Freight Industry Insights March 2024

by Oliver Dyas | Wednesday, 13 March, 2024 | Customs Clearance, Politics

We’re already halfway through March, the year is in full swing and as promised, a lot has been happening in the world of international trade.

A week ago, Jeremy Hunt delivered his Spring Budget, possibly his last as Chancellor. He reiterated what most of us know, this last year has been a tough one for all but there are signs of recovery, and according to Mr Hunt, Britain will recover better and more quickly than many other countries and key trading partners of the UK including Germany, France, Italy and the US.

As record numbers of UK haulage firms collapsed last year and with many UK hauliers struggling with increasing costs, the industry received welcome news of an extension to the 5p cut on fuel duty for another 12 months. Many though, including the Road Haulage Association (RHA) were disappointed that the Government missed the chance to provide direct short-term support to operators with suggestions such as a temporary suspension to the HGV Levy ignored.

There was some good news for the UK automotive, aerospace and life sciences industries with the promise of more investment and lower taxes for businesses – meaning more jobs and higher growth. However, the Society for Motor Manufacturers and Traders (SMMT) complained there was a missed opportunity in offering no support to private customers looking to take their first steps in electric car ownership.

The automotive industry made headlines too for other reasons as the EU announced possible retroactive tariffs on Chinese battery electric cars arriving in vast numbers. China has recently become the worlds biggest exporter of cars, overtaking Japan, but word of state subsidies to EV producers has been leaked prompting the action.

Large amounts of discounted vehicles arriving from China spells problems for European car makers prompting Renault to announce they are in early talks with Volkswagen to share development costs on the base of a new super mini. Such collaborations are proof of interesting times in world trade as many big businesses look for ways to increase efficiency.

With a UK General Election due to be called this year, Angela Raynor, the Labour Deputy Prime Minister visited India where she reiterated Labours commitment to building on the long-awaited Free Trade Agreement. Word from India is the ruling party are stalling current negotiations as they believe they may get a better deal if Labour win the election. Espace continue to see our own Indian cargo volumes growing in both air and sea modes in both directions.

Despite all the challenges at home and across the world, UK companies continue to export and import. In early March, we welcomed news that we are finally able to complete export declarations using the Customs Declaration Service. All traders will need to register for the CDS if they haven’t done so already.

Our “Indispensable 8” guide to exporters is available to be read here.

CDS For Exporters March 2024

by Oliver Dyas | Thursday, 29 February, 2024 | Customs Clearance

Our 8 indispensable tips to be CDS (Customs Declaration Service) export ready!

In many cases, we will no longer be allowed to make export declarations on CHIEF from 31st March 2024. As an exporter, there is some preparation which you must complete beforehand. Below are the eight essential steps to take to ensure you’ll be ready for a seamless migration to CDS.

1 – Register for the CDS

If you are a regular importer, you’ll already have registered to use the Customs Declaration Service.
If you only export, you can register quickly online using the following link.
Get Access to the Customs Declaration Service
Make sure you register before 31st March! In advance, you’ll need the following information to hand.

- - - Your Government Gateway User ID and password
    - Your GB EORI number
    - Your registered address
    - Your UTR
    - The date your company was registered

2 – Authorise your colleagues to use the CDS Portal

More often than not, the Government Portal is managed by a finance director or team. Generally, they’re not involved in the day-to-day transactional movement of goods across our border. They can quickly and easily give users restricted
access to the portal by following the steps on this video.

3 – Authorise Espace to act as Declarant

You will be required to authorise Espace to make declarations on your behalf. You can do so via the Government Gateway and by following the simple steps described in this video.
Our EORI number is GB748098295000

4 – Haulier Details

Currently, haulier details are not required to make an export declaration. This will be changing though with the CDS. An exporter won’t always know the details of the haulier (for FCA exports for example). Speak to your supply chain and ensure you can advise the following information at the time of requesting the export declaration.

- - - The haulier name
    - Their address including street, city and post code
    - Their EORI number (GB or EU)

5 – Payment method to haulier

Another new step brought in for the CDS. One we don’t see the value of reporting just now but it will become relevant with the introduction of the Single Trade Window. Again, an exporter won’t always be aware of the relationship with the haulier (think of an FCA sale again) so make sure to ask your supply chain players. We will need to know if the haulier:

- - - Is paid in cash
    - Paid by credit card
    - Paid by cheque
    - Paid by Direct Debit or to a cash account
    - Paid by electronic funds transfer
    - Has an account for the freight payer
    - Isn’t pre-paid

6 – Routing

The route a cross-border vehicle takes to complete it’s journey is currently only required for Transit declarations but it will be required for CDS export declarations too. In order to make a compliant declaration, we will need to know each country a truck will pass through. For example, a truck carrying goods from the UK to Hungary will transit France, Belgium, Germany, Austria and into Hungary.

