Good afternoon All
Yes, today is a pretty special day, as it marks 5 years to the day that we formed Straightforward Consultancy.
Overall it's been a great experience, because when I left DHL (see my earlier blogs for the history), I knew I wanted to do something different, but it took a while to come to me.
After spending 30 years on the supply side of logistics in operations, sales and management for some large companies, my mind was clogged with their routines, culture and processes, much of which I thought didnt help them to grow.
I had also noticed over time that small-medium sized importers and exporters often received the poorest service and paid the highest freight rates, and as the years passed, the expertise had left (or wasn't there in the first place) and non-experts were trying to manage a pretty complex area.
So began the idea behind SCL, and we're very grateful to those companies who took a leap of faith and appointed us early on, many of whom are still with us today.
If I had to say why I think we've been successful, it's all about having a good idea, telling people about it and demonstrating that you can make a real difference, adding lots of value and going the extra mile.
It really doesn't seem like 5 years but that's probably because it seems like there's always something we need to do, and it has to be said, there is a lot to think about with a small enterprise but I have to say that it has been a really satisfying (despite all the challenges).
We have just rebranded and launched our new website which clearly sets out our core services, links to our blog and provides customer testimonials and case studies (and our new brochure).
Please do contact us if you'd like to discuss how we could help you to transform the way your import or export activity is managed and achieve significant cost savings into the bargain.
Kind Regards
Andy Cliff
Director
Do you have traffic moving in or out of the USA West Coast?
Some really encouraging news at last - for those of you who have ocean freight traffic moving in or out of the USA West Coast ports, you've probably been concerned about the risk of strike action by the main port workers union, the ILWU (International Longshore & Warehouse Union) and what it might mean to you in terms of extra costs (congestion surcharges) and also potential delays. We hear that many companies had already started diverting traffic to the East Coast (hard to believe when you consider the distance of 3000m) however pre-Christmas traffic is already moving in the global supply chain and retailers in particular cannot risk empty shelves.
We've just received the below bulletin through one of our channels which we felt we should share with you, especially as it's good news!
U.S. West Coast Labor Contract: ILWU & PMA
Contract Negotiations
The master contract between the Longshoremen's & Warehouse Union
(ILWU) and the (employers) Pacific Maritime Association (PMA) expired on July
1, 2014. The master contract governs twenty nine ports on the U.S. West Coast
from San Diego to Seattle, impacting a total workforce of nearly 20,000
longshore and clerical personnel.
In a joint release on August 26, the ILWU and PMA announced that, "...they
have reached a tentative agreement on terms for health benefits, subject to
agreement on other issues in the negotiations. The parties have agreed not to
discuss the terms of this tentative agreement as negotiations continue."
The tentative agreement on health benefits is a significant milestone towards
reaching a coastwise master contract. The full release can be viewed on the PMA
website (www.pmanet.org),
or by clicking here.
http://www.pmanet.org/wp-content/uploads/2014/08/PMA-ILWU-Joint-Release-08-26-2014.pdf
Kind Regards
Andy Cliff
Director
Straightforward Consultancy
Good morning All
Following on from my last blog on this topic on 30 Dec, as expected, the rates spiked in the lead up to Chinese New Year (3rd-9th February 2014). The index jumped USD 250/TEU (USD 500/40GP) in early January which was a big increase, especially as there'd been a USD 600/TEU increase (USD 1200/40GP)in mid-December 2013.
So, as we went into Chinese New Year, and as we predicted, rates were in the USD 3500-3900 per 40 foot range from base ports such as Shanghai, Hong Kong etc and not only that space on vessels was incredibly tight.
The reason for my blog today is, have you checked what your current freight costs are today, as they could still be in this range, and depending on which forwarder you are working with, your February rates are most likely the same as January.
Given that the Jan-Feb rates are almost double the November level, I'd suggest you take action because you could be burning cash unnecessarily.
If you don't know what you're paying, do check, because you'll be hit with a cost which can't be challenged in about 5-6 weeks from now, as the rate is set when the container is booked.
We've already begun negotiations with our partner forwarders from Asia and have already seen significant reductions for our growing Asia-UK portfolio.
Kind Regards
Andy Cliff
Straightforward Consultancy Ltdwww.straightforwardconsultancy.co.uk
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Good afternoon AllMany of you may know from the bulletins in the logistics press that the shipping lines who operate services from Asia to Europe and the UK were planning a hefty USD 950-1000/TEU (20 foot container equivalent) increase on Asia-Europe for December 15th which has actually settled in at USD 600/TEU, so in terms of the big picture, we have moved from a cost of around USD 600/TEU in the low point June 2013 to a market rate now of over USD 1500 (3 x June level), so we're talking about USD 3000 for a 40 foot container - big money.
