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NEWS


Smaller forwarders see strength in numbers


A group of European freight forwarders have banded together to increase their buying power with shipping lines. ICOF, the Intercontinental Cooperation of Oceanfreight Forwarders has been founded by seven medium-sized ocean freight forwarders, based in Germany and Benelux, with the support of a network of over 30 other companies, including WTA, Norman Global Logistics and Maurice Ward in the UK. The very largest multinational forwarders


can demand discounts of $2-300 on a typical container rate from Asia to north-west Europe from the shipping lines. ICOF managing director Klaus Dickehut


said that ICOF was inspired by the CargoLine transport and logistics co-operation which operates through 70 member companies in Germany and the test of Europe. A number of the ICOF board members already cooperate in CargoLine. ICOF founder members include Sis, Interfacht, Astracon, AZS Am Zehnhoff-Söns and Emo Trans, all in Germany, along with


Royal Rotea in the Netherlands and Levaco in Belgium. The so-called limited partners have the


same voting rights as the founder partners and together they form a network extending from Norway to the Czech Republic. Between them, ICOF members currently


handle approximately 4-500,000teu a year but the aim is increase this to about 1m teu a year, either by adding new members or


through organic growth. For the moment at least, ICOF’s main focus will be on maximising its members’ buying power rather than cooperation in operational matters, although this might follow later, said Klaus Dickehut. Individual ICOF members may also cooperate with each other to develop niche services such as LCL operations on specific trade lanes. There is no formal limit on the number of members but existing members do have the right to veto new recruits if they feel that they impinge too closely on their regional markets. ICOF has signed contracts with CMA CGM,


Norman Global Logistics are part of the British contingent in ICOF


Cosco, Maersk, and CSAV, while negotiations are in hand with Hyundai and NYK. Routes cover major trade lanes from the Far East and Indian subcontinent to Europe including the UK, Scandinavia. The Mediterranean and South America will be added next. North America may follow, but the complex nature of shipping contract law in the US means that this may take a little longer.


Heathrow Building 521 to rise again?


Fast van operator Express European is planning to develop Heathrow’s first multi- user airfreight building for small forwarders since the late-lamented Building 521 was demolished in the 1990s. It is hoping to turn a former Corus steel plant at Colnbrook into a freight facility offering tenants office space, warehousing, craneage, packing and container stuffing and unstuffing, along with IT support, full CCTV security and local and national transportation through Express


European’s existing vehicle fleet. Express European general manager Paul


Garrod said: “We are trying to recreate Building 521, but with a whole range of ancillary services available on-site. Since it closed, many freight forwarders have ended up in dilapidated, scruffy buildings.” In contrast, the Heathrow Cargo Village will have air-conditioned, state of the art facilities, capable of being expanded or reconfigured at short notice.


Subject to contractual issues with the building owners, the first offices could be ready for occupation from about October this year, said Mr Garrod. Rents could be around £15 per square foot, which compares well with Heathrow area rents of around £10-13 psf when the range of add-on services available are taken into account, he says. Users would pay for the use of warehousing, packing and other freight-related services on an as- required basis.


ISSUE 3 2010 ROUND-UP: SHIPPING


Brittany Ferries is to launch a Portsmouth-Bilbao service next spring, following P&O Ferries’ decision to axe a similar route from September 2010. Brittany Ferries will offer two Portsmouth-Bilbao crossings a week on its Cap Finistère, in addition to its existing twice weekly Portsmouth- Santander and weekly Plymouth-Santander services. Group freight director, Jon Clarke said Brittany was now one step away from a long held aspiration of having a daily service for both driver-accompanied and unaccompanied freight to Northern Spain. Vehicles travelling on long crossings are more productive than when parked in either traffic queues or insecure parking areas, he said.


