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SURCHARGES & FORECAST CHANGES

Following the events in the Red Sea and the announcement of the suspension of navigation in the area by major shipping companies, disruptions are multiplying in the entire logistics industry.

In a matter of days, a significant portion of the usual traffic is being diverted towards the Cape of Good Hope.

Major companies are taking extreme measures by piling up surcharges intended to offset additional costs and justify “at-risk” operations.

In addition to the usual PSS (Peak Season Surcharge) ahead of the Chinese New Year, companies are imposing ECS (Emergency Surcharges), ERC (Emergency Fee), and other charges. Maersk, for example, has imposed a TDS (Transit Disruption Surcharge) while other steamship lines are imposing surcharges of several hundred dollars per container, some of which are applicable without any prior notice.

The question arises as to whether it is reasonable for companies to take so many measures or if it is time to restore profitability that has been declining for several months.

Egypt, as collateral damage, has been cut-off from its second source of income. Currently, the freight for a container is approximately $500,000.

All routes have been affected by these surcharges, whether routed through the Suez or Panama.

The long-term consequences on freight rates and logistics operations remain uncertain. Regarding air transport, freight rates could also react to urgent shipment demands, especially for high-value and/or time-sensitive goods. Warehousing has also been impacted.

REEFER DEVELOPMENT

Given the development of our Reefer business, we have significantly increased our positive and negative refrigeration storage areas.

These developments ensure the quality of our services, increasing our storage capacity for refrigerated goods to 50,000 pallets, at various strategic sites: near the port of Le Havre, but also in Lyon for operations in the South of France.

In addition, a new groupage service (LCL) called “Reefoods” will soon be introduced.

WAREHOUSES : MORE SPACE IN 2024

Your TMT USA Inc. logistics warehouse solutions anywhere in the USA!

GULF : Houston

EAST COAST : Chicago – Baltimore – New York – Norfolk – Charleston – Savannah – Miami

WEST COAST : Seattle – Napa – Oakland – Los Angeles

Please note: TMT USA provides dry and reefer solutions at various ports on the East and West coasts.

CANADA: Reefer solutions for positive (+2/+4) and negative refrigeration are also available via Montreal.

FRANCE : 

Fos-sur-Mer (Port Saint Louis) from 3,000 to 6.000m2.

Montivilliers from 11,000 to 18,000m2.

BELGIUM : Antwerp: An additional 8,000m2.

TRACKING 3.0 : « MyTMT »

Your “MyTMT” space will go live this summer.

Accessible from our website group-tmtusa.com and developed in partnership with Solulog, MyTMT is your personal space for monitoring the course of your shipments.

With live updates, you will be able to trace both your sea and air cargo thanks to Wakeo’s predictive tool and updated information feedback..

This software integration gives us both the ability and promptness to anticipate the uncertainty of international supply-chain (delays, congestion, unscheduled transshipments, etc.). In an effort to accompany you daily through your shipment needs, we made it imperative to add this technology to better improve your experience.

Reach out to your TMT contact for more information about this service. 

TMT Belgium is moving!

TMT accompanies you all over the world and is constantly developing its range of services to guarantee optimal logistics solutions. Back in 2018, we created TMT Belgium in Antwerp counting on Chris Gallé, with 30 years of experience, to manage all operations. Now that our team has changed offices, this marks the newest expansion for TMT. (Photo of Priscilla Dartois and Natascha Steenacker)

At the heart of Europe’s 2nd port and its wide variety of terminals, we have also expanded our storage capacity to 18,000 m2 with direct connection to rail.

Whether it be forest products (breakbulk or containerized), wines & spirits, food products, chemicals or project cargo, the service and expertise at TMT remain intact. The close collaboration between the Belgian, French and American teams within Group TMT offers a variety of alternatives to all your projects.

“Bundling, transshipment, storage, projects…”

You can count on the experience of dedicated TMT Belgium teams to handle your import and export operations.

You benefit from the geographical and therefore logistical advantages offered by the port of Antwerp-Zeebrugge and its vast hinterland: an important road network open to Eastern and Northern Europe, supplemented by numerous international rail lines.

A PROJECT IN BELGIUM ? CONTACT TMT !

Schouwkensstraat 7 – BE‑2030 – ANTWERP ‑ BELGIUM 
Tél. : +32 33694391

FRENCH KNOW-HOW SHINES ABROAD

Santa-Cruz (California), September 9, 2022, Pragma Mobility bikes are finally arriving. After a careful study of the routing options, the TMT USA teams take over from their French colleagues to deliver the famous hydrogen cycles to the venues of the “Blue Innovation” exhibition.

Pragma mobility is the mobility branch of Pragma industries, created by Pierre Forte and Rémi Succoja in 2004, specializing in the manufacture of fuel cells.

This company based in Biarritz, a city twinned with Santa-Cruz, reinvents local mobility, more efficiently with eco-responsible bicycles and cargo bikes, thanks to hydrogen energy.

