Tuesday July 07 , 2015
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Welcome to KWL Logistics

With well over 100 years of experience in Worldwide Freight Forwarding and Logistics, we offer our customers a solution to handle all of their Import, Export, Crosstrade and Logistical requirements under the one umbrella.

Whether you are moving a pallet of cargo from London to Hong Kong, a shipment of 20’ and 40’ containers from New York to Manchester, or you need us to project manage the movement of a machine from Birmingham to Australia, then we can help.

If you value your business then let our team of professionals look after you.

We are just a phone call or email away.


 

Industry News from BIFA

  • UK logistics needs real investment, warns forwarding chief

    While road traffic - passenger and freight - has surged over the past three decades, the capacity of the network has scarcely increased at all and the effects are being felt in increasing, and increasingly erratic, journey times in all parts of the country.

    Existing roads are also crumbling, says BIFA, with emergency repair work also contributing to slower journeys, especially at night when much of the country's freight is on the move.

    "Congestion needs to be planned out of all modes of UK transport," says BIFA Director General, Robert Keen. "While Governments of all hues have made promises in the past, very few significant schemes have been delivered."

    Statisticians estimate that the UK's population will increase to 72 million people by 2050, "putting an unprecedented strain on the country's logistics network," says Keen.

    The freight industry is often overlooked by politicians, he continues, despite the fact that 2.2 million people in the UK - one in 12 of the workforce - are employed in the sector, according to the Government's own figures.

    The specific part of the supply chain for which BIFA's members are responsible is even less appreciated, says Keen. "The government needs to pay more attention to the value of international freight and logistics to the UK and urgently address issues that impact on the global supply chain, including Customs, EU legislation, security and international trade treaties.

    Ports and railways, too, need the benefit of more strategic and joined up thinking. While major private investment has gone into the new London Gateway Port and the enlarged Liverpool2 container terminal, Keen points out, "what has too often been lacking is commitment by the government to deliver the improved road and rail inland links that these schemes require if we are to realise their full potential."

    The prolonged dithering over when and whether to extend runway capacity in South-East England is perhaps though the supreme example of the procrastination that is at the heart of Government transport policy. "It is time to get down to some long-term, strategic airport planning before the UK finally and irrevocably runs out of airport capacity," Robert Keen emphasises.

    Many other aspects of Government policy will impact on the freight and logistics industry, even areas that at first sight don't seem to have much effect on the sector. Take the hot political potato of immigration, for instance. Immigrants are playing a vital role in keeping UK logistics moving, as drivers, warehouse operatives and, increasingly, management. Any moves to restrict immigration from the rest of the EU or from further afield, "could potentially have a very serious impact on the logistics industry," Robert Keen states.

    Education policy will also have a big impact on the health of the UK logistics sector, he believes. The lack of public knowledge of and engagement with the industry needs to be tackled, if the industry is to successfully encourage and enthuse the next generation of logistics professionals. Much more could be done to encourage young people to take up a career in the industry, which rarely appears on the radar of school careers officers or recruitment specialists.

  • TIACA welcomes WCO's new security framework as part of global standardisation for advance data

    As part of the changes, the WCO recently formally adopted the so–called ‘7 + 1’ data set as the requirement for risk data analysis, helping to standardize basic Pre-Loading Advance Cargo Information (PLACI) processes.

    “This is a major step forward for Advance Data,” said Doug Brittin, TIACA Secretary General.

    “The WCO should be praised for collaborating so closely with industry to work toward a secure supply chain while ensuring the smooth flow of commerce.”

    PLACI initiatives undertaken by the US, European Union (EU), and Canada since the 2010 ‘Yemen incident’, where bombs were intercepted hidden in desktop printers shipped on express carriers, have proved that using Advance Data for civil aviation risk assessment provides an additional layer of security.

    TIACA is working with regulators globally to ensure that new PLACI regimes are standardized.

    The ‘7 + 1’ data elements include the number of pieces, total weight, general cargo description, shipper name and address, and consignee name and address (the seven), plus the house airwaybill number (the one).

    “Unless the new PLACI regimes are standardized overall, there is a very real risk that cargo will be left sitting on the tarmac if it is transiting more than one regime," said Brittin.

    “TIACA is working to make sure that every segment of the air freight supply chain is heard as regulators begin to implement new rules.”

    “We collaborate closely with WCO and others involved in the new rulemaking to ensure that we have a safe supply chain without impeding the flow of cargo.

    “The WCO’s recent security framework updates are a solid example of this working in practice.”

    TIACA recently brought together regulators from across the globe to update industry on PLACI initiatives at the Executive Summit in Miami, USA.

    A Position Paper outlining the latest PLACI developments is available to download at tiaca.org

    The 2015 version of SAFE will be available on the WCO website at wcoomd.org this month.

  • Container shipping will be lucky to break even in 2015

    Earlier this year Drewry forecast that container shipping carriers would collectively generate profits of up to $8 billion in 2015, but our revised view is that it will be lucky to break even this year.  This means that some lines will be back in the red by the end of 2015. The only way to address this is for carriers to take much more radical action to address overcapacity which is now plaguing virtually all major trade routes.

    Despite first quarter industry operating margins of 8%, cost savings through falling oil prices were passed onto shippers by carriers in the form of much lower freight rates. And going forward, shipping lines will struggle to continue reducing unit costs in line with the expected erosion in freight rates, given stabilising bunker costs.

