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Issue 8 2020 - Freight Business Journal


director of group freight ,


Mike Hill said: “We know from experience that businesses will turn to air


freight as a method of transport at times


of disrupted supply chains. We have already seen this during the Covid-19 pandemic, when for many organisations, air freight has been the only practical option to ensure


///FRANCE & CHANNEL PORTS


their supply chains run and their businesses can continue to operate. “The UK leaving the


Brexit transition period will undoubtedly lead to


significant supply chain problems and therefore an increased need for air freight. Until a longer-term solution is found, this may even result in temporary price rises for


the end consumers of goods, whether that’s a relatively small percentage increase for


electronics or imported


vegetables increasing several- fold in price. Regardless,


we are absolutely making preparations across our global network to ensure we are placed to handle a possible significant rise in freight demand from 1 January.”


to reduce our impact on the environment.” The UK is an important


When CMA CGM Group transferred the headquarters of its newly acquired subsidiary, CEVA Logistics from Switzerland to Marseille in April 2019, it supported its new employees by searching for accommodation, employment for spouses and finding schools for their children. It even laid on discovery tours of the southern French port city. Since then, it has found that


being close to the headquarters of CMA CGM in Marseille is a real advantage. It gives CEVA Logistics access to southern Europe and the Mediterranean as well as CMA CGM’s maritime


network, one of the most extensive in the world. Moreover, CEVA’s managing for


director France, Michele


Cohonner, points out: “We also gained special access to the French market and we can now approach French companies as CEVA Logistics France with a large organisation behind us. “It is very important to


reiterate the fact that we are part of the CMA CGM Group, which means we can invest to grow and develop in the same way our peers in the industry can. At the same time, CEVA Logistics’ identity means it is agile and proactive with


its customers


and prospects and operates strongly in its own right.” “In addition, we have become


a French company, which makes us more appealing towards French businesses. It’s particularly important considering


how the Made


in France label is perceived here. More and more French companies feel the need to manufacture and pack their products within the country, in direct contrast with past practices where companies would send production to Asia for cost-reduction purposes. CEVA Logistics offers an answer to those businesses looking for


a national company to deliver their


products around the


world, as more companies see the appeal of Made in France branding.” Being part of the CMA


CGM Group also gives great opportunities in terms of sales and also efficiency gains. Cohonner adds: “France’s


geographic position at the heart of Europe is a good asset for us and we can take best advantage of our location following some strategic investments we made.” One of the main targets 2021


for is to grow and


expand domestically: “But this expansion must be done


Deal or no deal, we’ll be ready, says Eurotunnel


In mid-November, the clock


was running down fast on the negotiations to secure a possible free trade deal between the UK and EU, but on the ground the outcome would have little direct effect on traffic moving across


the Channel,


said Eurotunnel group public affairs director, John Keefe. Most of Eurotunnel’s freight


customers – who tend to work for larger firms- do seem to understand the need for additional formalities after 1 January when the Brexit transition ends and customs declarations are needed, regardless of the outcome of the talks on the possible free trade deal. Most large firms trading internationally will have some experience of trading outside the EU, so the need to provide declarations should not come as a surprise, though smaller firms that have only ever traded within the EU will have to adapt. Any consignments that do


need customs intervention will be directed to the new inspection site recently opened at Sevington just of the M20


near Ashford and its mirror image in France just outside Calais. And, as Keefe, says, Eurotunnel has been planning for customs clearances through the successive Brexit deadlines that have come and gone since 2016. “We’ve got the scanning of documents off to a fine art, we’re pinging information direct


to customs services.


