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Issue 6 2019 - Freight Business Journal


and the days of the tramping G erman


international driver are numbered. Whatever else is causing the


boom in shipments, it probably isn’t


currently Brexit, Shuter


continues. Whilst Exact Logistics was “incredibly busy up to the


‘old’ Brexit deadline in March, this time around there doesn’t seem to be a huge amount of pre- stocking ahead of 1 November; companies seem to be taking a more sanguine ‘wait and see’ approach this time around. But in the meantime, Exact


Logistics is installing a customs clearance system which, even if


it is not needed for its European business, could create major opportunities in other markets. And, as Shuter points out, “Customs clearance isn’t exactly a surprise for many of our German customers. They have to do it for Switzerland, which is one of the country’s biggest markets.”


Most of Exact’s business is


from rather than to Germany but UK exports have been growing rapidly too, says Shuter. In fact, the company is in the process of setting up a more specific export service to Germany, which will include customs clearance if necessary. There are quite a few German companies that buy ex-


///GERMANY


works in the UK. Exact’s German business -


import and export – continues to be fairly evenly spread throughout Germany, although the north, Ruhr and central regions tend to predominate over the ‘deep south’. The company operates in its own right in Germany rather than


through agents and partners. Shuter himself speaks fluent German, which


gives


him a decided edge over his monolingual UK competitors. “If your business is solely in the UK, everyone can find out who your customers are. It’s harder if it’s someone in Dusseldorf who only speaks German.”


As an example, our facility in


The impact of Brexit, if and when it happens, remains to be seen. Until then, freight business within, to and from Germany continues unrelentingly, says Gary Dodsworth, road director at Rhenus Logistics.


As a German-owned company, most people would expect Germany to be Rhenus’ largest market and, of course, they would be right. The Rhenus business within Germany services numerous sectors, but particular growth is being seen within the chemical sector, where the offering is continually honed to ensure the provision of specific, tailored services. Chemical transport is highly competitive but Rhenus’ commitment to innovation is keeping the company ahead of the game. The company’s growth,


however, is not just within commercial freight transport and logistics. At the other end of the scale,


home delivery and contract delivery services are enjoying sustained growth. Rhenus’ e-commerce business within Germany has grown remarkably within the past two years, as the trend towards online shopping shows no signs of abating. Business between the UK


and Germany remains strong, as growth continues across all business areas. Chemical, automotive and general cargo continue to outperform the


previous year’s achievements. There are some reports that the German economy is on a downward curve but that is not reflected in our own experiences – both countries are major markets for each other’s products and Rhenus continues to develop its market share. Despite the ongoing concerns


regarding Brexit, we have developed a robust portfolio of services, structured in such a way that we are well-placed to increase volumes. It’s our belief that, whatever the outcome of Brexit post-31 October, Germany and the UK will still want to


groupage operators cannot


One of the key topics for the future is deliveries to city centres—not only in Germany, but throughout Europe, says Mark Rollinson, UK managing director at leading Anglo German operator Dachser. He explains: “Our groupage


routes connect all major European centres and regions. To this end, we have set up over 4,500 regular scheduled overland transport services. A relatively small proportion of the goods are also delivered to commercial recipients in city centres; here, certain technologies are available that allow us to lead the way.” In some cities in Europe, and


especially in Stuttgart, Dachser has established an emission-free groupage delivery area measuring 5sq km around the pedestrian zone and, from its branch in Kornwestheim, an interwoven chain of electric trucks, microhubs,


and delivery pedelecs swings into action. Rollinson adds: “This supply


chain is not a stand-alone solution, but is integrated into the processes of our standardised groupage network.” Dachser has implemented a


toolbox of individual measures from which its local branches can flexibly serve the needs of their cities. Dachser UK has investigated new tailored solutions to improve its efficiency and sustainability in London replacing large vehicles in the city with smaller, lighter ones. The target is to achieve emission- free deliveries in the Congestion Charge Zone and to reduce the number of vans and lorries in the morning peak in line with Mayor’s Transport strategy. In 2017, Dachser UK joined the


