8 | UK News
Scotline warns of increased freight rates for north European short sea routes
Shipping liner service and terminal operator Scotline has warned customers that international regulations and increased fuel and labour costs are leading to a rise in freight rates.
In a letter to customers, the Romford- based company’s director Peter Millatt warned that the north European short sea shipping market (dry cargo vessels up to about 5,000 gross tons) was in a state of flux with changes and challenges coming from all sides.
“New international regulations have been introduced to force shipowners to reduce carbon emissions and progressively improve the environmental efficiency of the vessels,” he wrote.
“This puts pressure on owners to scrap older vessels and build new more efficient
vessels. This comes at a cost as the price of new ships has gone up by over 50% in the last five years, partly to comply with the new rules but mainly due to the increased costs of raw materials, labour, equipment and long lead times in the shipyards. The operational expenditure and capital expenditure have therefore both increased.” Scotline also says it is being asked to look at alternative fuels, but biofuels are about 400% more expensive than standard marine diesel oil per calorific value and there was a lack of infrastructure and supply for all alternative fuels.
“There is speculation that if an alternative green energy is not used then shipowners would be levied with a carbon tax,” said Mr Millatt.
Shipowners’ existing costs are also BMF’s Irish membership expands
The Builders Merchants Federation (BMF) has extended its group membership agreement with Topline Group, the leading buying group in Ireland, supplying DIY and building materials to affiliated stores nationwide.
The agreement brings 42 Topline Group merchant members into BMF membership from November 1, 2023. This is in addition to the 12 Topline Group members who joined the BMF in 2022 and is part of a three-year development plan announced at that time, to bring the majority of Topline Group merchants into BMF membership. “We are delighted to welcome our latest
members in Ireland and look forward to working with them,” said John Newcomb, BMF CEO. “We are committed to extending the BMF’s reach and strengthening our position in the Irish market by forging strong relationships with two of the country’s most important buying groups, Topline Group and Allied Merchants Buying Association.
“Our latest agreement increases BMF membership in Ireland to over 70 merchants and puts us on track to end the year with a total of 950 members across the UK and Ireland.”
King Charles III visits James Jones & Sons Aboyne sawmill
King Charles III visited James Jones & Sons Ltd Aboyne sawmill in October. His Majesty first visited the sawmill in 1999 when he was Prince of Wales and many employees are still with the company today to witness his second visit to the site. The visit commemorated the completion of the sawmill’s extensive £15m redevelopment programme that has taken place over the last five years. The King was given a tour of the site,
including the mill’s flood defence system, timber processing plant and the kilns before being introduced to a number of long standing employees, apprentices and student placements. He was presented with an engraved wooden bowl.
• James Jones has announced that it has completed the acquisition of Lancashire Saws Ltd, a leading bandsaw blade manufacturer and saw servicing provider.
□ Travis Perkins plc has delivered a profits warning in its Q3 2023 trading update, reporting that challenging market conditions are persisting.
TTJ | November/December 2023 |
www.ttjonline.com
increasing, with large pay rises having to be paid to retain existing seafarers due to a labour shortage, while the supply of spare parts is suffering from very long lead times and high prices.
The UK and north European port industry is also in a similar position with labour shortages, escalating equipment costs and very long lead times. “We have been trying to monitor the expected cost increases for the end of the year and most ports will not commit yet, but the feeling is that it will be about 8%,” added Mr Millatt.
Scotline informed its customers that it would have to make a small, incremental increase from January 1, 2024 to cover these increasing costs whilst maintaining service levels.
Allan Brothers makes £2.6m factory investment
Allan Brothers Ltd, reputedly the UK’s oldest wood windows and doors manufacturer, is making a £2.6m investment in its manufacturing processes at its factory in Berwick-upon-Tweed. The investment from parent company Inwido will include the development of a new timber window and door platform, a new timber shed, general upgrades to the factory and, installation of new manufacturing equipment.
It will include a new £2.1m state-of- the-art CNC window line along with new cutting and moulder lines, and improvements to the assembly shop with new conveyors, roller tables and ancillary equipment. The first of the new machinery will arrive in Q4 this year.
“This is the company’s biggest investment in the last 15 years, which aims to deliver 20 - 25% growth for the company over the next three years”, said Morten Bach Valsted, managing director. “It will make a massive difference to our overall output, speed of production, as well as making us a much more energy efficient and sustainable manufacturer of timber windows and doors.”
The planned upgrades will be phased in over a six-month time frame, with existing manufacturing processes gradually migrating to avoid disruption.
UK News
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