Neele-Vat Logistics buys Steder Group
Logistics service provider Neele-Vat Logistics has reached an agreement on the acquisition of the Steder Group. With this acquisition, Neele-Vat is strengthening its position as a sea freight forwarder in the port of Rotterdam. In addition, international offices will be added in Glasgow, Aberdeen, Houston and Dubai.
The merger of these two Rotterdam companies means further international growth for Neele-Vat. With the addition of 50 employees in Scotland, there are now more than 100 employees working in the UK. This strengthens the scale needed to remain competitive in the Europe of tomorrow.
Steder Group, with 100 employees, will continue to operate under its own name within the Neele-Vat group for the time being. Management will remain in place and the takeover will not affect employment.
Rinus Spijkers, CEO of Steder Group: “The acquisition by Neele Vat offers a nice continuation for customers and staff of the Steder Group. With the same customer-oriented, no-nonsense culture, and even more clout. I am very happy that I can offer my customers and colleagues such a bright future.”
Steder Agencies & Chartering will remain independent and will not be sold.
Rene Bongers, commercial director of Neele-Vat: “The activities of Neele-Vat and Steder Group complement each other well. We can offer our customers an even more extensive service. And with the new locations, we are in a good starting position to expand our services internationally. So that we can fulfill our ambitions to grow as a family business and remain competitive.”
After the takeover, Neele-Vat Logistics will remain a true Rotterdam family business with 1,000 employees, 27 branches in 10 countries, 255,000 m² warehouse and a turnover of 395 million euros.
Congestion US Ports
As we all know, Covid has an increasing influence on shipping. There is more and more chaos in equipment availability, space availability and reliability of schedules are not what they used to be. Looking at the US market of logistics we see that the cargo flow is not what it was, caused by a high demand for truckers, warehouse workers, longshoremen. For example, California has between 30,000 and 60,000 daily new Covid cases (early January). The majority of people working for shipping lines and freight forwarders work at home. They don’t have the right tools they need to perform at the service level we were used to.
We see that US ports are running at a capacity of 90% or even more. The ports but also the rail depots are overwhelmed with containers and almost no space is left. This means that it is hard to store containers for export and import containers that need to discharge. This mass congestion results in longer processing times, especially for the drivers. We already noticed that truckers are starting to charge extra because of this extra waiting time at the ports & railyards. Extreme situations are also there, some truckers are not accepting containers anymore for the worst area’s (NY & LA are the worst). Which brings capacity even more down.
Giving you a short wake up call to make you aware of how bad it is, here are the biggest issues:
- There are constantly more than 40 vessels at anchor waiting for berth (LA area), most of the ports are dealing with this situation but LA/LB port area is the worst
- Rail operations in LA/LB port area can have a delay of 10 to 18 days
- Also in NY port area, we see more and more that vessels need to wait for berth (a 5-day delay is what you have to keep in mind)
- Crewmembers are being tested for Covid prior to bringing their vessel to the dock, this causes delay as well
- Rail operations in SC/VA/MO/IL/TN/IA/MI all facing a delay of 7 to 9 days
- Chassis availability is getting worse (containers cannot be unloaded fast enough)
- Port cutoffs and earliest receiving dates are not reliable and cause issues on drayage arrangements already made
In general, all port terminals are expected to remain congested till at least the end of February.
Given by carriers
It is understandable that an import delay on a specific vessel will also cause an export delay and so on and so on…We notice that shipments are rolled to a different vessel or in extreme cases vessels are being canceled. Together with a lack of communication, it is not always easy to find out the whereabouts of a specific container or to verify what happened exactly and why. Most of this is not in our hands but we do work hard to still give you the best service and prices possible. Our experienced team is working hard on getting your cargo on the right spot and we can assure you your cargo is being taken care of.
Should you have any specific questions on the US trade please contact Elwin van Huizen via Elwin.vanHuizen@neelevat.com.
Brexit is coming
On January 1st, 2021 Brexit will become a fact of life and we will have to deal with customs documents for all cargo moving between UK-EU-UK. Some aspects are still subject to any agreement reached between the UK and EU governments, but we are preparing for the possibility of a “No Deal Brexit”. This requires significant planning for the accurate preparation and presentation of data from everyone involved in the transport chain. Our (in house) Customs team have extensive experience in the field of Customs procedures and the information and software required to provide our customers with full coverage.
