Covid Vaccines add to Sea and Air Freight Challenges

The news that the UK has become the first country in the world to approve the Pfizer/BioNTech coronavirus vaccine marks the welcome start of the end of the pandemic for us all. However the expected post-Covid economic rebound has thrown the global container shipping industry into turmoil and as a result is having a significant impact on sea and airfreight capacity and prices, as well as putting further strain on the UK logistics supply chain.

International supply chain specialist, Chris Evans from Colliers International, said: “The Covid-19 economic rebound and state-imposed Covid precautions have added to existing global container shipping challenges for importers and exporters, exacerbating existing port congestion issues and resulting in a worldwide shortage of empty shipping containers to support the global supply chain. In addition, the average dwell time from arrival in a destination country is increasing by approximately 50%, mostly due to changes of procedure in receiving warehouses as a response to the Covid restrictions.”

Increased volumes causing rolling congestion issues in ports globally

“The impacts of increased volume at the main container ports has created a rolling congestion problem,” continues Chris. “For example, Felixstowe (FLX) is particularly badly hit and this has spilled over to the other main container ports such as Southampton, London Gateway and inland railheads. If we throw into the mix the ongoing HGV driver shortage and the reduced efficiency at warehouses, all of this is leading to a delay and loss of efficiency for hauliers and those firms slow to adapt to the challenges of collecting boxes from the ports.

“This congestion has caused ships omit UK ports, mainly to call at Rotterdam, Antwerp and now Zeebrugge and then bring the containers across to the UK using smaller feeder vessels. This strategy is not the least bit unusual, however as a result of this, we are seeing much bigger volumes moving into the East Coast Ports, such as Teesport, Hull and Immingham, plus west coast ports such as Bristol and Liverpool.

“The owners of the highly congested FLX, Hutchison Ports, for example, have made Thamesport available for Evergreen to move their ships there for discharge. This is a temporary solution which will not be easy for Evergreen because the infrastructure in the area is poor in general. Furthermore, the Singapore-headquartered, ONE alliance has agreed to discharge one of its loops with UK bound cargoes at Zeebrugge for the whole of December and possibly into January too. Meanwhile, the 2M alliance (Maersk & MSC, the largest container lines in the world) is now discharging UK cargoes at Bremerhaven and feeding the UK boxes from there. All this is likely to cause feeder space to become tight and have a knock on effect with further congestion at the European ports.

“This shortage of containers is further exacerbated by congestion at ports such as Colombo (Sri Lanka), where over 50,000 containers are stuck. Initially, it started due to a Covid outbreak and then mushroomed very quickly due to existing congestion in the Bay of Bengal ports in countries such as Bangladesh and the Indian ports along the coast.

“Set against this background, sea-freight rates have risen rapidly because the shipping lines are very tightly managing their ship capacity, particularly on the East West trade routes, so that the trade is now dominated by three alliances and the use of ultra large containerships with 18,000 to 24,000 TEU capacity. This brings a separate set of challenges for the ports around the world, when they are used to discharging 4,000 to 5,000 containers at a time and then pick up a similar amount, with a significant number of these normally being empties.” This causing problems back in the Far East with container supply.

Vaccine roll out impacting airfreight and supply chain logistics

“Meanwhile, we are also seeing the impact of the vaccine roll out at international airports too as they prepare to begin distributing the vaccine around the world at ultra-low temperatures, and airlines are adapting cargo strategies to accommodate the vaccine, as seen with Singapore Airlines which sacrificed standard cargoes in favour of the vaccines last week. There is also an increased amount of rapid testing kits being airfreighted from Korea to Europe by Korean Air. This activity is bumping Hyundai and Kia parts off the flights, all of this will have an impact further back in the supply chain. The result of this is much higher airfreight prices and reduced capacity once again because the bulk of airfreight normally moves as belly hold cargo in passenger planes.”

What does this mean for Brexit?

