), © VentuSky.com

Due to the forecast we are expecting Felixstowe Port to close from1000hrs tomorrow morning through to the early hours of Friday morning the 24th
With this in mind, potentially there could be some disruption and delays to deliveries.

If you have deliveries booked for Thursday PM or Friday morning we would suggest bringing them forward (if possible) to tomorrow morning so we can collect containers early to avoid the MET office severe weather warning.

If you require any further information please get in touch.

We thankyou for your understanding and continued cooperation during this time.

USA UK

Theresa May and Donald Trump hold talks on a trade deal to slash tariffs

The British Prime Minister has become the first foreign leader to hold talks with the new President in the White House. Discussions are to be centred around an agreement to cut, or even drop, tariffs on items Britain and America already export to one another.

Speaking on the BBC’s Today programme, former economic advisor to the President Stephen Moore said Mr Trump would likely be looking for a trade deal similar to the one America has with Canada, and called the UK one of the US’s closest allies.

Mr Trump pledged to ensure trade arrangements that the UK currently has with the US through its EU membership would continue in place at the moment of Brexit, in a bid to provide certainty to businesses in both the UK and the US.

According to the PM, the UK is already America’s fifth largest export destination while the American markets account for almost a fifth of global exports from the UK.

The US was the largest single destination for UK outward investment and the single largest investor in the UK. American companies are investing or expanding in the UK at the rate of more than 10 projects a week at present.

bad-weather

Weather Warning – Poor sea conditions in Southern Europe

We have been advised that due to weather issues of waves of up to 11 meters in Southern Europe, vessels may be forced to slow down or seek shelter until conditions improve. This will have an impact on vessel ETAs into the UK.

Below is a quote from a carrier :

“Sea conditions are expected to deteriorate to the point where vessels are unable to transit the Bay and will seek shelter either in the Med or NEU waters, waiting out the storm”

If any of your shipments are affected then your account manager will be in contact in due course. If you have any questions please get in touch.

China freight train

First ‘Silk Road’ train from China to Britain arrives

The train took 18 days to arrive in Barking, East London from Yiwu, China after a mammoth journey which took it through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France.

The arrival of a freight train in East London is the start of a new era for the 2000 year old trading route.  The Silk Road was an ancient network running through central Asia connecting to the Mediterranean which once bought a wealth of goods from China over to the UK.

The consignment would have taken nearly twice as long to arrive by sea, and contained a cargo of household items, clothes, fabrics, bags and suitcases. Weekly trains will be run initially to assess demand.

A direct rail link between Beijing and Western Europe enables manufacturers to explore new means to lower transport costs. The line may not provide a suitable alternative to all, but its arrival coincides with even greater emphasis being placed on Britain’s export business post Brexit.

China Railway already has freight services to European destinations including Madrid and Hamburg – and is now hoping to strengthen its links with Russia, Asia and Europe in the future.

 

Southampton freight terminal expansion

Southampton’s freight terminal plans further expansion

The planned expansion of Southampton’s container terminal will help cement it’s reputation as one of the fastest, most productive freight terminals in the UK.

With the mega vessels arriving in Southampton getting bigger and bigger, Southampton’s freight terminal are scaling up to match. DP World Southampton are investing heavily in new equipment, land and quayside cranes. This increase in capacity is great news for the local freight industry, and will only help to improve the speed and productivity of the Southampton Terminal, which is already widely regarded as one of the best in the country.

The terminal recently acquired an additional 11.2 acres of land at the north east edge of the terminal, creating 640 extra ground spaces to store containers and bringing the size of the terminal to almost 100 hectares.

As well as creating more container capacity, the 11.2 acres supports operations at SCT 5 – the freight terminal’s newest and largest deep-water berth, which opened in March 2014. The new land behind this berth enables shorter run distances for straddle carriers taking containers to and from the stack, improving productivity overall.

Nick Loader, Chief Executive Officer, DP World Southampton, said:

“Container ships are getting bigger all the time. The 11.2 acres of new land will allow us to increase the utilisation of SCT 5. It will also help us to be much more efficient so that DP World Southampton can continue to load and unload vessels faster than any other container terminal in the UK. Our customers tell us that we are the most productive terminal in the UK and we intend to stay that way.”

The terminal operator’s expansion plans also include:

• Investment in 17 new straddle carriers, being manufactured by Kalmar in Poland, to replace older equipment and bring DP World Southampton’s fleet more up to date.

• The purchase of a two additional new super post-panamax cranes scheduled for delivery in early 2018.

