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Issue 1 2021 - FBJ Ireland


firms gives me great confidence that there is now


a global process which Irish firms can access and use to develop and grow export sales for their products.


Q. What difficulties to Irish firms envisage firms in exporting and does freight or transportation ever come up as an issue? A. Brexit and Covid has been


the perfect storm for Irish firms and freight. Covid has impacted many exporting firms from Ireland.


In one of my specialist


areas, live seafood to China, there has been a dramatic reduction in the availability of space on feeder aircraſt for the Chinese market as


airlines dramatically scaled back their flights to Ireland. This has caused many Irish


exporters to struggle to get bookings with airlines to China. Another major headwind is that the increased cost of transport has started to price some Irish products out of some markets there. This means that companies may struggle to get back into these markets unless transport prices drop. As for Brexit, the UK landbridge


between Ireland and Europe was vital in the movement of live seafood. It is the most cost- effective option and it offered many seafood exporters a regular and time-efficient way to get their produce into the markets in


///IRELAND


some capacity into their supply chain, which can reduce some of the friction and delays caused by Brexit. There is a major shortage of


space for goods coming out from China. Last week I received a quote of $9,800 for a 20ſt container from Shanghai to Brazil. Six months ago it was around the $2,800 mark. Chinese firms are struggling to


Europe. As the UK has now become a


third country, there are delays due to customs and the extra cost of processing of paperwork. Delays which have bedevilled Scottish seafood exporters are also a major concern to Irish seafood exporters.


DSV diverts to direct sailings


Major Irish international operator DSV Road has now routed most of its European trailers on the direct sailings to Europe avoiding the landbridge via the UK, says managing director for Ireland, Jesper Thygesen. The exception is the Nordic


business, which remains mainly routed through Immingham. However, despite the major


increase in sailings on the direct Ireland to Continent routes, “we still see issues with capacity – especially during the popular and important Friday and Saturday departures,” he explains. The market has though


most definitely shiſted towards the direct routing and DSV is readjusting its services to ensure customer expectations are matched by the new set- up. In fact, he says: “We are seeing a substantial increase in customers requesting direct services and we are very busy quoting and setting up new customers on these lanes.” He continues: “We have had


Port of Waterford 210x140 Advert1.pdf 1 30/09/2019 17:02


a strong year overall and in particular in the last quarter. A combination of Brexit stock volumes and the reopening of the economy following the second Covid lockdown contributed to this. The business was strong across our divisions


- domestic, Nordics, Europe and UK.” DSV’s domestic division handles a lot of retail


stock


which has been impacted by the lockdown. “It’s difficult to retain hauliers when the


economy


opens and shuts at short notice,” Thygesen points out. In contrast: “Our international


business has been quite resilient up to this point, but it is clear that the combined impact of Covid and Brexit is starting to show in some of our volumes. It is probably too early to determine if we are seeing a general decline or if it is just temporary.” Looking ahead to the outlook for the next six months or so:


One solution which is currently


being trialled by the Irish is a live seafood holding hub in Europe to which product can be transported, stored and despatched from. It will enable producers to maintain a stock in Europe, provide their customers with close by ‘on- demand’ products and


build


“There will no doubt be some turbulence in the first quarter of 2021 as Brexit and Covid settle but we believe there will be normalisation of the


services


and markets by the start of the second quarter of the year. The opportunities are certainly greater than the challenges, as long as the vaccine rollout and the reopening of the economy continue.” DSV is meanwhile continuing


with its plans to build a new headquarters close to its existing site in Naas, about 30 miles south- west of Dublin, but the project is still in its early stages. Thygesen


adds: “Our staff


numbers have been maintained through the second part of the year, with a small increase in our customs department following Brexit.”


Warrenpoint’s tonnage held up well during 2020, just 5% down on 2019, said the Northern Ireland


port in its annual


figures. It attributed its success to its


strong customer relationships, investment in its team and a focused effort by hauliers to move cargo before Brexit and to afterwards find routes that minimise disruption. David Holmes who took over


as chief executive in August 2019, said: “We spent the best part of 2020 preparing for what impact Brexit would have on our services, while dealing with a global pandemic. “We continue to do this as


we navigate new systems and processes with our customers. We have had some success including the granting of Office of Transit and AEO Status.” Office of Transit status means


C M Y CM MY CY CMY K


that Warrenpoint Port can be used as an office of departure or office of destination for any unitised cargoes transiting the port for goods with origin or destination in the EU. He said: “It has certainly been a challenging year but one which we have worked together as a team and delivered for our customers. Managing Covid-19 and protecting our employees has been a key theme across the last 12 months. Like Brexit, it is a challenge that we continue to navigate. However, we have continued to improve our internal communications as well as working on our place in the community. Over


Christmas, with the support of our customer and supply chain base, we were able to donate almost £12,000 to 23 organisations in our local community to deliver some festive cheer. “I am immensely proud of


what the team has achieved in 2020 and how we turned the


year around after the


first lockdown. I want to thank our team for the effort and commitment they put in to making us such a vital component of our island economy. “We can all see, from the start


of this year; how important it is for us to keep goods flowing. We are poised and ready to continue to do this in 2021 with new and existing customers. We are prepped and ready for the challenges that lie ahead, and we look forward to working with our local community, our customers, and stakeholders to deliver post Covid economic recovery for our area when the time comes.” David Holmes also paid


tribute to outgoing chairman Stan McIlvenney for


all his


wisdom, adding: “We look forward to getting to know our new chairman Dr Gerard O’Hare when he joins us in February.” Warrenpoint Port is


Northern Ireland’s second largest port by volume. While it is almost 250 years old as a port, Warrenpoint Harbour Authority itself will celebrate its 50th Anniversary later this year.


ship their goods out of the country. They are not only faced with trying to get space, but the Chinese government has instructed truck drivers, who move the goods from the factory to the ports, to commence taking their holidays early so as to reduce the likelihood of Covid transmission. A lot of firms who are sourcing


products from China have now started to bring production back closer to their home markets. I have one US client who had to move one of their key component factories from China to Mexico as they could not get shipping from China. Another Canadian client has been waiting over eight weeks to get their dangerous goods products shipped out of China. I strongly suspect that Irish companies are facing the same challenges in sourcing raw materials as for the goods which they make for export. Currently there are still


shortages of airfreight capacity in Ireland and this is having knock- on effects in the ability to send products to China.


On point for continued growth in 2021


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