The latest developments across Maersk’s European logistics operations
Important ports update
The earthquake that hit Turkey and Syria earlier this month has had a significant impact on logistics activities in the region. At this time, due to significant damage from the disaster, Iskenderun Port is closed until further notice.
Maersk teams are working hard to appropriately re-route cargo and keep supply chains moving. We have therefore developed a number of support packages for affected customers. Please visit our dedicated advice page for more details and to keep up to date with the latest developments.
Maersk would like to extend its deepest condolences to the earthquake victims. Our thoughts are with you at this very difficult time.
Last month we announced that Maersk and MSC have agreed to end the current 2M alliance effective January 2025. This will allow us to accelerate our strategy and create improved, reliable, sustainable and flexible end-to-end solutions for our customers.
This announcement has no immediate impact on the services offered to clients using 2M trades. In the meantime, we remain fully committed to providing the 2M services to both Maersk and MSC customers. You can read more about the future changes here.
In the port of Rotterdam, the CLA negotiations (collective agreement) at APM Terminals Maasvlakte II have been concluded positively. All European hubs and primary gateway terminals are currently stable.
However, as we are now entering a period where bad weather conditions can cause delays to our fleet and all terminals, the situation can change very quickly. Our teams work around the clock to minimize disruption to customers and we encourage you to reach out to us to discuss winter planning and prioritization.
Our teams are closely monitoring the situation at all terminals in Europe and making necessary adjustments to keep our customers’ supply chains running. We have sufficient drying and refrigeration equipment to meet projected customer demand, however we continue to ask customers to collect full import containers or request shipment as soon as possible after unloading.
To get the latest updates on your cargo, sign up for ETA notifications here.
ocean update
Throughout 2022, the pressure on global supply chains was very evident, causing significant service disruptions. However, with a greater focus on contingency response and collaboration, overall reliability improved across the ocean grid throughout the year.
Nonetheless, 2023 promises to be another challenging year in a volatile market where a number of factors – including inflation, geopolitical instability, weak economic growth and more – conspire to add pressure.
Maersk’s teams are preparing for the coming months and are ready to adjust services as needed for customers in the interest of stability and resilience. We can also help you mitigate risk throughout your supply chain by developing end-to-end flexible solutions. Please contact your local Maersk representative to discuss your options for 2023 or click here for more information.
Supply chains in Europe are also set to be rewired this year through nearshoring and sourcing diversification. According to our recent whitepaper in partnership with Reuters, 65% of manufacturers and retailers surveyed have already made near-sourcing changes.
If you would like to analyze your sourcing structure and move operations closer to Europe, Maersk can support you from the logistics side and will be happy to discuss viable options.
The main news about Ocean in February 2023 is the earthquake in Turkey and Syria and the resulting impact on the network. Due to the suspension of operations at the Port of Iskenderun, we have stopped accepting all bookings for the terminal until further notice.
From February 6 to March 14, 2023, Maersk ships skip Iskenderun on L07 and SLZ services. Depending on the situation in Iskenderun and how quickly the port recovery efforts take place, this could be extended. The new Iskenderun call for SLB rotation is also postponed to March 21, 2023.
We will communicate all further developments with the customers as soon as possible. Check Maersk timetables here.
Air Freight Update
The air cargo market continues to experience negative growth due to high inflation rates and reduced global consumer demand. As the unpredictability will continue, we expect European market volume to remain flat in the coming weeks.
In January, airport workers at Berlin Brandenburg Airport went on strike over a wage dispute, canceling around 300 flights and affecting air freight services.
Euro News reports that more strikes are expected across Europe in February – including in France and Spain. Maersk teams are closely monitoring the situation and will update customers with the latest strike information as soon as possible.
A combination of the lifting of COVID-19 travel restrictions in China, US refinery outages and a European Union embargo on Russian-refined products is expected to push kerosene prices higher. However, given the level of capacity and demand, we do not expect any drastic rate increases.
Air remains a reliable transport alternative when there are bottlenecks elsewhere in the logistics network. Maersk Air Freight will continue to use its own controlled network to keep supply chains up and running quickly and effectively when needed.
Click here for more information on our flight network and its expansion.
domestic update
Since the earthquake in Turkey and Syria caused significant damage to roads and the wider transport network, no dealers were able to move trucks in and around the area immediately afterwards.
By this time, however, the domestic network of trucks and rails is fully operational again throughout the region. The situation changes frequently, so we will keep our customers informed of new developments as soon as possible.
Elsewhere, the water levels on the inland shipping routes in Germany are currently low. We saw in 2022 that droughts heralded the need to swap barge transport for rail and truck (BBC) services and we are keeping a close eye on the matter this time.
We currently do not expect any impact on our inland waterway operations, but if levels reach critically low levels, inland services will again be impacted. We will communicate the current circumstances and possible emergency measures as soon as possible.
More information on domestic services can be found here.
E-Delivery Update
After a year of economic downturn, online sales in Europe are projected to grow by up to 4% more in 2023 than in 2022. However, this is mainly due to continuously rising prices due to inflation, as sales volumes actually increased by up to should drop 5% (according to Metapack).
Furniture, housewares and electronics product categories are the hardest hit by volume declines as consumers are reluctant to spend unnecessarily in the current economic climate. On the other hand, 32% of consumers plan to continue spending on health and beauty products as usual, preferring to buy less than to buy less.
Metapack’s research also suggests that delivery costs will be the most important factor for consumers when shopping online in 2023, while speed and convenience of delivery will have less impact for consumers compared to 2022. In comparison, flexible returns, tracking and environmentally friendly deliveries are becoming more important.
To meet their need for cost optimization in last-mile delivery, businesses can offer pickup and drop-off points, mix and match carriers, or offer consumers slower delivery speeds. Effective return policies can also help streamline supply chains and maintain a positive profit margin (read more about the importance of return policies for ecommerce businesses here).
This does not mean that all other consumer factors can be ignored. To help Maersk customers make smart decisions and reduce emissions for their deliveries in Europe, Maersk has partnered with CoZero to create an E-Delivery Emissions Dashboard MVP for e-commerce customers. Read more information here.
To learn more about Maersk’s package delivery offering, go to the E-Delivery portal here.
customs update
On March 1, 2023, the second update of the EU’s Import Control System 2 (ICS2) will be published and will affect all air freight shipments to the EU, Norway and Switzerland.
ICS2 is the European Union’s IT system created to collect security data on goods entering the Union. It enables customs authorities to better identify potential risks and take appropriate action as early as possible.
This specific publication will introduce a mandatory risk assessment both before loading and before arrival, therefore economic operators and customers will have to provide additional data:
- 6-digit HS code.
- A full description of the goods.
- The recipient’s EORI number and full address (EU shipments only).
Based on the information provided, several outcomes are then possible:
- Assessment completed (AC) if there is no risk and all information is valid.
- Request for further information (RFI) or screening (RFS), in case of false/missing information or low risk.
- Do not load (DNL) if high risk is detected.
That said, to avoid delays in your shipments, you must update your database accordingly and provide your carrier and carrier with complete and accurate information as early as possible.
Click here to learn more about ICT2 and what you need to do to avoid supply chain delays.
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