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Global Container Services

Agents Network (February 2014)

Global Container Services are very proud to have their own independent worldwide network of overseas agents’ offices, which includes 102 sites in 49 countries. Details of the locations of these agents can be found on our network pages.

We are also happy to announce that we are now part of a large exclusive logistics network called Lognet Global, which gives us access to a further 430 sites in 92 countries. In cooperation with our local partners, this allows us to service new markets, especially Africa and South America for example, providing door to door movements and clearance facilities.

In addition to this, we are now UK agents for All World Shipping USA, giving us more options for the USA market, both import and export, and operating weekly services for all East and West coast ports.

Cross Trade Movements (February 2014)

Early notifications were received in March that all carriers would increase rates by USD 500 per TEU from 1st April. Although not to this level, increases have now been implemented and all customers have been informed separately.

To combat the long term effect of oversupply in capacity, which is likely to continue for the short term, the carriers are looking at options to use their resources best for the future stability of the market. A new consortium called P3 is getting final approval, which will merge the services of the three largest carriers, Maersk Line, CMA-CGM and MSC. This new network will be the biggest, and will combine the volumes of all three in an attempt to balance the ‘capacity to demand’ more closely.

Currently, there are two other consortia, G6 and CKYHE, between them they combine the services of eleven carriers.

All three networks use vessel sharing agreements, therefore essentially offering just three main services between a total of fourteen companies. This leaves just two other carriers who are operating independently on this trade lane.

Overall the choice of vessels options will be reduced as a consequence, however the full impact of this will not necessarily be known until July / August, when all three networks are expected to be operational.

We are confident that any amalgamation of routes will not directly affect the overall service or transit time for customers.

VAT on freight charges payable in China – 26th July 2013

New rules have been issued by the Ministry of Finance and State Administration of Tax in their Cai Shui no.37 (Circular 37) regarding implementation of a 6% tax on local and freight charges from 1st August 2013. The majority of carriers including OOCL, Hamburg Sud, MSC, MOL, NYK, CSAV & CSCL have confirmed that they will apply the additional tax of 6% to all ocean freight charges which are prepaid in China.

This will affect any customers who currently are purchasing their goods on CFR/CIF basis from China, whereby their supplier is responsible for paying local and freight charges. It is therefore likely that these customers will see an increase to their costs from their supplier from 1st August onwards. If you would like to avoid paying this additional tax, and would consider changing your terms from CFR to FOB, please contact a member of our team who will be happy to quote you a competitive freight rate.

For customers who already use Global Container Services for their freight movements and are purchasing their goods on FOB terms, they are excluded from this additional tax as the freight charges are paid in the UK.

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