< Previous East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FREIGHT, STORAGE AND MOVEMENT D uring the end of 2023 and continuing into 2024, one of the largest challenges to the global freight industry is the persistent onslaught of Houthi attacks targeting vessels navigating the Red Sea. What began as targeted strikes on Israeli- owned ships in mid-November swiftly escalated into a broader threat, encompassing politically neutral vessels, and thereby creating uncertainty over maritime operations worldwide. Despite the formation of an international coalition spearheaded by the US in late December, aimed at safeguarding trade vessels, the attacks persist. In a bid to shield their assets, major carriers initiated the rerouting of containers away from the Red Sea, necessitating detours. Consequently, extended transit times and delayed deliveries became the new norm. The ramifications of these diversions were far-reaching, affecting carriers representing a substantial 60% of the industry’s total capacity, diverting millions of twenty-foot equivalent units (TEUs) away from the customary path through the Suez Canal. Notably, diverted routes now entail an additional transit time of 7-14 days, with the looming spectre of congestion adding to the industry’s woes. These prolonged distribution times have also affected the availability of transporters in the market, particularly affecting Asian ports of origin, with shipments having escalated during the beginning of February to support the Lunar New Year festivities. This has resulted in delayed returns of empty containers to the originating ports, leading to reports of certain container types becoming scarce, not just along Red Sea routes but across various Asian lanes. Some carriers have responded by bolstering their fleet with extra loaders or activating dormant vessels. Moreover, such significant disruptions invariably precipitate a surge in prices. Carriers have resorted to implementing General Rate Increases (GRIs) and surcharges to offset the escalating costs associated with prolonged voyages. Maintaining schedules amidst the need for additional vessels translates to heightened expenses, encompassing fuel and operational costs. Consequently, rates have witnessed a notable uptick, particularly on routes connecting to North America, Europe, and the Mediterranean. Compounding these challenges are the soaring security concerns and the attendant rise in insurance premiums for vessels traversing the Red Sea. Insurance costs have ballooned, with premiums escalating by as much as 1% of vessel values, rendering the continuation of transits through the region more financially burdensome. As the industry navigates these turbulent waters, the timely sharing of information between competitors is imperative for individual carriers to adapt their operations and remain safe. The Panama Canal has also presented recent challenges. Persistent drought conditions have curtailed the number of daily vessel crossings, with only 24 vessels permitted to navigate the canal each day, a significant decrease from the usual 36. This limitation in crossings has translated into extended transit times and heightened costs for cargo voyaging from Asia and the Indian Sub-Continent to the US East and Gulf Coasts. The resulting backlog has led to potential delays exceeding 20 days as vessels await their turn to cross. With each passing day of delay and disruption Land, sea Global politics continue to wield significant influence over the industry, necessitating greater knowledge sharing between stakeholders than ever before. Despite these challenges, the outlook for the industry is a positive one. 42 Áwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link FREIGHT, STORAGE AND MOVEMENT © stock.adobe.com/Kalyakan and air East Midlands Business Link www.eastmidlandsbusinesslink.co.uk FREIGHT, STORAGE AND MOVEMENT to schedules, the available capacity in the market continues to dwindle, precipitating a corresponding rise in rates. Although ocean freight rates have indeed experienced noticeable increases, they pale in comparison to the height of the Covid-19 pandemic, providing hope in today’s climate. At its peak, rates for 40-foot containers bound from Asia to North Europe and the Mediterranean soared to around $15,000, while those destined for North America surpassed the staggering mark of $20,000. The ability to reduce the impact of such lengthy disruption in 2024 demonstrates the resilience and adaptability of the global freight network. Turning to air cargo, a resurgence is on the horizon following a slow 2023, with global growth expected to uplift by 4.5% year-over-year, a significant leap from the -5.0% observed during 2023. This optimistic trajectory