Freight rates from China are still high due to a shortage of containers — and it’s not likely to get better until the end of the year. Freight rates of between 16000USD and 20000USD per 40ft box are now being talked about for the China – UK shipping routes. The is an astonishing 10 times would normally be paid around this time of the year.

Driven on by container shipments from China which are at their highest levels ever, and that’s helping to drive up freight rates. However, the demand for containers is growing so rapidly that the global supply of containers isn’t able to keep up with demand. The result is sky-high freight prices.

The only way to solve the container shortage is to increase the amount of containers being produced, and that’s a problem because there are only a few container manufacturers in the world. The shortage isn’t going to disappear overnight as even if more containers are introduced into the shipping lines equipment pools they still have to be transported to the areas which have the equipment shortage.

Further compounding this issues are the amounts of container ships moored off the coast of San Francisco all waiting for a berth to offload. The anchoring of these ships has caused the San Francisco Bay to become one giant floating port. The anchoring of these ships is also contributing to the container shortage.

Covid outbreaks in the China Ports are also continuing to disrupt the loading and unload of vessels resulting in considerable delays in getting loaded containers out of China and empties back to the China Factories. The Chinese government is trying to speed up the unloading of containers to the ports so they can get the containers out of the ports and into the factories. However it has had limited impact on the overall freight rates.

For now all that shippers, freight forwarders and buyers keep hoping that the worst is over and that rates will finally begin to fall. However all indication is rates will remain above normal until after Chinese new year 2022.

If you are looking for a supply of containers on the continent for shipping into the UK and Ireland, we have a large quantity of shippers own equipment including 20ft and 40ft containers available. Our equipment is available in Antwerp, Rotterdam and Hamburg with smaller quantities available in other continental ports. Let us know the number of containers you require, we will arrange the release of them to your own transport and notify you where they can be returned to. All of our containers are all fully plated and checked to ensure they are all clean and in good condition.Suitable for shipping machinery and other project cargo, vehicles, palletised goods where the use of standard trailers is either not practicable,  goods are at risk of higher damage in transit or secure enough.

While  normally most clients prefer to arrange their own transport. If you require us to hand the actual logistics we can arrange both the collection,sea-freight, and delivery to site or just the sea-freight section. We can offer shipping services into Grangemouth, Teesport, Hull/Immingham, Tilbury, Bristol, Liverpool, Belfast (Northern Ireland) and Dublin(Ireland).

In addition to one off shipments our containers are suitable for long term projects where the goods need to be stored securely and protected from the weather on site pending final call off. Long term hire can be negotiated depending on the length the containers are need for,  at rates much below any shipping line would charge for them. A further option is containers can be also be purchased from us with a buy back option.

If you want more information please use the contact us form or ring us to speak to us directly.

Shippers on Equipment Available to Hire

Containers Available for Hire and Purchase

 

The middle east is often a turbulent region, however the countries which make up this area also have a long and rich trading history.The countries often included in this description are Bahrain, Iraq, Iran, Jordan, Kuwait, Lebanon, Oman,  Qatar, Saudi Arabia, Syria, United Arab Emirates, and Yemen.  Currently the UK exports significant amounts to this region from machinery to humanitarian goods and is anticipating increasing this further after Brexit in December 2020.  However both Syria and Yemen have been engaging in serious internal wars for several years  making shipping into them difficult.  Iraq is still very unstable in certain regions and Iran has significant economic and trade sanctions in place.

At AJF we offer export ocean freight services to most of these locations either directly or through our transshipment service in Jebel Ali, UAE. We can help with potential exporters with the action they need to take when looking at these markets. AJF can advise who they need to speak to help with documention and export licences.

AJF logistics services can handle full container load shipments

For consignments which require a shipper’s own container rather than using shipping lines container. We can either collect a shipper sourced container or  AJF can arrange the supply of a fully plated container. Once the container reaches its delivery destination AJF can arrange the disposal of the container or the shipper can purchase it directly from us. We move a lot of humanitarian and medical equipment in shipper’s own containers to several countries in this region. It is particularly useful for clients who are transporting goods to unstable regions where the goods may need to be stored for a long period of time until required. It is also suitable where the end user want to use the container as a distribution centre, or plan to repurpose the container for another use, such as an on site office.

For smaller consignments of pallets, drums and machinery we operate weekly Less then Container (LCL) services from the UK. As with some of our full load services we tranship some of the consignments in Jebel Ali, UAE. At our agents warehousing we consolidate these cargoes with other ones for shipping on to their final destinations. We do offer the service of re-working the goods in Jebel Ali, including repacking and re-labelling the goods. We can also combine shipments who arrive from several different locations around the world in to one consignment for onward shipping to a final destination in the region.

