Due to the recent attacks in the Red Sea on merchant containerships, the majority of shipping lines have made the decision to divert their routes to avoid the Suez Canal. This alternative route schedule affects vessels which carry import and export cargo to and from Europe, in particular from China.
The alternative route is around the Cape of Good Hope which adds on anything from 7 to 20 days extra transit time on shipments that would ordinarily utilise the Suez Canal. This means that a shipment from China to the UK now can take up to 50 days.
The most obvious knock-on-effect to global trade is the increase in transit time from the far east to the UK. There will also be further repercussions down the line, such as blank sailings (when a schedule is changed to not stop at some ports), issues with empty containers in the wrong places, increased demand for alternative shipping modes and routes (such as air freight if you cannot wait the extra transit time, or seeking alternative exports such as manufacturers in Turkey), and more immediately, an increase in costs due to surcharges and insurance rises.
The situation is changing all the time, and each individual shipping line is making their own decisions as to how to manage the situation. We will be contacting all our customers who have shipments on the water that are affected by these developments.
If you have a shipment that is ready to go from China, then get in touch with our team for a quote and the latest information regarding shipping times. Our team can be contacted by calling (+44) 02392 756 575, emailing sales@mercatorcargo.co.uk or completing the form below and someone will be in touch.
It is advised that you appoint an experienced freight forwarder when you import goods from China, the Far East or the Indian-Subcontinent. It is quite a well-known issue that if you rely on your supplier to arrange the shipment when the goods arrive into the UK there are extra higher charges payable.
Why does this happen? When the supplier of the goods arranges the shipment to the UK, they will contact a UK based agent to accept the shipment. In return for this, the supplier will expect ‘remuneration in kind’ – these are extra charges, and ultimately it is the UK importer who will have to stump up the bill.
It is essential that if you wish to import goods from either China, the Far East or the Indian-Subcontinent, that you choose a reliable freight forwarder who can ‘take control of your cargo and charges’.
What does this mean in plain English? By nominating Mercator Cargo as your UK based freight forwarder to take the whole shipment from origin either under FOB (an INCO term ‘free on board’) or EX Work Terms, and avoiding CIF Terms (cost insurance freight – where the shipper pays/arranges the freight), in other words taking ‘full control of your shipment’ and letting us arrange the freight, there will not be any unexpected higher charges upon arrival.
For example, we recently shipped in some goods from Pakistan for a customer – for one of the containers we were given ‘control’ and we arranged the full shipment from the door in Pakistan, to the port, via ocean freight and onwards to the door in the UK. The same customer had another shipment from Pakistan of a similar size from the same supplier in the same origin, however they decided to allow their supplier to arrange the shipment under CIF Terms. Using this option, they incurred an invoice for the UK port charges and local UK delivery fees, not including ocean freight, which came to 75% of the invoice total of our full door-to-door shipment from Pakistan to the UK. In other words, they paid too much in charges for their shipment.
If you decide to appoint Mercator as your freight forwarder and give us ‘control’ of your cargo you could save yourself money. Don’t get ripped off by another option which might look cheaper, because in the long run, it is likely that it will not be cheaper. If you switch to FOB or EX Works and choose us to be your freight forwarder starting from at least the ocean freight, you can eliminate any ‘surprise’ charges and you could save your business money and avoid headaches when the cargo does not arrive on time, and costs you more than it should.
Contact Mercator before you agree on your buying terms. If you buy on CIF (cost insurance freight – where the shipper pays/arranges the freight) you are at risk of paying too much for the service you are receiving.
So give us a call to speak to a member of the imports team and discuss how we can take control of your import shipment and most importantly your charges so they don’t get out of hand – Tel. 02392 756 575. Email: sales@mercatorcargo.co.uk.
10, St George’s Business Centre,
St Georges Square,
Portsmouth, PO1 3EZ, UK
Mercator is a family-run, UK based independent freight forwarder, offering highly effective sea, road and air freight services around the world.