encompasses all major regional trade lanes, spearheaded by a robust recovery in the heavily impacted transpacific and intra-APAC routes. Particularly, perishable, and raw © stock.adobe.com/Wirestockwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link FREIGHT, STORAGE AND MOVEMENT materials are anticipated to outperform the global market average. Despite a year of rapid recovery in 2023, global air cargo capacity is projected to plateau or experience a slight contraction throughout 2024, with a notable 6.8% year-over-year increase witnessed in the previous year. Although rates have exhibited relative stability, incremental upticks were observed in the final four months of 2023. As demand continues to outpace capacity this year, rates are poised to remain relatively steady, albeit with anticipated increases, particularly in the latter half of the year. In tandem with these developments, the e-commerce sector shows no signs of slowing down, with an impressive 25% increase forecasted during 2024. This burgeoning volume is poised to command a significant share, accounting for approximately 30% of China and Hong Kong exports in the same year. The area of contract logistics (outsourcing shipping and storage to third parties) is poised for growth. Although only 30% of the market is currently outsourced, this figure is on the rise. While a revised forecast indicates a slightly tempered revenue outlook from 2023 to 2027, the industry maintains a respectable Compound Annual Growth Rate (CAGR) of 4.1%. Anticipated growth for 2024 has been adjusted marginally downward to 3.7%, reflecting the evolving market dynamics. Yet, demand for outsourced logistics services remains buoyant, with 83% of shippers anticipating an uptick in outsourcing expenditures over the next two years. Moreover, 74% of shippers foresee an expansion in outsourcing expenditures, set to reach between 5% and 10% of their current logistics costs. As companies navigate the uncertainties stemming from potential supply chain disruptions and geopolitical tensions, diversification of routes and methods will continue gaining traction to mitigate supply chain vulnerabilities. © stock.adobe.com/Yellow Boat East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AUTOLINK March motors We look at some new models and refreshed names coming to our roads this year www.eastmidlandsbusinesslink.co.uk East Midlands Business Link AUTOLINK Mercedes-Benz CLE Cabriolet The new CLE Cabriolet is equipped with an electrically operated fabric acoustic soft top. The insulated multi-layer structure can be raised or lowered in 20 seconds while the vehicle is travelling at up to 37mph. When lowered, a powered divider automatically separates the folded soft top from the remaining luggage space. The year-round usability of the CLE Cabriolet is further enhanced by the AIRCAP® electric wind deflector system and the AIRSCARF® heating system, both fitted as standard. AIRCAP® consists of two elements: the wind deflector above the windscreen extends at the touch of a button to direct airflow over occupants’ heads, while the automatic wind deflector behind the rear head restraints reduces turbulence. AIRSCARF® circulates warm air around front seat occupants’ necks, keeping them warm in cold or windy conditions. The new Mercedes-Benz CLE Cabriolet is now available to order in the UK, with prices starting from £52,995 OTR. 46 Á Mercedes-Benz CLE Cabriolet East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AUTOLINK Hyundai i20 N Line Hyundai Motor Europe has announced the new i20 N Line with an upgraded look. Featuring refreshed design elements both internally and externally, the i20 N Line aims to enhance the driving experience with its sleek and modern appearance. The sporty iteration of the i20 model is set to begin production in April. The new i20 N Line presents a range of exterior enhancements, boasting a captivating sporty aesthetic. These enhancements include a newly designed set of 17” alloy wheels and an updated pattern for the front radiator grille. Additionally, N Line-specific design elements such as the bumper and inserts add a distinctive flair to the vehicle’s appearance. This model offers a choice of nine body colours, including four new options: Lumen Grey Pearl, Meta Blue Pearl, Vibrant Blue Pearl, and Lucid Lime Metallic, allowing drivers to express their individual style on the road. Dacia Spring Dacia’s first all-electric model, Spring is widely credited for making electric mobility accessible to all. First launched in 2021, it was the third most sold electric car to retail customers in 2022 and 2023. In total, more than 140,000 Dacia Spring have been registered worldwide since its launch. Spring’s energy efficiency and carbon