Important Shipping & Market Update
The UK has once again entered Lockdown for the month of November. During these trying times, J&F Water Treatment will remain open for business whilst also maintaining procedures to trade safely and minimise risk. Our staff are socially distancing, we have a tracking QR Code for drivers and couriers to scan to help track possible infection exposures and we’re sanitising everything several times a day.
The nature of the pandemic has negatively impacted businesses across the globe, including freighting and shipping companies. We have done our best to ensure that the setbacks caused by the pandemic do not effect our service to our customers, but with the extremely challenging and difficult circumstances for freight companies, it is important that you remain informed in how the situation may impact your orders.
China & Far East Areas
There are long delays and congestion in China main ports. With severe shortage of space and equipment, as well as major disruptions, the prices are rising and continue to do so. This is putting large delays on shipments coming in from China, as competition for space is fierce and prices progressively increase. This will be putting delays on product and component imports from China, and we ask that you be aware that this may cause shortages in the coming months. We strongly advise that you place your orders earlier to avoid problems caused by delays.
The 2021 Chinese New Year will be taking place between the 12th and 26th February. December & January will continue to see the demand for space and shipping increase. Most companies in China shut down in the run up to the Chinese New Year, which will cause further delays and disruption. Costs are expected to increase and availability may be limited as we approach and make our way through the Chinese New Year.
UK Port Congestion & Haulage
Put a big red circle around the 15th November.
Due to continued congestion, delays and disruption at all UK ports, carriers will be introducing a congestion surcharge on the 15th November. Depending on the carriers pricing policies, this congestion surcharge will vary. This includes imports and exports from all UK ports. J&F Water Treatment will provide updates as this situation develops, and we will do all we can to try and minimise any extra costs or delays for our customers. However, please be aware that depending on the costs of these congestion surcharges, extra costs may be necessary and unavoidable.
UK Haulage is also continuing to struggle from high demands. It is strongly advised to place orders early as companies providing export haulage are seeing delays of 1 week at a minimum. Whilst deliveries made within the UK are not seeing quite the same level of delays yet, the situation remains fluid and we will update you should significant delays begin to affect business.
Imported deliveries are also struggling, with some carriers refusing to handle the UK part of the delivery, forcing companies to find 3rd parties to make these deliveries. This can cause various issues including longer lead times, delays and extra costs. Indeed, some haulage costs are proving to be extremely high. J&F Water Treatment will be working hard to minimise delays caused by this disruption, but please be aware that the situation is a challenging and disruptive one, and we ask you kindly to please be patient and understanding during the coming months.
Brexit - Regulations on Heat Treated Pallets
From the 1st January 2021, all wooden packaging materials must be ISPM 15 compliant. The Department of Farming and Rural Affairs (DEFRA) has advised that it will be a legal requirements for all wooden packaging materials (including wooden pallets) to be compliant with the stringent ISPM 15 requirements. Orders with WPM entering the EU may be held for official inspection, causing further delays. Failure to comply will result in shipments being held and extra costs.
Before Brexit, the UK had been a part of the EU ISPM 15 exemption. However, with our separation from the EU, the UK is no longer exempt and all WPM must be ISPM 15 compliant. The purpose of the regulation is to prevent and reduce the risk of spreading pests found in WPM. To prevent this, WPM is heat treated naturally (without chemicals) to raise the temperature enough to eliminate harmful organisms that may be present in the wood.
With Brexit, there was concern that the UK and EU manufacturers would struggle to be in a position to meet the ISPM 15 demand before the 1st January. As this is officially no longer a part of government negotiations, we expect there will be possible WPM shortages and increased inspection.
Please be aware that ISMP 15 compliant WPM shortages, and the newly introduced inspections and criteria may affect import/exports to and from the EU. As we receive updates concerning these regulations, we will let you know.
With the current global pandemic, Brexit looming on the horizon and the ever developing situation in China, these are indeed very trying and difficult times. J&F Water Treatment will of course continue to do everything we can to make conducting business with us as smooth and problem-free as possible, but we thank you in advance for your understanding as developments outside of our control may result in additional obstacles, costs and delays.
Hopefully, as we cross into 2021, we’ll begin seeing some more positive progress and we’ll be able to finally leave COVID-19 behind.
Fingers crossed, everyone.