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As we all know, Covid has an increasing influence on shipping. There is more and more chaos in equipment availability, space availability and reliability of schedules are not what they used to be. Looking at the US market of logistics we see that the cargo flow is not what it was, caused by a high demand for truckers, warehouse workers, longshoremen. For example, California has between 30,000 and 60,000 daily new Covid cases (early January).  The majority of people working for shipping lines and freight forwarders work at home. They don’t have the right tools they need to perform at the service level we were used to.

Congestion

We see that US ports are running at a capacity of 90% or even more. The ports but also the rail depots are overwhelmed with containers and almost no space is left. This means that it is hard to store containers for export and import containers that need to discharge. This mass congestion results in longer processing times, especially for the drivers. We already noticed that truckers are starting to charge extra because of this extra waiting time at the ports & railyards. Extreme situations are also there, some truckers are not accepting containers anymore for the worst area’s (NY & LA are the worst). Which brings capacity even more down.

Giving you a short wake up call to make you aware of how bad it is, here are the biggest issues:

• There are constantly more than 40 vessels at anchor waiting for berth (LA area), most of the ports are dealing with this situation but LA/LB port area is the worst
• Rail operations in LA/LB port area can have a delay of 10 to 18 days
• Also in NY port area, we see more and more that vessels need to wait for berth (a 5-day delay is what you have to keep in mind)
• Crewmembers are being tested for Covid prior to bringing their vessel to the dock, this causes delay as well
• Rail operations in SC/VA/MO/IL/TN/IA/MI all facing a delay of 7 to 9 days
• Chassis availability is getting worse (containers cannot be unloaded fast enough)
• Port cutoffs and earliest receiving dates are not reliable and cause issues on drayage arrangements already made

In general, all port terminals are expected to remain congested till at least the end of February.

Given by carriers

It is understandable that an import delay on a specific vessel will also cause an export delay and so on and so on…We notice that shipments are rolled to a different vessel or in extreme cases vessels are being canceled. Together with a lack of communication, it is not always easy to find out the whereabouts of a specific container or to verify what happened exactly and why. Most of this is not in our hands but we do work hard to still give you the best service and prices possible. Our experienced team is working hard on getting your cargo on the right spot and we can assure you your cargo is being taken care of.

Should you have any specific questions on the US trade please contact Elwin van Huizen via Elwin.vanHuizen@neelevat.com.

Dear Customer,

On January 1^st, 2021 Brexit will become a fact of life and we will have to deal with customs documents for all cargo moving between UK-EU-UK. Some aspects are still subject to any agreement reached between the UK and EU governments, but we are preparing for the possibility of a “No Deal Brexit”. This requires significant planning for the accurate preparation and presentation of data from everyone involved in the transport chain. Our (in house) Customs team have extensive experience in the field of Customs procedures and the information and software required to provide our customers with full coverage.

In order to achieve a smooth and continuous flow of cargo, we will encourage our customers to have Neele-Vat Transport provide the complete service for export and import customs documentation – the shortest line of communication between the customer, transporter and Customs will protect against errors, omissions, and consequent delays.

In order to make a Customs declaration on your behalf, we will need the following from you…

• Signed agreement for direct representation for Export and Import or both (one-off)
• Commercial Invoice with the Address details of the buyer and the seller + EORI no. Of both,
• The specified value of the goods per type of goods, INCO Term + place to which the Incoterm applies,
• Packing list, incl:
  • HS Code,
  • Detailed Goods Description,
  • Number of pallets (including dimensions per pallet),
  • Number of packages,
  • Gross Weight, Net Weight,
  • Type of packaging + Packaging code,
  • Country of Origin, Currency

If the customs documentation is provided entirely by you,  your customer, or third-party agent, we as a carrier need the following information in the case of import from the UK (and from 01-07 probably also for Export to the United Kingdom):

• MRN number (s)
• Customs status (T1, T2 (+ MRN in case of Goods in Transit), IM, TA, or RP)
• Commercial Invoice with the Address details of the buyer and the seller + EORI number of both,
• Packing list, incl:
  • Detailed Goods Description,
  • HS Code,
  • Number of pallets (including dimensions per pallet),
  • Number of packages,
  • Type of packaging + Packaging code
  • Gross weight
  • Designation Physosanitary or Veterinary goods

We will need all of the above information in order to do the declaration with the ferry company as they will arrange the  ENS (Entry Summary Declaration). This concerns the safety and security data that must be submitted by the shipping companies.

Since this information will most likely also apply from 01-07 in the case of Export to the UK, we will ask you to provide your information for export in this way so that we can prepare properly together.

Please note, the regular flow of goods from the continent to the UK and vice versa requires an Import document in addition to an Export document. In order to prepare the Import document, the declarant must, among other things, receive the correct shipping route and the UCN number of the shipping company! For smooth handling of the flow of goods, it is therefore also wise to have the import document drawn up by us.

The price of the documentation and the above stands or falls with how you as a customer present us with this information. We are currently working on an electronic data system that makes it possible for you as a customer to present your data to us digitally. The degree of automation will partly determine the price for the provision of service. For a detailed statement of the documentation costs, I would therefore refer you to your contact person within our organization who will provide a tailor-made price for the service that fits your need.

 

Kind regards,

Barry Kweekel
Business Unit Manager UK & Ireland

Neele-Vat Transport B.V.
Phone    :    +31 88 9964150
Mobile    :    +31 6 53329343

 

 

As we look back upon last year, we would like to acknowledge those who have helped us shape our business.

Thank you for your continued support and partnership. We wish you all the best for the coming year.

Enjoy these days with your family and loved ones.

 

Neele-Vat Logistics

After the UK elections, more has become clear in the Brexit timeline

 

The next step for the Boris Johnson government is to get the Brexit deal approved at the Lower House. With the big victories after the elections, that seems the least bump at the moment. That could be more difficult in the House of Lords where these elections have not changed the situation.

 

After the UK it’s up to the EU. A simple majority is sufficient during the vote. If these steps have been taken the Brexit becomes a reality on February 1^st. An agreed transition period starts on this date in which the UK remains a virtual EU member, thus also remains part of the internal market. The only thing that changes overnight is that the British no longer have a voice in Brussels. So there will be no changes for logistics.

 

Negotiations on a trade agreement between the UK and the EU start in February. The hope is that this is settled before 31.12.2020. EU negotiations with countries such as Canada and South Korea take five up to nine years. There is no time now, because the transition period already runs on December 31^st 2020.

 

There might be another escape. Halfway through the new year is the last moment to decide on an extension of the transitional period for one or two years. Almost all involved see this as inevitable, because a comprehensive trade agreement is not to be expected within 11 months. However, Johnson has always said that he does not like such an extension. December 31^st , 2020 could be a new, tough “no deal” Brexit date. If Johnson persists in his refusal to extend the transition phase. And if there is no trade agreement with the EU at the end of next year, then the UK will be taken out of the internal market on January 1, 2021 and without any agreements. In that case the rules of the World Trade Organization (WTO) apply. This inevitably leads to border controls, tariffs and other trade barriers.

 

In summary

Nothing will change during transport to and from the UK until December 31^st 2020. So no customs clearance or other customs declarations. The most important is the possible postponement date by which the deadline becomes June 2020.

 

With no delay it becomes:
– in case of an agreement; a soft Brexit.
– in case of no agreement; a hard Brexit follows

 

We will report new developments via the website. If there are any questions in the meantime, please contact us.