    Drewry estimates that this year average global freight rates will decline at their fastest pace since 2011, when the fall in industry unit revenue was as great as 10%. The outlook for freight rate development has not been helped by second quarter spot rates in the four main East-West head haul trades falling by 32% year-on-year.

    Recent decision by the Ocean Three lines to remove approximately 4% of trade capacity on the Asia-North Europe trade should help the carriers’ July and August GRI initiatives to push rates up. But more decisive action is required here and elsewhere since void sailings are only a very temporary solution. As many as 129 ships of 8,000 teu and above still need to find homes across a number of trades in the second half of 2015.

    Average global head haul utilisation fell to 83% during the first quarter of 2015, though this alone should not have precipitated the deterioration in spot rates. However, the perceived weakness pushed many lines into rate-war mode across a number of key trade routes. With the exception of the westbound Transatlantic and Asia to Middle East trades, rarely have we seen so many major routes performing so poorly all at once. Spot freight rates have reached historical lows on the Asia to Europe and Asia to East Coast South America trades, which have been driven by carriers’ fear of losing volume base cargo to competitors as well as impending new build deliveries.

    Each quarter brings another 10 to 15 ULCVs (Ultra Large Container Vessels) into the market and the resultant cascade of tonnage into the Transpacific, Latin American and Asia-Middle East trades is having a genuine detrimental knock-on effect.

    Neil Dekker, Drewry’s director of container shipping research said: “There are not enough good homes for ships of over 8,000 teu where they can be placed without doing some damage to the supply/demand balance. Ocean carriers do not want to idle these expensive assets. The orderbook is starting to get out of control, with another 1.14 million teu added since January. Carriers’ emphasis on ordering so many big ships is starting to backfire and virtually all major headhaul trades are plagued by overcapacity. We are entering a new era which will be dominated by big ships and all ocean carriers need to be thinking of average headhaul trade route fill factors of 80-85% as the norm, rather than 90% or more. They cannot keep adding capacity and expect there to be no substantial impact on unit revenues.”

  • Securing Sluggish Air Cargo Growth Continues

    Carriers in most regions, with the exception of those based in the Middle East, saw weak growth or even contractions. In aggregate, airlines in North and Latin America and Europe reported that their freight business was smaller in May 2015 than in the same month of 2014. Carriers in Asia-Pacific experienced slow growth as a result of poor import/export performance.

    “Cargo growth has undoubtedly come off the boil. The expansion in volumes we saw in 2014 has ground to a halt, and load factors are falling. Some economic fundamentals still point to a rebound in the second half of the year, but we have to recognize that business confidence is flat and export orders in decline. There is also the risk of a shock to the economic system of a ‘Grexit’ from the Eurozone,” said Tony Tyler, IATA’s Director General and CEO.

     

    May 2015 vs. May 2014

    FTK Growth

    AFTK Growth

    FLF

    International

    2.6%

    5.2%

    47.4%

    Domestic

    -0.8%

    0.5%

    30.9%

    Total Market

    2.1%

    4.3%

    44.3%

     

    YTD 2015 vs.   YTD  2014

    FTK Growth

    AFTK Growth

    FLF

    International

    4.5%

    6.2%

    48.5%

    Domestic

    0.8%

    0.1%

    30.6%

    Total Market

    4.0%

    5.0%

    45.1%


    Regional analysis in detail

    • Asia-Pacific carriers reported demand growth of 2.8% in May compared to May 2014, below a capacity expansion of 6.7%. At the end of Q1, trade volumes for emerging Asia markets were down 10% compared to Q4 2014, although there have been signs of improvement at the start of Q2, which if sustained, would help ease downward pressure on air freight demand.

    • European carriers saw demand decline by 1.3% in May, compared to a year ago while capacity grew by 2.7%. Consumer confidence remains subdued in the region, and the region is at risk of economic contagion if a disorderly ‘Grexit’ from the Euro were to occur.

    • North American airlines reported a fall in demand of 2.9% year-on-year while capacity was cut by 4.2%. The May result is a continuation of the      disappointing economic performance in Q1. Stronger growth, however, is expected in coming months as the effects of poor weather and US seaport congestion fade.

    • Middle Eastern carriers saw demand grow by 18.1%, on the back of increased trade within the region, as well as shippers taking advantage of the Gulf carriers’ hub strategy. Capacity expanded 19.4%.

    • Latin American airlines reported a fall in demand of 10.5%, while capacity grew by 4.7%. A general increase in regional trade activity has not yet manifested itself in stronger air freight demand, possibly due to      continued weakness in Brazil and Argentina, two of the region’s largest economies.

    • African airlines experienced a 3.0% rise in demand and a 1.3% increase in capacity. Despite some volatility, the region is the third-fastest growing for the year-to-date. The under-performance of the Nigerian and South African economies may be outweighed by trade activity in the wider region.


    Closing Thought

    Air freight plays a critical role in global trade, transporting some 35% of goods traded internationally. The slowdown in air freight reflects a general slowing in world trade at a time when it is needed most to reinvigorate faltering economies.

    "This week, governments are meeting in Geneva to discuss ‘aid for trade’ and the World Trade Facilitation agreement. If implemented, this could boost world GDP by up to $1 trillion. I urge governments worldwide to bring down the barriers to facilitate trade that will accelerate prosperity and innovation," said Tyler.

    View May Air Freight Results (pdf)

    Source: IATA