Market Update – 30th September 2022

Friday 30th September was set to be the last day importers could use the CHIEF system. Instead, due to what has been deemed a lack of support from HMRC, the deadline has now been postponed. 

Brokers and customs consultants have reportedly blamed this extension on a failure to support the traders migrating to a new system. Whether this failure is down to a lack of in-house expertise, online resources or time remains to be seen. 

So far, the delay has been welcome news to some in the industry but could potentially open HMRC to further problems down the line. Either way, with Christmas soon approaching, the number of imports will be at an annual high. To change systems now could threaten further stability, a risk HMRC seem unwilling to make. 

Transportation trends 

Land: 

• National Lorry Week returns for 2022 with the Road Haulage Association kicking off the occasion in Peterborough before travelling across the UK. 

Air:  

• Air cargo continues to benefit from the current costs of shipping. Historically, air has cost between 10-20 times more than ocean. Today that figure lies closer to 5. 
• The Netherlands intends to reduce the maximum number of flights permitted at Amsterdam Schiphol Airport each year from 500,000 to 440,000, potentially squeezing the number of imports and exports. 
• Avensis Aviation have been awarded a permanent freighter Supplemental Type Certificate (STC) for their fully reversible MEDIUS cargo modification. This solution transforms passenger cabins into full Class-E compartments – allowing customers to better adapt to demand. 

Sea: 

• Intra-Asia sea freight rates are falling, but the market is outperforming other regions.  
• It’s been reported that logistics can no longer rely soley only on China for development. According to DHL’s recently published Trade Growth Atlas, China’s share of global growth rate will be cut in half between 2021 and 2026, to 13%   
• Shipyards in Asia, particularly Japan, are grappling with the significant appreciation of the US dollar. The Japanese yen has fallen over 30% versus the US dollar in the last year.   

Industry news 

• Around 1,900 workers at the UK’s largest port, Felixstowe, have gone back on strike for another eight days, as a heated wage dispute with Hutchison Ports shows no signs of resolution.    
• Dockworkers in Liverpool are planning a second strike from October 11 to 17, after talks with the Peel Ports-operated terminal failed. 
• A strike will also be taking place in the UK’s North Sea. This protest was organised by 140 workers of the Petrofac energy company. 
• Eco-friendly technologies are in focus during World Customs Day 2022, which will be taking place from 12 to 14 October. 
• The price of European natural gas has risen in response to warnings of probable sabotage on the Nord Stream pipelines.  

• Hong Kong has officially repealed its hotel quarantine restriction, allowing for increased belly hold cargo capacity and perhaps boosting the city’s economy. 

Looking forward 

As we head towards the holidays, increased pressure will be piled on both imports and exports. This year, seasonal demand will coincide with strike action, system changes and significant economic events. 

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.