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Tag: freight forwarding

Realising post-Brexit efficiencies with streamlined customs clearances

Posted on by David Priestman

After the Brexit transition period finally ended on 31st December 2020 and with Covid-19 protocols causing disruption to travel, it is clear that the logistics industry has seen a challenging start to 2021, writes Pol Sweeney, VP Sales and Country Manager UK, Descartes.

Despite fair warning for businesses, there have been numerous reports of severely delayed journeys caused by increased customs documentation and ‘Brexit red tape’, exacerbated by the need for hauliers to provide negative Covid tests to travel. The required volumes of declarations has also led to significant wastage of fresh produce, damaging businesses and impacting whole sectors.

Indeed, some 3PL organisations actually halted deliveries in January to the EU or Northern Ireland due to the increase of documentation, showing the true impact of Brexit on supply chains. This not only disrupts logistics operations, but is fundamentally damaging to the UK economy. The government was reportedly encouraging UK companies to set up in Europe to avoid trade disruption, which would inflict companies with yet more costs and take capital away from the country. And with fears of a double-dip recession due to Brexit on top of the already fragile economy due to repeated lockdowns, it is clear that the economy is suffering.

Many have been prepared, but for those that haven’t and that may be in the midst of Brexit-induced disruption, how can a smooth declaration process be achieved in order to reduce issues at the border and prevent further economic loss?

Creating suitable borders 

For organisations importing a large number of items the entire customs process can be significantly accelerated by implementing an ETSF (External Temporary Storage Facility) located at your own business’ site, away from the port. Goods arriving into the UK can be moved to your site (e.g. a business’ premises or distribution centre), where the customs formalities can be managed electronically. In other words, the customs border is effectively moved to your own premises, so customs declarations can be pre-lodged ahead of the goods arriving, enabling the site to operate as if it is the Customs Frontier from a HMRC and Border Force perspective, so long as it is running an approved ETSF solution. Additionally, an inventory system designed to group goods at truck-level could further strengthen the ETSF set up, meaning once a truck physically arrives at your site, the system will trigger the clearance of all it’s consignments so they can be appropriately managed.

An ETSF system gives visibility and audit records to HMRC and Border Force so that if they do want to put a hold on any consignment, the site operator knows instantly which goods are on hold awaiting paperwork or physical inspection – this can also be conducted at the operator’s site. Thereby ensuring smooth declaration processes and reducing the impact of delays and hold-ups at the port.

Certainties for Customs Clearances 

As we have seen, ports such as Dover have faced severe disruption following the end of the Brexit transition period, delaying goods for more than half of UK companies trading with the EU. For trucks needing to transport goods, any clearances that can be moved inland will notably benefit supply chains, especially those looking to quickly clear and distribute or sell products on. This is especially relevant for organisations operating with JIT arrival of parts on trucks. Delays at the border will have a significant impact on their ability to do this, leading to loss of produce and resulting in extra costs.

Certain product categories still require clearance checks at the border for safety reasons, such as meat and dairy products. However, performing as many clearance checks as possible inland both speeds up the process for those vehicles that can go straight to the ETSF and also unlocks efficiencies for those that will still have to complete clearances at the border, benefiting companies that transport different items across multiple categories.

Businesses that import or export from the EU have to be fully aware of customs clearances requirements to protect their operations from economic loss. Import customers declarations from the EU will be required from July 2021. Safety and Security filings (S&S) for goods moving from the UK to the EU  have been a major cause of disruption for haulage and freight companies, as customers are required to submit the shipping instructions up to 2 hours before arrival. This has caused significant disruption and extra costs to the wider supply chain, affecting both businesses and consumers. From 1st January 2022, safety and security filings will also be required from road carriers bringing goods into the UK from the EU.

In addition, traders, hauliers and carriers moving goods through a UK port using the Goods Vehicle Movement Service (GVMS) are now required to register with the HMRC for the service in order to transport goods through customs. The extra red tape and permissions needed can cause unnecessary delays and disruption if organisations are not successfully registered for the GVMS. Companies should consider having a solution that incorporates the paperwork required to easily move goods, in order to optimise the process. By ensuring certainty of their own clearances, businesses can avoid hold-ups and unlock efficiencies where possible to reduce the risk of further economic damage.

