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Annual OL worldwide Agency meeting in Hamburg

Agents from at least 50 nations will come to Hamburg in the early days of June for the big annual agency meeting 2014!

It is an incredible success for the actively managed OL network that so many agents want to meet their partners to futher improve the cooperation and to develop new business for the future!

Every day OL customers will see the advantage of personal frienships between agents as a single line email or a short phone call to the partner in the destination port can do mircales when something goes wrong.

The quality of a network comes to light when the customer faces problems and some quick help is needed.

The OL network manager is constantly available to assist from the senior management side.

Stay tuned on this site for the news after the meeting!

 

Transatlantic North Continent to USA rate increases

We see more and more notices coming in from the lines where big rate increases are announced.

The GRIs are presently set to take place on July 1st, 2014, more or less directly before summer vacations will start. We are very curious to see, what will happen!  As mentioned in our previous Newsletter, the big question remains, if the strong space demand in the market will survive the month of June. Normally  June is still a strong booking month so that the chances are that carriers will have the “courage” to execute at least a partial increase.

Numbers like USD 400 per 20′ and 500 per 40′ are nothing special, but the trade is used to high annoucements,  which finally end up in moderate increases!

So, please keep in mind that rates may go up as of July 1st, when you calculate your freight costs on the Transatlantic from the North Continent to the US coasts.

 

 

Transatlantic westbound news

The market situation on the Transatlantic westbound seems to be governed by pretty full ships, this to avoid the term “overbooked ships”!

Some US West Coast cargo can only be booked for the earliest sailing in July, capacities to the East Coast are also pretty full, but not as much as to the West Coast.

Obviously carriers try to take advantage of that situation and are working on rate increases as soon as possible to improve the profits on this trade lane.

Most lines are still complaining that the transatlantic trade is a loss maker, but at the rate level that has been reached westbound, the loss cannot come from the w/b direction.

We know that the “real headache leg” of this trade is the eastbound trade that needs to fight for cargo and drives the freight rates downward.

The result is that the westbound customers are more or less supposed to pay for the” whole show”, i.e. for westbound and eastbound. The present filling degree of the ships seems to support the possibility for a GRI, however, there are voices that say that the lack of space situation is more or less homemade.

There were quite some problems in the early months of 2014, when heavy weather caused ships to turn round to go back to Le Havre for an emergency call or to slow down. Then on top we saw some performance problems at the US terminals where bad weather, equipment problems and other issues caused stoppages and slow downs.

The schedule was disturbed to the extent that we saw 3 ships of one alliance on the North Atlantic in one week recently while there were considerable gaps at other times.

As the summer comes up, the schedules will be re-established and a cleaner service pattern will make sure that the cargo will be carried evenly spread, which could lead to the circumstance that the ships will be well filled, but the overflow situation we presently face could be a story of the past.

Notwithstanding these risks we had to face the very short notice GRI of OOCL, increasing their rates by June 1st in a very considerable way, while Maersk had increased their rates more than dramatically on April 1st.

Most carriers, however, had fixed their rates to the end of June and we take it that there will be quite some GRI announcements for July 1st.

It remains to be seen, if by that time the schedules will be back to normal and if the volume that is pushed from one ship to the next will have disappeared.

History tells us that rate increases in the middle of the summer are short lived as vacation time starts and factories, companies, traders etc are closing down, reducing the cargo volume considerably. If that happens, rate erosion will most likely start which would reduce the July 1st GRI or even stop it totally.

Be warned, the chances of a wb GRI on the Transatlantic by July 1st are still out there, so be careful in quoting rates beyond that time without a GRI remark.

For the future, we believe that we are headed for interesting times as the new alliances like P3 and G6 may stand for increasing freight rates,  just because a certain leadership will be established, which could cause other carriers to follow the rate increases of the big groups.

We will keep you informed.

Watch out on the max. container weights to the USA!

It is an ongoing issue that truckers and carriers in the USA do have very restrictive weight policies, following the individual laws in the USA.

