Ocean Update
As the situation in the Red Sea remains highly volatile, and continues to stretch into the third quarter of 2024, the effects of it continue to cause challenges to supply chains. Recently, Maersk CEO Vincent Clerc spoke about the current challenges and their long-term effects in an online event with customers. Find out what was discussed in this article.
The start of the summer holidays in north Europe has meant many of the Hubs and terminals are faced with the traditional reduced labour availability seen in summer months. So far, our teams are seeing limited impact on operations, but continue to monitor the situation and remain in contact with terminal authorities across the continent.
In Rotterdam, Maasvlakte II terminal is undergoing preparation for the start of the Gemini network, including quay and yard maintenance. Due to bad weather en route from Asia, vessels on the AE5 service are arriving with delay. To mitigate further disruptions to the service and other vessels in the line-up, our teams are focusing on safeguarding the reliability of the AE10 and AE5 services and eliminating delays to the services going back to Asia. At the terminal yard, there is a growing number of longstanding units, and customers are urgently asked to help clear them at the earliest. In Hutchison Ports Delta II, the network is facing labour shortage that incurred severe waiting time outside the terminal and we anticipate the situation will be gradually improved to normal by end of week 30.
The ongoing Collective Labour Agreement (CLA) negotiations between unions and terminals in Germany have resulted in strike actions at Bremerhaven and Hamburg. The last round of strike actions ended on 11 July, and the affected vessels have recovered the impact once services resumed.
Given no agreement reached between the union and employers, our teams continue to monitor the situation in line with the ongoing negotiations, and should there be any further changes, we will keep customers informed on the dedicated advisory page.
In Belgium, MEPT terminal in Antwerp is seeing increased waiting times, especially for AE6 and AE7 services. Our ocean fulfillment teams are looking into implementing contingency measures such as potential omissions and rotation swaps to mitigate the impact on scheduled and our customers’ supply chains.
In West Mediterranean, terminals in Tangier are working well and showing stable performance. In Algeciras, we are seeing high yard density levels and container dwell times due to network delays combined with long layovers, creating a disbalance in yard density. To mitigate delays for customers, our teams across the continent are working closely together on evaluating the situation and doing their utmost to bring the ships in the sequence as per proforma schedule.
The Port of Barcelona continues to face congested line-up and increased waiting time matched with a high yard utilization and restriction on discharge of empty containers from feeders. Our teams are keeping a close coordination with the terminal to reduce the impact and currently assessing options to reduce the congestion, including potential port omissions.
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Air Freight Update
Earlier this month, Maersk took delivery of its first of two new Boeing 777F. Both aircraft will be deployed on existing Europe-China route, starting with three weekly flights, benefiting customers on both continents with added capacity and efficiency. Find out more about this investment in Maersk Air Cargo here.
The continuing situation in the Red Sea is highlighting the need for reliable air freight services, as well as solutions such as Sea-Air via hubs like Dubai, Muscat, and Singapore.
As such, air freight is being considered less of a ‘plan B’ solution, but rather a fundamental part of supply chain success. In episode 4 of our ‘Air is Essential’ series, Annette Kreuziger (Maersk Europe Head of Air Freight) evaluates recent industry trends and explains why air freight could be a missing piece of the logistics puzzle for European businesses. Click here to watch.
Please click here to find helpful information about our air freight network and our services to and from Europe.
Inland Update
In line with the ongoing Collective Labour Agreement (CLA) negotiations in Germany, our inland teams are monitoring the situation at terminals and its potential impact on carrier haulage to and from the terminals. The last round of strike actions at the terminals has ended on 11 July, and there is currently no impact to carrier haulage as a result. Our teams continue to follow the situation closely and keep customers informed, should there be any changes. Read the latest updates here.
Last month, exceptionally high water levels on the river Rhine have resulted in suspension of barge services, making our teams change barge bookings into rail or truck transport where possible. The high water level period has now ended, and barge services continue to operate with usual capacity.
While summer months typically bring along the issues of low water levels, July measurements are looking more positive compared to both the previous year, and the five-year average. Our teams will continue to keep an eye on the situation and keep customers informed of any changes in barge transport.
Find out more about our Inland solutions and services across Europe.
