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Export difficulties in the Recycling Sector

Posted at November 28, 2016 | By : | Categories : News | Comments Off on Export difficulties in the Recycling Sector

The UK is once again experiencing difficulties in obtaining sea containers to fulfil ┬áthe Nation’s need to export the huge volumes of recyclate now being recovered from the waste stream.

Exports to Asia of paper, cardboard, scrap metals and plastics are all suffering as a result of the shipping Lines’ decision to create a shortage of available sea containers by removing ships from service and then to massively increase the outward freight charge from the UK and Europe by between 450 and 700 US Dollars per container.

Profitability of recyclers has been hard  hit but by far the biggest problem has been the growing stock levels which in small depots and yards is bringing some companies to a standstill.

The collapse of Hanjin Shipping (Korea) in September and rumours of other shipping lines struggling financially will mean that this situation will not be rectified any time soon.

TGM is using all available outlets to keep the depots clear of stock and is now selling more material into mainland Europe to act as a relief valve from the Asian difficulties.These loads are transported by road on conventional trailers via the channel ports.

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