Forwarders complain over Covid handling surcharge

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PARIS, Apr 9 (FAM) – The freight forwarding arm of France’s leading logistics industry body, TLF, this week issued an ultimatum to the world’s largest air cargo handler Worldwide Flight Services (WFS) to withdraw a ‘continuity of service’ surcharge of €20 per air way bill it had introduced this month or face having the matter brought before the state authorities, according to a report in the French media.

Online freight publication Actu Transport Logistique said a letter sent by the air cargo handler to forwarders had justified the levy, effective 1 April, on the grounds that operating conditions have been made more difficult as a result of passenger aircraft being used on all-cargo mode, and also that it requires its staff to work more overtime.

Forwarders are adapting, BIFA insists

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LONDON, Apr 8 (FAM) – The British International Freight Association (BIFA) has defended freight forwarders against any suggestion that they are not adapting to the new requirements and opportunities presented by the digital age, arguing that even the smallest agents are modernising their businesses and processes.

The traditional ‘modus operandi’ of forwarders was now outdated, Robert Keen, director general of the British International Freight Association responded that he believed all of BIFA’s 1,500 members would agree that freight forwarders must adapt to succeed, adding that his personal evidence on his visits to BIFA members “suggests their businesses are adapting constantly”.

Forwarder reports steady recovery in China-UK volumes

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LONDON, Mar 20 (FAM) – UK-based independent freight forwarder Davies Turner (DT) estimates that levels are currently approximately 60% of those prior to the Chinese New Year and the subsequent Coronavirus outbreak

The forwarder is seeing a steady recovery in Chinese export and import volumes as the spread of Covid-19 has slowed and the country’s economic activity has picked up.

Forwarders count costs of coronavirus impact

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BASEL, Feb 3 (FAM) – Kuehne +Nagel (K+N) expects the coronavirus to lead to a significant reduction in its China sea and air freight volumes in the first quarter of 2020 compared to the same period last year, with DHL also highlighting that the virus and its secondary effects would have a material effect on its first-quarter results.

CEO Detlef Trefzger told analysts at a conference call that the Switzerland-headquartered global freight forwarding and logistics group was likely to see a decrease of between 20% and 40% in TEUs for its China business and a 10%-20% fall in air freight tonnage as a result of the Covid-19 outbreak.

China-UK intermodal service to resume mid-March

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LONDON, Feb 28 (FAM) – UK-based independent forwarder, Davies Turner is planning a mid-March resumption of its scheduled Express China Rail Service to Europe.

In keeping with normal practice, the service did not operate during the Chinese New Year holiday break and its suspension has been further extended due to the coronavirus.

Coronavirus freight slump will cause demand spike – eventually

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FRANKFURT, Feb 12 (FAM) – Coronavirus is not the only headwind facing forwarders in 2020. But it does represent a poor start to the year, admits Jens Lund, chief financial officer for DSV Panalpina.

However, he told Lloyd’s Loading List that once the impact of the deadly virus subsides and China reopens for business, the starvation of supply chains due to factory closures will be followed by a huge surge in freight demand, creating capacity shortages across all modes – that the largest forwarders can monetise.

Forwarders lack visibility as coronavirus outbreak unfolds

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BEIJING, Feb 6 (FAM) – China’s logistics activities remain in slowdown mode due to the extension of the lunar holidays; but with air and ocean capacity cuts by carriers, executives expect ‘a rush on all transport modes, and air in particular’ that will be reflected in rates and surcharges when Chinese factories resume production.

The pneumonia-like virus has to date killed close to 500 people, the majority in the central province of Hubei and its capital Wuhan, and the Chinese authorities have reported well over 20,000 confirmed cases.

XPO assets under review includes European transport unit

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LONDON, Jan 21 (FAM) – Equity research analysts Jefferies expects European transport to be one of the XPO Logistics’ businesses that could be sold or spun-off as part of a strategic review announced last week by the New York Stock Exchange-listed supply chain giant.

Jefferies also suggests that XPO’s North American freight brokerage and expedite assets, plus its intermodal and last mile businesses could form part of XPO’s strategic alternatives,” although XPO has confirmed that its North American less-than-truckload (LTL) unit, accounting for around 22% of group revenues, is unlikely to be part of the review.

Freight sector faces ‘recurring’ challenges in 2020

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CHICAGO, Jan 16 (FAM) – Most of the challenges facing the freight forwarding and shipping sector in 2020 will have “a familiar feel” following the difficult year navigated in 2019, with some of the bigger challenges already beginning to ease, according to US digital ocean freight forwarder iContainers.

Klaus Lysdal, vice president of operations at iContainers, said preparation for IMO 2020 and the United States-China trade war had been some of the biggest challenges for the industry last year, noting: “Aside from IMO 2020, the tariff war has been stealing all the headlines, causing trade to shift, and basically affecting all trade lanes this year. 

Forwarders frustrating box-owning benefits for shippers

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HAMBURG, Jan 14 (FAM) – Freight forwarders are failing to support shippers wishing to use their own containers, despite the benefits the option provides, according to a new report from container repositioning service Containers xChange.

“Shipper-owned containers are the fastest growing container market segment, with a compound annual growth rate of 15.8% between 2014 and 2015, and account for $11bn of carrier revenue,” the report said.