“As businesses prepare for Brexit, we should expect more short sea freight to be moved via the East coast ports rather than through the traditional Channel ports such as Dover. There will be more unaccompanied trailers plus the absence of passengers (PAX ) will increase costs as these vessels become RO/RO (roll on/roll off) rather than RO/PAX (roll on/passenger). We are already seeing this happening now in Teesport and Hull. Overall, all ports will need to ensure that their Border Inspection Post (BIP) is capable of handling the foodstuffs that we typically get from the EU countries.”

Covid Vaccines add to Sea and Air Freight Challenges

The news that the UK has become the first country in the world to approve the Pfizer/BioNTech coronavirus vaccine marks the welcome start of the end of the pandemic for us all. However the expected post-Covid economic rebound has thrown the global container shipping industry into turmoil and as a result is having a significant impact on sea and airfreight capacity and prices, as well as putting further strain on the UK logistics supply chain.

International supply chain specialist, Chris Evans from Colliers International, said: “The Covid-19 economic rebound and state-imposed Covid precautions have added to existing global container shipping challenges for importers and exporters, exacerbating existing port congestion issues and resulting in a worldwide shortage of empty shipping containers to support the global supply chain. In addition, the average dwell time from arrival in a destination country is increasing by approximately 50%, mostly due to changes of procedure in receiving warehouses as a response to the Covid restrictions.”

Increased volumes causing rolling congestion issues in ports globally

“The impacts of increased volume at the main container ports has created a rolling congestion problem,” continues Chris. “For example, Felixstowe (FLX) is particularly badly hit and this has spilled over to the other main container ports such as Southampton, London Gateway and inland railheads. If we throw into the mix the ongoing HGV driver shortage and the reduced efficiency at warehouses, all of this is leading to a delay and loss of efficiency for hauliers and those firms slow to adapt to the challenges of collecting boxes from the ports.

“This congestion has caused ships omit UK ports, mainly to call at Rotterdam, Antwerp and now Zeebrugge and then bring the containers across to the UK using smaller feeder vessels. This strategy is not the least bit unusual, however as a result of this, we are seeing much bigger volumes moving into the East Coast Ports, such as Teesport, Hull and Immingham, plus west coast ports such as Bristol and Liverpool.

“The owners of the highly congested FLX, Hutchison Ports, for example, have made Thamesport available for Evergreen to move their ships there for discharge. This is a temporary solution which will not be easy for Evergreen because the infrastructure in the area is poor in general. Furthermore, the Singapore-headquartered, ONE alliance has agreed to discharge one of its loops with UK bound cargoes at Zeebrugge for the whole of December and possibly into January too. Meanwhile, the 2M alliance (Maersk & MSC, the largest container lines in the world) is now discharging UK cargoes at Bremerhaven and feeding the UK boxes from there. All this is likely to cause feeder space to become tight and have a knock on effect with further congestion at the European ports.

“This shortage of containers is further exacerbated by congestion at ports such as Colombo (Sri Lanka), where over 50,000 containers are stuck. Initially, it started due to a Covid outbreak and then mushroomed very quickly due to existing congestion in the Bay of Bengal ports in countries such as Bangladesh and the Indian ports along the coast.

“Set against this background, sea-freight rates have risen rapidly because the shipping lines are very tightly managing their ship capacity, particularly on the East West trade routes, so that the trade is now dominated by three alliances and the use of ultra large containerships with 18,000 to 24,000 TEU capacity. This brings a separate set of challenges for the ports around the world, when they are used to discharging 4,000 to 5,000 containers at a time and then pick up a similar amount, with a significant number of these normally being empties.” This causing problems back in the Far East with container supply.

Vaccine roll out impacting airfreight and supply chain logistics

“Meanwhile, we are also seeing the impact of the vaccine roll out at international airports too as they prepare to begin distributing the vaccine around the world at ultra-low temperatures, and airlines are adapting cargo strategies to accommodate the vaccine, as seen with Singapore Airlines which sacrificed standard cargoes in favour of the vaccines last week. There is also an increased amount of rapid testing kits being airfreighted from Korea to Europe by Korean Air. This activity is bumping Hyundai and Kia parts off the flights, all of this will have an impact further back in the supply chain. The result of this is much higher airfreight prices and reduced capacity once again because the bulk of airfreight normally moves as belly hold cargo in passenger planes.”