To add to the woes of UK importers, not only have they suffered large rate increaes, but the lines have withdrawn sailings (i.e. capacity) to help their rate increases to "stick" but the result of this is a big increase in what's called "rollovers".
These are when a container, booked to sail on a certain vessel, is re-booked on a later sailing, naturally causing delays and inconvenience for the importer, who will still be expected to pay the full rate!
From our perspective, we have been either very fortunate, or our customers' containers are treated with some priority as we have only seen one rollover in 2013 (1 x 40HC from of Jakarta, transhipment via Singapore) which I believe is also related to our close monitoring of service (and rate) levels and we step in early with any service issue to get to the root cause.
As always, we're only too happy to speak with any companies who would like to make their import supply chain leaner, more responsive and more customer centric (and let someone else manage it for them!). We have just had two more clients renew for 2014 and have also been appointed to two brand new clients for 2014 so we're really pleased that we're offering a service which is truly valued by existing and new clients.
Merry Christmas to All and have a great Christmas break with your families and put logistics to the back of your mind for a few days!
Kind Regards
Andy Cliff
Thought I'd drop this one into the blog. If you're a UK importer, you have responsibilities to HMRC as the importer. 99% of UK importers will use a freight forwarder or Customs clearance agent to get their air and ocean shipments cleared through Customs so they can take delivery and either get it into production, or out to their customers - job done!
Just a word of advice. When you use a freight forwarder to carry out the Customs clearance for you, they're (99 times out of a 100) acting as a Direct Representative. So what the heck is that? It means that although they declare the goods to Customs and sign the Customs Entry (C88), you're liable as the importer for the accuracy of the entry.
That means some fundamental things such as:-
1 - Correct tariff classification (which affects the duty rate payable)
2 - Correct value declaration
3 - Correct currency code
4 - Declaration of marine insurance (dutiable)
5- Declaration of correct freight charges (dutiable)
6 - Correct/appropriate Customs regime (home use/IPR/OPR)
7 - Value declaration (is the value on suppliers invoice correct)8 - Application of any duty concession which may be applicable
There are others too but these are the main ones.
HMRC have issued leaflets to remind customers of their responsibilities in this area (see below photo) however they're not well publicised and the wording inside may be confusing to the average UK importer (who has most likely never completed a Customs entry in their life!).
We carry out Customs Compliance work for many of our import customers so they know they're compliant, they're paying the right amount of duty, the correct tariff codes are being applied for the different products they import and they're taking advantage of any Customs duty reliefs which are available. The other big benefit is the obvious one - peace of mind, it's being managed, if we get a Customs visit, we can show we carry out a compliance process to ensure any errors are picked up and corrected.http://www.straightforwardconsultancy.co.uk/This was how we uncovered a £ 26,000 duty overpayment for a Warrington customer earlier this year, importing catering equipment from the US. The mistake went back 7 years but we can only reclaim 3 years worth of overpaid duty (127 Customs entries).
Please let us know if you need any advice regarding compliance as well as any general freight or logistics advice it's what we do (and what we're really good at).
Kind Regards
Andy
Good afternoon All
It seems that the EU have finally decided to act on concerns in the European logistics marketplace that ocean carriers have been colluding regarding the level of General Rate Increases (GRIs).
I think this is long overdue, because many would agree that these increases seem to be timed to take effect on the same dates and at remarkably similar levels. An example would be the November 2013 GRI from Asia to Europe, where the increases were all in the USD 950-1000/TEU (20 foot equivalent unit) and previous increases over the past 2 years have followed a similar vein.
It will be more than interesting to see how this evolves and also, how the lines handle the latest proposed increase of around USD 750/TEU due to be implemented from Dec 1st. It will be a really interesting one to watch!
See below link.http://theloadstar.co.uk/ec-opens-formal-container-shipping-antitrust-investigation/
Kind Regards
Andy
Andy Cliff
Director
Straightforward Consultancy Ltd
4, Beckett Drive
Winwick Park
Warrington
Cheshire
WA2 8XJ
Tel : 07934 443492 begin_of_the_skype_highlighting 
07934 443492 FREE end_of_the_skype_highlighting
Email : andy@straightforwardconsultancy.co.uk
Web : www.straightforwardconsultancy.co.uk
Blog : http://straightforwardconsultancy.blogspot.co.uk/
Twitter: @AndyCliffSCL
Linkedin: http://uk.linkedin.com/pub/andy-cliff/1a/43/72
Skype: andy.cliff1@skype.com