We just got this information from MOL as one of the examples of the max weights allowed:

Please find the current maximum allowable gross weight for cargo movements ex / to United States in below:
Max. allowable gross weight US Pounds Kilograms
20′ GP on a slider chassis * 39.500 LBS 17.917 KGS
40′ GP on a standard chassis 44.500 LBS 20.185 KGS
40′ High Cube on a standard chassis 44.500 LBS 20.185 KGS
45′ High Cube on a standard chassis 41.500 LBS 18.824 KGS
40′ High Cube Reefer on a standard chassis ** 41.800 LBS 18.960 KGS
* Max. gross weight can be increased to 44.000 LBS (19.958 KGS), if a tri-axle chassis will be supplied

If caught as being too heavy, normally overweight containers must be stripped down to the maximum permissible weights!

Only cargo that can not be split may obtain a special overweight permit!

 

OL Website goes online!!

The OL network is very proud to be able to present the new network website!

Welcome, please have a look and let us have your feedback!

Canadians tighten the pre- loading reporting!

Here below is an update about Canada’s upcoming eManifest for Forwarders and Importer Advance Trade Data (ATD) regulations. CBSA is leveraging sophisticated technology and analysis of information to automatically and rigorously risk assess commercial goods prior to their arrival in Canada, using the pre-arrival/pre-load electronic information.
Canada’s eManifest is part of Canada’s Advance Commercial Information (ACI) initiative for freight forwarders/NVOCCs.  It requires freight forwarders/NVOCCs to electronically transmit advance commercial information to the Canada Border Services Agency (CBSA) within prescribed mode-specific time frames.  Freight forwarders/NVOCCs will be required to submit advance electronic house bill data for cargo bound for Canada.

The regulation becomes effective on July 1, 2014.
Companies that do not comply may face monetary penalties. When applicable, the CBSA may issue penalties for: a) providing information that is incomplete, inaccurate or untrue; b) failing to send the prescribed information within the prescribed time or in the prescribed manner; and/or c) failing to notify the CBSA that the data has changed.

The Canadian eManifest filing requirement essentially adds additional data points to the existing ACI filing.  The regulation also eliminates paper filings.  Filers must use the CBSA portal or work through a service provider  who will transmit each filing to CBSA via EDI.

The eManifest requirement for ocean shipments requires carriers and NVOCCs to electronically submit their conveyance (vessel) and cargo information to the CBSA at least 24 hours prior to loading of the goods on board the vessel at origin.

We will keep you informed!

 

 

Zim realigns Med to USA services as of Q3 2014

We are pleased to inform our customers about the latest news that we got from ZIM in the Mediterranean:

Quote

Dear ZIM customer,

ZIM is pleased to inform you of the new structure of the Med-US Cross Atlantic services, offering enhanced services to customers with improved port coverage and transit time.

The new enhanced structure, in cooperation with Hapag Lloyd, is planned to commence on the 3rd quarter, subject to FMC approval. Connecting the Mediterranean with US East Coast, Gulf and West Coast, the new alignment includes the following:

ZIM’s flagship service ZIM Container Service Atlantic (ZCA), covering East and West Med to US East Coast, now with expanded scope, better suited to customers’ needs. Final rotation details to be published shortly.

Med-Gulf Express (MGX), connecting the Med to US Gulf, Central America and Caribbean, with a new call at Kingston, ZIM’s hub in the Caribbean. Rotation: Cagliari, Salerno, Livorno, Genoa, Barcelona, Valencia,  Kingston, Veracruz, Altamira, Houston, New Orleans, Cagliari

Med-Pacific Service (MPS) connecting the Med and US West Coat. Rotation: Tangier, Valencia, Cagliari, Livorno, Genoa, Fos, Barcelona, Valencia, Los Angeles, Oakland, Tangier

Terminals details will follow shortly.

The new structure is aimed at introducing improved products and better services to our customers.

Unquote

OL will be able to offer our customers rates for the new service!

 

Evergreen change of Demurrage and Detention calculation

Evergreen just informed us about the latest change of their  calculation basis for Demurrage and Detention

for Export shipments from North Europe to all Trades!

Please find the attached wording here:

EVERGREEN Dem Det JUNE_2014

MSC announces possible PSS

MSC just announced a possible Peak Season Surcharge

for the Euro to Canada Trade lane as of June 1st!

Let us wait and see, if they will really execute this new additional!

Read more:

 MSC PSS Canada