Market Update

Market Update September 2023

September 8, 2023
Sasha Khan
Marketing Coordinator
4 Minutes

Ocean Freight Updates

  • Currently, ocean freight movements are experiencing smooth sailing without any congestion or port-related problems, along with an ample supply of haulage services helping UK land-side operations.
  • Blank sailings continue as carriers look to manage the market volumes with the larger vessels now in operation
  • Over-stocking syndrome is fading as inventory levels start to decrease, consumers adjusting to the new reality will hopefully trigger a volume rebound
  • Carriers looking to utilise rail options using Road for the last leg local delivery

There is a softening of capacity issues in the market, but Peak Season is ahead of us now, so our suggestion is to plan early. Consider LCL to reduce stock holdings and take advantage of the pay for what you use or need rather than having to take additional stock to justify the FCL move to meet agreed container utilisation statistics.

Asia - Europe Trade Lanes Carriers implement GRIs

Spot rates from Asia to the US West Coast have spiked around 70% in the past few months. The peak shipping season from Asia usually affects the prices of shipping goods by sea, however, it could be said that the management of shipping companies' available space for goods (capacity management) plays a larger role.

This change started on the route between Asia and the US West Coast, and it's likely to affect the route between Asia and Europe soon, too.  

Though the peak season might not be as busy as usual this year, things could get better as the year goes on. Shipping companies are keen on rate increases, but people aren't feeling very enthusiastic about that right now. The next few months will be important for figuring out what will happen.

Peak Shipping Season - Will demand increase in the second part of the year?  

The beginning of 2023 saw higher prices as people weren't spending as much on non-essential things. These effects from the first part of the year might mean that this year's peak season will be quieter than normal, similar to 2022.

Peak season doesn't always happen as expected. Disruption can happen, orders are being placed earlier and more products are being kept in stock. The way supply chains work has shifted, and this might be the new usual for an uncertain period.

Asia Air Freight

Demand for Air Freight is dropping globally

The demand for Air Freight is dropping globally (TAC Index), except for a big surge in E-Commerce shipments, especially from South China.

TAC Index says that Hong Kong raised its rates by 2.1% for cargo to Europe, while the prices from the UK to China went down slightly.

Pathway Updates

Latest in supply chain technology

This month the IT and Innovation team have delivered a host of improvements to the Unsworth booking management hub.

This helps us to work closer with our origin and destination partners and enhance pre-shipment visibility to include a number of important milestones.

Our goal as always is to constantly improve the client experience, and by improving pre-shipment functionality, we allow clients to make informed choices at an earlier point in the shipment lifecycle, where those decisions can have a much greater impact on bottom line and supply chain consistency.

EU Customs

Common Health Entry Document Operator Portal (CHOP) - New updates this October

In preparation for the Northern Ireland Retail Movement Scheme (NIRMS) replacing STAMNI on 1st October 2023, DAERA have developed a new database called CHOP (CHED Operator Portal).

Traders currently moving goods from GB to NI will be familiar with CHED terminology - Common Health Entry Document which is the prenotification process on TRACESNT for consignments of SPS goods entering NI from GB.

CHOP has been designed specifically for the benefit of NI Traders to ease the movement of SPS goods between GB and NI. In relation to the NI Retail Movement Scheme, it will offer significant benefits including the streamlining of:

  • Monitoring consignment status
  • Completion of channelling returns
  • Large document/photo uploads

Who needs to register?

The person creating the CHED must register for CHOP. This could be the NI importer, agent and/or haulier. Only one person from each company needs to sign up to CHOP initially and they can then add more people from within their organisation when registered.

To find out how to register, click here.

CDS Exports Now Delayed - Until March 2024

HMRC have last week confirmed the deadline for CDS export declarations has been delayed again, this time until 30th March 2024.

CDS is the new software system for handling the customs declaration process and is already handling imports, which were transferred from the CHIEF system in September 22.

Exports were due to move over to CDS in March 23, but that date was moved to November 23 prior to this week’s announcement that there will be a further delay until March 24.

The new target does not apply to everybody, since some high volume declarants are being phased onto CDS from November, these businesses will be contacted shortly by HMRC.

The full announcement from HMRC can found HERE.

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