Heathrow Airport Closure Impact on Freight Movements

21 March 2025

Note Heathrow Airport is closed today, Friday, March 21, 2025, due to a fire at an electrical substation in Hayes, West London, which has caused a major power outage. Emergency crews are working to resolve the situation, but there is no confirmed timeline for power restoration. This disruption is significantly impacting air freight movements, leading to delays for both imports and exports.

Our team is actively reviewing all affected shipments and exploring alternative solutions where possible. If your consignments are impacted, we will reach out to you directly with updates and contingency plans.

Please do not hesitate to contact us if you have any urgent concerns. We appreciate your patience and will continue to provide updates as the situation develops. +44 161 436 8181

Shipping Alliances Reshape Trade Routes: Delays, Blank Sailings, and Vessel Diversions Expected to Continue

March 2025

The global shipping industry is undergoing a significant transformation as major alliances restructure their operations, leading to widespread disruptions on key trade routes. This restructuring is causing delays, blank sailings, and vessel diversions, leaving both shippers and consumers grappling with uncertainty.

The most notable shift has been the dissolution of the long-standing 2M alliance between MSC Mediterranean Shipping Company (MSC) and A.P. Moller-Maersk, which is set to end in 2025. In its place, new alliances such as the Gemini Cooperation, formed between Maersk and Hapag-Lloyd, are taking center stage. While these changes are intended to streamline operations, they have resulted in a slew of scheduling adjustments, causing confusion and congestion.

Scheduling Chaos and Port Congestion

As shipping alliances realign their schedules, shippers have reported discrepancies in arrival times, leading to confusion across the industry. Some carriers, even within the same alliance, are listing different transit times for the same vessel, contributing to widespread scheduling confusion. Ports, especially in Asia, are experiencing severe congestion, with ships waiting up to three days for a berth, exacerbating the backlog of containers.

The result? Delayed shipments, longer waiting times at major ports like Shanghai, and disrupted schedules that have left many vessels stranded at terminals.

Blank Sailings and Diversions

Another side effect of the alliance shifts has been the rise in blank sailings and diversions. Blank sailings, where a scheduled voyage is canceled due to insufficient cargo or other operational reasons, have increased across the Asia-Europe route, further straining supply chains.

The geopolitical instability in the Red Sea has also prompted several shipping companies to divert vessels around the Cape of Good Hope instead of passing through the Suez Canal, resulting in longer transit times and increased freight rates. Attacks in the region, particularly by Iran-backed Houthi rebels, have heightened concerns over vessel safety, prompting carriers to adopt this detour as a precautionary measure.

Declining Service Reliability

As a result of these scheduling changes, the shipping industry has seen a significant decline in service reliability. On-time performance, which was once a benchmark for efficiency, has plummeted for many carriers. Some are reporting on-time rates as low as 55%, a far cry from the 90% reliability target that many had been able to achieve in the past.

To combat this, the Gemini Cooperation aims to improve on-time reliability by reducing port calls and utilizing larger vessels on key trade routes. The new alliance is targeting a return to 90% on-time performance by optimizing operations and adapting to current market conditions.

The Road Ahead

With these ongoing disruptions, stakeholders across the shipping industry are bracing for continued challenges. While the restructuring of alliances is seen as a necessary step to adapt to evolving market demands, businesses and consumers must prepare for fluctuating schedules and unpredictable freight rates.

As shipping companies continue to adapt to these changes, flexibility and vigilance will be key for those relying on global trade networks. With ongoing geopolitical uncertainties and shifting market strategies, the next few months will likely be marked by further disruptions, and companies must remain agile to navigate the changing landscape.

Safety & Security Waiver for Imports from EU

Effective January 31, 2025, companies will be required to submit Entry Summary Declarations for all goods entering GB from the EU

On January 31, 2025, the United Kingdom will remove the Safety and Security (S&S) waiver for imports coming from the European Union (EU). This change means that businesses and carriers importing goods into Great Britain (GB) from the EU will be required to submit Safety and Security declarations, commonly referred to as Entry Summary Declarations (ENS).

