All systems go for Transland DSV contracts out full loads 26


Transland International, part


of the pan-European


Palletways freight


network, has moved its operations from Naas to a new 75,000 sq ft depot in Ballycoolin, Dublin. The company has ambitions to expand the business and broaden its customer base.


Transland


Depot principal at Ireland,


Kieran Conlon, says: “With a population of 1.5 million people within a 30-mile radius, the move to Dublin was a strategic one and has enabled us to grow our operations dramatically. We hope that it will open many new exciting opportunities.” Transland is also developing new enterprise


a resource


planning (ERP) platform. And, as one of over 100 independent transport providers in the Palletways


distribution


network, Transland is taking full advantage of the new Digital Information Hub


to enhance operational efficiency and customer experience by optimising the use of live data. The system covers


everything from live vehicle status information, which enables constant checks to be made on the location and delivery of all customer consignments, and allows for proactive management of consignments at risk. Customer can be advised in advance of any delivery issues. The system also shows up where deliveries are currently been made on a ‘heat map’


and highlights opportunities for customers to serve new markets nearby. Conlon adds: “We are always


looking for innovative ways to improve our services as well as our customer service and online seems the way to go. Our online booking facility is going from strength to strength and this now accounts for 20% of overall pallet volumes. There seems to be signs of recovery in the Irish market as our year-to-date volumes are significantly up. Plus, in recent months, we have seen increase in online exports to the UK.”


DSV has virtually stopped moving full trailer loads between Ireland and the UK, instead using its buying power to contract third parties for this business. The company increased its


presence in the unit load sector with the acquisition of Roadferry in 2008, but Niall Caulfield, sales director for DSV Road, says the focus has changed in recent months. “It’s hard to make full loads


work financially when you’re only getting €350-400 per trailer [across the Irish Sea], but we’re still positive about groupage,” he says. DSV is seeing 10% growth in


Ireland, its Air & Sea business generating €30 million, Solutions (logistics) €30 million and Road €10 million. Customers have been looking to share the benefits of inbound


linehaul and get discounts on the return leg to Europe, but it’s difficult in such a high-volume, low-margin business, Caulfield says. A driver-accompanied trailer from Benelux to Ireland at one time could earn €2,300-2,400 but the rate is now nearer €1,800. “It puts pressure on the round-


trip rate. You’ve got to look for a rate increase from the exporter but it’s extremely difficult. There’s a queue of people at their door offering a service for no money.” We would have round-tripped


90% of the time back in 2006-07, but when imports fell off a cliff, we went to all one-way and leſt the responsibility with the driver to get a back load. This year is looking positive and now we’re getting round trips again.” DSV warehouses


in Derry, Belfast, Dublin, Kildare and


Limerick stock automotive products, fashion goods, fast- moving consumer goods, DIY and healthcare products. Dermot Connolly, director


business development, sales & marketing for DSV Solutions, notes that importers into Ireland of products such as small domestic appliances pulled back from holding local inventory during the recession. Others were forced to consolidate as retailers in sectors such as DIY reduced their product ranges. DSV offers clients detailed


cost comparisons between local and UK storage, and Connolly sees the recent trend reversing. Discounters in particular prefer to hold ship in dry, ambient long shelf life goods in bulk. “They’re growing at 10% a year and are busting out of their DCs,” he says.


Trading terms get overdue overhaul


A new trade association for Irish freight forwarders aims to help members at a practical level whether they have a tax concern, need advice on achieving Authorised Economic Operator status or face any other problem. The


Logistics & Freight


Association of Ireland (LFAI) has set annual membership at a flat-rate €525 irrespective of a company’s size, and has attracted nine full and affiliated members so far. “We set ourselves a target of 10 to 20 members in year one, so we’re on track,” says executive board member Simon Tobin of Tobin Shipping and Transport. LFAI aims to recruit affiliate


members who will offer discounts on their products and services, including accountants,


recruitment agencies and providers of freight soſtware, training, insurance and vehicle maintenance. “Members will quickly earn back their subscription,” Tobin says. The association’s founders


have spent up to 30 years in the industry and are well versed in legal requirements and customs regulations. An immediate priority was to draw up new standard trading terms & conditions governing companies’ liability when dealing direct with the tax and customs authorities on behalf of the client. The existing STCs under which Irish forwarders operate date back to 1989. “The operating model is very


different now and there are gaping holes in the existing regime. We


wanted something similar to what BIFA did in the UK, specifically in the area of direct representation,” says board member Malcolm Kirkby, a director of Laser Transport. It took many months to


revise the STCs but insurance companies have been quick to accept them, Kirkby says. Work is now underway to draſt a new code of conduct and grievance procedure. LFAI is using social media to communicate the


benefits of


membership, and plans quarterly meetings that will be open to everyone. “We will discuss real business challenges and want to get Customs and other specialists involved. We won’t be just another talking shop,” Kirkby promises.


French port out of the loop


Feeder operator Eucon pulled its weekly Radicatel (Le Havre) service, served by one of the smaller vessels in its fleet, the 700 teu Emstal, in December owing to weak volumes. The vessel was also calling at Antwerp on its weekly rotation and continues to ply the Dublin-Antwerp route. “Radicatel was a small market


and we are still able to cover northern France via Antwerp,”


says Eucon sales manager Ireland Rory O’Regan. In the 20 weeks from 1 July to


15 November 2014, ICG reported that container freight volumes were down 4% at 105,000 teu, due to lower feeder traffic. Speaking ahead of the March


annual results announcement from Irish Continental Group (ICG), O’Regan could not go into great detail but says


import and


volumes February


encouraging. Despite


signs in of have


January been


recovery,


however, he expects Eucon to continue its vessel-sharing arrangement with BG Freight for the time being. “It has been in place for a number of years now, and has kept costs down while maintaining our quality of service,” he says.


Issue 2 2015 - Freight Business Journal


///IRELAND


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