What does this mean for Brexit?

“As businesses prepare for Brexit, we should expect more short sea freight to be moved via the East coast ports rather than through the traditional Channel ports such as Dover. There will be more unaccompanied trailers plus the absence of passengers (PAX ) will increase costs as these vessels become RO/RO (roll on/roll off) rather than RO/PAX (roll on/passenger). We are already seeing this happening now in Teesport and Hull. Overall, all ports will need to ensure that their Border Inspection Post (BIP) is capable of handling the foodstuffs that we typically get from the EU countries.”

Transporting Metro Train Cars

GEODIS is transporting, for the French manufacturer Alstom, the 10 metro trains for line 3 of the Hanoi metro, a total of forty railcars. A new train will leave the port of Dunkirk this weekend, aboard the containership Champs Elysées.

Manufactured at the Alstom factory in Petite-Forêt (Valenciennes), the new 4 metro cars that will leave France for Hanoi arrived at Dunkirk by road, with transport arranged, two by two by the GEODIS team, at the end of last week. They will be delivered in Hanoi in less than two months time.

The whole complex move will be spread over a nine-month period and is due to be completed by the mid of the year 2021 2021. A total of 10 shipments are planned. GEODIS Industrial Project teams are managing the end-to-end transport process from France to Vietnam through Malaysia including the loading at Alstom Valenciennes premises, oversized pre-carriage to Dunkirk, port handling, delivery to the destination site and transport engineering. The entire shipment will amount to nearly 10,000 freight tons of passenger railcars and will comprise ten full metro trains.

Johann Taccoen, GEODIS’ Deputy Regional Director, Industrial Projects in France is heavily involved in the management of the move, “This is a meticulous operation that we have been preparing for in close partnership with our customer, the manufacturer Alstom, over several months. Our aim is to ensure that the goods reach their destination safely and securely, all within a very tight timeframe. In particular, our people’s skills in achieving reliable transit times, controlling costs and maintaining safety standards are pivotal.”

The container line CMA CGM that provides the ocean transport, on behalf of GEODIS, needs to trans-ship the cargo in Port Kelang, Malaysia before continuing the journey to Haiphong, the Vietnamese port situated some 190 kilometers from Hanoi. Both the pervading Covid19 restrictions and the need for specially designed lifting equipment at all three ports constitute further challenges for the operations teams.

In Vietnam, Vu Huynh, Industrial Project Manager of GEODIS leads the delivery operation. “The on-carriage of each railcar requires a road convoy of more than 30 meters in length.” he said. “As a consequence the delivery of each metro train set involves two overnight journeys with planning for secure stopping areas and ensuring all safety and traffic impact requirements are fulfilled. Moreover, given space constraints at the Hanoi Metro Depot off-loading site, careful coordination is needed to guarantee a safe, damage-free operation.”

This large-scale project illustrates GEODIS’ ability to overcome logistical challenges together on behalf of its customers.

Transporting Metro Train Cars

GEODIS is transporting, for the French manufacturer Alstom, the 10 metro trains for line 3 of the Hanoi metro, a total of forty railcars. A new train will leave the port of Dunkirk this weekend, aboard the containership Champs Elysées.

Manufactured at the Alstom factory in Petite-Forêt (Valenciennes), the new 4 metro cars that will leave France for Hanoi arrived at Dunkirk by road, with transport arranged, two by two by the GEODIS team, at the end of last week. They will be delivered in Hanoi in less than two months time.

The whole complex move will be spread over a nine-month period and is due to be completed by the mid of the year 2021 2021. A total of 10 shipments are planned. GEODIS Industrial Project teams are managing the end-to-end transport process from France to Vietnam through Malaysia including the loading at Alstom Valenciennes premises, oversized pre-carriage to Dunkirk, port handling, delivery to the destination site and transport engineering. The entire shipment will amount to nearly 10,000 freight tons of passenger railcars and will comprise ten full metro trains.