Key Points to Understand

What is the S&S Waiver?:
- The Safety and Security waiver allowed certain goods entering the UK from the EU to bypass the requirement for Safety and Security declarations. This waiver was part of a transitional arrangement following Brexit, designed to facilitate trade and minimize disruptions during the initial phase of the UK’s exit from the EU.
What Changes with the Removal of the Waiver?:
- Once the waiver is removed, all goods moving into GB from the EU will require an ENS. This includes submitting specific details about the shipment to customs authorities. The ENS is designed to enhance border security by allowing customs to assess potential risks associated with incoming shipments before they arrive in the UK.
What is an Entry Summary Declaration (ENS)?:
- The ENS includes information about the goods being imported, such as the nature of the goods, the consignor and consignee details, and the means of transport. It is a safety and security measure that helps customs authorities identify and mitigate risks associated with incoming cargo.
Compliance Requirements:
- Importers and carriers will need to ensure compliance with the new regulations, which may involve updating their logistics and supply chain processes. This includes providing timely and accurate information in the ENS to avoid potential delays, fines, or penalties.
Impact on Trade:
- The removal of the S&S waiver is significant for businesses engaged in trade between the EU and the UK. It may lead to increased administrative burdens and operational changes, as companies will now need to allocate resources to handle the ENS submissions.
Timeline for Implementation:
- As businesses prepare for the new requirements, they have a window until January 31, 2025, to adapt their processes. This preparation period allows companies to set up necessary systems, train staff, and ensure they understand the new compliance landscape.

The removal of the Safety and Security waiver for EU imports represents a key change in the regulatory landscape for businesses trading with the UK. Effective January 31, 2025, companies will be required to submit Entry Summary Declarations for all goods entering GB from the EU. Organizations should begin taking proactive steps to prepare for this change, ensuring that they understand the requirements and have the necessary systems in place to comply with the updated rules. This transition will be critical for maintaining a smooth and efficient flow of goods across the border while ensuring safety and security in the import process.

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Shipping Industry Faces 30% Capacity Cut in Week 51, Raising Concerns for Global Trade

December 16, 2024

As the shipping industry enters Week 51, reports indicate a dramatic capacity cut of nearly 30% in shipping operations, a development that could have significant implications for global trade and logistics. This reduction in shipping capacity comes at a time when businesses are already grappling with ongoing supply chain challenges and escalating freight costs.

Rising Freight Rates and Delays Ahead

Industry experts warn that the capacity cut is likely to result in increased freight rates, with many shipping lines expected to implement General Rate Increases (GRIs) by the end of December. This rise in shipping costs could strain budgets for businesses reliant on timely deliveries of goods.

In addition to rising costs, shipping delays are anticipated as the reduced number of vessels and limited container availability may lead to longer transit times. Companies relying on just-in-time (JIT) inventory strategies might find themselves particularly challenged, struggling to meet customer demands amid the ongoing disruptions.

Supply Chain Strain

The repercussions of the capacity cut extend beyond freight rates and delays. Organizations may face significant strain on their supply chains as sourcing materials could become increasingly difficult. Experts advise businesses to assess their supply chain resilience and explore diversified logistics solutions to mitigate potential risks stemming from these constraints.

Strategic Adjustments Recommended

In light of these challenges, we recommend several strategies for businesses looking to navigate the evolving shipping landscape:

Early Booking and Planning: Businesses are encouraged to book shipments with us as early as possible to secure space and avoid potential disruptions from the reduced vessel availability.
Monitoring Market Trends: Keeping informed about changing freight rates and other market dynamics is essential for making informed logistics decisions. Please contact us at Future Forwarding for more information on how we can assist you through the changes.
Enhanced Communication with Suppliers: Keeping open lines of communication with your suppliers is crucial. Ensuring that suppliers understand shipping challenges can lead to better coordination and management of delivery expectations.
Exploring Alternative Shipping Options: Companies may want to consider alternative shipping methods, such as air freight or overland transport, which could offer reliability amidst capacity constraints, though potentially at higher costs.

As Week 51 approaches, the shipping industry’s nearly 30% capacity cut signals a turbulent period for businesses worldwide. While the implications of this situation are concerning, proactive planning and strategic adjustments can help mitigate its effects. By adapting logistics strategies and fostering collaboration with suppliers, businesses can better navigate these challenging times while maintaining supply chain efficiency.

CDS Guidance For Shippers: Update 4.6.1 Saturday 14th December 2024

The Customs Declaration Service (CDS) is continuing to evolve, with new guidance provided for shippers handling import and export declarations.

A CDS update is scheduled on 14th December 2024, during which the system will be unavailable from 21:30 to 23:30.