We offer limited airfreight shipments to this region for urgent goods such as perishables or very high value cargoes. Most of our airfreight services go to Dubai, Airport for onward distribution. Shippers should be aware the Coronavirus going around the world is reducing the number of flights and this is threatening to make these services much more expensive with limited space over the next few months.

Break bulk shipments and Out of Gauge generally refers to the movement of non containerisable cargoes. In the modern world driven by complex supply chains the majority of dry goods are containerised, however this still leaves a wide range of cargoes that cannot fit into a standard container. These shipments are referred to as Out of Gauge cargoes often shortened to the term OOG.

At AJF we have been involved in moving break-bulk shipments around the world since the company was founded. The company’s joint owner is a break bulk specialist having over 40 years of experience, and is one of the top specialists in this sector in Europe. Often AJF is the first port of call for both shippers and other forwarders when planning cargoes and we have been involved in shipments moving all over the world. When issues have arisen with break-bulk movements our experience in this field has proven invaluable for our clients.

Breakbulk Cargo

An example of breakbulk cargo

When AJF is evaluating shipping an OOG cargoes we evaluate the best shipping equipment or method to use. For some cargoes it may be possible to move them on a flatrack or opentop container. For larger cargoes and non standard ones such as those which are over length, width, height or weight then we would may arrange to have the cargo moved using a part charter or full charter of a vessel. We would assess if the vessel need to be geared (have its own onboard cranes) or not, depending on the loading and discharge ports. It is not much use having a vessel turn up and find out the local cranes can not handle the shipment. Depending on the shipping terms and what we are contracted to cover then we would check out the specifications of the ports being called at. This would included maximum weight which can be placed on the quay. You do not want the cargo overloading the quay and causing it to collapse, which has happened in the past.

Cargo Being Loaded into ship

Breakbulk cargo being loaded into a vessel

AJF has recently been contracted to move vehicles from the UK to Dubia, UAE. Initially it was planned to moved these on flat racks. The size of the vehicles meant that it was going to be a very tight fit to ensure that once the vehicles had been secured to remained in gauge and avoid damage when being loaded.  We therefore looked at other options and it was decided that the most cost effective and safest route was moving them using a RO/RO vessel from Southampton. All the cargo was move successfully and without any damage.

A second case study involved another forwarder which had arranged a charter of a vessel to move an oil project. However the vessel operators got into difficulties and the forwarder was unsure of his liabilities and how to get the goods to the final destination. We were asked to look at the situation and were able to devise a course of action to ensure the cargo was not going to be abandoned. The cargo was finally delivered successfully.

If you have a out of gauge shipment you are looking to move from the USA, Europe and Asia to another part of the world, or need representation to manage the loading or discharge, contact us today and with our in depth knowledge we will be able to help.

 

Transshipment in logistics occurs when cargo either individual pallets or full containers are moved from one transporter to another while being moved from the collection place to the delivery place. This practice is frequently undertaken by shipping lines in order to maximise the cargo loading of their vessels. Transhipping containers allows shipping lines to serve smaller ports which the large ocean vessels (often called the Mother Vessel) are unable to enter due to their draft,length or width. These are called feeder services and allow the small ports to connect to other ports all over the world.  For container ocean freight services one of the biggest transshipment port is Singapore in the Far East. Other major transshipment ports are Rotterdam in Europe which has many feeder services calling at UK ports , Jebel Ali in the Middle East and Hong Kong in China.

Transshipment is a regular feature of multi-model shipments. Containers moving from an inland destination may initially move from a inland terminal to a port by rail, they are then transshipped onto a vessel and taken to the nearest destination port. Next they are transhipped onto a train, and sent by rail to the destination terminal.

For shippers moving containers which are going to be transhipped it does not mean any additional paperwork. Shippers should be aware that ocean transit times will normally always be longer compared to a direct service as the container has to be off loaded to quay and then wait for the feeder vessel to arrive at the port before being reloaded.  Depending on how close the port is to the final destination this additional transit time may be offset as the final on-carriage by road or rail will be shorter. For shippers the main benefit for a transshipment service from a main country port to another main port is cheaper freight rates. So for low value, or non time sensitive shipments these routes are worth considering in any supply chain planning.

Co-loaders who consolidate part cargoes from many shippers may transship cargoes at strategic ports locations around the world. This allows the co-loader to increase efficiency and reduce transport costs for shippers.  A co-loader may ship from 6 ports spread around the two different regions. The cargo from each individual port is insufficient to fill a full container for the other five ports. So the co-loader has a central port where all the cargo is consolidate. Now the co-loader has sufficient cargo to fill a container for each port. Neither the shipper nor the consignee is effected is still going being moved as contracted, but all parties benefit from the lower costs.  Shippers should always ensure their cargo is suitably packed to ensure the shipment withstand being handle multiple times.

