Business Partner : GM Metal Packaging

Freight Rates Reach All Time High!!!

 

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40ft Container rates surpass the USD10,000 mark for the first time as many shipping lines refuse to sail to the UK.

Port congestion, is the main cause of these increased rates with ships held at anchor or  missing the UK completely to off load in Belgium or Holland.

Mixed messages are come out for the reason for the port congestion, the consensus is the lack of investment in systems and equipment, although we have seen the Corona Virus blamed for some of the delays.

The shipping lines are now running large 19,000 TEU (Twenty foot equivalent unit) vessels, these big vessel need large cranes, take longer to off load and reload and need bigger berths, with regular arrivals and more time needed to off load and reload, the ports do not appear to be able to cope.

Lack of equipment is blamed, this is lack of cranes, containers and port transport which could be tackled with further investment as sailing may remain with the large vessels going forward

 

China Currency under pressure from the Dollar

The RMB Renminbi was a fixed rate with the USD until 2005, and while it held it’s own we have seen dramatic changes during 2017 from a high of 6.891 in June 2017 to 6.273 in February 2018.

The knock on affect is huge,  as an example if a tin cost RMB5.50 to make the cost in US Dollars would be USD0.798 in June 2017 and now USD0.877 for the same tin, a difference of just under 10%.

If you imagine high retail items like Xbox’s, Iphones, washing machines etc this can have a massive affect to the retail price.

The RMB is under great pressure and the China Government might need to look at revaluing the currency again later this year if they are to sustain their exports expectations.

Charity Quiz Night

Tinworks donated 2 prizes to a charity quiz night for Lisa Wright who is running the London Marathon, this is her story below:

 

“On Friday 13th November 2009 I suffered a stroke and was unable to speak, swallow or move the right side of my body. It was terrifying. Thankfully I made a full recovery. Other people are not so lucky and The Stroke Association support these people and their families to regain independence and quality of life. They also research tirelessly to find an ultimate prevention and cure. I’m therefore running the 2017 London Marathon in support of this great charity and have organised my quiz night and raffle to raise much needed funds”