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Issue 2 2021 - Freight Business Journal


///AUTOMOTIVE


Getting into gear again


Most car makers would probably prefer to forget the last 12 months, but the signs are good for an industry revival. When that comes, the freight industry will be on hand to make it all happen.


On two wheels – and four


It’s been a tough 12 months for the automotive industry, but Woodland Group customers have managed to keep their operations going despite all the problems, says the head of the forwarder’s motorsport division, Paul Cimelli. Woodland moves shipments


for manufacturers and suppliers throughout the one constant


world, and factor has been a


dramatic increase in shipment costs, not only for intra-European movements but for deepsea ones too. A trailer movement between Europe and the UK that would have cost £1,500 a few months ago can now be up to £4,000, as trucks have become ensnared in delays at borders and ferry ports. “But it’s a global problem; there


have also been similar issues with supplies from the US,” says Cimelli. The car industry though tends to


take a long view of such problems. Automotive manufacturers have generally managed to keep their supply chains moving, for example by building up buff er stocks in locations such as the UK. In other cases, they may switch from large trailer loads to smaller consignments in express vans or even airfreight. Woodland’s own


express van department is about 50% busier than before the crisis, for instance. “Manufacturers may call stock


forward, perhaps using express vans in between regular trailer loads,” Cimelli says. These measures may cost a


little more in freight charges, but it’s preferable to having a large, complex manufacturing plant grind to a halt. “It’s all about keeping the momentum going and keeping cargo fl owing,” Cimelli explains. The demand side of the car


industry has also been under pressure. Sales volumes have been hit by government-imposed social distancing measures in all parts of the world and consumer confi dence has been hit by layoff s and furloughing. “That will of course have an impact,” Cimelli says. “But we hope that things will improve later in the year.” Other big, longer-term changes


are in prospect for the automotive industry. The UK government and several manufacturers have stated that they want all new cars to be battery electric or use other ‘green’ propulsion within a few years. The technology has now doubt moved forward enormously over the past


few years, to the point where it is a practical – if not yet economical –proposition for much everyday motoring. A large-scale switch to battery


electric could have implications for the supply chain, Cimelli points out. The diffi culties of moving Lithium batteries long distances by sea or air may well prompt manufacturers to produce them in the country of consumption instead, perhaps creating a more localised supply chain than the global operations we’ve become accustomed to in the past few decades. As his job title implies, Cimelli is


also responsible for the other part of Woodland’s automotive activity, the classic car and motorsport operations. Movement of classic racing and sports car is quite a busy niche, with owners having their cars sea- or-airfreighted long distances to take part in classic car races – or least they did before the latest Covid restrictions were imposed. Cimelli hopes and expects


activity to resume in due course. It’s an exacting area. Classic cars


need ‘white glove’ treatment, with rigorous before and aſt er checks,


enclosed transport to protect


both the vehicle and the owner’s privacy and special measures to ensure that the underside of unusually long or low vehicles are not damaged during loading or unloading. Owners of classic race cars are


oſt en well-heeled, but that doesn’t mean to say that they won’t use seafreight for economy when time permits. However, plans oſt en change at short notice – a car may have to go somewhere for repair between races – so airfreight is also used to help get things back on schedule. There is also a lot of synergy


between the classic car and motorsport worlds. Prior to Covid, Woodland did the logistics for the FIA World Rally Cross and similar events around the world, including the cars, equipment, spares and media equipment. Rallying is more spectator-


dependent than Formula 1, where TV revenues play proportionately a bigger part, but there is every hope that it will start to get back to some sort of normality soon – perhaps not quite on the international scale of recent years but on a more localised basis, to start with.


Stevedore Southampton Cargo Handling (SCH) is running a turn-key operation for a major motorbike manufacturer from receipt to distribution to the retailer. Compared with the car business, motorcycles require more specialised facilities and personnel, it says. Currently around 10,000


new and used machines per year are handled from SCH’s dedicated motorcycle centre in Central England. It has expanded services off ered and now provides delivery, event, logistical and technical support for several manufacturers. In addition, SCH provides specialist transport of motorcycles from point of collection to its own facilities. Storage is supplemented by full maintenance and cleaning services before motorcycles are distributed to dealers or returned to individual owners. SCH also off ers worldwide


technical support for press launches and experience events, preparation, running in and maintenance of press and demonstration fl eets, pre delivery installation of accessories, installation of approved alarm and tracking systems, inspection and returning to ‘as new’ of ex


fl eet and demonstration bikes, UK-wide delivery of ready-to- ride motorcycles, completion of manufacturer update and recall programs, storage of dealer stock and delivery to dealership, or UK wide, of ready to ride motorcycles. Some of the bikes arrive


in containers, but most are delivered on bespoke stillages and distributed to retailers and customers in the same way. SCH adds that its experience in


this sector is unique and its overall expertise in specialised transport and logistics can be applied to a wide range of manufacturers. The company is in active discussions to expand its activities using its current


facilities or managing


new locations with the services tailored to individual customer requirements. Meanwhile, SCH says that


the vehicle PDI market has been adversely aff ected by the pandemic and operations have moved more towards transport and logistics, involving the movement of vehicles from factory to port ready for export. But once trade and customer volumes return to normal, the PDI and preparation sectors should become more consistent.


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