Key updates include requirements to align declaration submissions with specific document codes, reasons, and status codes as outlined in CDS guidelines. Missing or incorrect entries could result in rejections of declarations.

These updates will further align the system with international trade agreements and regulatory adjustments

Preparing for CDS Updates

To ensure smooth processing:

Pre-lodge declarations for shipments arriving on or after 16th December 2024, following the shared guidance to prevent rejections.
Verify that document codes, reasons, and status codes are completed accurately in alignment with CDS guidelines.

Resources and Guidance

https://www.gov.uk/business-and-industry/customs-declarations-duties-tariffs

For more detailed guidance, you can refer to the official HMRC resources or freight associations like the British International Freight Association (BIFA) or contact our Customs Team for advice customs@ukffcl.com

Future Forwarding expands in to Scotland, UK

We have expanded our network into Scotland with the opening of a new branch, providing services as a Freight Forwarder in Glasgow for all modes of transport and international trade lanes. With excellent connectivity for airfreight, road freight, and sea freight, this is a key location for Future Forwarding’s development plans, bringing additional knowledge and networks to complement the existing UK offices in Leeds and Manchester.

“We are extremely pleased to be opening our new location in Scotland. It is an exciting time as we look to grow our UK operations and reach new customers. With a long and established customer base in the north of England it seemed a natural step for us to open north of the border, where we hope customers will appreciate our quality of service and personal approach” said Richard Lawford, Managing Director UK

</blockquote>The office based at Rutherglen in Glasgow is headed up by Regional Director Jason Sanders, alongside co-directors Scott Gallacher and Kenny Cooney, all bringing extensive knowledge and many years of experience from the Scottish freight forwarding

industry.</p>

“We are delighted to be joining the Future Forwarding family, and opening an office that will serve Scotland’s companies who trade on an international scale,” said Jason Sanders Regional Director Scotland, “We look to take pride in building solid relationships with customers and suppliers, and providing them support for their supply chain models and businesses through our bespoke and flexible service offerings”

Future Forwarding UK achieves ISO 9001 Quality Management Status

Future Forwarding UK has been awarded ISO 9001:2015 certification by the British Assessment Bureau

An official stamp on what we do best “Delivering Quality Worldwide” through operational excellence, engagement of people, process approach, continual improvement, relationship management and customer focus.

The journey to achieving ISO 9001 status started 6 months ago and required a full review of our daily activities and the key principles required, such as customer focus, continuous improvement, and process approach. Identifying areas for improvement, documenting the QMS (quality management system) processes, procedures, and policies, and ensuring that they are followed throughout the organization.

3PL customer participating in GMA “flash sale”, promoting small businesses

A newly established 3PL client participated in a Good Morning America flash sale.

The show focuses on promoting small businesses, new products, and up-and-coming designers producing a high volume of sales.

Participation requires stand-alone IT integration and a 72-hour shipping window.

In the past, our client used a warehouse referred by show organizers to process a high volume of orders.

Unfortunately, there were numerous challenges with some orders e.g.: wrong products sent, incorrect addressing, and unprocessed orders. These challenges resulted in customer service issues jamming our client’s communications systems and led to complaints from show organizers.

Fortunately, our client had moved into a Future Forwarding facility two months earlier, notified us of the pending sale, and introduced us to the show’s IT consultant three and a half weeks before the show.

As the show date got closer, our in-house IT team configured the flash sale e-com site into our WMS for order fulfillment, shipping, and customer confirmation messaging.

All systems passed testing and were set to “go-live.”

In IT testing, the IT consultant forwarded standard orders which were received and processed without fail.

When the actual sale opened on a Saturday morning, some orders were made via electronic payment methods, populating a data field that was previously identified as “blank.” The appearance of this data caused batched orders to fail.

Future Forwarding’s IT team was notified of the problem. They gained remote access to the system, identified, and resolved the issue with less than an hour of downtime in the warehouse.

The IT team also discovered that the client’s “from” e-mail was restricted to 2500 outbound messages per day, so they replaced it with an address on the Future Forwarding domain to provide timely shipping and tracking information to consumers.

Order fulfillment and accuracy rate was and astounding 99.9001%!

Show hosts immediately asked our client to return for future participation.

Future Forwarding conducted a post-sale debrief with our client and agreed to future sale activities and sales activities with other third-party promoters.

Author: Candida Edwards

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