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Issue 3 2019 - Freight Business Journal


remains the UK and, at the time of writing, was


actually booming due to Brexit worries, as traders build up stocks ahead of any increase in duties or logistical problems. Pagani says: “In general we can


report a constant growth of this market during last few years.” The rest of Europe is stable at the moment, he adds. P&OFM is meanwhile focusing


on new markets such as Eastern Europe and Russia.


There are some operational


issues on the routes to and from Italy. P&OFM states: “Our main problem was rail ineffi ciency and lack of capacity on trains transiting Switzerland. This has increased during the last


few


years due to increasing demand and the infrastructure’s inability to accommodate this booming demand.” However: “This problem will be


solved mainly with the opening of the Gothard rail connection with Italy in 2020/21 through the


Ceneri tunnel which is under construction.” From Italy to the UK the


main products moving are food including wine, mineral water and beer, automotive parts, furniture, chemicals, health and care products. Historically, the UK/ Italy market is quite unbalanced compared with most of the rest of Europe. As for Brexit: “As long as there


are goods and people travelling between the UK and Europe, P&O Ferries will continue to provide


///ITALY


a comprehensive ferry and logistics service to and from the continent. We have been engaging closely with the authorities on both sides and they have given us to understand that they are fully aware of the economic and commercial importance of the free fl ow of traffi c across their borders. We expect them to act to mitigate the impact of any reintroduced customs and sanitary controls so that our customers can continue to rely on our services for the import and export of vital goods.”


There’s still fizz in the Italian market


Italian food exports including Prosecco and cheese could be in the fi ring line in the event of a no deal Brexit. Director of Morrison Freight Lee Steward takes a look at the import and export market.


We are all sick of the word Brexit. But in our sector, the implications are far reaching - not just for businesses at home but for countries which import and export to the UK. In 2017, the total value of


trade between the UK and Italy was £19.7 billion, with Italy enjoying a £9.7 billion trade surplus. But research has suggested the food and car


that both


industry could be clobbered if Britain crashes out of the EU without a withdrawal agreement in place. This is the result of


government tariff plans that would be put in place in the event of a no-deal Brexit which will see some products which have been exempt from tariffs facing levies for the first time. They include wine, dairy (Parmesan in particular) and car exports. The Italian Confederation


of Farmers has also suggested Brexit puts in jeopardy exports


worth £2.8 billion. The main exports of Italy


are precision machinery that represents 18% of total exports and metals and metal products, worth 13%. We have a large Italian


customer base, both freight agents and direct manufacturers and importers and machinery is our current largest export out of Italy with numerous


trailers a week


coming in as well as several chemical shippers. But we have been actively


working within the Italian market for over 20 years and move a lot of foodstuffs too. In the last few months we have seen this drastically increase as customers stockpile goods. And who can blame them?


After all, one region – Campania – exports 10% of their fruit and vegetables to London, for example, while the island of Sardinia saw exports to Britain soar by 62% last year and is now concerned that this growth will


crumble. Working together


We have found that one of the best ways to tackle the current uncertainty is to cement existing relationships with Italian freight agents and manufacturers. We have worked together for


a very long time and we know what they need from us. And this basic understanding has allowed us to develop services which have made importing and exporting easier for Italy – something we will continue to do post-Brexit. Last year, to help with


increased demand for freight, we opened a new Intermodal service to and from Italy. While transit times are marginally longer, the increased availability and oſt en cheaper freight has certainly proved a success. In fact, this could end up off setting any future tariff implications. We have also invested in multi-lingual staff to help us


better communicate with clients – something that will be vital amid any confusion following our exit from the EU. Our two Italian speakers have been invaluable to our growth in the Italian market – it allows us to negotiate and mediate with customers and prevents confusion, misunderstandings and delays. But the other benefi t is


having cultural understanding. It’s something that has set us aside from our competitors and allowed growth in this market – something we want to see continue. We are all following what is


happening in Westminster. But as the uncertainty grows, we are hoping for a solution which does not harm companies which have found an important and prosperous market in the UK. Italy and the UK have a long


history of economic, cultural and diplomatic ties. Long may this continue.


icing on the cake for Pall-Ex Italia


Pall-Ex Italia has celebrated its tenth birthday with record annual turnover and double- digit year-on-year growth since 2012. The company says it has been


instrumental in establishing the pallet distribution model within Italy, aſt er selecting the country as its fi rst location for European expansion a decade ago. Pall-Ex Italia has also played


a key role in supporting Pall-Ex’s European growth; the network now operates in eight countries in mainland Europe. Pall-Ex Italia moves around


nearly two million pallets annually – compared with just 160 on its fi rst night of operation. Hub locations include major


cities such as Milan, Bologna, Florence, Ancona and Naples, and cover a total of 25,000 square metres and it now has four times the original number of members. International development Anand Assi,


director,


commented: “Pall-Ex Italia became our fi rst network in mainland Europe in 2009 and has been pivotal in establishing Pall-Ex internationally; we now have over 450 members across Europe who work with us to


improve effi ciency across the continent. “We have also introduced a


new distribution model to Ital. The network volume growth Pall-Ex Italia has seen over the last ten years demonstrates the local need for hub-and-spoke distribution. The benefi ts to the local market have been huge, increasing fl exibility and visibility for the customer, while reducing the number of vehicles on the road.” Giovanni Pallastrelli,


international director for Pall-Ex Italia, added: “Pall-Ex Italia has made a major contribution to changing the old industry model: hundreds of small couriers, who used to fi ght for custom, are now part of a bigger and centralised system. This system has been created by the couriers themselves and they have had the vision and capability to transform themselves into a new entity. “I would say that the pallet


model is well established now in Italy, in fact, 10 years ago customers expected to receive a price based on the weight of the shipment, now it is natural for them to request a per pallet price.”


Record traffi c is


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