LoCity programme. This, says Rollinson, “proved to be a great


platform to connect with different stakeholders all working towards the same goal to lower emissions from commercial vehicles. Zedify runs cargo bikes offering last mile deliveries through consolidation out of its London microhubs. Zedify’s microhub concept and equipment were familiar to Dachser so the company was keen


Reaching places other


enjoy significant trade with each other. We have taken a strategic approach to adapting our processes in order to deliver minimal impact on services, achieved with improvements to our infrastructure and ensuring outcomes are prepared for any eventuality. International e-commerce is


an important growth area. We are seeing an upturn in business with the likes of Amazon, where we are increasingly tasked with transporting goods from manufacturing facilities direct to the end customer, rather than through a UK hub. This


operations.” Dachser drops off goods and


small pallets at the Hoxton hub in the morning and they are normally delivered


within an


hour or two. Advantages of bikes are that they can utilise the cycle infrastructure, get through traffic quicker, take up less space and don’t waste time trying to find parking, thus making deliveries faster. The bikes’ cargo unit can accommodate freight up to 200Kg and 1.3 cubic metres, which makes it ideal for small shipments.


represents an important trend in logistics, and one which Rhenus is well-placed to support. To


deliver this continued


growth, investment in Rhenus’ infrastructure is key. We have added a new annexe to our international


head office


Hamburg is developing solutions to make loading procedures safer and more transparent, through the use of Bluetooth and video technology. The new technology validates loading procedures using bay-mounted transmitters, which scan goods as they pass through the terminal. Early feedback has been positive and is a further step towards the business’ continued aim of delivering improved product quality for customers. Ultimately, whether it is


into, out of, or within Germany, customer


service remains at in


Holzwickede, which is home to centralised support services such as IT, quality and network management. Across the board, we are


seeking to make our hubs as efficient as possible by enhancing what is already there, rather than looking to build new ones.


by increasing demands from customers, especially in regards to quality and service. Our focus is optimising our processes as we drive forward initiatives on innovation and digitalisation as well as sustainability. “We regard finding, leading,


and retaining qualified logistics operatives as a key challenge that calls for action both at Dachser and across the entire transport and logistics sector in Germany and Europe. We place a strong focus on training, an approach that has already proved very successful for professional drivers.” Dachser meanwhile is investing


to start a collaboration. Zedify’s recently opened microhub in a Hoxton rail arch, near the border of the Congestion Charge Zone offered the perfect spot for


In Germany and Europe,


Dachser is still seeing heavy utilisation of its overland transport network, says Rollinson: “This in turn is accompanied


heavily in its network and creating additional capacity for cargo and warehousing at a number of locations in Germany and the rest of Europe. A ground-breaking ceremony is due to take place in August for a new branch in Neumünster, in the far north of Germany. It is also pressing ahead with


the “interlocking” of overland transport and air and sea freight


the heart of everything Rhenus does. The network is strong and well-connected, and people put their faith in Rhenus to deliver, whether that’s to businesses or homes. Daily services to and from Germany are likely to


increase, covering ‘Hard’ or both


commercial and e-commerce consignments.


‘soſt’


Brexit – or even no Brexit at all: Rhenus is well placed to experience some great times ahead.


networks, efficiently feeding sea freight shipments into the European groupage network, for example. Dachser UK has over 140


scheduled arrivals from Europe a week, 77 of them from Germany and in peak periods can have an additional 30 arrivals from Germany to keep up with demand. There is a daily departure


directly to Uberherrn, Dortmund and Rheine. Uberherrn is one of three Dachser hubs across Europe that have a large amount of departures from all over Europe every day. These work alongside the daily departures into Carvin, Mouscron, Strasbourg and Waddinxveen. Dachser UK is amongst the top


groupage operators from the UK to Germany, delivering over 98% of shipments to Germany within two days thanks to its large, integrated network and uniform IT systems. It has also invested £14 million


in a new facility in Rochdale to support increased demand for its services.


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