In order to achieve a smooth and continuous flow of cargo, we will encourage our customers to have Neele-Vat Transport provide the complete service for export and import customs documentation – the shortest line of communication between the customer, transporter and Customs will protect against errors, omissions, and consequent delays.
In order to make a Customs declaration on your behalf, we will need the following from you…
- Signed agreement for direct representation for Export and Import or both (one-off)
- Commercial Invoice with the Address details of the buyer and the seller + EORI no. Of both,
- The specified value of the goods per type of goods, INCO Term + place to which the Incoterm applies,
- Packing list, incl:
- HS Code,
- Detailed Goods Description,
- Number of pallets (including dimensions per pallet),
- Number of packages,
- Gross Weight, Net Weight,
- Type of packaging + Packaging code,
- Country of Origin, Currency
If the customs documentation is provided entirely by you, your customer, or third-party agent, we as a carrier need the following information in the case of import from the UK (and from 01-07 probably also for Export to the United Kingdom):
- MRN number (s)
- Customs status (T1, T2 (+ MRN in case of Goods in Transit), IM, TA, or RP)
- Commercial Invoice with the Address details of the buyer and the seller + EORI number of both,
- Packing list, incl:
- Detailed Goods Description,
- HS Code,
- Number of pallets (including dimensions per pallet),
- Number of packages,
- Type of packaging + Packaging code
- Gross weight
- Designation Physosanitary or Veterinary goods
We will need all of the above information in order to do the declaration with the ferry company as they will arrange the ENS (Entry Summary Declaration). This concerns the safety and security data that must be submitted by the shipping companies.
Since this information will most likely also apply from 01-07 in the case of Export to the UK, we will ask you to provide your information for export in this way so that we can prepare properly together.
Please note, the regular flow of goods from the continent to the UK and vice versa requires an Import document in addition to an Export document. In order to prepare the Import document, the declarant must, among other things, receive the correct shipping route and the UCN number of the shipping company! For smooth handling of the flow of goods, it is therefore also wise to have the import document drawn up by us.
The price of the documentation and the above stands or falls with how you as a customer present us with this information. We are currently working on an electronic data system that makes it possible for you as a customer to present your data to us digitally. The degree of automation will partly determine the price for the provision of service. For a detailed statement of the documentation costs, I would therefore refer you to your contact person within our organization who will provide a tailor-made price for the service that fits your need.
Business Unit Manager UK & Ireland
Neele-Vat Transport B.V.
Phone : +31 88 9964150
Mobile : +31 6 53329343
Merry Christmas and a happy New Year
As we look back upon last year, we would like to acknowledge those who have helped us shape our business.
Thank you for your continued support and partnership. We wish you all the best for the coming year.
Enjoy these days with your family and loved ones.
Neele-Vat acquires Mammoet Ferry Transport and Mainport
On Friday 19-12-2019, Neele-Vat Logistics reached agreement on two acquisitions in the port of Rotterdam. The company has acquired the road haulier Mammoet Ferry Transport and Mainport Forwarding, both based in Rotterdam.
Through the latter, Neele-Vat aims to start playing a bigger role in intermodal goods transhipment. The price paid for the two companies has not been made public.
With the acquisition of Mammoet Ferry Transport, Neele-Vat is first and foremost strengthening its position in European road transport. The company also notes that it is gaining international locations in Belgium, Germany, Austria and the United Kingdom –
specifically at Zeebrugge (Belgium), Duisburg (Germany), Ansfelden (Austria) and Preston Brook and Cambuslang (UK). Mammoet Ferry Transport primarily specialises in road haulage between Benelux and the United Kingdom. With a view to the impending Brexit, those activities are a significant gain for Neele-Vat Logistics.
With the acquisition of Mainport Warehousing & Forwarding (20 employees), Neele-Vat is preparing for the coming new cross-dock centre at Waalhaven. Mainport is particularly strong in cross-docking continental cargo for the shortsea sector, but the firm is running into capacity constraints at its current location.
