Chartered Institute of Logistics and Transport UK News

Ti: Logistics companies shoulder green costs

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

More than half of companies offering logistics contracts are failing to cater for the extra costs of meeting environmental concerns, according to research.

The Logistics & Transport Industry Environmental Survey, carried out by Transport Intelligence (Ti) on behalf of logistics software provider Kewill, found that although many companies claim they are committed to green processes, 54 per cent pass on the price of compliance.

One-third of the firms surveyed claimed they are undertaking initiatives to make transportation more environmentally-friendly, while 15 per cent are focusing on warehousing.

Ti chief executive officer John Manners-Bell said: "The survey results will not surprise the more cynical in the industry who believe that the cost of these types of initiatives always gets passed down the line."

He added that environmental initiatives can bring cost savings, offsetting rising fuel prices.

Meanwhile TDG has signed a supply chain management deal with Aggregate Industries, which it stated will cut the latter company's emissions in the UK by 12 per cent.

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UPS profits fall

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The world's largest package delivery company, United Parcel Service (UPS), has reported a decline in profit margins in the second quarter of the year.

Blaming the struggling US economy and rising fuel costs, the company said that although consolidated revenue had increased by 6.7 per cent compared to last year, operating profit had slipped from $1.77 billion (£886 million) in the same period.

However, UPS reported that its forwarding and logistics businesses were strong, with the Supply Chain and Freight division recording a 1.7 per cent growth in operating margin.

Chief financial officer Kurt Kuehn stated: "Even though economists do not predict a recovery until 2009, we anticipate that the second half of 2008 will generate modestly better results than the first half, assuming business conditions do not worsen."

In April the company reported a 6.5 per cent first quarter increase in consolidated revenue compared to 2007.

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AIBM selects TDG to manage supply chain

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Supply chain management company TDG has announced a partnership with Aggregate Industries' Building Materials division (AIBM).

Worth £400 million over eight years, the deal will see TDG manage all of AIBM's road transport operations in the UK.

The companies believe it will cut total journey distances by three million miles, reducing AIBM's carbon dioxide emissions by 12 per cent.

Supply chain director for AIBM Karl Hudson said of TDG: "They clearly understand the need to align supply chain strategy with overall business goals and I am looking forward to our two companies working together as long-term partners."

Under the arrangement, a central platform will procure haulage, optimise the planning of routes and provide online reports to planners, hauliers and customers in real time.

Last month TDG announced the introduction of a last-minute delivery service for chilled and frozen goods in London and the M25 area.

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Further praise for fuel duty report

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The Freight Transport Association (FTA) has joined the Road Haulage Association (RHA) in praising the House of Commons transport select committee's recommendations to lower fuel taxes for hauliers.

High diesel duty sees the UK road industry face unfair competition from European counterparts, according to the organisation.

Geoff Dossetter, FTA director of external affairs, said:"The Committee has hit the bullseye when it says that it is unfair for UK hauliers to subsidise their continental competitors through high levels of taxation."

He added that the body echoes the committee's astonishment at the government's decision to scrap plans to charge foreign lorries "without offering any alternative".

The average duty on diesel in the European Union is 25p per litre, half that paid in the UK, Mr Dossetter claimed.

Friday's report included an RHA estimate that British hauliers are subjected to between £10,000 and £15,000 more in duty than continental competition.

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Still incorporates largest UK distributor

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Dac Handling Solutions has been taken over by tractor and forklift truck supplier Still.

The company, which is the largest distributor of Still's products in the UK, will be incorporated into Still Materials Handling.

Vice president of Still Vincent Halma said he was "delighted" by the deal, adding: "This move further strengthens our business base in the UK and demonstrates Still's ongoing commitment to the UK market."

Tom McCloy has stepped down as Still Materials Handling's managing director, although he will remain in an advisory role in order to facilitate the merger, with Dac's Nick Smith joining the board to fulfil the role in the UK.

The business will retain the Still Materials Handling name.

In related news, German logistics provider Dachser has acquired its smaller rival the Tank group as it purchased 100 per cent of shares. Both companies specialise in chilled goods transport and warehousing.

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RHA welcomes calls for lower haulier tax

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The transport select committee has recommended that the government revise hauliers' fuel taxes, in a report that has been welcomed by the Road Haulage Association (RHA).

RHA chief executive Roger King called for measures to tackle what the committee's report described as "unfair" rates for UK hauliers compared to EU rivals.

He said it echoed the case his organisation has been making for years.

"The committee's strongly-worded support is timely. The government must stop pretending that there is no problem and that in any case nothing can be done," he remarked, adding that action promised in 2001 had been unsuccessful.

Published on Friday, the report included an RHA estimate that heavy goods vehicles in Britain are subject to up to £15,000 more in duty than their continental competition.

Lorry drivers converged on London to protest over fuel prices earlier this month, bringing parts of the capital to a standstill.