Already equipping a few companies and cities, in France and Europe (Slovakia, Switzerland, Greece), Pragma Mobility has also been offered the opportunity to exhibit two of its “Alpha” bikes at the “Blue Innovation” event, in early September.

After several shipping refusals, Clément Janson, project manager at Pragma Mobility, turned to TMT to find an air transport solution.

Joel Levilain, head of the air division at TMT, then puts the project under study with the dedicated teams in order to anticipate all the regulatory aspects and ensure that the goods comply with the description.

Once the customs simplification procedures have been completed, the TMT supply chain is set up: The pick-up of the 2 bikes put under wooden crate takes place on wednesday 08/24/2022 in Biarritz to reach Charles de Gaulle airport (Paris) by truck, before compliance check and storage in the warehouse until 09/05/2022, date of the air shipment.

A few hours later, the TMT USA teams received the bikes at San Francisco airport for last-mile delivery to the exhibition venues, awaited by the commercial director of Pragma Mobility.

We’re proud to share our expertise to support, export and promote the French know-how abroad.

Pragma Mobility participates in a paradigm shift in terms of mobility and energy use, innovating and proposing essential logistical alternatives for the future.

These notions of progress and challenge connect us.

Our commitments to CSR, recently rewarded with the Ecovadis Silver 2022 certification, make sense with these technologies of tomorrow, which will undoubtedly accompany our last mile deliveries, or even more.

Find more details on Pragma Mobility technology at: https://pragma-mobility.com/

All our transport, logistics and warehousing solutions at: https://group-tmtusa.com/

FURTHER WEST

In the United States, on the Pacific coast, the congestion of the ports of Los Angeles and Oakland leads to a massive transfer of freight to the ports on the East coast, only shifting the problem from coast to coast that was already deeply affecting the US organization.
 
There is such a big amount of congestion that it is becoming harder and harder to get container in & out of terminals. Some terminals are reporting dwelling of 8 to 12 days.
 
For a long time we have been importing more than we export, the effects of Covid and its economic consequences have led many importers to increase their supply which led to a this situation.
The logistical power being under capacity must respond to a demand that greatly exceeds the supply.
 
– In today’s world, transport capacity from Europe on a DDU bases delivery to California for freight that can be contained in a 40 ‘container loaded at 44,000 lbs.

In all water (via the Panama Canal) we are in average transit time of more than 70 days (after boarding) for a cost exceeding more than 12,000 usd.
 
By air at more than 70,000 USD (conditions noted week 10)
 
By sea via the East Coast (New York or Norfolk) with transload in our warehouses and redelivery by FTL within a maximum of one month at 25,000 usd
 
In view of the capacity of our North American market to have to absorb these increases in import volume over the next few months, tensions on the transatlantic and transpacific are likely to be exacerbated.
“There would be an expected increase of 60% in the number of ships between China and the East Coast in the coming months due to changes in routes” alert Sea-Intelligence.

FUEL, THE LAST STRAW

If we have kept our tariff conditions on road transport, the fuel increase, the health situation, the additional costs linked to port congestion, the intransigence and rigidity of shipping companies policies in the management of franchises on port terminals and ramps have lead us to add into our inland tariffs a Fuel surcharge.
If on the European inlands, the Fuel surcharge (using different calculation methods) remains between 7% and 14%.
In the USA it is fuel surcharge has taken a big rise, depending on the indices it rates from 42 to 52% for the period from March 15 to 22.

For our part and in all fairness, we have decided to pass on all of these surcharges to our domestic transport on March 15.

WHAT IS GENERAL AVERAGE?

General average is a global maritime industry loss mitigation convention whereby ship owners and cargo interests proportionately contribute to fully reimburse those in the venture who sustained loss or damage in preventing the total loss of a vessel, crew and its cargo.

It requires 4 simultaneous conditions:

  1. Sacrifice or expenditure
  2. Decided voluntarily
  3. Consent to avoid danger
  4. Decided for the common good of the vessel and cargo

In this case, all the shippers having cargo on the ship must participate in the expenses, in proportion to the values saved, after a decision of a claim adjuster who will fix the contribution rate of each party.

EMERGENCY AND GLOBAL DISORGANIZATION

As introduced since our 2020 Newsletters, the economic circumstances in global maritime transport remains uncertain and the surge in freight rates in containerized transport sector (multiplied by 10 in the past 18 months) has long been established.

Generally speaking, the weight of demand in the face of increasingly restricted supply causes unavailability of equipment and consequently delays.

Surcharges being imposed on cargo are constantly increasing. However some steamship lines, like CMA CGM and Hapag Lloyd, have announced a first phase freight rate freeze until February 2022 for CMA , with no termination date for Hapag.

Logistics remain severely affected and terminal congestion leads to additional costs.

Due to the unprecedented shortage in drivers, road transport services are also impacted.

It is important to note that these setbacks affect both imports and exports, penalizing international trade through an increase in general costs.

In order to weigh up against the diktat of shipping companies, our professional organization is trying to come together to rebalance trade relations and defend the best interests of their members.