[This is part of logistics help articles]

The Coronovirus is continuing to have an impact supply chains involving China. This is being particularly felt on reefer shipments. Many shipping lines  have issued warnings to shippers exporting to China that there is a severe lack of space for reefers in certain ports. The inability to be able to move containers off quay to distribution centres and factories  is causing a major headache for ocean freight forwarders and shippers of temperature controlled products.

Safmarine is the latest shipping line after CMA-CGM and the ONE Shipping Line who have now had to issue a notice that they need make a surcharge on reefers to ports of Shanghai, Xingang and Ningbo due to the complete. Safmarine are adding 1000USD per container to all bookings from 28th February. The issue is so critical now that the shipping line is offering to divert reefer boxes destined to these ports free of charge to other Chinese port, which is very rare for any shipping line to do. Shippers who are making new bookings for these ports need to be aware the shipping lines no longer guarantee the cargo routings,  nor will they accept any responsibility for the delivery time of the containers. Containers may be diverted to other ports at the discretion of the shipping line if there is no space available at the destination port.

There are some reports of shipping lines declaring general force majeure on all reefer traffic destined for these ports. They are going have them offloaded at other Chinese ports. It will be the responsible of the freight paying party to arrange them to be moved to the final destination. All shippers should be aware of the potential costs both in monetary and time future shipments may incur. It is recommend they constantly keep on top of this developing situation as it may continue to get worse, as the ports cargo is being diverted to begin to fill up.

Image of Coronovirus

AJF main operations in the Middle East are in Jebel Ali, U.A.E. served by our experienced agents. We offer a range of logistics services in this important logistics hub serving not just only the Middle East but also Europe, Africa, USA/Canada and the rest of the Americas in co-operation with them. Due to the U.A.E geographical location it can serve as a practical location to serve Europe and Africa and the Far East including Australia. Companies with manufacturing facilities and supply chains which start in China can have the goods transport to Jebel Ali from various China ports. At Jebel Ali the goods can be devanned and then the products can be picked to assemble the final shipment from the individual factories to the final consignees’ requirements.

Below are the logistic operations which can be undertaken in Jebel Ali.

  • Warehousing
  • Transshipment
  • Cargo Consolidation
  • Cargo Splitting and Distribution
  • Product Relabelling
  • Order Fulfilment

Our warehousing services are available to all our clients who need to rework their products, have them stored for later distribution, or quality inspected. Where containers have been handball loaded at the manufacture we can destuff the container, repack on pallets, shrink-wrap and then export to the final delivery destination.

Our transshipping services allow importers and exporters to change containers, packaging marks and shipping documentation where the shipper may not want the receiver to know where the goods original origin was. This service is particularly useful where the shipper is acting as an agent only and never handles the goods directly themselves and wants to avoid the buyer contacting the supplier directly. It is is also useful for companies shipping to politically sensitive regions where there may be restrictions on them.

The consolidation service allows clients who source from various factories which are exported from various ports in the far east and have a central location to consolidate these shipments before transporting them to their final destination in the Middle East, Africa, or Europe. We take either Full Container Loads or part loads, store them and once we have sufficient goods in store we then load them into one container, arrange the new paperwork and then export them. The consolidation service can be used for multiple shipments from Europe  to go to a Far East country or Australia.

Cargo Splitting and Distribution is the reverse to the consolidation service where a client has one supplier but multiple receiving destinations. We take into our warehousing the shipment which can consist of one or multiple containers. The shipment is then devanned from the container. Following the orders given from the client the cargo is split and packed onto pallets, relabelled where required and then exported to each destination. This allows the client to export in bulk from the supplier at more cost effective rate and if required make if more difficult for them to know the final destination.

The order fulfilment services are suitable for clients with international supply chains which need a location with good links to all worldwide locations. We can pick orders to a clients specific requirements and they can then be airfreighted out immediately to be with the end customer within 24hrs or  to a clients distribution centre for them to manage the final delivery. This allows stock to be held in one central location which allow clients to be able to manage seasonal demands or environment where there may be a sudden demand for one product type in multiple locations.

Vietnam is becoming an increasing popular alternative to China and and more buyers are integrating Vietnam manufacturers into their company’s supply chains. Vietnam has three industrial regions northern, central and southern. The northern region which includes the border with China has the North Key Economic Zone this is made up of several cities including Hanoi. This region is particularly attractive to companies who would like to move some of their manufacturing into Vietnam and keep limited manufacturing operations in China.

The Central Key Economic Zone is made up of five provinces in this region with the majority of industry being concentrated in the Da Nang area.  This area is currently not as economically developed as the north or south regions, but is continuing to attracted inward invest and is steadily growing its occupancy.