Customs Update
The European Commission plans to impose customs duties on goods under €150, mainly targeted at Chinese e-commerce giants selling low-value goods. This move aims to curb substandard imports and level the playing field for online retailers. The proposal, expected later this month, seeks to end the current €150 duty-free threshold for ecommerce parcels. Last year, 2.3 billion low-value items were imported, driven by subsidised Chinese postage.
The new rules will apply to all non-EU online retailers. Additionally, large platforms may need to register for online VAT payments. Although VAT has been applied to all ecommerce parcels since 2021, they have remained free from customs duty if their intrinsic value is under €150. The new proposal aims to collect both VAT and customs duties upfront.
Following a nine-month anti-subsidy investigation, the European Commission has imposed provisional countervailing duties on Chinese battery electric vehicles (BEVs). Starting 5 July, 2024, duties are set at 17.4% for BYD, 19.9% for Geely, and 37.6% for SAIC, with other cooperating and non-cooperating producers facing duties at 20.8% and 37.6%, respectively.
These measures address unfair subsidies in China's BEV sector, threatening EU producers. Negotiations with China continue to seek a WTO-compatible solution.
Customers importing BEVs from China with commodity code 8703801010 into the EU need to identify the manufacturer and determine the duty rate and check if a customs guarantee is required in the destination EU country. Payments are due from the 1st of July, but some EU countries require a guarantee instead of immediate payments for goods that are transported from that date. These outstanding payments will remain on their record under the guarantee and they have to pay them after November 5, 2024, when the regulation becomes definite. In addition, customers need to include the following in the commercial invoice: "I, the undersigned, certify that the (volume) of new battery electric vehicles sold for export to the European Union covered by this invoice was manufactured by (company name and address) (TARIC additional code) in the People’s Republic of China. I declare that the information provided in this invoice is complete and correct."
At the UK borders, logistics operators have faced significant challenges since the implementation of the second phase of the Border Target Operating Model (BTOM) in April. The regulations mandate physical checks for certain EU imports at British ports, with plants for planting classified as high-risk, leading to extensive delays and increased costs, particularly for fresh products, plants, and flowers. Drivers face long wait times, disrupting schedules and causing potential violations of driving-time regulations. Haulier associations are urging the UK to extend Border Control Posts' hours and provide timely information to ease these issues. Having the right paperwork in place and knowing whether a visit to an Inland Border Facility or Border Control Post is required, and where they are located, will optimise preparation, and minimise delays.
In foreign trade agreements, developments have been made in the new EU-Kenya trade deal, as well as the EU-Japan deal on cross border data flows. The trade agreement with Kenya aims to boost bilateral trade, increase investment flows, and foster sustainable economic relations, supporting job creation and growth. It includes binding provisions on labour, gender equality, environment, and climate change, setting a new standard for trade agreements in Africa. The cross-border data flow agreement with Japan, part of the EU- Economic Partnership Agreement (EPA), promotes digitalisation and counters digital protectionism. It benefits businesses in financial services, transport, machinery, and e-commerce by easing data handling and reducing administrative burdens.
Should you have any questions regarding customs clearance and the impact of trade agreements on your business, reach out to our customs consulting team or visit our Maersk Customs Services page to find out more.
Ecommerce Update
While e-commerce sales continue to grow around the continent, countries of Central and Eastern Europe (CEE) have experienced higher growth rates than many of their Western counterparts, in part due to one of the higher digitalisation rates in Europe. At a time when Western Europe is dominated by a couple of large platforms, the CEE market is primarily controlled by regional players. For business owners, these trends present a unique opportunity to tap into the local market and leverage these platforms.
For products that are not available locally, or for more affordable prices, a significant number of CEE shoppers turns to cross-border sales. This is where businesses can often encounter difficulties, as the most popular payment method in CEE is cash on delivery.
Businesses that are able to offer local payment methods can experience a boost in online sales. Adapting to the demands of the local market will enhance customer experience, and consequently boost net-promoter score (NPS) by giving a peace of mind to consumers who are wary of online fraud or don’t have access to online payment systems.
Elsewhere, Maersk teams met with customers, partners, and industry experts at DELIVER 2024. At the event, our experts joined forces with a retail customer to discuss how businesses can simultaneously improve their NPS and reduce costs through global integrated last-mile fulfilment. In addition to attending the speaking session, customers and visitors awarded Maersk the Brand Excellence Award for our proven track record of delivering high-quality products and services.
To find out more about how our teams can help provide the best last mile solution for your business, visit our E-Delivery page.
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