SCANDINAVIA\\\


Establishing a position in Scandinavia gives businesses enviable market presence across three key regions, writes Gary Dodsworth, UK country manager of Rhenus Logistics UK. Developing a base at the heart of northern Europe gives access to more than 500 million consumers. The powerhouse economies Norway,


of Sweden have


Denmark long


and been


an attractive destination for multinational firms. Establishing a presence in Scandinavia gives businesses access to not just across the region itself, but also the wider environs of northern Europe and the EU. As well as a strategic


location, Scandinavia has also benefited from extensive investment into its road, sea and air infrastructure. Indeed,


Brexit takes the shine off DFDS fi gures


Continued uncertainty over the outcome of the Brexit negotiations


is starting to


impact DFDS’s freight carryings on both the Scandinavian and the English Channel routes said chief executive Niels Smedegard, in presenting the Danish-owned ferry and logistics company’s third quarter results on 13 November. At a press conference, he


said: “Brexit is a key topic and, for the first time, it is having a slight impact on our volume numbers. Customers say it’s due to Brexit uncertainty – they don’t want to invest.” Everyone was getting increasingly “fed up” with the situation, he added. In


its published annual


results, the company said that North Sea freight volumes in the third quarter were down 4.0% on 2017, although this included the effect of closing the Rosyth- Zeebrugge service in April. However, even without this, traffic was down 1.9%, reflecting a slowdown in trading between UK and continental Europe, as well as lower volumes between


Sweden and Belgium linked to a large logistics contract that had boosted volumes in 2017. The effect, Smedegard said,


was “not dramatic but enough for us to see a slowdown.” On DFDS’s Dover/Dunkirk


and Dover/Calais routes, freight volumes in the third quarter decreased 2.5% compared to 2017 - or 2.2% excluding the Newhaven-Dieppe service that was included in the Channel business unit from the second quarter of 2018. While DFDS says it held


its own against other ferry operators, the overall ferry sector’s market share was affected by increased fuel bunker prices compared with the electrically-powered Channel Tunnel. DFDS has narrowed its


earnings outlook slightly in view of the Brexit situation and other factors. Smedegard said that while DFDS was giving priority in its planning to a ‘soft’ Brexit, the company needed to be prepared for a hard Brexit too, and it was “prudent to


New Finland/ China rail link


Finnish-based Nurminen Logistics has started a regular rail service between Helsinki and Hefei in China. The first departure left Hefei on 8


November carrying 43 40ft loaded containers and with an expected transit time to Helsinki of about two weeks. The next departures from


assume that the uncertainty would continue until mid- January.” In answer to a question, he


added that Brexit concerns had not yet led to any significant shift in volume from the Channel routes – most likely to be impacted by slow customs clearance – to the North Sea. While there had been such a shift earlier due mainly to the truck driver shortage, this seemed to have levelled out lately. Meanwhile, DFDS was


continuing its preparations for Brexit including increasing on- and off-terminal truck parking capacity. It had also delayed the annual dry-docking of vessels from the winter to the summer, in case extra capacity was demanded by traders stocking up on UK inventories. In the event that there was a


soft Brexit, Smedegard said that there could be a small rebound in trade but that there could also be “hiccups along the way” if the agreement failed to secure political backing.


Hefei were due on 22 November and 20 December while the first departure from Helsinki to Hefei is on 28 November. The service includes


door to door delivery if needed, customs clearance, warehousing and packing. From Hefei it is possible reach China’s coastal


to


cities within 72 hours, says Nurminen.


Issue 8 2018 - Freight Business Journal


Looking North and to the future


It’s no


17


Sweden – Scandinavia’s largest market – is ranked sixth on the World Bank’s ‘Excellent Infrastructure’ league table, just ahead of Norway in seventh.


surprise,


therefore, that an increasing number of global freight businesses are seeking to take advantage of this and establish networks across the region. Scandinavia benefits from


several strategic gateways thanks to the land bridge between Denmark and Sweden as well as Swedish and Finnish ports, which link major cities across the region with northern and central Europe, with


serving as a long established link to Russia and the CIS. Additional advantages for


freight forwarders operating in Scandinavia include tapping into a highly qualified workforce with high levels of English proficiency and leading-edge research and development. Scandinavia is a hub of manufacturing and technology excellence. For UK businesses, dealing


with organisations based in Scandinavia is particularly straightforward. Exporting and importing to and from the region is incredibly simple, especially when compared with other parts of Europe or further afield, which typically have more idiosyncratic customs


procedures.


While some degree of local knowledge and market awareness is important, local regulations are easy to navigate. However, businesses looking


to operate in the Nordic territories for the first time will benefit from partnering with a logistics supplier already based in the region. To support businesses looking to maximise opportunities in Scandinavia, Rhenus offers a range of routes across the region. Alongside offering a direct to Norway,


service Sweden,


Denmark and Finland, Rhenus provides daily collection across the UK. It also operates a project


logistics division out of Gothenburg, Sweden. Rhenus Project Logistics Scandinavia offers tailor-made logistics


Finland in particular


solutions within the Nordic region, as well as advice to organisations looking to move into the territory. The project logistics team can also provide in-depth consultation and feasibility studies for more complex consignments. As a major economic


powerhouse within Europe, Scandinavia will, I believe,


remain a key target destination for businesses as we head towards the new decade. With a robust, efficient infrastructure system and close trade links with EU member states, there are nascent freight forwarding opportunities emerging across the region – and I’d like to see more UK businesses look to take advantage.


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