“The new cross-dock centre for Neele-Vat will offer a fantastic opportunity to continue the growth of Mainport Warehousing in the future”, says the company. Mainport will continue to operate within the Rotterdam family firm under its own brand name. As before, it will be run by its existing management and CEO Jos Lems. “Owner Henk van Esch will be taking a step back but he will remain involved with the company in an advisory role.
Through the merger with Mammoet Transport, Neele-Vat is “enhancing” its European transport network and establishing the scale “to remain competitive in tomorrow’s Europe”, said Neele-Vat Logistics CEO Cuno Vat in a statement.
“We will also be able to offer our customer an even broader range of services. Plus, we will have a strong position to extend our services internationally.” The purchase of Mainport is intended above all to reduce the number of truck-kilometres to and from the ports, added Vat.
“As a result, we will be able to work more efficiently and reduce CO2 emissions. We will also be looking to make more use of rail in the future. We already have several trains per week to Italy. They also carry cargo that is suitable for the cross-dock centre.”
Mammoet Ferry Transport has seventy employees and will continue to operate within Neele-Vat under its own name. The management, including CEO/owner Krijn Torreman, will remain in place and the acquisition will not have any consequences for jobs at the road haulage company.
According to Torreman, the acquisition by Neele-Vat provides assurances “for the continuity of the firm which I and all our employees have built up over the course of thirty years.”
Following the acquisition, Neele-Vat Logistics has nine hundred employees spread across twenty locations in ten countries. In addition, the group has over 256,000 square metres of storage space. The firm’s annual turnover is €300 million.
After the UK elections, more has become clear in the Brexit timeline
The next step for the Boris Johnson government is to get the Brexit deal approved at the Lower House. With the big victories after the elections, that seems the least bump at the moment. That could be more difficult in the House of Lords where these elections have not changed the situation.
After the UK it’s up to the EU. A simple majority is sufficient during the vote. If these steps have been taken the Brexit becomes a reality on February 1st. An agreed transition period starts on this date in which the UK remains a virtual EU member, thus also remains part of the internal market. The only thing that changes overnight is that the British no longer have a voice in Brussels. So there will be no changes for logistics.
Negotiations on a trade agreement between the UK and the EU start in February. The hope is that this is settled before 31.12.2020. EU negotiations with countries such as Canada and South Korea take five up to nine years. There is no time now, because the transition period already runs on December 31st 2020.
There might be another escape. Halfway through the new year is the last moment to decide on an extension of the transitional period for one or two years. Almost all involved see this as inevitable, because a comprehensive trade agreement is not to be expected within 11 months. However, Johnson has always said that he does not like such an extension. December 31st , 2020 could be a new, tough “no deal” Brexit date. If Johnson persists in his refusal to extend the transition phase. And if there is no trade agreement with the EU at the end of next year, then the UK will be taken out of the internal market on January 1, 2021 and without any agreements. In that case the rules of the World Trade Organization (WTO) apply. This inevitably leads to border controls, tariffs and other trade barriers.
Nothing will change during transport to and from the UK until December 31st 2020. So no customs clearance or other customs declarations. The most important is the possible postponement date by which the deadline becomes June 2020.
With no delay it becomes:
– in case of an agreement; a soft Brexit.
– in case of no agreement; a hard Brexit follows
We will report new developments via the website. If there are any questions in the meantime, please contact us.
It will not have escaped your attention that from January 1, 2020, things will change in the field of bunker oil for liner shipping. At this moment seagoing vessels can still use fuel that consists of 3.5 percent sulfur, from January 1, 2020 the limit will be 0.5 percent. This means that ships are no longer allowed to sail on heavy fuel oil, but that a certain type of more refined fuel must be used.
This is good news for the environment and health, but a considerable cost item for shipping companies as well. The production costs of the 2020 fuel are a lot higher. The shipping companies will therefore start calculating additional fuel surcharges on the ocean freight.
Unfortunately, we do not yet exactly know how much these extra costs will be. We think it is important to draw your attention to the fact that this is imminent. As soon as there is clarity about the amount of this Environmental Fuel Fee (EFF), we will get back to you.
We assume that we have provided sufficient information, but if there are any questions, please do not hesitate to contact us.