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Dachser acquires smaller chilled goods specialist

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Logistics provider Dachser has announced its acquisition of the Tank group, which specialises in chilled goods logistics.

The takeover, following purchase of 100 per cent of the smaller German company's shares, is subject to the Federal Competition Authority's approval.

Both firms offer refrigerated transport and warehousing solutions and the merger will see Dachser take control of Tank's 300 staff, though the name and managing director Dr Christopher Leptien will be retained.

He said: "The two companies will continue to do business with customers and partners as usual. The merger gives our staff new prospects for the future."

Dachser currently has over 17,000 staff worldwide. It was established in 1930, the same year that Dr Leptien's grandson founded the Tank group.

Last month the larger company announced that it would open further logistics centres in China, following last year's opening and the recent subsequent expansion of its first centre.

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Fuel theft breakdowns double, says RAC

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The RAC has revealed that rising costs have led to a dramatic increase in the number of breakdowns caused by fuel theft.

Motorists in Greater London have been hardest hit, with a 500 per cent rise in incidents since January, while the country as a whole has seen a doubling of the number of vehicles affected.

"The actual numbers of fuel theft breakdowns may still be relatively small, but it's alarming that we've seen such dramatic increases reported since the beginning of the year," remarked RAC patrolman Prakesh Patel.

He said the problem came as a result of motorists' desperation and called for the government to reduce taxes.

The price of fuel led demonstrators to stage a go-slow protest on the M56 heading towards Manchester on Saturday, with organiser Duncan Borrow calling for the duty to be lowered by around 25p to bring costs in line with the rest of Europe.

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Fuel price protest fails to inspire

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Organisers of the latest protest against fuel prices have claimed that the public will respond to their lead, despite a small turnout on Saturday.

The demonstration ultimately involved just five lorries, five cars and two motorbikes travelling on the M56 towards Manchester, the Manchester Evening News reports.

Motorist Duncan Burrow, who was responsible for the protest, called for the fuel duty to be dropped by around 25p in order to bring prices more in line with the rest of Europe.

"We want the government to start looking at the situation properly and do something about it. The amount we pay for fuel at the moment is ridiculous," he said, adding that he pays approximately £30 per week more than a year ago.

A similar demonstration in London saw parts of the capital brought to a standstill, as hundreds of lorry drivers gathered to protest earlier this month.

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"Unworkable" truck dealer rules revised

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Truck dealers will no longer be penalised for transporting customers' articulated trailers for testing.

An agreement between government agencies and the National Franchised Dealers Association (NFDA) has led to the lifting of a ban on transport to testing stations using dealers' own tractor units and trade plates.

NFDA director Sue Robinson said the organisation was "very pleased" that a solution had been reached.

"This is great news for the truck dealer sector. The rules on operator licenses have been a big problem for truck dealers for many years," she stated.

Since 1983, dealers were subject to what the NFDA described as expensive and complex regulations, requiring an operator licence and registered tractor unit.

New rules will officially come into effect next year, but the Vehicle and Operator Service Agency is expected to stop enforcing the old ones immediately.

Earlier this month the NFDA called for the government to reduce car taxes.

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Gac creates logistics base in Kazakhstan

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Shipping and logistics company Gac has announced its expansion in central Asia through the establishment of Gac Kazakhstan.

The company said its aim is to increase its business in the region following significant growth in recent years, which it attributes to the booming Chinese oil and gas sector.

It claimed central Asia is becoming increasingly important in the worldwide market, with Kazakhstan playing host to the largest oil reserve to be discovered in the last 30 years.

Gac Kazakhstan general manager Matthow Towse commented: "Central Asia and the Caspian Sea are now essential bases to cover if you're serious about oil and gas. Anticipated future demand for both logistics and marine services in the area is huge."

The company plans to expand further with a second office in the country.

Last month Gac opened its fourteenth port office in Australia, six months after it was first established there.

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Emirates signs partnership with Gollog

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Brazilian cargo transport company Gollog has signed a shipping deal with Emirates.

Under the arrangement, Gollog will transport goods for Emirates SkyCargo, the Dubai-based airline's cargo division, from 59 destinations in South America to an airport in Sau Paulo.

They will then be transferred to Dubai by Emirates before being shipped to one of the airlines more than 100 destinations in 62 countries.

Tarcisio Gargioni, vice president of marketing and services for Gol Linhas Aereas Inteligentes, Gollog's parent company, said the partnership was a "privilege", adding: "By working together, we hope to increase the commercial relations between South America, the Middle East and Asia, which will also benefit exports."

This week Emirates announced that it would reduce the weight of its A380 aircraft by one tonne by removing all paper, including in-flight magazines and newspapers, in a bid to cut costs and fuel usage.

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ATS Euromaster expands fleet

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

UK tyre service provider ATS Euromaster is adding to its fleet through over £4.5 million worth of new light commercial vehicles.