Johann Taccoen, GEODIS’ Deputy Regional Director, Industrial Projects in France is heavily involved in the management of the move, “This is a meticulous operation that we have been preparing for in close partnership with our customer, the manufacturer Alstom, over several months. Our aim is to ensure that the goods reach their destination safely and securely, all within a very tight timeframe. In particular, our people’s skills in achieving reliable transit times, controlling costs and maintaining safety standards are pivotal.”

The container line CMA CGM that provides the ocean transport, on behalf of GEODIS, needs to trans-ship the cargo in Port Kelang, Malaysia before continuing the journey to Haiphong, the Vietnamese port situated some 190 kilometers from Hanoi. Both the pervading Covid19 restrictions and the need for specially designed lifting equipment at all three ports constitute further challenges for the operations teams.

In Vietnam, Vu Huynh, Industrial Project Manager of GEODIS leads the delivery operation. “The on-carriage of each railcar requires a road convoy of more than 30 meters in length.” he said. “As a consequence the delivery of each metro train set involves two overnight journeys with planning for secure stopping areas and ensuring all safety and traffic impact requirements are fulfilled. Moreover, given space constraints at the Hanoi Metro Depot off-loading site, careful coordination is needed to guarantee a safe, damage-free operation.”

This large-scale project illustrates GEODIS’ ability to overcome logistical challenges together on behalf of its customers.

The Autonomous Opportunity

Stefan Spendrup of SOTI looks at the effects autonomous driving will have on the transport and logistics industry.

‘Big thinking’ articles on how to disrupt industries from retail to healthcare have been so prolific in recent years that you would be remiss in assuming we have moved forward from the digital transformation era. Rather, it is important to think of these transformations as the natural extension of a technologically driven world, in which companies are constantly adapting to meet
ever-evolving market demands and customer needs. As the pace of development in technological capabilities has increased, so too has companies’ access to technology. With this comes an expectation that companies remain current with the latest advancements.

Following the mobile-first era, the next stage in the evolution of digital disruption is the move toward robotics through the Internet of Things (IoT) and Artificial Intelligence (AI.) Once companies have integrated a comprehensive mobility strategy within their operations, we find them increasingly turning to ‘what’s next’; solutions that will give them an even greater advantage against competitors and help them stay ahead of the field. Machine learning is poised to meet that market demand.

The transport and logistics (T&L) industry is at the forefront of this trend. An industry that may seem at first to be traditional and unchanged by technology over the past half century, has been among the earliest adopters of disruptive technology. Autonomous trucking is the next frontier for the transport industry. As larger enterprises move away from traditional practices, smaller organisations can follow and benefit from the mainstream acceptance of autonomous technology. This can be seen in areas such as:
■ Monitoring, information sharing and
exchange across remote devices
■ Management of mobile devices,
remotely, which can eventually be
applied to powering and controlling
autonomous devices
■ Remote support
■ Performance data and analysis

The numbers make the case. In the UK, 1.44 billion tonnes of goods were shipped via heavy goods vehicles (HGVs) in 2019, which is an increase of 2% when compared to the year before.
Global ecommerce sales are set to reach $5 trillion (£3.8 trillion) by 2021, driven largely by lowered consumer Stefan Spendrup looks at the effects autonomous driving will have on the transport and logistics industry. costs for online shopping and the ease of ordering online for everything from fruit to furniture. This trend is not likely to decline, especially as many are looking to limit in-store interactions in the wake of the COVID-19 pandemic. It will be difficult for transport and logistics companies to ignore the financial benefits of automation alone.

Evidential benefits of automation within the supply chain and operational practices already exist. This can be explicitly seen in Amazon’s famous robot warehouses. These IoT-enabled robotic devices can sift through packages faster than humans can. They can work anywhere and under pretty much any conditions, which is why they have been employed within the supply chain to speed up delivery and enhance the end-customer experience. The Amazon example indicates that as technology advances, adoption is likely to surge.

