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Issue 7 2018 - Freight Business Journal


///IBERIA


More gain than pain for Spain and Portugal


With the economy at last showing signs of recovery, freight operators are dusting down their plans to develop in Iberia.


Barcelona? We do it every day, says Ital


Since starting its partnership with MC Trinter in Barcelona last year, Manchester-based Ital Logistics has increased its service to multiple departures every day. There are also additional ADR (dangerous goods) and temperature- controlled departures southbound and northbound. Iberian and French route


a partnership with Novocargo Zaragoza offering twice weekly service to and from its home city in the north-east of Spain. Previously, it delivered most cargo direct on trailer to the Zaragoza region or via the Barcelona hub and the new direct line will improve transit time and rates, says Mears. He adds: “We are currently


technology which has taken our planning and service to a new level. For example, HAZculator which is included in its new software FREIGHTsoft checks ADR, IMDG and Eurotunnel compatibility instantly with our trailer planning, shipping routes and any food products carried on the same trailer which allows us to identify any problems before quoting,


accepting


bookings or planning trailers.” Ital is also doing its bit for the


environment: its warehouse has reduced the use of paper loading lists, which are being replaced with iPads which update dimensions, weight and volume in real time direct to the office team. Denton adds that whatever


Brexit may bring, “we feel we have the infrastructure to deal with any ‘no deal’ situation and the abolition of the customs union. FREIGHTsoft has been built with the new “Customs Declaration Services (CDS)” in mind, which is to go live in January 2019,


replacing


manager, James Mears says: “August is typically our quietest month on Iberia. However this year we have recorded record figures with no sign of momentum slowing down during September.” Recently, Ital also finalised


working on a similar strategy for southern Spain in the Malaga and Seville areas and we shall reveal further information during January next year.” Ital managing director Phil


Denton adds: “We have recently investigated a six-figure sum on


the


existing CHIEF system. “Likewise our partners


overseas who already deal with non-EU trade can undertake customs clearance. And in any event, deal or no-deal, we have a team of talented resilient people who are looking forward to a new challenge to our industry.”


Economy rains on Spain’s parade…


Aſter a bright start, Spain’s economy now appears to be losing steam, says Focus Economics. Weaker domestic demand


and mounting external headwinds, along with a falling- off in tourism aſter a long boom, all seem to be conspiring to reduce economic growth. Focus Economics predicts


growth of 2.7% in 2018, falling to 2.3% in 2019. The data points to waning


activity in Spain in the second quarter of the year , following a “solid” first quarter when the economy grew faster than the Eurozone average. However, Spanish industrial


production lost momentum during April–May, which suggests some moderation in growth, it says. While there has been a healthy rise


in


employment, retail sales have been sluggish, posting only marginal gains on average in April–May. Meanwhile, Spain’s politicians


are grappling with issues such as increasing corporation tax and slowing down the pace of deficit reduction in order to increase public spending. But with the Socialist party holding only a quarter of seats in parliament, the government is struggling to


Prospects in Portugal are brighter, though, at least according to the Centre for Economic Policy Research’s Vox policy portal. It argues: “Portugal has turned a corner. Having gone through a mild boom, a slump, and a severe recession, all packed into less than two decades, the Portuguese economy has re-emerged with a newfound strength.” While early signs of recovery


raise enough support to make real economic reforms. This, perhaps, is the ‘glass


half empty’ view of the Spanish economy, though. The OECD describes Spanish economic growth as “robust”, though it concedes that there will be some fall-off from the 3%-plus seen over the past three years. Public debt is gradually


declining, and while it remains high, it is projected to fall. Other important tasks facing


the Spanish government, OECD adds, include implementation of pension reform and introducing more effective labour market policies and re-skilling to further reduce unemployment and social inequality, and make growth more inclusive.


…but Portugal is brighter


from the Great Recession in 2014 and 2015 turned out to be feeble and short-lived, growth eventually picked up with renewed strength in late 2016 and accelerated further to 2.7% in 2017 on the back of a 9% real increase in investment and 7.9% growth in exports. Employment rose 3.5% in the fourth quarter of 2017, year-on-year, while unemployment receded to 7.4% by 2018, its lowest level since 2004. “This is now a sustainable recovery,” Vox argues. Focus Economics, too, is


optimistic, saying: “Recent data points to a healthy, but relatively slower, pace of economic expansion in the second quarter amid a broader slowdown across the Eurozone.” Despite a recent slowdown


in exports, the external sector contributed to growth as imports decelerated more sharply than exports. Business sentiment has improved and continued to be supported by an ongoing housing boom. Focus Economics


expects


another year of healthy economic growth in 2018, thanks to higher foreign investment, flourishing tourism and resilient private consumption supported by strong job creation that should liſt wages.


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