FBJ 4 FREIGHT BUSINESS JOURNAL CONTACTS 2018 SALES


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EDITORIAL


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CIRCULATION


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By Chris Lewis


Aſt er over two years of waiting, HMRC fi nally broke cover in mid-January with a suggestion of what might happen in Dover and the Channel Tunnel aſt er 29 March should the UK perform a ‘hard Brexit’ from the EU. Essentially, it would mean information on freight coming in by truck being fed, not into a port inventory system, but direct into Chief. Using the transit procedure and various simplifi ed procedures would also be possibilities, for those traders set up to use them. Of course, if we’d known any of this beforehand, more traders could have set themselves up to use simplifi ed procedures; there is now little chance of anyone who hasn’t already started the process of getting such systems in place before Brexit.


The big unknown though are future checks on food and similar imports. It has been suggested that there are elements of the UK health authorities that would dearly like to poke around in incoming food consignments that they are currently prohibited from touching by EU Single Market rules. There is a belief that some outbreaks of Food & Mouth and the like could have been prevented if a checking regime for EU-origin produce had been in place. That in itself might not be an issue if such activities could take place take place a few miles inland rather than inside the port perimeter – and that is currently the $64,000 question.


Ultimately, the UK’s post-Brexit dilemmas may need a radical fi x, either from a legal or technological standpoint, if not both. A ‘VAT return’-style approach to clearing goods into the country and paying any duty owed has been suggested from time to time – in fact, long before Brexit was even thought of. So far it has been dismissed by the Customs and Border Force as too expensive and diffi cult, though one suspects it is also a matter of political will. However, as the CDS implementation saga has shown all too clearly, the government’s track record in implementing major IT projects gives little grounds for confi dence in any technological fi x.


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DSV’s bid for fellow forwarder Panalpina got jaded post-Christmas pulses racing. While there was, maybe, a certain inevitability about the move. It follows incumbent Panalpina’s chairman Peter Ulber’s decision not to stand for re-election last year, eff ectively paving the way for an outside bid, coupled with the Danish giant’s acquisitiveness. It certainly made a change from talking about the B-word. Analysts say that the global logistics industry generally could be set for a further round of M&A activity – share price valuations are conducive and there are big companies with money in their pockets, so the current move may not be the last. It is hard to see though any merger on a similar scale, at least in the international forwarding sub-sector of the market, Panalpina being one of the last big fi sh yet to be gobbled up by a predator.


GUEST OPINION Peak practice In late December, freight forwarder Rhenus found itself, along with the rest of the industry, in the midst of its seasonal peak. UK country manager Gary Dodsworth gives his assessment of how things went and whether there are any lessons for the future.


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“In the midst of peak forwarding season, and at Rhenus alone, we see around a 20% increase in overall UK shipments from September to December, as businesses prepare to move goods for Christmas. “With memories of last year’s ‘Beast from the East’ travel chaos still fresh in people’s minds, logistics businesses should already have plans in place to keep forwarding operations running smoothly – whatever the weather in 2019. “Last year’s winter was the coldest on record in the UK for more than a decade, with heavy snowfall causing chaos across our road and rail network. What’s more, heavy snow also caused air freight delays at major terminals such as Heathrow, while several the country’s busiest ports, including Felixstowe and Grangemouth, were forced to temporarily cease operations. According to a report by economic forecasting specialist EY ITEM Club, supply chain delays triggered by the freezing conditions ended up costing the British economy up to £1bn per day. “How can forwarders best prepare? As with much of the wider logistics industry, data could play a pivotal role. “From fuel management systems to tracking product fl ows, the modern logistics


Issue 1 2019 - Freight Business Journal From the Editor


///NEWS


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 within 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.


As the defi nitive 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@f j-online.com


next issue >> and Heavyliſt Cargo.


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manager has a wealth of data at their fi ngertips. Looking into this data archive can help forwarders plan ahead for seasonal spikes. In January/February this year, for example, we saw a tightening of global air freight capacity due to rate hikes from airlines and increases in spot rates. While that was down partially to the macro-economic climate at the start of the year, analysing air freight capacity for the equivalent months in 2017 and 2016 will help logistics specialists understand whether this is a yearly trend, or an anomaly. “A huge amount of data is also collected about road traffi c in the UK. The Friday before Christmas, for example, is oſt en one of the busiest days for motorways for the whole year, with a peak in activity between 1pm and 8pm. While this particular spike may seem obvious, logistics managers should analyse data fl ows from previous years to see if there are other peak days, or even peak hours – and plan transportation accordingly. “It may seem simple, but keeping your vehicle fl eet in peak condition is essential for mitigating against the eff ects of bad weather. A series of simple checks before the HGV hits the road could be make all the diff erence in a delivery making it to the end-user on-time, therefore avoiding costly delays and penalties. “Similarly, it also pays to tune up equipment throughout warehouses and logistics hubs. Assessing the working condition of equipment in-house, and repairing or replacing as necessary, allows businesses to decrease the risk of downtime caused by faulty tools. “At Rhenus, we prepare for winter by changing our vehicles to thermo-trucks, which better protect against the colder weather. During particularly extreme weather, we wrap cargo to ensure it remains a consistent temperature – especially important for FMCG or temperature sensitive goods. Thanks to our global network, we can monitor extreme weather conditions in real-time across Europe, allowing us to divert drivers and shipments to avoid as much disruption as possible. “The key to any smooth-running logistics operations is an eff ective team making it all happen, so it pays to invest in people at this time of year. Whether that’s putting drivers and warehouse staff through specifi c bad weather training, or working with temporary staffi ng fi rms to ensure you have the requisite personnel on site during holiday periods, understanding exact requirements can help businesses iron out any issues in working arrangements well in advance. “While the winter months undoubtedly come with unique complications for manufacturers and forwarders alike, a close working relationship and some forward planning can help guard against the worst eff ects of weather or seasonal spikes. Manufacturers or vendors with any specifi c concerns should speak to their logistics partner now – and ensure they remain ahead of the seasonality curve.


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