When turning our focus onto delivery services, we are seeing incredible interest in autonomous trucking, which has the potential to deliver faster, more predictable and more reliable service.
These benefits do not negate the valuable role humans will need to play in overseeing quality control, providing support and conducting data analytics functions to aid in further innovation. Prior to implementing full-scale autonomous trucking, shippers will need to ensure that the management and assessment of a connected fleet meets jurisdictional and federal legislation in addition to minimising cybersecurity risks. High levels of connectivity often translate into greater security risks, and companies will need to prioritise security to ensure systems are built with cyber resilience
capabilities and can respond quickly in the event of a cyber breach. Read the article here.

The Autonomous Opportunity

Stefan Spendrup of SOTI looks at the effects autonomous driving will have on the transport and logistics industry.

‘Big thinking’ articles on how to disrupt industries from retail to healthcare have been so prolific in recent years that you would be remiss in assuming we have moved forward from the digital transformation era. Rather, it is important to think of these transformations as the natural extension of a technologically driven world, in which companies are constantly adapting to meet
ever-evolving market demands and customer needs. As the pace of development in technological capabilities has increased, so too has companies’ access to technology. With this comes an expectation that companies remain current with the latest advancements.

Following the mobile-first era, the next stage in the evolution of digital disruption is the move toward robotics through the Internet of Things (IoT) and Artificial Intelligence (AI.) Once companies have integrated a comprehensive mobility strategy within their operations, we find them increasingly turning to ‘what’s next’; solutions that will give them an even greater advantage against competitors and help them stay ahead of the field. Machine learning is poised to meet that market demand.

The transport and logistics (T&L) industry is at the forefront of this trend. An industry that may seem at first to be traditional and unchanged by technology over the past half century, has been among the earliest adopters of disruptive technology. Autonomous trucking is the next frontier for the transport industry. As larger enterprises move away from traditional practices, smaller organisations can follow and benefit from the mainstream acceptance of autonomous technology. This can be seen in areas such as:
■ Monitoring, information sharing and
exchange across remote devices
■ Management of mobile devices,
remotely, which can eventually be
applied to powering and controlling
autonomous devices
■ Remote support
■ Performance data and analysis

The numbers make the case. In the UK, 1.44 billion tonnes of goods were shipped via heavy goods vehicles (HGVs) in 2019, which is an increase of 2% when compared to the year before.
Global ecommerce sales are set to reach $5 trillion (£3.8 trillion) by 2021, driven largely by lowered consumer Stefan Spendrup looks at the effects autonomous driving will have on the transport and logistics industry. costs for online shopping and the ease of ordering online for everything from fruit to furniture. This trend is not likely to decline, especially as many are looking to limit in-store interactions in the wake of the COVID-19 pandemic. It will be difficult for transport and logistics companies to ignore the financial benefits of automation alone.

Evidential benefits of automation within the supply chain and operational practices already exist. This can be explicitly seen in Amazon’s famous robot warehouses. These IoT-enabled robotic devices can sift through packages faster than humans can. They can work anywhere and under pretty much any conditions, which is why they have been employed within the supply chain to speed up delivery and enhance the end-customer experience. The Amazon example indicates that as technology advances, adoption is likely to surge.

When turning our focus onto delivery services, we are seeing incredible interest in autonomous trucking, which has the potential to deliver faster, more predictable and more reliable service.
These benefits do not negate the valuable role humans will need to play in overseeing quality control, providing support and conducting data analytics functions to aid in further innovation. Prior to implementing full-scale autonomous trucking, shippers will need to ensure that the management and assessment of a connected fleet meets jurisdictional and federal legislation in addition to minimising cybersecurity risks. High levels of connectivity often translate into greater security risks, and companies will need to prioritise security to ensure systems are built with cyber resilience
capabilities and can respond quickly in the event of a cyber breach. Read the article here.

