16


Issue 3 2019 - Freight Business Journal


///ITALY


Growth in a cold climate


Italy’s economy isn’t doing so well these days but that hasn’t stopped freight operators fi nding niches and opportunities for new business.


The Italian economy scarcely makes for exciting reading at the moment. In its Winter Economic forecast, published in late 2018, the European Commission said that the country started losing momentum in early 2018 amid a wider slowdown of the Euro area and actually slipped into negative territory in the second half of the year, with real GDP falling by 0 .1% in the third quarter of the year and then 0.2% in the last three months. Less dynamic world trade


and sluggish domestic demand, particularly investment, are both to blame, said the report. Moreover,


with continued


weakening in the manufacturing sector, the near term outlook is pessimistic. The Commission expects a


return to growth in 2019, but only of about 0.2%, well down from what was anticipated in the autumn forecast, with companies still reluctant to invest. Italian exports have though


recovered from the setback in the fi rst half of 2018, which could to some extent support overall economic growth. However, Italy remains highly


vulnerable to any unexpected weakening in the global economy. Commentators Focus


Economics too, believe that the Italian economy seems set for another poor performance in the fi rst quarter of 2019: Manufacturing and business confi dence have declined further,


it says, while Ital sees no slowdown


Whatever the economists say, there is little sign of a slowdown on the Italian front in Manchester- based forwarder Ital logistics, says managing director Phil Denton. Its partner in the country, ITX Cargo, has recently spent just shy of €5 million on a new hub and HQ just outside Milan, and is also moving its Verona branch to larger facilities in the coming weeks. The new site at Origgio, just


15 minutes north-west of Milan, has 17 loading bays, 3,000m² of warehousing – double the size of the old facility – and 1,200m² of offi ces. It is adjacent to three motorways and with quick access to Malpensa airport, but not too far away from Milan city centre. Denton added: “This exciting


new venture for our Italian partners will enhance service, enable continued growth and provide a future-proof platform for many years to come. Last year, 2018, was a very special year for our partners, not only the new facility, but they also celebrated their 20th year in business.” Denton continues: “Like Ital Logistics, most of the people in ITX have been there since the start, maintaining the same ethos and standards as founders and personal friends Roberto Tagliareni and Dario Bragonzi.” Meanwhile, there is no let-up


in the number of shipments out of the UK, says Italian export manager, Dean Emsley. “We are consistently running at 10-12 groupage loads plus similar or


more full loads every week,” he told FBJ. ITX Cargo too is optimistic that


the Italian market is recovering and plans to further increase its workforce this year who will contribute to the company’s future growth. Worries over Brexit or not, UK


exporters are still selling a very wide range of products to Italy, including chemicals, electrical goods, steel, ceramics, plastics, hides and classic cars, says Emsley. Inbound traffi c into the UK is


similarly varied. Marble, ovens, fridges, chemicals, offi ce furniture and the like to name just a few. But the UK/Italy freight industry


isn’t entirely a bed of roses. Brexit has had some eff ect, with a couple


economists are concerned at the level of public debt, the absence of structural fi scal adjustment and the volatile political landscape. Writing in late February, Focus


Economics panellists put the country’s growth at 0.4% in 2019 which, while slightly stronger than the European Commission’s prediction last autumn, is hardly sparkling stuff . Italy’s economic predicament


is also slightly puzzling, says Bloomberg, in that it alone of all the major Eurozone economies appears to be in danger of tipping back into recession. It describes


of UK-based customers moving their distribution operations to the Continent in anticipation of possible disruption. Indeed there has already been considerable problems with queues of trucks in Calais as a result of the French customs offi cers work-to-rule, leading to delays of eight hours or more, says Italian import manager, Kurtis Rees. “Hauliers are tending to pick


and choose what work they do, and while many will still come to the UK, they are increasing their charges on the premise that they may become stuck in queues or there may be a lack of cargo post- Brexit, reducing the amount of trips they can fi t in their month,” he explained. Roads leading to Dover


are of increasing concern with


replaced Operation Stack, Operation Brock, which


the recession at the end of 2018 as almost unprecedented among major Euro countries and further evidence of “self-infl icted damage” to its economy. It warns that while other


countries may well recover in 2019, “that may not be the case in Italy”. Faced with a lack of funds for


investment, Italy’s government has turned to a hitherto somewhat unlikely source of funds – China. President Xi Jinping signed a major investment deal on 22 March that would see money poured into Italian ports such as Trieste and Genoa, as well as other


and the alternatives to Dover such as Tilbury-Zeebrugge tend to be booked up weeks in advance. Emsley says that he has considered alternatives such as Hull, but the need to collect also in the south of England makes the routing via Dover or the Tunnel almost imperative. FBJ asked Ital if it encountered


any problems with dangerous goods (DG) as this sector constitutes between a fi ſt h and a quarter of their export business by road. “Not if managed properly,” says Denton. “We rarely see any problems, because we have a sound grasp of the requirements. Two Dangerous Goods Safety Advisors (DGSAs), with a further two awaiting results of recent examinations, will bring us up to four on-site DGSAs, and provides further assurance to our clients that we take the


infrastructure such as roads and bridges. The move has raised some


eyebrows. While the Chinese are major investors in less developed countries – including Croatia and Bosnia just across the Adriatic – this is the fi rst time they have been involved in a major EU country. However, the collapse of the


Morandi Bridge in Genoa last August has focused minds on the state of the country’s infrastructure and


dealing with crumbling


roads and bridges has become a political imperative for the Italian government.


matter of transporting dangerous goods seriously. We are always pulling DG documentation as incorrect or incomplete, both from manufacturing clients and even other freight forwarders. But this is a specialist area for us, so it is not surprising.” Ital created the ‘HAZculator’


a decade ago in Excel format to assist on DG compatibility. This has now been incorporated into the new soſt ware system FREIGHTsoſt . Ital assisted in the


design of FREIGHTsoſt


and has been fi rst user of the product. The HAZculator collates maritime (IMDG), road (ADR) and Eurotunnel requirements, checking all compatibility confl icts, both as standalone and also within job creation and groupage allocation. Denton says: “It takes the guesswork out of the process.”


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