The lesson from the end of the Brexit transition period is that companies need to act now and not wait until deadlines if they want to operate without disruptions.

Minimising Disruption

Now the transition period has ended, businesses need to capitalise on smart solutions to mitigate any more disruption due to Brexit, and with Covid protocols impeding the movement of goods, the time to act is now.

With Brexit causing much uncertainty, a streamlined import or export process that effectively manages customs clearances can help to support the already struggling UK economy. A double-dip recession is a serious concern and the economy is performing poorly. Covid will continue to be a challenge for the remainder of 2021 but companies have the opportunity to prepare against further Brexit disruption and introduce some certainty and security into their cross-border operations.

For more information see www.descartes.com/brexit

 

 

BIFA hopes for “made-to-measure” Covid testing for incoming hauliers

Posted on by David Priestman

Freight forwarders are hoping that the introduction of a ‘bespoke Covid testing regime’ for hauliers arriving in England from outside the UK from April 6th, doesn’t throw another spoke into the wheels of cross channel trade, says Robert Keen, director general of the British International Freight Association (BIFA).

“Our members, which manage a significant proportion of the visible trade between the UK and the EU, have seen major disruptions to their operations for many months as a result of Covid; the changes to how import and export trade is conducted following the UK’s departure from the EU; as well macroeconomic issues affecting all modes of international freight transport.”

Earlier in March, when the UK government extended the deadlines of the Border Operating Model, BIFA said it was not surprised and welcomed the news that government will engage extensively with businesses.

Keen adds: “Controlling the spread of new Covid variants is critical and we want the new bespoke Covid testing regime for hauliers to work, but not impede trade flows. We invite government and its relevant agencies to work closely with us and our members and learn from the mistakes of the past when some political decisions were made that appeared to pay little regard to how visible international trade and the frontier actually works in practice.

“BIFA members are pinning their hopes that the bespoke Covid testing regime lives up to its billing and is made-to-measure, not off-the-peg. Creating more uncertainty will be of no use to anyone involved in managing the UK’s visible international trade.”

Intermodal Terminal Pushes Boundaries

Posted on by David Priestman

KTL Kombi-Terminal Ludwigshafen GmbH relies on optimization solutions from Inform as part of its digitalization strategy. Operating the intermodal full-service terminal within the world’s largest integrated chemical complex of BASF, requires precise planning and coordination. To best utilize a terminal of this size, the choice fell on a Terminal Operating System (TOS) with optimization capabilities based on AI algorithms.

KTL’s terminal is responsible for transshipment services of common European containers, swap bodies and semi-trailers, with particular expertise in the transport and transshipment of hazardous goods. INFORM’s TOS is a key element of KTL’s future strategy, serving as a central solution for managing and optimizing terminal operations. “In the past, we had to check up to four different systems to track a single container,” recalls Kai Rauprich, operations manager at KTL. “Now, it’s all in one system, providing 360° visibility into our business.”

With the help of INFORM’s optimization modules, complex and time-critical decisions can be made in real time. Work orders can be converted into shift orders either manually or now also by the integrated optimization systems and assigned to the most suitable resource (crane, terminal vehicle, reach truck). In practice, this means an optimized sequence of pick-up/drop-off points within the terminal for each individual truck. All containers and trailers are assigned the most efficient storing position and equipment operators receive the most precise instructions about their upcoming routes.

Pushing the Button

“Incredibly fast,” said Rauprich, as he described the speed of INFORM’s Train Load Optimizer (TLO), which now automates manual load planning. In the past, planning was significantly more time-consuming, required considerably more human resources and offered little space to react to disruptions or delays. “Today, we just push a button, and INFORM’s TLO generates an optimized train-load plan, plus an optimized sequence of move jobs for all terminal tractors and cranes,” says Rauprich.

Yard space is a valuable and scarce resource at the terminal and should be used as efficiently as possible to remain profitable in the long term. With INFORM’s Yard Optimizer, containers are optimally positioned right from the start and only moved when absolutely necessary. At the same time, with the help of INFORM’s Truck Sheduler and Vehicle Optimizer, KTL can reduce truck turnaround times to a minimum and maintain a high level of service quality at the same time.