footprint were particularly praised in 2022, when it was awarded the maximum 5-star rating from the independent European organisation Green NCAP. Dacia continues its mission to be the best value for money car brand that constantly redefines the essentials. Applying this to Spring, Dacia wants to encourage drivers to make the shift to all- electric cars in an accessible way. A car’s design – along with efficiency, price and practicality – is one of the essential pieces in the puzzle. The All-New Spring features the new Dacia design, first seen on the latest generation Duster. It is a robust and assertive style that makes the Spring more attractive than ever. The interior has undergone a spectacular transformation with a complete overhaul of the entire space, just as the only part of the exterior body to remain unchanged is the roof. Volkswagen ID.7 Tourer The ID.7 Tourer differs significantly from the fastback saloon at the rear. The long roof line and its elegant transition to the boot lid in particular are striking design features of the electric estate. In terms of style, the Tourer is a fusion of a classic estate in the format of the Passat, and a dynamic shooting brake such as the Arteon. Thanks to the increased height at the rear, the luggage Hyundai i20 N Line www.eastmidlandsbusinesslink.co.uk East Midlands Business Link AUTOLINK compartment volume is even larger than that of the fastback saloon: with five people on board, the ID.7 Tourer has a luggage capacity of up to 605 litres (rear seat backrest in cargo position). When loaded up to the backrests of the front seats and up to the roof, this figure rises to up to 1,714 litres. The new ID.7 Tourer is equipped with the latest-generation electric drive system. Volkswagen will offer two different battery sizes for the ID.7 Tourer. Depending on the battery energy content, the electric touring car is expected to achieve WLTP ranges of up to 685 km. The largest battery is designed for a maximum charging capacity of up to 200 kW at DC quick-charging stations. At this power level, the battery can be recharged from 10 to 80 per cent in significantly less than 30 minutes. Volkswagen ID.7 Tourer Dacia SpringPorsche Taycan GTS Review An outstanding driving experience Porsche Taycan GTS Review An outstanding driving experience East Midlands Business Link www.eastmidlandsbusinesslink.co.uk AUTOLINKThe Porsche Taycan GTS saloon is a stunning four-door electric sports car with a sleek and aerodynamic design. Moreover, its lightweight construction makes for an outstanding driving experience. U nder the bonnet, the Porsche has a dual-motor setup that unleashes 590 horses. This enables the electrified sports car to sprint to the hallowed 62mph in 3.7 seconds and on to 155 mph. The Taycan also has an official range of 313 miles, which is more than enough for most UK drivers. The interior of the German-made car is as impressive as the outside. The cabin is spacious and luxurious, with high-end materials and finishes. The dashboard features a clean, uncomplicated design, with a central touchscreen display controlling most functions. The Taycan GTS saloon also vaunts a premium sound system and climate control. One of the most remarkable aspects of the Taycan is its handling. The car is incredibly agile and responsive, with precise steering and excellent grip, thanks partly to all-wheel drive. The GTS also features Porsche’s Active Suspension Management system, which adapts to real-time road conditions to provide a smooth and comfortable ride. Additionally, the saloon’s regenerative braking system helps improve handling, slowing the vehicle down quickly and smoothly. Safety is a top priority for Porsche. Therefore, the Taycan GTS has advanced safety features that keep you and your passengers as looked after as possible. These include lane departure warning, adaptive cruise control, and a 360-degree camera system. It is an environmentally friendly vehicle that produces zero emissions during operation. This makes the sports car a better transport option for our planet than traditional petrol-powered vehicles. The Porsche also has various charging options, allowing you to charge it at home, work, or a public charging station. The Taycan GTS is an exceptional electric vehicle redefining industry standards. Its streamlined design, intense performance, luxurious interior, and advanced features make it a top purchase if you insist on electrified performance and luxury. Fast Facts Porsche Taycan GTS, as tested Max speed: 155 mph 0-62 mph: 3.7 secs Electric Range: 313 miles Battery/Motor: 93.4kWh/2x e-motor Max. power (PS): 590 CO2: 0 g/km Price from: £110,200 On the Road www.eastmidlandsbusinesslink.co.uk East Midlands Business Link AUTOLINKNext >