Analysis: Felixstowe, London Gateway, MSC & Gemini – musical chairs in UK ports
MSC’s beady eye on Felixstowe?
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
Ferry operators P&O and Irish Ferries have entered into a pseudo shipping alliance in an attempt to overcome disruption and speed up shipment movements between Dover and Calais.
The move follows IT problems at border posts that caused outages for UK Customs’ Automatic Licence Verification System (ALVS), which meant manual customs checks on sheaves of paperwork – a process which, according to a report in the UK’s Guardian, held up one truck at the Sevington border post in Kent for 20 hours.
A spokesperson for the Department for Environment, Food and Rural Affairs (Defra) said: “We are working at pace to resolve the issue and expect that systems will be returning to normal functioning soon.
“Since the introduction of checks, our teams have been working closely with traders to ensure checks are completed efficiently and swiftly.”
Retailers have reportedly refused shipments, rather than pay for delayed shipments of cut flowers, dairy products and raw meat.
In a bid to stem the wave of late cargo, and spoiled goods, P&O and Irish Ferries have established a slot-sharing arrangement, in which the first cargo arriving at Dover or Calais will be loaded onto whichever ship is departing the earliest.
The two companies pointed out that this would also increase the ‘fill factor’ of vessels, bringing down the carbon footprint of each trip. Irish Ferries operates 10 daily crossings between Dover and Calais, while P&O Ferries operates 15.
Seafarers on P&O Ferries are on course for substantial pay increases soon. The French government has brought in new legislation requiring them to be paid the French minimum wage, of €11.65 (£9.95) per hour. Similar legislation from the UK, due in the summer, would bring this up to the UK minimum hourly rate of £11.44 – a stark contrast to the £4.87 average hourly pay P&O crews are currently receiving.
CEO Peter Hebblethwaite said: “P&O Ferries is determined to give our customers the best possible service and enable them to reach their destination faster. Our Dover-Calais customer satisfaction ratings are the highest they’ve been for five years and we have seen the positive impact of steps we have already taken to make the ferry option better, faster and more flexible. Our new space charter agreement will help us continue that journey.”
The deal echoes the agreement between rival cross-Chanel freight operator DFDS and P&O signed in May 2021.
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