Integrated Interfaces

The TOS combines all interfaces to other third-party systems along the intermodal supply chain in one central system. All information on incoming and outgoing train bookings from participating companies such as Hupac and Kombiverkehr is automatically uploaded. Updates in Visy’s rail crane positioning system and gate operating system (GOS) can also be retrieved. Even invoicing and reporting is automated using a Qlik-based BI tool from INFORM, permanently reducing manual effort and associated errors. INFORM’s solution offers sufficient flexibility to scale with KTL’s future growth.

DHL Express Italy Selects Cross Belt Technology

Posted on by Keith McKinley

DHL Express Italy has selected cross belt technology for its new hub at the Milan Malpensa Airport in Nothern Italy.

DHL’s partner, Fives designed a solution that would provide high speed and accuracy. The solution integrates 4 GENI-BeltTM cross belt sorters, first unveiled at Post-Expo in 2015, and 30 GENI-FeedTM high capacity induction lines by Fives.

The hub receives DHL express shipments from both air traffic and road traffic to process and reload on board DHL vehicles and airplanes for the transport to their final destination. Fives’ cross belt sorters receive parcels and envelopes from the high capacity introduction lines and with extreme accuracy and speed transport each item to the assigned destination, where it is discharged into the outlet without tilting or rolling. The conveyor systems connect the sorting equipment with all other handling and processing points inside the hub.

Fives Intralogistics SPA was established in 1957 in Lonate Pozzolo, Italy. The company is part of the Smart Automation Solutions division of Fives Group and is leader in designing high performance cross belt technology and in developing automated solutions for the material handling in a wide variety of applications.

The Fives GENI-BeltTM cross belt is recognized globally as the cutting-edge technology that  offers high performance and adapts well to countless configurations. Fives is partner of the major players in the intralogistics sector and the GENI-BeltTM sorter is the backbone of thousands of distribution and shipment centers all over the world.

 

Dinges Logistics Selects new TOS

Posted on by David Priestman

Dinges Logistics has selected INFORM’s Intermodal TOS in January to replace their existing system at their Grünstadt container terminal. INFORM is a market leader in AI and optimization software to facilitate improved decision making. Based in Aachen, Germany, the company has been in the optimization business for 50 years and serves a wide span of logistics industries including ports, maritime, and intermodal terminals with both add-on optimization modules as well as TOS solutions.

“When we set out to replace our existing system, we wanted to select a proven software vendor in the intermodal TOS market who will allow us to not only improve our transparency but also our efficiency,” commented Ingo Dinges, Owner of Dinges Logistics.

“As part of our selection process, we were able to see the impact of INFORM’s Intermodal TOS in live operations; INFORM’s solution was the clear leader after seeing the solution in place and speaking with the operations team at that terminal.”

“When we engaged with INFORM throughout the selection process, we always had a clear vision that they were looking at the long-term impact of their solution on our terminal and they were understanding our needs very well; it was clear that it would be a partnership with INFORM, that we weren’t simply buying a piece of software,” added Timo Mayer, Site Manager and Project Leader at Dinges Logistics.

“We had a strong focus on covering all aspects of our service offering with a single software solution to improve transparency while also reducing service times and we see digitalization as a key element in achieving these outcomes.”

The TOS replacement project is now under deployment and is slated to go-live in Q4 2021 and will build on INFORM’s existing footprint of intermodal terminal operators running their proven Intermodal TOS including KTL and Samskip in Germany.

“Our Intermodal TOS was developed over many years leveraging our knowledge of the container and intermodal industries combined with our optimization expertise,” commented Dr. Eva Savelsberg, SVP of INFORM’s Logistics division. “The TOS benefits from many of the add-on algorithms that the container terminal is probably used to hearing in conjunction with the name INFORM which truly makes it one of the most powerful intermodal TOS options on the market.”

Dinges Logistics Grünstadt Container Terminal is an important intermodal facility located in the Rhein-Neckar region close to Ludwigshafen/Mannheim, Germany providing storage places for loaded and empty containers, serviced storage slots, and regular shuttle services. Further, Dinges Logistics is an important one-stop-shopping solution for the industry in the region for all services including cleaning, workshop activities, heating and cooling as trucking services, as well as other services all under a single provider.

