Delays and capacity bottlenecks due to disruptions and ship diversions
In view of the current events and to ensure the safety of their crews, shipping companies such as MSC, Maersk, CMA CGM and Hapag Lloyd have decided to suspend passage through the Red Sea and thus also through the Suez Canal with immediate effect until further notice. Instead, they are now rerouting their ships via the Cape of Good Hope, resulting in an additional transit time of at least 10 days. The extended transit times are associated with additional freight costs due to the changed routing. In addition, the shipping companies charge war risk surcharges for the affected routes.
In addition to the aforementioned effects, industry experts expect the rerouting via the Cape of Good Hope to absorb 20-30% of the available capacity. We therefore advise making bookings as early as possible, at least two to three weeks in advance, not least in view of the upcoming Chinese New Year in February.
Look for alternative transportation solutions
Of course, we will secure capacity with our team in advance to be able to handle the upcoming volume. However, an alternative transport solution in the Railway or SeaAir sector may work better for your freight.
Our sales team will be happy to advise you on a solution that makes sense for your freight.
In view of the upcoming Chinese New Year, we would like to inform you about the potential impact on air and sea freight shipping and provide you with some important information to ensure your logistics run smoothly.
Chinese New Year 2024 (also known as Spring Festival): The Chinese New Year, which begins on February 10 in 2024, marks the beginning of the Year of the Dragon. During this time, celebrations will take place across the country and many businesses in China will be closed for several days to two weeks.
Impact on freight traffic:
Delays: Due to factory closures and an increase in shipping activity prior to the holiday, there may be delays in freight transportation. We recommend that you take this into account when planning your logistics.
Bottlenecks in transportation capacity: Due to the high demand before the Chinese New Year, bottlenecks may occur in the availability of air and sea freight capacity. Early bookings are advisable.
Recommendations for a smooth process:
Early planning: start planning your shipping activities around Chinese New Year as early as possible to minimize bottlenecks and delays.
Communicate with suppliers and customers: Inform your suppliers and customers of potential delays and plan together to minimize supply chain impacts.
Bookings: Make bookings for air and sea freight in good time to secure the capacity you need.
Flexibility: Be flexible with your delivery times and options to cope with unforeseen delays.
Our team is always available to assist you in planning and implementing your logistics during the Chinese New Year. Thank you for your understanding and please do not hesitate to contact us if you have any further questions or concerns.
Under the EU's 11th sanctions package, a documentary evidence requirement came into force on September 30, 2023 for iron and steel imports if they originate in Russia or are exported from Russia.
Since the fourth EU sanctions package (March 15, 2022), there has already been a ban on the purchase and import of certain steel and iron products if they originate in Russia or have been exported there. The now 11th sanctions package brings this proof requirement for imports from all third countries.
Specifically, this means that since September 30, 2023, at the time of importation of certain iron and steel goods (listed by Lexparency), proof of the country of origin of these goods used for processing the product in the third country must be provided by logistics customers.
In addition to the Mill Test Certificates (MTC), following documents can also serve as suitable evidence:
Due to different interpretations on side of customs administration regarding the content of the alternatives to the MTC certificates, we recommend that the attached mentioned alternative documents include the following points.
For semi-finished products:
For finished products:
If you have any questions or are unclear about the EU's 11th sanctions package and the corresponding impact on your supply chains, please contact your usual Jet-Speed contact.