7 – Changes in CPC Codes

Box 37 in CHIEF, the CPC code which describes what customs regime goods are being removed from and entered into, will be replaced with CDS Data Elements (DE) 1/10 and 1/11. Whilst they have a similar format, the codes are not the same. For example, CPC 1000001 will now be DE 1/10 10 40 and 1/11 000.
Advise can be read here

8 – Additional codes in CDS

Additional codes are already required for CDS imports and will be required for CDS exports too. There has been a list of waiver codes published but these will be phased out. We recommend you and the correct additional codes to begin your CDS export journey. The following video talks you through finding the correct codes using the UK trade tariff.

As always we are here to help, get in touch with our team for further customs and freight advice.

New import controls for plant and products of animal origin are coming on 31st January

by Oliver Dyas | Thursday, 4 January, 2024 | Customs Clearance

New Import Controls Come Into Play On January 31st

At the end of this month changes are happening regarding import controls, please keep this in mind to avoid disruption to your supply chain going forward for certain foods. This mostly affects animal and plant products imported from the EU.

From January 31st 2024

A new health certification on imports from the EU deemed medium-risk. This includes animal products, plants and plant products.
A new health certification on imports from the EU deemed high-risk food and feed of non-animal origin.
New checks when moving Irish goods, which will be any goods not defined as Qualifying Northern Irish Goods. This is for goods moving from Irish ports directly into Great Britain.

A few tips from DEFRA

The Department for Environment Food & Rural Affairs has given a few links to help prepare for these changes.

Know your risk category – use these online tools to find the risk category of your commodity
Ensure that your EU supply chain is preparing to provide you with health certificates and/or phytosanitary certificates – find out more here
Be ready to correctly submit your pre-notification in IPAFFS – attend a January training session or read our guidance

As always our customs experts are here if you have any questions and need support with these changes.

The impact of national holidays on global logistics: Exactly how can a freight forwarder help steer you through the year?

by Oliver Dyas | Wednesday, 15 November, 2023 | Customs Clearance, International Freight Companies

As experienced freight forwarders, the smooth movement of goods across borders has been our constant goal for more than 20 years. While numerous factors influence the efficiency of cargo movement, one often underestimated factor that can significantly impact the industry is the occurrence of national holidays in different countries.

Each country has its own set of national holidays celebrated in different ways that can create hurdles for exporters and importers, who could potentially get caught out by their cargo being in the middle of a non-working holiday. In this email, we’ll explore the various ways in which national holidays affect cargo movement and explain how we at Espace can help you overcome these holiday blues.

Customs and Border Delays:

National holidays often lead to the closure of government offices, including customs and border control. This results in customs clearance delays and inspections, causing goods to be held up at ports and border crossings until work resumes. To mitigate these delays, we can support you in planning your shipments well in advance, to ensure that essential documentation is submitted and processed before the holiday season begins, thus keeping everything on track.

Route Disruptions:

Some national holidays are similar to UK bank holidays, where the majority of disruption comes from business closure, some are larger events that may involve road closures with parades which can consequently disrupt transport networks. This can bring logistical challenges, such as increaseds rates and delayed transit from taking the longer route. Freight forwarders with their vast networks will plan ahead with drivers or commit to a totally different mode of transport in order to bypass by these closures.

Labour Shortages:

During national holidays, employees in various industries of course take time off to celebrate and rest with their families. This often leads to labour shortages for some businesses. On the other hand, those that continue trading could pay double time to their staff to keep things moving which may have both cost and timing implications for you the exporter / importer. Espace will work with you to minimise any risk.

Peaks and Falls in Demand:

National holidays can result in increased consumer demand for certain goods. Industries that see such peaks during holiday seasons include hospitality, media & events. Some industries may slow down around national holidays such as manufacturers in automotive, making supply chains slower for that time of the year even in countries that don’t celebrate that holiday. In these cases, you may be faced with extra storage costs where deliveries cannot be arranged. A freight forwarder will work with you to plan well in advance to minimise any potential disruption to your supply chain.