Dr. Savelsberg continued, “Dinges Logistics’ Grünstadt Terminal is our smallest Intermodal TOS deployment to date and it reflects the work that the team has done to make the solution scalable and nimble allowing any sized terminal to benefit from digitalization and optimization.”

Rhenus announces BLG Freight Forwarding Sites Acquisition

Posted on by David Priestman

The BLG Logistics Group has made a strategic decision to focus on its domestic and international business in its Contract, Automobile and Container divisions in future. Rhenus Air & Ocean is consolidating its position in Germany with the planned takeover of the freight forwarding business of the logistics company, BLG International Forwarding GmbH & Co KG.

Rhenus is using the BLG acquisition to tap into new business fields and is making its global network available to the BLG Group. Provided that the cartel authorities approve the development, Rhenus will acquire nine air and sea freight sites on 1 April 2021.

The nine freight forwarding sites operated by BLG International Forwarding with about 100 employees are due to be integrated within the existing network of Rhenus Air & Ocean in Germany, which currently has twelve branches, from the beginning of April onwards. They include business sites in Hamburg and Bremerhaven, Düsseldorf, Frankfurt, Stuttgart as well as Munich. This will enable the company to handle greater volumes through its LCL gateway in Hilden and its air freight hub at Frankfurt, for example.

“We’ve gained a strong partner in Rhenus Air & Ocean and it’s making available its extensive network to our customers thanks to its global presence,” says Jens Wollesen, the Contract Board Member at BLG LOGISTICS. “BLG is strategically adapting to changes in market conditions through the sale of our freight forwarding business. Even if we’ll no longer be represented right across Germany in terms of freight forwarding in future, we’ll continue to provide extensive international services in our Contract, Automobile and Container divisions.”

“We’ve paved the way for the continual expansion of our air and sea freight activities during the last few years. Thanks to the additional business sites, employees and business activities, we’re consolidating our network in the Air & Ocean division in Germany. We’d also like to develop new lines of business like transporting food using reefer containers and activities in the trade fair and eventlogistics sector,” says Stefan Schwind, Managing Director of Rhenus Air & Ocean Deutschland.

The BLG freight forwarding site in Bremen, which focuses on overland traffic, transporting heavy goods, project business and sea freight, is excluded from the takeover.

Last year Rhenus Logistics announced the opening of a new hub in Liege Airport.

 

 

Go West to take Unaccompanied Freight by Sea

Posted on by Keith McKinley

A growing number of haulage companies are shipping goods using unaccompanied trailers. Brittany Ferries says demand is rising, and the ports it serves on the western Channel in France and the UK are best set-up to receive these driverless loads.

“Things like negative Covid tests for drivers are certainly helping drive the trend for unaccompanied loads,” commented Simon Wagstaff Brittany Ferries freight director. “However, there are other financial benefits in going driverless. We know of one large haulage operation in Ireland, for example, that has organised reciprocal arrangements with another in Spain, dropping off and picking up trailers for each other. That’s a cost-effective way of doing business.”

All ferry companies have reported reduced freight volumes in January as a consequence of Brexit fears and stockpiling by companies. However, while volumes are low, Brittany Ferries says the proportion of unaccompanied units is already much higher than in previous years. Galicia is Brittany Ferries’ newest Ro-Pax vessel, operating between Santander in Spain and Portsmouth. Since sailings began in early December, around 40 per cent of Galicia’s freight has been unaccompanied trailers.

Further evidence comes from the workhorse of the Brittany Ferries fleet, Pelican. This freight-only ship has been operating since 2016, connecting Bilbao with Poole. Designed primarily for unaccompanied trailers, Pelican’s fill rates have risen so significantly that it is now the best performing freight ship in the Brittany Ferries fleet. “Of course, Pelican is an extremely versatile vessel which can take out-of-gauge shipments as well as unaccompanied units,” Simon Wagstaff adds. “It’s this flexibility in our fleet, combined with our ability to accommodate unaccompanied loads throughout our extensive route network, that makes Brittany Ferries an attractive prospect for the year ahead. We are pleased too that freight is flowing well through our ports, without the queues that some forecast at the start of the year.”

