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Issue 5 2020 - Freight Business Journal


present form, says Lucy.


Davies Turner opened a


new multi-user distribution centre at Bristol’s Central Park near the port of Avonmouth in 2017, in addition to its existing freight forwarding-orientated sites. Lucy prefers to support local


shipping services through the port of Avonmouth wherever possible, noting that the frequency and reliability of


from


Avonmouth has increased greatly since MSC started its operation there. Airfreight volume is down,


but on the other hand the rail services from China to the UK are up strongly, with volumes doubling from one week to the next and the South-west region has been one of its strongest supporters. With importers struggling to catch up after the Chinese factory and shipping stoppages and with airfreight capacity very scarce and


almost unaffordable anyway, many shippers have turned to the trains instead. Whether the traffic


remains on rail remains to be seen. It is more expensive than seafreight, even if it is considerably cheaper – though slower – than airfreight. Davies Turner’s customers


in the South-west and Wales were, at the time of writing in early June, beginning to open up their operations again after the long shut-down, although there was a bias towards manufacturing and industrial activity, with retailers still very quiet, says Lucy. There is in fact a surprisingly large amount of manufacturing in the South- west, he points out, many of which generate strong export business as well as importing raw materials and inputs from around the world. There are some long-


term question-marks over manufacturing. Ford will be shutting its engine plant in


Bridgend later this year and the closure of Honda’s Swindon manufacturing operations will be felt throughout the supply chain. However, so far at any rate, everyone is pleasantly surprised


at how well the


region’s manufacturing activity has help up, says Lucy. One important new client


in Bristol are Scottish-owned Hunter Boots, which has appointed Davies Turner as its UK logistics partner to handle all inbound freight forwarding of products into the UK, plus warehousing, as well as pick and pack operations, and national and European distribution. The forwarder can store imported products VAT and duty free until they are moved to the end customer anywhere in Europe which eases cash flow for the customer using its range of bonded facilities in Bristol. Davies Turner also has a


lot of customs expertise in its team, which is becoming


important as customers begin once again to focus on the implications of Brexit. “The Corona virus has put Brexit on the back burner, but it is something that companies do need to prepare for,” states Lucy. One worry though is that some firms, especially smaller ones,


will take no action


and leave it to their freight forwarders to try and sort out. Another strength, argues


Lucy, is that whereas many rivals have moved towards a single UK hub solution, Davies Turner has if anything gone in the opposite direction, strengthening its presence in the UK regions. Even within the south-west,


it has other


facilities – an office at Bridgend in


South Wales and an


airfreight office in Plymouth. Customers like the fact that


Davies Turner operates its own direct trailers between Bristol to a range of European centres, which helps reduce handling and cuts costs. The forwarder


Port powers up the West


Bristol Port’s project cargo expertise came to the fore recently as a flurry of turbine parts arrived for a new wind farm in Cornwall. The 2.3 megawatt Enercon turbine will supply green energy to 1,100 homes. The shipment through the


port, for onward delivery to a site at Ventonteague, near Truro was the culmination of four years of planning. Unloading of heavy components including the wind turbine shaft, rotor hub and blades was completed ahead of time. Shipments arrived from the ports of Emden in Germany and Aveiro in Portugal and their transfer was supported by King Lifting


also has some strong and long standing European partners, recently augmented by the recruitment of Mainfreight for the Netherlands. Deepsea customers


appreciate its expertise and strength, too. “You can have all the IT systems you like, but there need to be good freight forwarding fundamentals behind it. For example, getting shipping space out of the Far East is still very challenging at the moment, and customers have been told that the earliest they can get shipments booked is in two months’ time. So you have to have good staff who know who they can ring to find space and get shipments moving.” Freight forwarding is without


doubt a very competitive business and price is often the driver,


though perhaps less


///WALES


so during this time of crisis. Davies Turner’s clients in the South-west are contacted all the time by its rivals, from all over the country. Many is the time that Davies Turner has been asked to quote two or three times for the same job, via other forwarders. However, being local has its advantages, especially when there are problems with documentation. It’s also true of the South


Wales office in Bridgend, where being Welsh is a definite plus. Business there is still pretty brisk, despite the region’s economic ups and downs. While the area is strongly associated with steel and coal, its industrial base is wider than many realise; efforts to diversify the economy have been going on ever since the first coal pits started to close in the 1960s.


New contract fuels Cardiff growth


ABP’s


Port of Cardiff has


(cranes), Plant Speed (trailers) and GP Shipping. Bristol Port provided stevedoring services. Commercial manager Miles


Adams said: “The discharge went extremely smoothly thanks to good pre-planning and highly trained and skilled


Wales feels effects of the virus Wales faces unprecedented, “huge, challenges”


according to a report for the country’s Senedd (Senate), published in the wake of the Corona crisis. (Coronavirus: the impact on the Welsh economy). It found that 20% of Welsh


businesses had temporarily closed or paused trading, the highest percentage of any of the UK nations and 65% of Welsh businesses had experienced


a decrease in turnover from what they would normally expect at this time of year, similar to the picture across the UK. Some 46% of Welsh businesses had six months or less cash reserves, the highest percentage of the UK nations. An Economic Intelligence


Wales Annual Report came up with similar findings on turnover and also that confidence among small and medium-sized enterprises had


declined to its lowest level ever, though this was the smallest fall of all the UK nations. The effects of the pandemic


are expected to be more severe and of longer duration in


hospitality, leisure, and


tourism, as well as wholesale, transport and construction. Micro companies with lower levels of resources are an area of particular concern. However, larger firms have also felt the effects. Airbus,


staff carrying out the operation. Project cargo like this requires expertise to ensure it is done safely and efficiently.”


which has one of Wales’ largest generators of international freight at


its Broughton plant


in the north-east corner of the country, has announced plans to lay off up 1,700 workers, most of them at Broughton. In Wales, 316,000 workers


had been furloughed by the beginning of June, around 26% of the total workforce in the region and it is believed that 74% of Welsh businesses applied for the scheme – the highest in UK in the middle of May, compared to 67% England.


commenced a new contract with fuels and petrochemical product refiner Valero. The new long-term


agreement includes occupation of a 12-acre storage and distribution terminal adjacent to ABP’s Roath Dock which will be fed by coastal tankers. Valero uses a coastal shipping service linking its West Wales refinery in Pembroke to its network of


storage and distribution


terminals around the UK and Ireland. As part of the agreement,


Valero will be importing predominantly road fuels, including petrol, ultra-low sulphur diesel (ULSD) and biofuels, as well as heating fuels, into Cardiff for distribution to South Wales. Around 1.5 million people live in the Cardiff Capital Region, half the population of


Wales. ABP has invested over


£400,000 in jetty infrastructure upgrades and recently completed a five year, £5 million programme to replace the inner and outer lock gates. Cardiff port manager Steven


Harrison, said: “This new contract will help ensure that Welsh businesses have the fuel they need to keep trading at this difficult time and into the future as the economy recovers.” Regional director for ABP’s


Wales and short sea ports, Andrew Harston, added: “Valero is a great example of a company that is able to use sea transport for the 100 mile journey from Pembroke to Cardiff. ABP has a longstanding relationship with Valero and we look forward to this continuing our collaboration into the future with this new agreement.”


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