Compliance and Documentation:

Different countries have various rules and regulations regarding the movement of goods. Espace stays up to date date with all regulations and our team work tirelessly to ensure that all your shipments meet the necessary standards – even when government offices are closed.

Navigating the challenges posed by national holidays in the world of freight forwarding is no small task. Freight forwarders have a wealth of experience in planning and know exactly how to keep things moving. Efficient freight forwarding keeps supply chains moving so that you can concentrate on the other priorities within your business.

To help you with your planning here is a list of general holidays happening around the world in 2024!

Ban on Russian Steel

by Oliver Dyas | Monday, 23 October, 2023 | Customs Clearance, Politics

Russian Steel Ban

The sanction imposing the ban on imports of Russian steel and iron processed in a third country went live on 30th September, 2023.

Both the EU & UK governments now require evidence that all steel products of all origins do not contain material of Russian origin.
Exporters and importers will be required to comply with the ban and will be asked to prove their compliance. Upon entry, any iron and steel product targeted (HS codes beginning with 72 and 73), importers will need to provide evidence that the goods they import do not contain any Russian origin sanctioned iron or steel in them.

We ask customers to quickly identify iron and steel products that fall under the HS codes 72 and 73 on any shipping docs they receive before the goods are shipped. For all affected products, the shipper will need to either provide a Mill Test Certificate (MTC) or update the commercial invoice with the following statement;

“The exporter of the products covered by this document declares that there are no products within this consignment that contain Russia-originating sanctioned iron or steel material and that evidence can be produced upon request.”

Espace will not be held responsible for any costs relating to non-compliance to regulation 46IA.

More information on the UK Goverment website

Exactly Why Are Freight Costs Rising?

by Oliver Dyas | Tuesday, 7 March, 2023 | Customs Clearance, European Shipping, Uncategorised

Prices continue to go up meaning rising freight costs

Transport and freight costs have been steadily increasing over the past few years and even more so in the last 12 months, leaving many people wondering why. Various factors have contributed to rising transport and freight costs and explore how a freight forwarder can help keep these down. By the end of this article, you should have a better understanding of why transport and freight costs have increased and what can be done to reduce them.

The main factors

Covid – a high demand for transport driven by post-pandemic recovery of economies.
Brexit – decreased appetite of EU drivers to come to the UK, additional customs fees, port fees – hassle factor so any EU hauliers that do come want a premium.
Drivers Mobility package – implemented to safeguard the working rights of truck drivers in Europe by imposing work, rest and cabotage regimes. Inevitably drivers rates have increased and the rules on rest / monthly breaks will mean fewer drivers available at any one time – hence an increase in rates to cover wages.
Fuel increases (a consequence of the War on Ukraine) – energy hikes across the board.
Driver shortages – wage pressure from the small pool of professional drivers, lack of desire from the younger generation to begin a driving career.
Inflation

The Role of Port Fees in Rising Freight Costs

Port fees are charges that are imposed by port authorities for the use of their facilities and services. The fees cover a variety of costs, including maintenance and operation of the port, as well as security and environmental protection. In recent years since Brexit, port fees have been steadily increasing due to a variety of factors such as increased port traffic, as the UK is using these ports a lot more thus causing an increased demand for services.

We predict we will see a standardisation of port fees across the next few years.

Click here for current port fees.

Government information on port codes

So how does a Freight Forwarder help?

All these factors over the past few years have proven why freight forwarders have a place in the market.

From a practical point of view freight forwarders can reduce costs by providing a range of services that can streamline the process of shipping goods.

These services include helping to negotiate better rates with carriers, consolidating shipments to save on costs, and providing advice on the most efficient way to ship goods. Additionally, freight forwarders can help manage paperwork and customs clearance, which can save time and money

From a knowledge point of view freight forwarders have a deep understanding of the shipping industry, which allows them to provide valuable advice and services to their customers. They have knowledge of the various regulations and laws that govern shipping, even more useful with Brexit and the changes the UK is still getting to grips with.

As well as an understanding of the different carriers and their pricing structures. This market knowledge allows freight forwarders to negotiate better rates with carriers and provide helpful advice on the most efficient way to ship goods. By utilizing a freight forwarder’s market knowledge, businesses can reduce their transport costs while ensuring their goods are shipped safely and on time.

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