NEWS\\\


Is it the right time for free- for-all on Europe’s roads?


Now is not the right time to free up the cabotage trucking market


in Europe, says the


Freight Transport Association in response to recent moves by Brussels (see FBJ 3 2014, page 1). Commenting on the recent


European Commission (EC) report


on integrating the


internal market for road transport, FTA points out that, despite the Government’s recent


abandonment of fuel


duty increases, UK operators still have some of the highest operating costs in Europe. Foreign registered vehicles would have a competitive advantage, “yet


member states should step up their efforts to enforce existing legislation; the Commission and the EU could help by clarifying rules that are understood, interpreted and implemented differently in different member states. However, Ian Baxter, founder of


new forwarder Baxter Freight and former joint owner of RH Freight described existing


cabotage evidence suggests their


compliance rates are not as good as UK operators” said FTA director of policy Karen Dee. According to FTA-


commissioned research from NERA Economic Consulting, UK freight operators face higher costs than most other EU states – largely as a result of higher fuel duties. Dee added that while the


recently introduced UK HGV Road User Levy would go some way to rebalance the competitive situation, “there is still a long way to go to ensure that it becomes a level playing field for all.” FTA said that authorities in


rules as nothing more than protectionism. He told FBJ: “For reasons I find hard to understand, foreign registered trucks are currently still restricted from carrying out domestic work in the UK and other member states under the cabotage rules. To be fair there used to be a blanket ban on such activity but now foreign trucks can carry out three transactions within a seven day period. So cabotage is illegal (and trucks can be impounded for breach of the rules) except when it’s not.” He predicts that the European


Commission’s recently announced consultation on scrapping the cabotage rules


is bound to face tough


opposition from some of the more protectionist countries. However, Baxter adds: “But


Britain, which has always been a champion of free competition, should wholeheartedly welcome this move. The fact is there are real benefits


in using foreign


trucks to do some domestic work. Many such trucks come in from the continent, deliver their load and currently go back to a port or to the Channel tunnel empty thereby running many empty miles on UK roads. If we care about efficiency or the environment we should surely want them to carry a load not make it hard for them to do so?” Understandably,


some increased UK


hauliers could be worried about


competition


from foreign companies who (mainly because they would otherwise run empty) may be cheaper. “But ultimately my view is companies should only be in business to add value for their customers. Generally foreign companies won’t be able to offer the consistency of quality,


convenience, capacity


and communication that local companies can. So I don’t think the impact will be huge. Nonetheless, our customers would benefit from the scrapping of these rules and we should embrace that.”


A flying leap to Scandinavia


DSV Road has launched a DSV Daily Flyer express road service between the UK and Scandinavia that will eventually be rolled out across Europe. The service, operated by vehicles with two drivers, will reduce transit times by between 24 and 48 hours compared to the standard service. It offers same day departures


from the UK to Denmark, Finland, Sweden and Norway for cargo booked before 10am, with guaranteed transit times and real- time proof of delivery. There are set rates for


consignments up to 1,000kg for postcode zones in each of the Scandinavian countries. Prices for consignments above 1000kg are


available on request. Northern


European director


Karl Timmis, said: “More customers are seeking the faster transit times which this service offers. We have offices in all the main UK and Scandinavian centres, so the door to door service is completely run within our own terminals and IT systems.”


Issue 4 2014 - Freight Business Journal


19 A Frankfurter a day for Europa


Europa Worldwide Logistics is now running a new daily (five times a week) service between the UK and Frankfurt. The UK forwarder is working with its existing partner, Frankfurt-based INSA Transport, which maintains regular services to all European business centres and daily connections to Italy and Switzerland. The new Frankfurt route is in


addition to Europa’s existing daily service to Dusseldorf. Europa’s operations director,


Dan Cook said: “This expanded freight service to Frankfurt is the first in a series of investments in


daily connections to key areas of Germany. There is a massive


opportunity for British firms willing to invest and expand.”


Company restructures to serve its customers


Europa Worldwide Logistics is restructuring its road freight sales and customer services functions following its acquisition by former RH Freight owner Andrew Baxter last August. Some 77 existing staff


will


move roles and nine new staff will be recruited. The new roles include 30 account managers, 10 branch managers and 46 customer service positions, all of which are intended to better


service customer needs. The restructure, which came


into effect on 1 May, has been led by new sales and branch network director Dionne Redpath, who joined Europa in January. She commented: “There was a real need to re-align the existing structure and to further build on the foundation in order to create a knowledgeable team who are focused on servicing our growing customer base.” This would in


turn “create a more customer- focussed environment,” Redpath added. Customers will be advised of


their new Europa contacts with each individual customer having an assigned member of the team to personally manage their account. Europa plans to add more


account managers and further branches to increase its footprint across the UK.


Business leaders call for Russia TIR reinstatement


The four largest Russian business associations have written to President Vladimir Putin calling for the TIR system to be reinstated across the whole country. Leaders of the Russian Chamber


of Commerce, the Russian Union of Industrialists and Entrepreneurs, Business Russia, and OPORA Russia (Union of Small and Medium-sized


Enterprises of Russia) said that the cost of guarantees was being pushed up 64-fold - typically, RUB 2,500 (£43) for a TIR Carnet versus RUB 160,000 (£2,767) for a guarantee over a lengthy route. This would in turn increase the cost of imported goods on the domestic market and increase inflation. Further to the letter, the Russian


Presidential Administration requested that Ministries coordinate an official position to respond to the request from the Russian business community. Vice president of Business Russia,


Vitaly Survillo, said: “Foreign trade operators need predictability, but the current situation is unpredictable and much more expensive.”


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