Newsletter #28/2024: Actual situation in international transport

Newsletter #28/2024: Actual situation in international transport

We hope and trust that you have survived the last few days safely and, if possible, with no or at least minimal harm. And we are thinking of those who have other things to worry about than reading our newsletter, which would like to pour optimism into your veins, but not everything is sunny in the field of logistics. Nevertheless, fortune favours the prepared and let's take a brief look at what is to come and probably not to pass.

INTERMODAL TRANSPORT

We have recently informed you about the dismal situation in intermodal transport. Planned repairs, ongoing random strikes and unplanned major outages of terminal IT systems have had a clear impact. The number of trains dispatched in both the import and export direction has decreased and traffic to and from the port has been delayed. Significant problems have been reported by both Hamburg and Koper. Operators are diligently looking for solutions and diversionary routes, but combined with the Christmas season just arriving, which has overwhelmed the ports, it is a futile struggle. In their words, "they feel that they have reached a state in which they will have to exist in the coming months, mainly because the main rail lines are not prepared for such fluctuations in traffic. Unfortunately, these circumstances have a huge impact on the cost of transport, which they will no longer be able to absorb in the future." 
 
In our view, therefore, it is very likely that intermodal operators will not wait for the new 2025 price lists and will implement some sort of surcharge on freight (whatever it is called) later this year, which may affect import shipments already loaded or confirmed.  
 
 
 

U.S. EAST COAST TERMINAL STRIKE - UPDATE

As October approaches, the threat of an Eastern terminal strike grows very substantially. There has been no agreement yet and according to reports there is no sign of one. At the same time, information is leaking out (according to Reuters) that even President Biden will not use his veto power and options to ban a strike under the Taft-Hartley legislation. 
 
We've described what this means specifically for U.S. shipments in previous newsletters, so we'll just remind you that it takes a week to remedy a one-day strike. So a week of strike means trouble for the rest of the year.
 
 
 

THE ORIGIN OF THE HARVESTED TIMBER

 
From 31 December 2024, a new regulation will come into force which will require importers to prove the origin of certain products, especially wood. 
 
In connection with this regulation, you may also see the terms "EUDR" or "deforestation". 
The Regulation sets out the obligations of operators marketing timber and timber products (known as the "Timber Regulation"), which has been in force in the EU since 2013. An amendment to the Timber Law 226/2013 is currently under preparation, which will also implement the EUDR. 
Although not yet finalised, the amendment will be applicable from 31 December 2024 and will apply to so-called relevant products that contain so-called relevant commodities - cattle, cocoa, coffee, oil palm, rubber, soya and timber.  
 
The new regulation will be more extensive and will now require operators to submit a so-called Due Diligence Statement (DDS) before placing relevant products on the market or before exporting them. 
Samples and small value shipments are not and will not be excluded from the regulation. 
 
Unfortunately, we do not know more yet, the authorities concerned consider that 31 December 2024 is still a long way off, so we will probably find out everything at the last minute, as with the CBAM regulation. However, we will certainly inform you immediately so that you can prepare for the demonstration.
 

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Newsletter #27/2024: Port workers strike looming in the US

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Newsletter #26/2024: Actual situation in international transport

Cucumber season in logistics? The past! Get ready for changes in air, rail and sea transport. Golden Week in China, problems in Bangladesh and other challenges ahead. Get the latest on rates, capacity and potential delays.

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