Dubai Freight Forwarding Services
Air & Sea Freight Between Dubai and the UK

Inland waterway congestion grows as river levels fall and barge costs rise

North Europe's inland transport sector could grind to a halt after water levels along the Rhine sink to a point at which navigation is all but impossible, forcing volumes onto an already stretched and insufficient rail and road network. Sources warned The Loadstar over the weekend that all four depth gauges on the Rhine were set to fall below navigable levels amid a European heatwave that has resulted in drought. Indeed, barge operator Contargo confirmed this morning that levels at the Kaub gauge were 53cm - 8cm below the level at which barge operators will accept cargo with a low-water surcharge (LWS) of €120 per teu, or €165 per 40ft. LWSs have been in effect across all four gauges, but from today, operators will only move volumes on the Cologne and Kaub stretches by agreement - "it has come to a standstill," one source told The Loadstar. Another source added: "This will have serious impact on all modalities. Road is still suffering under the Oosterweel project, causing extreme congestion around Antwerp. But with the reduced capacity brought about by low water levels on not only the Rhine but also the Meuse and Waal limiting the draught of inland vessels, we are seeing a huge increase in the levels of freight aiming to move by road." With extra trucks headed for terminals in Antwerp and Rotterdam, The Loadstar was told there was significant congestion on the R1, E313, E34 ,and A12 roads, close to Antwerp, and that terminals had already exceeded storage capacity. This, a barge owner told The Loadstar, meant the rule for inland barges at Antwerp was that,"if you want to drop a container than you have to take one", the owner adding that those who do, need to expect waits on box ships of 32-44 hours, with 72-hoiur delays in inland navigation. They added: "Rail can absorb some of the inland waterway traffic, but capacity is limited, with Antwerp filling up quicker, meaning planning becomes more complex leading to more shunting manoeuvres and local traffic congestion around rail hubs." Sources warn that serious rainfall will be required to get water levels "back to where they need to be". The Cologne gauge will need to climb 8cm, from its present 98cm, to 106cm before barge operators will accept cargo - under an LWS of €100 per teu and €120 per 40ft - while it would need a 100cm rise to get to the point where LWSs would be removed. Barge owners said those able to find space on barges should recognise that the vessels would be carrying anywhere from 20% to 60% less cargo than usual.

Loadstar Leader: Trump Hormuz toll plan catastrophic for box shipping

It has often been observed since the end of February that the US and Israeli strikes on Iran have been counterproductive at best - the rebuilt Iranian regime seems stronger than ever - its nuclear programme freed from the shackles of agreements and international observers - and then there's Hormuz, open to all navigation before the conflict, and now... very much not. Safe to say that things haven't really gone as planned, if indeed there was any planning in the first place, and the latest twist is the US Navy, according to Trump, will reinstate its "blockade" of Iranian shipping at 8pm this evening, following it up with this statement posted on social media: "The USA will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT', but as such, and as a matter of FAIRNESS, will be reimbursed at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World. The process and formation will begin immediately." Really? It is, when you do a few preliminary calculations, an astonishingly high charge, especially compared with the $2m transit fee Iran proposed in recent weeks. According to maritime media that focus on the wet bulk and crude oil trades, that would mean the US charging a tanker $33m for a single transit, based on today's prices. For container lines and their customers, it could be catastrophic - let's say the average value of the cargo in a container is $50,000 (the global average is actually slightly higher, at just under $55,000), that would incur a fee of $10,000 per box. Or $20m for a vessel with 2,000 containers to discharge at say, Jebel Ali. Yep, we have a lot of questions as well: First, is the US Navy seriously going to examine every separate bill of lading on a vessel? And if it does, will the transit fee be applied to individual cargo owners, or the ship operator, which then has to recover the monies from its customers? Second, misdeclared cargo has long been a problem for shipping lines, largely due to dangerous goods and weight issues, but this is almost certain to introduce a new layer of misdeclarations on the value of cargo. Third, assuming questions one and two are overcome, perhaps through some AI applications, the 20% is mostly likely to simply reinforce the landbridge options that have emerged after the first closure of Hormuz. The latest SCFI reading of its Shanghai-Dubai leg was $4,200 per teu, meaning the overall freight cost of shipping one container to Dubai with the US transit fee on top is beginning to near $15,000, which is around double the cost of shipping to a Gulf bypass port and trucking to the UAE, Qatar, Bahrain, and so on. Fourth, what about boxes on a ship calling at Dubai that have an entirely different destination - will they also be subject to that fee, and will they also be subject to a second time when the vessel exits Hormuz? Ports are already voting with their feet: The Financial Times today reports that DP World is looking to develop a new container terminal in the Fujairah emirate, located outside Hormuz, which it believes could be up and running within 18 months, specifically for the purpose of routing cargo into the Gulf without traversing the strait. That sort of timeline suggests the infrastructure is already in place and the main job is to equip it - assuming a project cost of $500m (a generous overestimate), that would be the equivalent of just 25 transits by box ships carrying 2,000 containers with a value of $50,000 in them each... Remember, freight is like water, and in that respect the economics of "The Guardian of Hormuz" don't stack up either - all it will really do is create new, although inferior, supply chains. The Loadstar suspects that the Trump administration hasn't properly thought this through, and if we're talking about matters of fairness, suggests the while thing should be quietly shelved...

Chapman Freeborn charters 757F for huge horse transport operation

Chapman Freeborn has helped move 121 Mongolian horses between Ulaanbaatar and Hanoi in a 38-hour time window. The operation involved three back-to-back Boeing 757 freighter charter flights, moving 51 horses outbound, 20 horses home and a further 50 horses outbound as part of a single coordinated rotation. Chapman Freeborn said the project required detailed planning, bilateral coordination and specialist equine transport expertise to ensure every stage of the movement was managed with animal welfare, timing and operational precision at its centre. The broker said that unlike standard cargo, each movement must be planned around the needs of the animals, with careful consideration given to aircraft suitability, loading arrangements, documentation, welfare requirements and coordination between teams at origin, destination and throughout the journey. "This was a very special movement and a strong example of what can be achieved when specialist teams work closely together across the group," said Latha Narayan, president Asia Pacific at Chapman Freeborn. "Projects of this nature require more than aircraft capacity alone. They rely on trust, detailed planning, specialist knowledge and continuous coordination to make sure every stage of the operation is handled with care. "For our Asia Pacific team, this operation also reflects the importance of combining regional market understanding with global specialist capabilities." Charlie McMullen, chief executive of Chapman Freeborn's animal transport business Intradco Global, added: "Horse movements are among the most sensitive live animal transport projects, and every detail matters. "From preparation to loading and arrival, our priority is always the welfare of the animals and the smooth delivery of the operation."