Market Update – 23rd September 2022

The UK’s largest container port is set to suffer another strike as retailers prepare for their busiest season. The Unite union has announced eight-days of action that will begin at 7am on 27 September and run until 7am 5 October. 

To add to the disruption, dockworkers at the Port of Liverpool will be striking at a similar time. Their action lasting for two weeks between Monday 19 September and Monday 3 October. 

They are both choosing to strike after turning down a proposed pay increase of 7%. So far, the strike has been supported by many international organizations such as the International Transport Workers’ Federation (ITF) and European Transport Workers’ Federation (ETF). 

Transportation trends 

Land: 

• China Railway has opened up a new cargo category for China-Europe rail freight this week. Now, after two years of intensive lobbying it will be possible for electric vehicles (EVs) to be moved by rail – but not their batteries.  

Air:  

• According to WorldACD Market Data, Global air cargo rates have continued to decline in Septemper. This follows on from a decline in global freight volumes in chargeable weight in August. 

Sea: 

• The Global Maritime Issues Monitor 2022 has just been released and states that decarbonisation of shipping remains the most important issue for ship owners CEOs in 2021, followed by new environmental regulations.
   
• The Chairman and MD of the Suez Canal Authority (SCA) has announced a 15% increase in canal fees for the next year. It will apply to all vesels except cruise ships and bulk carriers.
   

• Some carriers are having difficulty paying the charters they signed earlier at exorbitant prices due to the sudden drop-in boxship charter rates. 

Legislation changes 

• The new SCOR DS model has been released. This is the most significant SCOR upgrade since its inception; an upgrade that will modernise the framework to include sustainability standards and the digital body of knowledge.
   
• Due to challenges in transitioning businesses to the new platform, the UK’s HMRC will continue to operate its customs system after the deadline of September 30. 

• The UK logistics industry has praised the governments “short respite” plan to restrict commercial energy costs. 

Looking forward 

Already we’ve seen some signs of how the logistics industry aims to weather the storm when it comes to strikes and sustainability initiatives. How that will change as we approach the holiday season and busy retail period remains to be seen. 

If you’d like to find out more about how we can support you in the coming months, or to talk about the suitability of your supply chain, get in touch via our contact form. 

Please note that the information provided in our market reports is taken from a variety of news sources and partners. These insights are for informational purposes only.