Typical Scenario of Containers arriving at UK Ports on CIF Incoterms
- No end to end Shipment visibility leading to a greater risk of late container arrival notifications into UK Ports placing stress on the delivery process
- Standard Free Time Days at UK Ports
- Customs Clearance can be arbitrary as brokers have no control over clearance or port health
- Reduced time window to arrange Container deliveries into a Distribution Centre or Warehouse that can lead to Port Demurrage Charges
- Detention charges applicable if exceeding the two-hour unload window on Carrier haulage
If we end up with a hard Brexit, the amount of customs entries will dwarf the UK’s ability to complete them. This will cause considerable delay upon release and the port authorities have said that demurrage will still be charged per container. We therefore have a number of options:
- Use warehousing within UK Ports, containers can be destuffed and await clearance
- Drop LPR / Chep pallets into the port warehouse await palletisation, collect upon clearance and deliver to Distribution Centre (this option could add onto existing costs, but could be cost effective if daily container demurrage costs are higher over a number of days)
- Switch Shipment Incoterms to FOB and control the end to end Supply Chain
- Negotiate improved Demurrage and Detention free time terms and conditions
- Utilise UK Ports that offer both fast and slow transit times based on Cargo Due Dates
- Offer MOH managed final mile delivery process on a one-way cost basis via Road or Rail/Road
| INBOUND | ||
| CIF | FOB | |
| FREIGHT PRICES | WEEKLY SPOT MARKET HAS ITS HIGHS AND LOWS | FIXED RATES WITH VALIDITY GIVING PRICE CERTAINTY |
| SPACE ALLOCATIONS | WEEKLY DEPENDENT ON TIME OF YEAR | GUARANTEED WEEKLY ALLOCATIONS |
| FREE TIME UK | STANDARD TARIFF USUALLY 5 DAYS ON QUAY | IMPROVED FT TERMS RANGING FROM 7-10 DAYS ON QUAY TO 14 DAYS OFF QUAY |
| UK HAULAGE | CARRIER HAULAGE, DEPENDENT ON VEHICLE AVAILABILITY AND STRICTER BUSINESS RULES | MICRO-MANAGED MOH GUARANTEED WITH RAIL SPACE & HAULAGE CONNECTIVITY |
| CONTAINER RESTITUTION | NOT APPLICABLE FOR CARRIER HAULAGE | LOCAL AGREEMENTS IN THE NORTH OF ENGLAND ON A ONE-WAY PRICING MODEL |
| LOGISTICS CONTROL | RELIANT ON THE VENDOR AND THEIR DESIGNATED CARRIER OF CHOICE | MANAGED IN THE UK ON A CONTRACTED BASIS WITH END TO END I.T. VISIBILITY IN CO-ORDINATION WITH SCSL TO ENSURE BEST PRACTICES |
With Brexit in mind, we are conscious of delays caused by Customs Clearance etc. We are encouraging existing and potential customers to move to a more structured process where delays at point of entry into the UK are managed by ourselves to minimize or remove potential costs.
Our systems allow Container supply chain visibility and are available from the commencement of an order through to delivered at the DC.
It is not an EDI Link, it is a web-based platform via a password protected login allowing SCSL to generate the data to forward to our customers, warehousing partners etc.
We can upload shipping documents in advance (ATD +5 Days) against a client PO such as the packing list, commercial invoice and HBL prior to clearance and delivery into your chosen DC
We are also able to notify all parties of final mile delivery services ex Liverpool & Southampton including booking in slots at Regional Distribution Centre’s and warehousing partners.
These proposals are about helping shippers, importers etc. maximize our services to their full potential, and ultimately protecting their supply chain.
For a more detailed discussion, clarification or new enquiries, please e-mail: les.wright@supplychainsolution.co.uk