The Southern Key Economic Zone is made up of several southern provinces which included eight cities. The biggest of these is Ho Chi Ming City and the region around this has created the biggest economic investment zone across the country, with the highest occupancy rate. Industrial sectors include:

Logistics within Vietnam are now well developed around the main ports, with significant investments in the port facilities and surrounding infrastructure. Most of the world’s main shipping lines have at least one service every week calling at Hau Phong, Dan Nag and Ho Chi Minh allowing a whole range of European destinations to be served.

From Ho Chi Minh City all common equipment is available including 20ft and 40ft High Cube size containers for standard shipments. Flat racks and open-top containers are available for out of gauge shipments.  and LCL services for loose and palletised cargoes. AJF can give rates for shipments to buyer’s purchasing under incoterms such  FCA, Ex-works and FOB incoterms for importers and DAT/DDP for exporters from Ho Chi Minh.

If you are a UK exporter and are an existing exporter or looking to export for the first time, especially with BREXIT happening in the UK. AJF handles export shipments from the UK to the Ho Chi Minh region we can offer assistance on which incoterms to use, best way of shipping including packaging of goods and if using an LCL or full container service.

For buyers who are shipping from various factories in the Ho Chi Minh region, our buyers consolidation service exists to collect the goods, store them in a warehouse and when there is sufficient for a full container load, stuff the container and arrange the export  clearance. The service gives the  benefit of saving on freight charges and having the security of only your goods in the container. If you are currently shipping LCL and are interested in this option then contact us to see if it would beneficial for you. The service is suitable for buyers who ship full containers from several different factories but want to ship more frequently. The buyers consolidation service means trucks can regularly call at the manufactures and pick up any goods ready and bring them to a central warehouse. Once there is sufficient for a container then it is loaded and shipped. This service can be beneficial for a buyer’s supply chain operations. If you need quality inspections to be made of the goods then we can arrange for them to be inspected once the have arrived at the storage warehouse. Quality inspections can be done to a buyer’s specification with photographs, written reports and where required even live video chat, allowing any potential production  issues to be dealt with immediately.

For very specialised cargoes including ones which require  geared vessels we can arrange both part and full ship charters, we have extensive contacts in the ship broking world and can usual find a vessel for any project cargo and port. Our consulting services are available to help clients plan how they are going to move the cargo, this includes covering the type of cranes required, trucks and site access. AJF has consulted on project shipments across the world and resolved many issues our clients have faced successfully.

The UAE came into existence in 1971 and at the time its main export was oil. It is this commodity which drove the development of the Emirates and led to the massive development projects of the 1990’s and early 2000’s. During this period the Emirates also started to develop free zones to attempt to diversify the economy away from oil. Large investments were put into various logistics areas including the Jebel Ali Free Zone. This has now become the largest free zone in the world and has become used as a transshipment point for supply chain logistics around the world.

Map of Jebal Ali

Jebal Ali Free Zone [Google Maps]

The combination of both good air and sea transport links, combined with purpose built free zones have made it a very popular and cost effective location. If you are looking to distribute into Africa, Europe and the Middle East then Dubai in the UAE with its free zone has several advantages.

AJF uses Jebel Ali as it main hub for delivering its logistics services into the Middle East and Europe via our agents here. Operating within the Jebel Ali Free Zone we are able to undertake the following.

Trans-shipment Case Study

A company imported regularly into the UK full 40ft Containers from a manufacturer in China and wanted to expand to several other new clients in Europe. The new clients only required a few full pallets every few weeks. Originally they wanted to fulfil from the UK however the costs of re-working the goods and sending them out from the UK was high even though the UK was in the EU. The alternative was bringing the goods into a warehouse into the Jebal Ali area. Here the container’s were unloaded, the pallets were checked and certain labelling was replaced. The pallets were then exported direct to the supplier using a Dubai trading company, preventing both the receiver and the Chinese manufacturer knowing  each other.

We can manage as in-house logistics contracts for companies which want to out-source all of their supply chain requirements. This includes locating the facilities and set up the procedures to handle the import and redistribution of the goods.

If you have questions about our services or want quotes for shipping or our supply chain logistics then please contact by phone or use our contact form

 

Shippers need to be aware that the Coronavirus is having an impact on shipping out of China. Due to the Chinese government putting travel restrictions in place and extending the Chinese New Year holiday, both manufacturers and logistics operators will have increased delays in arranging new shipments and dealing with existing bookings. Several Chinese areas have had extended their Lunar New Year Holiday to the 9th February. The regions currently included are:

Additionally Hubei province which includes Wuhan city has the holiday period extended until 13th Feb.

Currently Hong Kong is working normally but any communication required to a mainland office will be delayed.