Category: Supply Chain

Logistics companies struggle with continued rising costs

A members survey by freight trade association, Logistics UK, found that 40% of respondents had experienced transport costs rising by 25% or more and with margins typically very low, particularly for road freight, many will not be able to absorb these increased costs. In the survey 71% rep... Read more

Foreign workers leave China and it is likely to continue as China ‘reshapes’ commerce

Strict border controls amid China’s zero-COVID policy is creating a shortage of foreign expertise, with some suggesting the development could become a permanent feature, with ramifications for supply chains and an accelerating factor for consideration of production moving to alternati... Read more

Shipping challenge of electrical vehicles grow as they overtake diesel sales

The demand for lithium-ion batteries is developing at a rapid pace, as virtually every type of Electric Vehicle (EV) overtake diesel units in the new car market, but their presence on ships and planes are a concern for insurers. While the UK new car market declined 15.... Read more

Shanghai to return to normal in June? Let’s hope so…

Shanghai is aiming to reopen the city and business operations, with normal life resuming from the 1st June, as all 16 city districts report acceptably reduced ‘zero-COVID’ cases. At a press briefing on Monday, Shanghai’s Vice Mayor announced that 15 of Shanghai’s 16... Read more

Shipping lines act to support rates by cancelling sailings from Asia

Across the major shipping trade lanes a total of 56 sailings have been blanked over the next four weeks - so far - representing an 8% cancellation rate. The halting of factory production, following the continuing lockdown in Shanghai, is resulting in a drop in export bookings from China, ... Read more

Importers from EU risking fines and worse

The EU introduced full import controls at the end of the Brexit transition period, while the UK government has now delayed full import control four times, with concerns rising that UK importers are not making appropriate declarations, risking fines and penalties. The UK government’s own... Read more

China supply chain pressures relentless

Despite talk of restarting manufacturing and a tiered reopening of Shanghai and the surrounding province, the situation remains challenging and delays are increasing in Ningbo as the volume of cargo diverted from Shanghai continues to grow. The Shanghai lockdown remains for a fifth week, ... Read more

Ukraine invasion drives timber prices up and pallet supply down

The European Pallet Association (EPAL) and the European Federation of Wooden Pallet and Packaging Manufacturers (FEFPEB) have warned of a shortage of wooden pallets and packaging that is already being felt. The war in Ukraine and the shutdown of production is having serious consequences for Eu... Read more

EU/UK border controls set for July put back again

The UK government has again delayed the introduction of further border controls on goods from the EU, due for implementation from July, pushing them back until the end of 2023, suggesting it did not want to add more costs at a time of fast-rising inflation. New import controls, including on EU... Read more

Blanked Shanghai sailings slow to materialise

As Shanghai enters the fourth week of an indefinite lockdown, container shipping lines are skipping calls at main Shanghai terminals, with more blank sailings anticipated as vessels waiting at Chinese ports double. Until the lockdown situation is resolved, which appears challenging when puttin... Read more

US east coast port congestion continues to build

Reacting to fears of labour disputes and disruption at west coast ports, many US importers diverted cargo from Asia to the east coast – only to find that Atlantic congestion may be worse than on the Pacific. Importers on the west coast are getting their cargo quicker than their peers on the ... Read more

COVID update: Shanghai lockdown impact

China’s economy grew faster than expected in the first quarter, expanding 4.8%, but the risk of a sharp slowdown over coming months has risen as Shanghai’s lockdown is extended indefinitely and further COVID-19 curbs may follow.  Nearly all of Shanghai is now under lockdown, with most res... Read more