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Issue 4 2015 - Freight Business Journal From the Editor


The fact that global logistics is maybe taken for granted could be seen as a compliment in many ways. All kinds of manufactured goods get from the other side of the world - on time almost all the time, barring port strikes and weather events - food shop shelves in Europe are rarely if ever empty and hospital pharmacies


are always


///OPINION


FBJ is the only UK and one of the few pan-European Multimodal newspapers. The comments we have received prove there is still room for a hard copy publication with the freighting industry. You don’t have to look at a screen all day!


FBJ boasts the most informative and authoritative source of information with unrivalled in-depth knowledge of the rapidly changing freight business environment.


stocked with life-saving drugs. This rarely, if ever, gets mentioned by our political masters. No matter that there are people alive today who can remember a time when it wasn’t always like this. It wasn’t so long ago that food rationing and material shortages were a fact of everyday life. Our collective memories are short. Can we though take it for granted that the global supply chain will always operate so seamlessly? As Global Shippers Forum secretary general Chris Welsh told a recent summit, an unprecedented quadrupling of international trade by 2050 could put unprecedented strain on the system. The recent US West Coast ports’ strike could be a foretaste of a nightmare situation where the global supply chain doesn’t work as well as it should. Already, the recent strikes have had a “drag” effect on the US economy, costing billions of dollars. As GSF points out, industry and regulators do need to work together in order to avoid any future crises and to ask more searching questions about, for instance, the new mega vessel maritime alliances.


By Chris Lewis


Nepal’s recent earthquakes were a humanitarian catastrophe – and the situation there has also proved to be a logistical nightmare. Geography has conspired to make getting aid to the stricken regions even more difficult than in the 2010 Haiti earthquake, where there at least there was the option of moving aid through the relatively modern airport in neighbouring Dominican Republic. Nepal, by contrast, has only one international standard airport and, with a cargo ramp capable of handling only two or three widebody aircraſt, even Kathmandu’s claim to that status is debatable. There is little that can be done about a lack of infrastructure in the short term, but it is tragic that the problems of getting aid to people that would otherwise die has reportedly been aggravated by officialdom. A number of the carriers and forwarders who tried to rush vital goods into the country found themselves frustrated by slow and bureaucratic customs, not only in Nepal itself, but in neighbouring countries too. Surely we can do better than that in an emergency?


Logistics: the forgotten industry


Successive governments have promised the earth when it comes to the UK’s transport infrastructure, only to deliver very little, writes Andy Connor, managing director of UK operations, Hellmann Worldwide Logistics. Real investment is required to improve


the UK logistics network. We have become over-reliant on our ageing roads, and despite numerous investment promises and an 80% increase in road traffic since 1980, capacity has been increased by just 10%. We can’t lay the blame solely on


politicians. Despite the importance of our sector to the wider economy, logistics oſten goes overlooked. Because of its strictly B2B function, it’s really only those who need logistics that know of its existence. This lack of public engagement with the industry lies at the root of a number of challenges threatening future growth. Perhaps our most pressing challenge


– before road or rail improvements – is a shortage of new blood coming through the ranks. There’s lack of interest in logistics from the next generation, and that’s come at a strange time, especially when you consider the incredible innovation that’s happening across our sector today. Logistics is changing, with companies increasingly incorporating technology; it’s a really exciting time to get involved. At Hellmann, our transport network


spans Europe from East to West. Our continental colleagues view logistics as a rewarding career choice, and are oſten


perplexed when we mention the lack of young people actively pursuing a career in the sector back home. We need a culture change to correct false perceptions about what day-to-day logistics actually involves. The Office for National Statistics (ONS)


has just announced that unemployment has reached a seven-year low of just 5.6%, although the opposition parties have argued that the majority of these newly created jobs are on low-paid, zero-hour contracts. What remains unclear is why – when the


need for logistics professionals is so blatant – more young Brits aren’t pursuing a career in the sector? Logistics can now provide a solid career path and a world of scope for innovation. Yet a sizeable proportion of the workforce must, at least for now, be found elsewhere. Which brings us to another key issue at this election – immigration. It’s a factor


As the definitive publication within the sea, air, road and rail freight sectors, each issue includes regular news and analysis, in-depth coverage discovering the business decisions behind the news stories, shipper and exporter reports, opinion, geographical features, political and environmental issues.


If you have any stories or letters which should be of interest or any feedback on FBJ, please contact our editor Chris Lewis - +44 (0)208 6450666 chris.lewis@fj-online.com


next issue >> circulation >>


Our next issue will include features on Wales, Scotland and Benelux,


plus the Freight Soſtware Guide. There will also be our regular IT Section and news pages. For further details contact: John Saunders - +44 (0) 151 427 6800 john.saunders@fj-online.com


To guarantee your personal copy of FBJ please register by emailing


your details to circulation@fj-online.com or fax back the address cover sheet included with this issue.


that impacts logistics in a number of ways. For starters, with less British-born workers considering logistics as a career, migrants are playing a crucial role in warehouse operations,


supply chain management


and customer services. Without the free movement of labour, the recruitment process becomes increasingly difficult. Secondly, as our population grows, the


need for investment in our infrastructure follows suit. Experts predict that by 2050, Britain will become the most populous European nation with 72 million people. More people mean more consumers, which in turn, will place increased demand on the UK logistics network. More people also mean more drivers, and with congestion already costing the British economy an estimated £14billion a year, the issue of population is undoubtedly one that will impact logistics. This is when investment in our waning road infrastructure and new alternatives become particularly important. Ideas like HS2 are positive, particularly


with the promised expansion of the line to bridge the northern cities of Liverpool, Leeds and Manchester. Even if the project offers a passenger-only solution and will not benefit logistics infrastructure, its development has displayed a willingness to engage with and address our faltering transport system. However, with the project oſten being


used as a political football, there must be cross-party agreement that our transport network requires investment. Uncertainty and inconsistency is bad for business, and with another hung parliament looking likely, the political landscape of the UK has reached a new level of ambiguity. The government must begin to address


key issues facing our sector. Cross-party agreement on projects like HS2 would be a great place to start, but all parties from across the political spectrum should begin to recognise the logistics sector’s essential status and the need for investment in our transport infrastructure.


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