16


Issue 3 2018 - Freight Business Journal


///ITALY The Tre Cime di Lavaredo are


three distinctive battlement-like peaks, in the Sexten Dolomites of northeastern Italy.


Over the mountain?


Italy’s economy has struggled in the years aſter the financial crisis but there are signs that prosperity is once again returning.


The economic near-miracle


Once written off as a basket- case, Italy’s economy is on the mend, says the European Commission. In the first three quarters of


2017, output grew by an average of 0.4% and latest information suggests that growth was sustained at the turn of the year. Real GDP growth in 2017 is estimated at 1.5%, which by recent standards is something of an economic miracle.


Further, the Commission


predicts that the favourable conditions will carry over into 2018, although the gradual withdrawal of various policy stimulus put in place by the government may have an effect -


although the Commission


hopes that growth at that point will become self-sustaining. However, the country’s


current prosperity needs to be put into perspective. Yes,


compared with the situation during the Euro crisis a few years ago any growth is to be welcomed, but: “Prospects remain moderate, given the Italian economy’s limited growth


potential,” it says,


adding that the banking sector remains in a fragile state. Italy is also the worst economic performer in the Eurozone. Also, while Italy may be growing again on paper, it


What price loyalty in a cut-throat market?


In stringent financial times, when every penny counts, customers cannot be blamed for looking at what the competition has to offer, says Dean Emsley, Italian Export Manager at Ital Logistics. However, he adds: “What in


many cases isn’t considered is the added value of the knowledge which we have gained about our customers’ businesses,


the


requirements and idiosyncrasies of their customers and suppliers, and the extra work which we undertake behind the scenes.” He adds: “There is a vast number


of logistics companies in Europe but the industry is a very small world. We are all competing for the same business so it is difficult to be competitive when some are undercutting all - to simply win the business.” Undercutting is constant. On


some occasions Ital has agreed tariffs which it then has to review if it has been undercut. This isn’t just true of the Italian market, of course, although his thoughts are echoed by Kurtis Rees, who heads Ital’s Italian import team. So is the Italian market in general


suffering? Hardly, it would seem, or at southbound. Despite


least not


the groans, Ital’s Italian export turnover for the first two months of 2018 is up by 11% against 2017, and pleasingly the profit is in proportion. Northbound however is a


different story, down by 16%, although that isn’t that much of a surprise given that Sterling has taken a hammering. The perception of the value


of time also varies, depending on the type of customer. A large


proportion of Ital’s business comes from fellow freight forwarders, and it appears that these clients attach a higher importance to transit times; perhaps this is their selling point to their customers, suggests Emsley. “This comes down to knowledge, and not wishing to criticise unfairly, non-forwarder clients seem more prepared to listen and understand that many of the areas, within Italy in particular, are difficult to collect from/deliver to for a variety of reasons. Oſten, we lose out on price because we know the market better than many, and quote accordingly.” Sometimes freight forwarders


will quote unrealistic transit times to their customers. Not everyone appears to understand the driver’s hours rules or other restrictions and, in many cases, restrictions on access to consignees’ premises


doesn’t necessarily seem like that on the ground. As it went into the election on 4 March, the electoral capital that the ruling Democratic Party was able to make from the steady recovery was limited by stubbornly high unemployment, still stuck at around 11%. In the event, while the election did not deliver a clear majority – Italian elections rarely do – the result was acknowledged as a clear


mean that timings have to be adjusted. Each delivery point must be


contacted prior to delivery to avoid any problems and deliveries in remote parts of Italy can take longer than expected. Emsley says that the knowledge


of Italy by general freight forwarders can be limited: “On odd occasions we have had to educate them. Their business is to receive a quote, win the business and then pass on the orders. We arrange the shipment door to door and we know what is involved.” Kurtis Rees confirms this,


saying: “A lot of our business is split pretty evenly between direct clients and forwarders, with direct clients more accommodating of any delays or problems we are faced with.” And he adds that while direct clients may be putting increasing emphasis on price: “Forwarders on the other hand expect price and service.” Ital still leans heavily towards


the movement of dangerous goods that fall within the scope of the


Italians


defeat for the ruling party. As Bloomberg says, “few closely


output. Despite being a founder


follow the


latest economic data from the national statistics agency Istat, but they know the recovery is much patchier than the government’s rhetoric suggests.” However, there is no need


for those involved with Italy’s international trade to feel downbeat. Bloomberg points out, the words ‘Made in Italy’ still spell magic, in sectors such as fashion, and this has boosted exports and industrial


ADR and IMDG regulations; some 17% of its total business was made up of such traffic in January and February this year. Kurtis Rees says that, for


imports, 30% of trucks leaving Italy have hazardous goods loaded, with the majority of those coming from Milan, adding: “It is very hard to get the documents completed correctly from shippers and when this is explained customers are reluctant to change them as they say: ‘This is how we have shipped in the past’.” He has recently quoted


shipments from Milan to UK but due to the hazardous nature of the cargo these would have had to be shipped on separate trucks and couldn’t come via Calais or Eurotunnel with one of them needing approval to enter port in Zeebrugge. “When asked for feedback we were told that we were in total £740 more expensive over the two shipments and we explained that we simply couldn’t compete with this. But the following week we


member of the European Economic Community, Euro scepticism has been gaining ground in Italy, as evidenced by the


anti-EU Five Star


Movement’s emergence as the largest party in the general election in early March. However, while many Italian


parties have


into question the country’s continued membership of the Euro, no major political forces are calling for withdrawal for the EU – or at least not yet.


were given the bookings as the company they booked had made an error.” Documentation


before the called


including


dangerous goods notes can oſten be wrong, and Ital has to check everything


goods


are shipped. Direct suppliers who manufacture hazardous chemicals may send a copy DGN that will be incorrect, in some cases completed by an official dangerous goods safety advisor (DGSA) which triggers a request for corrected copies. Information such as addresses and commodities also need to be checked. Many shipments arrive unlabelled by shippers and on most occasions Ital will create its own labels to avoid problems. These even extend to hazardous shipments which are not labelled correctly or even not labelled at all. In fact some goods arrive in their depot without even an address on them. “You wouldn’t put a letter in the post like that,” says Emsley.


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