The size of container ships importing and exporting goods around the world has nearly doubled in just under 10 years. The world’s largest container ships regularly call at DP World Southampton including the MSC Diana at 19,462 TEU. However, there are already 21,000 TEU vessels on order for delivery during 2017.

The growth of the Southampton freight terminal will help to future proof it for dealing efficiently with increasingly larger vessels, which is great news for Supreme Freight as one of the major freight forwarding companies in the area.

Feel free to get in touch to see how this could effect your freight requirements.

Southampton ABP

ABP announces £50m investment in the port of Southampton

In September Associated British Ports (ABP) unveiled it plans to invest £50m in the port of Southampton on the English south coast. The major investment comes after the port has already benefitted from £32m in ABP investment over the past five years and will support the port’s continued growth over two phases.

ABP said that Southampton is the UK’s biggest port for vehicle handling, and that the expansion of its vehicle handling facilities will increase the port’s export capacity. In 2015 in excess of 900,000 vehicles passed through the port, of which 520,000 were for export.

James Cooper, chief executive of ABP said: “Southampton is the UK’s number one port for exports, handling exports worth some £40bn and it is the UK’s number one for vehicle exports.The port is a critical part of the supply chain for the British automotive industry, providing essential access to global markets.Our investment will build on this critical role and support our customers’ drive to continue to grow their exports well into the future.”

The first phase of £25m investment will see two new vehicle handling facilities built with a combined capacity of 7,600 vehicles to be stored en route from UK manufacturers for export worldwide.

An additional two facilities will be developed during the second phase of investment – a further £25m. In total the funding from ABP is expected to increase Southampton’s capacity by 15,000 vehicle spaces; bringing the total number of vehicle handling facilities in the port to nine and the total number of vehicles it can accommodate to 55,000.

The move has been welcomed by international trade secretary Liam Fox. Mr Fox said: “This investment is positive news not just for Southampton, but for our world-class automotive industry as a whole. Southampton is a key route for British brands to access international markets and this investment will allow exporters to take advantage of the global demand for British-made vehicles.”

Hanjin

Shockwaves across global trade networks as Hanjin Shipping collapses

Hanjin Shipping, the seventh-largest container shipment firm in the world collapsed in late August after its creditors stopped providing funding and it was forced to request court receivership.

Over $14bn in cargo was left stranded at sea, and shocked global trade networks were faced with unprecedented disruption. Container ships in transit at the time the news broke were forced to remain at sea for up to a week to avoid cargo being seized at the docks by creditors.

While some ships were seized, ports all over the world were forced to deny service to Hanjin ships because agents refused to unload cargo because they feared they would not be paid. The company had no option but to pay for unloading, which has continued into October.

Cho Yang-ho, the chairman of its parent company, Hanjin Group told a court hearing in early October that the Korean firm had reached the point at which it was no longer able compete sustainably against its global competitors in receipt of financial support from their governments.

He said: “What pains me the most is that due to the court receivership many ship crews were in the middle of international waters like orphans. I am very sorry and pained to have created a logistics crisis, but we did everything we could.”

The firm is currently compiling a plan for rehabilitation which it is expected to submit to a Seoul court before the end of the year. However, industry experts anticipate that in spite of its best efforts, the carrier will be liquidated in what will be the largest bankruptcy in the industry’s history.

30th Anniversary Celebration Cruise

2016 marks our 30th anniversary, a fact we’re very proud of! We celebrated by taking the entire workforce on a two-night cruise to Guernsey aboard the P&O line Aurora.

Supreme Freight was founded in 1986 by managing director Christopher Green in Southampton, and now with our offices in Felixstowe, Heathrow, Hong Kong and Shenzhen that seems like a long time ago. A key aspect of our continued growth and success is our commitment to providing a personal touch both internally to employees and externally to clients.

Director Ashley Archdeacon said “Supreme is a family-run business and the entire team is considered an extension of that, which I think sets it apart from many employers.

“Several of our staff have been here since the beginning and we all feel very fortunate to be part of this loyal and experienced team. We work really hard at building authentic and strong relationships with our clients and we see ourselves as a part of their operation, which makes us stand out in this competitive market place.

“Being rewarded in this way is a huge investment in us and shows how committed and motivated we all are to moving forward as a strong business.”

According to Mr Green, the celebrations to mark our 30th year of trading presented an opportunity for us to acknowledge our achievements as well as look to the future.

He said: “Whilst the vote for Brexit has thrust the UK into economic unpredictability, I have communicated clearly to our employees and stakeholders that Supreme Freight Services is entering these uncertain times in a position of strength, positivity and conviction.

“Our business is stronger than ever and we remain focused on serving our clients with the confidence, expertise and reliability that we always have, and on identifying opportunities to expand and enhance.”