Food Logistics Specialist Consolidates Presence in Le Havre

The Seafrigo group, a major player in controlled-temperature logistics for food products, is strengthening its presence in Le Havre’s port area by setting up a facility located at the Seafrigo Logistics Park. This logistics facility near Le Havre’s Red Bridge will comprise two warehouses whose construction began last September. Each warehouse, designed for the storage of dry products, will cover an area of 30,000 sq. m.

The “dry” 60,000 sq. m. facility, due to enter service in October 2021, is additional to the 16,000 sq. m. of buildings dedicated to the already existing flows of fresh and deep-frozen products. The Port of Le Havre is pleased to be able to assist in the conversion of this vacant lot for the benefit of a project that will underpin industrial, logistics and maritime activities that generate value-added.

“I salute this major expansion project as it now comes to fruition. And I am pleased to stand alongside AGRE in supporting SEAFRIGO – a longstanding partner of the Port – in its development at the heart of the Le Havre area. The decisiveness shown by these companies in choosing to create this new facility testifies to their confidence in our Port and the attractiveness of the Seine Axis”, Baptiste Maurand, CEO of HAROPA – Le Havre Port tells us.

As Eric Barbé, Chairman and CEO of the Seafrigo group explains: “Le Havre, which enjoys a strategic geographical location for food exports and warehousing, has today some of the biggest maritime terminals in Europe. Based at the heart of the port infrastructure, the Seafrigo Logistics Park provides rapid access to Rungis wholesale market. Our close partnerships with major shipping lines also enable us to ship products to all destinations leaving from and arriving at Le Havre.”

“AG Real Estate has already invested in Le Havre through its 92,000 sq. m. XXL logistics project, delivery of which is scheduled for the second quarter of 2021, and is the owner of the building constructed for Seafrigo. This further investment in the Port of Le Havre allows us to confirm our interest in supporting logistics actors for so-called “turnkey” programmes” adds Thibault Delamain, CEO of AG Real Estate France.

Food Logistics Specialist Consolidates Presence in Le Havre

The Seafrigo group, a major player in controlled-temperature logistics for food products, is strengthening its presence in Le Havre’s port area by setting up a facility located at the Seafrigo Logistics Park. This logistics facility near Le Havre’s Red Bridge will comprise two warehouses whose construction began last September. Each warehouse, designed for the storage of dry products, will cover an area of 30,000 sq. m.

The “dry” 60,000 sq. m. facility, due to enter service in October 2021, is additional to the 16,000 sq. m. of buildings dedicated to the already existing flows of fresh and deep-frozen products. The Port of Le Havre is pleased to be able to assist in the conversion of this vacant lot for the benefit of a project that will underpin industrial, logistics and maritime activities that generate value-added.

“I salute this major expansion project as it now comes to fruition. And I am pleased to stand alongside AGRE in supporting SEAFRIGO – a longstanding partner of the Port – in its development at the heart of the Le Havre area. The decisiveness shown by these companies in choosing to create this new facility testifies to their confidence in our Port and the attractiveness of the Seine Axis”, Baptiste Maurand, CEO of HAROPA – Le Havre Port tells us.

As Eric Barbé, Chairman and CEO of the Seafrigo group explains: “Le Havre, which enjoys a strategic geographical location for food exports and warehousing, has today some of the biggest maritime terminals in Europe. Based at the heart of the port infrastructure, the Seafrigo Logistics Park provides rapid access to Rungis wholesale market. Our close partnerships with major shipping lines also enable us to ship products to all destinations leaving from and arriving at Le Havre.”

“AG Real Estate has already invested in Le Havre through its 92,000 sq. m. XXL logistics project, delivery of which is scheduled for the second quarter of 2021, and is the owner of the building constructed for Seafrigo. This further investment in the Port of Le Havre allows us to confirm our interest in supporting logistics actors for so-called “turnkey” programmes” adds Thibault Delamain, CEO of AG Real Estate France.

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