French Dover-Calais ro ro operator SeaFrance has been given an extra four months in which to put its financial affairs in order by the Paris court of commerce. The court extended its observation period until 15 December. Managing director of SeaFrance Ltd, Robin Wilkins, said that more time was needed in order to get Brussels’ approval for the final part of the financing package, although a plan to start cutting the workforce would start almost immediately. He added: “If the plan is finalised and accepted, and everyone signs up to it, we will then be able to take back full control of the company.”


LD Lines is considering converting its new Dover-Boulogne service into a freight-only operation from 6 September, following disappointing passenger numbers and the transfer of one of the two vessels to a new link between Saint Nazaire (Nantes) in North West France and Gijon in Northern Spain. The company said it was currently examining a reduced frequency, primarily unaccompanied freight only service, using the remaining vessel, the Norman Trader. Discussions with potential hauliers are continuing. The new GLD Atlantique route, a joint venture between LD Lines and Grimaldi, will operate three times a week using the Norman Bridge in both directions between France and Spain. A ‘landbridge’ service from the UK will also be offered.


DFDS is converting its freight and passenger route between Rosyth in Scotland and Zeebrugge into a freight only operation from the end of the year. At the same time the single ro-pax ship will be replaced by two ro- ro ships and sailing frequency will be upped from three to four sailings a week. Meanwhile, the enlarged DFDS Seaways has introduced its first new service, a ro ro route between Immingham and Vlaardingen. DFDS has also switched the Humber port location from Killingholme to its Immingham Riverside Terminal.


A range of companies and groups are reported to be in the running to buy the port of Dover, following the ending of consultation on 27 August. The list includes Forth Ports - owner of the nearby port of Tilbury - various French interests and a consortium of local people. The latter option has the support of local Conservative MP Charlie Elphicke, who claimed in an interview on BBC TV news that the plan also had the support of the ferry companies and trade unions.


NYK Logistics North Continent has launched a weekly less-than-container- load (LCL) service between Hong Kong and Europe via Rotterdam. The service is operated using direct sailings to the Dutch port with onward distribution available throughout Europe and China, in cooperation with Double Wing Express -- NYK’s in-house non vessel operating common carrier. Real-time track-and-trace is available and NYK can manage customs and VAT administration if required.


The European Commission has adopted new rules to introduce a new online register to “name and shame” shipping companies that do badly on port state controls. From 1 January 2011, companies and flag states that show up as poorly performing will be subject to more intensive inspections in EU ports and traders will be able to choose their shipping companies in full knowledge of their safety record.


Iraq is planning to revive its merchant shipping fleet following a deal with a joint venture including Swiss-based Global Refinery. Despite the latter’s name – it is in fact a diversified banking and investment group, although its roots were in developing oil refineries - the deal involves a fleet of up to 80 chartered dry bulk ship of 30-50,000dwt, rather than oil tankers.


CMA CGM, MSC and Maersk Line have signed a co-operation deal to fight piracy in the Gulf of Aden and the Indian Ocean. It includes information exchange on safety measures, piracy policies and procedures.


The Port of Liverpool’s Royal Seaforth container terminal will have 5,000 additional ground slots available by the end of October in time for the Christmas peak. The port said it was a pay-off from the recent £1.1m investment in operational IT which has led to a 30% improvement in vehicle turnaround times. A long-term investment plan will deliver further increased capacity in phases over the next 18 months along with the in- river Post-Panamax terminal, which will be operational in 2014.


Hanjin has introduced what it says is the first non-stop direct service from Vietnam to North Europe. Its current NE5 (Asia North Europe Service 5) will, from mid-October cut transit time from 23 to 19 days. Ports served include Gwangyang, Busan, Shanghai, Yantian, Vung Tau, Singapore, Hamburg, Rotterdam and Le Havre.


Hamburg Süd will separate from Zim in the North Europe - Israel service and mount its own independent operation from late September. Hamburg Süd’s new North Europe - South Mediterranean Service will employ five 2,500/2,700teu ships between Felixstowe/NW Continent to the Med. Its new North Europe - North Mediterranean Service will use five 1,700 to 2,100teu ships


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