14


Issue 3 2015 - Freight Business Journal


///NEWS In freight forwarding, it can be better together News Roundup


Seeking partnerships is a sign of strength, not weakness. Paul Mooney, vice-president of international operations at US-based forwarding and logistics giant Menlo talks to Chris Lewis.


the needs of a specific customer. They arise, for instance, when a customer asks his logistics service provider or forwarder to service a new market where the one of the partners does not currently have a strong presence. The latter could set up its own


operation, or acquire another freight operator with a presence in


the market


In an age where customers demand ‘global supply chain solutions’, the freight and logistics industry will need to think smart to satisfy them and the answer is not always to do everything yourself, he believes. “A forwarder might have an


outstanding service from point A to point B, but the challenge is finding a solution in a total geography to support customer requirements,” he told FBJ. “Customers are looking for a


total overall solution. How do you manage that? You cannot necessarily be strong in every trade lane.”


While mergers and acquisitions


certainly won’t stop completely, “I think you’ll continue to see integration in the form of partnerships and alliances between companies.” In fact, he already detects “an ongoing rise” in strategic partnerships between freight and logistics companies. These aren’t formal partnerships, but usually specific deals to serve


concerned, but


both can be expensive and potentially risky. “Having a strategic partnership in every country is just not viable,” Mooney explains. This is especially so in these financially straitened times, when companies just cannot afford to embark on financial adventures in the hope that, if things don’t work out, there will be enough earnings in the rest of the business to bankroll the odd unsuccessful foreign venture or two. “It means you don’t suddenly have to become an expert in all aspects of the supply chain in a foreign country - or invest speculatively ahead of the curve,” Mooney explains. “It might be a forwarder who has


a good network in North America and Europe, but then finds it needs to do something in Asia,” Mooney explains. “A good alternative is to seek some form of partnership or alliance to fill out the requirements which offers the customer one point of contact to realise a more global solution.” Forming a partnership can also


bring much quicker results than a takeover or setting up a new


operation. And because it is on a case-by-case,


specific customer


basis, monopoly or exclusivity issues are much less likely to arise. Menlo for its part has signed


agreements at account level to service specific customers with other major forwarders. The business is carefully managed, with laid down processes and quarterly business reviews. “We usually have several partners in any given region - generally a primary and a


up different forwarders and logistics company systems is way more straightforward than it used to be even a few years ago - and forwarders are in fact very good at disseminating information so that their customers can go in and track and trace shipments; the only question is how many different forwarders’ systems will the customer have to look at. Supply chain visibility has moved from being a nice to have to


Europa Road has started a five times per week service between the UK and Stuttgart in conjunction with existing partner, Panalpina. It will be serviced with double-manned trucks operating to and from Erith and Birmingham.


Road & Rail


Rhenus Logistics UK has launched a new overland route to Greece, following the signing of a new partnership with one of the country’s biggest groupage specialists, Intertrans. Rhenus says it can offer exporters to the country a wide range of additional services such as express shipment, temperature controlled transportation and groupage options for full or part loads.


The International Transport Workers’ Federation reported on 18 March that armed Kenyan riot police had been ready to attack truck drivers working for Kuwait-based Agility Logistics, near the towns of Kanaan and Mai Mahiu. It said that the drivers were protesting against enforced driving shiſts of up to 24 hours and the company’s refusal to recognise their chosen trade union. In response, Agility said: “Agility’s statement in response was: “Agility continues to act in accordance with Kenyan law, labour regulations and its own fair labour standards. Agility’s employees in Kenya enjoy pay, benefits, hours and working conditions that are commensurate with or better than those prevalent in the Kenyan market, and above the minimum legal requirements.”


secondary one,” Mooney explains. As a US-owned company, Menlo


is naturally strong in North America and it also has a good presence in Europe and a rapidly growing one in Asia, as well as in Mexico and the rest of Latin America. However, Mooney stresses: “Our plan is not to physically be in every country.” There is no point in trying to


pull the wool over the customer’s eyes, he continues. “We don’t try and create the illusion we’re everywhere. But what we will say to the customer is, ‘Here’s a solution. These are our partners, this is why we chose them and here are the staffing levels we intend to put on each trade lane, and so on.’” Modern technology has


a big part to play in the new- style partnerships. As far as the customer is concerned, “they get the same look and feel” everywhere in the world and the customer experience is as seamless as modern technology can make it. Maybe it isn’t always totally seamless - there are sometimes glitches – but linking


an absolute essential, in Mooney’s opinion. Looking ahead over the


next 5-10 years, Mooney sees more


specialised partnerships


emerging, possibly geared to the needs of specific industries. There will be a handful of forwarders that can reasonably claim to be ‘everywhere’ but for others the partnership approach will be the more usual model. “I’m not sure they’ll be legally formalised - they’ll probably be more alliance-based.” Merger and acquisition activity


won’t disappear entirely, of course, though maybe there won’t be the large deals now that FedEx has made a play for TNT. Companies will still make acquisitions to win market share. But partnerships will play


an increasing role, Mooney is convinced. “We’re getting better at figuring out what the customer wants - and the recession has forced companies to take a really good look at what their core competency is as well as what they’re good – and not so good at.”


Ashford Borough Council is threatening to clamp lorries illegally parked overnight. It says that foreign trucks parked illegally in laybys along the A20 are causing problems with litter and human waste. Drivers from abroad routinely ignore parking fines and many have accumulated large number of unpaid tickets.


MEPs voted to adopt revised truck size and weight limits when they met in Strasbourg on 10 March. Under the new rules, drawn up by the Council of Ministers in December 2014, weight limits would be increased by a tonne for trucks using hybrid or electric engines and there would be an extension of the usual permitted length to allow for aerodynamic side skirts. The new rules also remove the current restrictions on rounded cabs, which are safer for other road users but are longer than traditional square cabs.


Time-critical international delivery voluntary vehicle specialist C4 Logistics


is urging other carriers using the Channel Tunnel to use Eurotunnel’s


emissions check as an


opportunity to conduct a further search for illegal stowaways. The Coventry-based company which carries time-sensitive consignments for businesses including F1 and the automotive, aerospace and pharmaceutical industries, says that drivers are offered a CO2 emission test on their vehicles by the tunnel’s security team, on which they receive a ‘Eurotunnel security checked’ stamp.


The International Road Transport Union (IRU), and its member associations the Road Haulage Association and the Freight Transport Association met officials, including Immigration and Security Minister, James Brokenshire on 16 March, to discuss to tackle the issue of clandestine immigrants entering the EU by truck. The IRU said that many drivers and operators are exposed to dangerous situations. The IRU called for significant increases in security for roads and parking areas near ports and terminals where illegal immigrants target trucks.


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