Brittany Ferries began as a freight-only operation in 1973. The first ship Kerisnel, was a converted Israeli tank-carrier. It had been chartered by French farmers to carry produce like cauliflowers and artichokes to the UK, a market that opened with the country’s entry into the EEC. However, the company quickly adapted. It turned to carrying passenger traffic (as well as freight) when it became clear the biggest export market was for British holiday makers visiting Brittany and then Normandy.

The company still moves quickly when opportunities arise. It opened a sea route connecting Ireland with Spain for the first time in 2018, predominantly for freight traffic. More recently it has brought forward the opening of a Rosslare Cherbourg connection, as Irish, French and Spanish hauliers seek an alternative to the UK land-bridge, with the cost, time and administrative burden that this now brings.

Plans are in progress to open further freight routes, connecting Roscoff and St Malo in Brittany with Ireland. The aim is to finalise schedules as soon as possible and to commence operations in early February using Ro-Pax vessel Armorique. In a normal non-Covid year Brittany Ferries carries around 210,000 freight units. Its twelve ships serve Caen, Cherbourg, Le Havre, Saint-Malo and Roscoff in France, Portsmouth, Poole and Plymouth in the UK, Santander and Bilbao in Spain and Cork & Rosslare in Ireland.

LSP Awarded a CDP B Rating for Effective Climate Action

Posted on by David Priestman

GEFCO has enthusiastically responded to the CDP questionnaire, which provides a framework for companies to provide information on their climate action performance, including governance and policy, risks and opportunity management, environmental targets and strategy, and scenario analysis. GEFCO progressed in several of the CDP’s 14 categories and achieved a higher score than the industry average.

In particular, GEFCO advanced in the business strategy category, as highlighted by the launch of its Operations Excellence and Sustainability Department (OES) in 2020. The Group was also recognized for its tangible improvements in emissions reduction initiatives through its commitment to 2% CO2 avoidance. These initiatives include testing natural gas trucks in several European countries and using mega trucks in Spain for larger loads and greater efficiency. Moreover, GEFCO gained traction in value chain emissions management by working proactively with suppliers to reduce its environmental impact. The company also improved its disclosure of risks and governance.

“It’s extremely motivating to be recognized for our progress in several key categories and to receive insights on where we can strengthen our commitments,” commented Anne-Brigitte Spitzbarth, Vice President of Operations Excellence and Sustainability (OES). “We’ve also recruited Aldo Diaz-Sanchez, a carbon strategy expert, to help us define and accelerate a robust carbon reduction strategy starting in 2021. Our continued participation in the CDP carbon disclosure system offers us a tremendous opportunity to learn, benchmark and identify areas where we can make a difference to our employees, partners and customer in our environmental journey.”

New Executive Board for Logistics Provider

Posted on by David Priestman

On January 1, Burkhard Eling (pictured) became Chief Executive Officer (CEO) and Spokesperson of the Executive Board of logistics provider Dachser. He heads the Corporate Strategy, Human Resources, Marketing executive unit, which also includes Corporate Key Account Management and the Corporate Governance & Compliance division. Eling succeeds Bernhard Simon, who will take over as Chairman of the Supervisory Board of the family-owned company in mid-2021.

Also moving to the Supervisory Board with Simon is the former Chief Operations Officer (COO) Road Logistics, Michael Schilling. In response, Dachser has made further changes to the Executive Board as of January 1, 2021. Two Dachser managers of many years’ standing have been promoted to the logistics provider’s operational management body: Stefan Hohm as Chief Development Officer (CDO) and Alexander Tonn as COO Road Logistics. They are joined on the Executive Board by Robert Erni, who left DSV Panalpina to join Dachser on September 1, 2020 and has taken up the role of Chief Financial Officer (CFO). The five-man Executive Board team is completed by Edoardo Podestà, who has been COO Air & Sea Logistics since October 2019.