Regardless of whether there’s a deal or no deal, customs clearances will now be a part of life,” he says. Eurotunnel Le Shuttle


Freight is introducing a new Eurotunnel Border Pass for its freight customers as part of its Brexit preparations. The ‘virtual wallet’ shares information needed for border crossings between the transporter and Eurotunnel, and then between Eurotunnel and the border authorities. It is secure and digitised, and the truck driver does not have to leave the cab or present any documents on arriving at the border. Customers will be able to


save all the information needed to facilitate border crossings after 1 January 2021: customs


declarations for goods being transported and sanitary and phytosanitary certificates and vehicle registration in a form acceptable to both the UK and French authorities. Once the truck arrives at


the Eurotunnel terminal, it will enter a ‘pit-stop’ where the registration number is captured automatically using connected technology in place across the terminal. A swipe of the mobile device confirms that the truck has passed through with its documents in order. Once the truck has passed


through, the information contained in the virtual wallet is sent securely to HMRC, DEFRA in


the UK and the


Douane (DGDDI) and Ministry for Agriculture (DGAL) in France. On arrival at either terminal,


drivers will either be told that they are free to go or, where necessary, directed to an inspection area. “It’s as trouble-free as it can


be – we’re not going back to the 1990s,” Keefe emphasises. This is just as well, as the amount and pattern of trade has


changed out of all recognition since the EU single market was created in 1993. One truck can


nowadays be carrying


hundreds or even thousands of different types of goods, all with different commodity codes and destined for dozens and dozens of different traders or private homes. No manual system could ever cope with such complexity. If no free trade deal is


signed, the greatest effect will probably be on trade in food and goods of plant or animal origin and additional controls would start from 1 January. Border Inspection Posts have been created on both sides of the Channel and there is also the established fish inspection site at Boulogne on the French side. Eurotunnel has provided the necessary space and inspection bays, which will allow anything from “a truckload of fish fingers to a Grand National winner” to be inspected by DEFRA officials and their French equivalents, as Keefe puts it. The Sevington site has space for up to 1,700 trucks to be


through responsible growth. Staying


environmentally


conscious by promoting green transport for all our ground services is a key aspect of CEVA Logistics’ strategy.” An example is the use of eco-trucks, which


shows a


willingness to implement concrete measures


to make


a change but also giving competitive advantage. Cohonner says: green


for ground


“Our target transport


is important for the future of the organisation in France as this will have an impact on our skills, our people and the overall work protocols in order


inspected, so should be well able to cope with any likely demands, considering that the average dwell time of trucks being inspected is no more than about two hours. In the early stages, Sevington will also deal with inspections of ferry traffic from Dover, although a separate site is eventually to be built in the Dover area. Perhaps the biggest concern,


says Keefe, is whether the new Government computer systems


that will handle


clearances and the flow of trucks through the area will be fully operational in time. The new front end to customs, the Goods Vehicle Management Service (GVMS), which triggers the issuing of the Kent entry permit and the HGV checking service are now very unlikely to be fully operational on 1 January. But there will be time, as full checking of


all traffic


does not come into force until July 2021. Eurotunnel itself has the


ability to flex its freight shuttle services up or down at short notice, should that be necessary. However, indications are that industry has been stockpiling goods ahead of Brexit and will probably slow or stop production before


Christmas


and New Year. With public holidays intervening, it will probably not be until a few days into the New Year that traffic will really start to flow.


market for CEVA Logistics, and employees are working hard on both sides of the Channel in order to mitigate the effects of Brexit from January of next year. Cohonner states: “Brexit have


does implications for


our procedures. Customs procedures from decades ago are suddenly needed again, reminding us of the need to adapt to a changing environment. Making sure the transition goes as smoothly as possible will be at the heart of our work in the upcoming months through our organisational knowledge as well as our IT tools.”


That should give enough time for any issues to be ironed out before the real rush starts, Keefe considers. He also predicts that any


shippers or truckers that fail to get their house in order and end up being heavily or fined or delayed will not make the same mistake twice and will get the necessary documents in place. During the Covid pandemic,


Eurotunnel has been able to run all the freight shuttles it has needed to and numerous health and safety protocols put in place – for example, staff work in bubbles, so that one person going sick only affects a small number of people. Truck drivers are distanced in the shuttle club car and separated by Perspex screens and the number of shuttle minibuses used to transport them to the car increased, to increase social distancing. By coincidence, a truck


village has also been opened up, allowing drivers to take meals, have showers and so on – a boon at a time when many of the ‘relais’ restaurants on the French motorway network have been closed because of Covid. Eurotunnel’s freight traffic


was, at the time of writing, running at near normal levels, having recovered from the sharp dip seen during the first UK lockdown.


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