Eling, 49, joined Dachser in 2012 as deputy head of the Finance, Legal and Tax executive unit. He joined the Executive Board as Chief Financial Officer (CFO) the following year, since when he has been responsible for the logistics provider’s group-wide strategic idea and innovation management program. With a degree in industrial engineering, Eling joined Dachser from the engineering and service group Bilfinger SE, where he was Head of the controlling and internal audit departments, CFO of a US subsidiary and of an international facility management service provider. Eling started his career with the construction companies Hochtief AG and Philipp Holzmann AG.

With sound judgment and agility

“My fellow board members and I are taking over an extremely robust and fast-growing company that even the challenges of the coronavirus crisis haven’t managed to throw off course. With their tremendous know-how and commitment, the people at Dachser have succeeded in maintaining the supply chains of our global customers even under adverse conditions,” says Burkhard Eling, CEO of Dachser. “With the trust and support of the founding family, we as an Executive Board team, will preserve the unique, people-oriented culture of Dachser as a family-owned company. At the same time, we will continue to develop the company with sound judgment and agility on its way to becoming the world’s most integrated logistics provider,” Eling continues.

Alexander Tonn is a new member of Dachser’s Executive Board as of January 1, 2021. As COO Road Logistics, he will be responsible for the European overland transport networks for industrial goods and food. In addition, he will continue to lead the European Logistics Germany business unit. Tonn, 47, has been with the company for over 20 years, having held managerial positions including at Dachser’s Allgäu logistics center in Memmingen and at company headquarters, where he was responsible for the logistics provider’s global contract logistics business for several years.

Stefan Hohm, 48, will head the newly created IT & Development executive unit as Chief Development Officer (CDO). Hohm has been working for Dachser for 27 years, during which time he has managed, among other things, the branches in Erfurt (Thuringia) and Hof (Upper Franconia). Most recently, he was Corporate Director for the logistics provider’s research and development work as well as its Corporate Solutions business. Besides the further development of IT, he is now also responsible for worldwide contract logistics.

Burkhard Eling’s successor as CFO is Robert Erni, an internationally experienced logistics finance manager, who took over as CFO on January 1, 2021 after a four-month induction and transition phase. Before joining Dachser, the 54-year-old Swiss national was Group CFO at logistics provider Panalpina for nearly seven years.

There are no changes to Dachser’s air and sea freight business, which has been led by Edoardo Podestà, COO Air & Sea Logistics, since October 2019. The 58-year-old Italian, based in Hong Kong, became Managing Director of Dachser’s air and sea freight business in the Asia Pacific business unit in 2014. Podestà is also a highly experienced Dachser manager. He joined the company in 2003 when it acquired the joint venture Züst Ambrosetti Far East Ltd.

Move Drives Future Growth

Posted on by Keith McKinley

NGC Logistics has joined Fortec Distribution Network – a move described by the Brackley-based transport company as integral to its drive for future growth.

The international couriers operate from a 30,000 sq ft warehouse and has a fleet of over 1,300 vehicles. Pallet distribution remains the company’s primary service offer at the Brackley warehouse and, with a £40m turnover, its substantial client base is made up of large e-commerce businesses.

As online ordering soars, general manager, James Hadley says they have already restructured and adapted, and have big ambitions to expand across the UK. “We had many reasons for joining Fortec, and with COVID changing buying habits, we were keen to push ahead with the move. The profile and demographics of e-commerce has shifted, and over 50% of our deliveries now are to private homes – pre-COVID it was around 25%. We’re already operating more efficiently as a result of our restructure, but if we are to meet our business objectives to open more service centres UK-wide, we need to drive more volume, achieve a better balance from our freights, and have the ability to deliver bigger pallets. Joining Fortec will allow us to achieve these business goals.”

James was also attracted to Fortec Distribution Network because of the shareholder opportunities now available through the wider Pall-Ex Group. He added: “We are keen to work together with likeminded haulage companies who, like us, place high quality pallet distribution at the top of their service offer and want to influence the overall running of the network. Becoming a shareholder in a leading pallet network will play a key part in our business success.”

Adrian Bradley, Manager Director of Fortec Distribution Network said: “We are delighted to welcome NGC Logistics into our network. Their whole ethos and focus on efficient, high quality pallet distribution matches everything that Fortec is about, and we can’t wait to support them in their ambitious plans to expand and thrive.”

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