The delivery of 150 vans is on the basis of a hire agreement and consists mainly of the Mercedes-Benz Sprinter, Iveco Daily and Renault Kangoo models, Transport News Network reports.

Group vehicle and equipment manager Tim Richards said: "As part of this latest delivery we are trialling a new mobile truck tyre fitting machine which will enable us to fit tyres at a customers' site more quickly, efficiently and safely."

Other role-specific vehicles include mobile fitting vans, flatbeds for the transport of agricultural tyres and rapid-response vehicles for emergency roadside assistance.

Currently the ATS Euromaster fleet consists of around 1,200 light commercial vehicles and 400 cars, operating at 490 centres across the UK.

The Sprinter was named Fleet Van of the Year for 2008 at this month's Motor Transport Awards.

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Logistics to be taught in schools

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Funding from the Road Haulage and Distribution Training Council is to lead to widespread teaching of logistics in schools.

Over £400,000 has been granted to Skills for Logistics (SfL) to further development of resources such as its Made in China programme, which is currently being piloted.

According to SfL, only 11 per cent of the UK logistics workforce is between the ages of 16 and 24.

Skills director John Bowman said the organisation's aim is to raise awareness of career opportunities.

"These resources will not only present a strong and appealing image of the sector but will also demonstrate how vital the industry is; one which affects everyone's lives, everyday," he added.

SfL intends to introduce the Made in China programme across the country in the next academic year.

Last month it announced that a framework had been developed for higher education qualifictions.

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Palletline invests in 'revolutionary' new central hub

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Pallet network operator Palletline has announced that it will invest £20 million in a new central hub.

The firm said its facility will be the first in the industry to achieve complete de-pedestrianisation, through a drive-through, side-load operation.

Built over 15 acres in Solihull, the hub will be capable of processing over 25,000 pallets per day.

Managing director Kevin Buchanan remarked: "We have always been committed to driving up the standards in palletised distribution. This investment is further evidence of our continued commitment to the developing needs of our member companies and their customers."

Also on site will be a purpose-built quality control centre able to process up to 80 vehicles every hour, which Palletline claimed will be another industry first.

This week the company appointed a new commercial development manager in the shape of former Antrak Liner Services national account manager Keith Allsop.

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Rail freight 'should be prioritised'

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Calls for more investment to be poured into Europe's rail network have been made by a group of MEPs.

The Transport Committee has urged the European commission to allocate more money and time towards improving rail freight in the continent so that there is less need to rely on road networks.

Following the publication of a report by Michael Cramer, the committee has stated that 40 per cent of EU transport infrastructure appropriations should go towards streamlining freight transport, using a more efficient logistics system and simplifying customs rules at borders.

Furthermore, the group called for greater investment into further and higher education courses in freight transport and logistics, as well as increased co-operation between member states to find a solution for current transport blockages - specifically relating to the movement of goods.

Earlier in the year the Transport Committee criticised the EU maritime policy for not being ambitious enough.

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Distribution company praises outsourcing

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The positive aspects of outsourcing have been expounded by the managing director of FP Young Transport Limited.

Rob Hollyman claimed that by outsourcing the management of the tyres on the firm's vehicles to TAB Tyres, the company has felt the benefits, Transport News Network reports.

"Tyres are safety critical items and need regular and careful maintenance. TAB provides us with a complete management system that follows best practice and which offers opportunities to extend tyre life and make significant cost savings," he told the website.

Mr Hollyman remarked that he can concentrate on the "core business activities" safe in the knowledge that the tyres on 100 trucks and 60 trailers are being maintained by TAB.

He added that FP Young has over 1,000 tyres in use at any one time.

An Essex-based company, FP Young was established in 1967 and later acquired another distribution company in the 1980s.

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Ceva to restructure and meet 'integrated solutions demand'

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

A major reshuffle is to take place at Ceva logistics, the company has announced.

Following a successful nine month pilot in the Asia region, Ceva is to integrate the contract logistics and freight management divisions, which will now be run by four regional presidents.

The two arms of the company were originally kept separate after Ceva was formed when TNT Logistics merged with EGL Eagle Global Logistics last year.

Chief executive officer of Ceva John Pattullo stated that the company is meeting the "growing need for integrated solutions".

"The integrated structure allows for one CEVA face to the market, helps us stay very much attuned to customer expectations and enables the provision of integrated solutions," he said.

Recently, Ceva Logistics scooped the technology and innovation prize at the UK Warehousing Association's annual awards for its integrated solution to managing both analogue and digital tachographs.

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Airport expansion will go ahead, says boss

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The expansion of Leeds Bradford International Airport will get the green light despite troubles in the wider economy, its chief executive has stated.

According to John Parkin, proposals for the redevelopment of a terminal are to be submitted next year and will get the go ahead, the Yorkshire Evening Post reports.

"We have spent a lot of energy and time looking at the feasibility of our terminal plans and speaking with teams of external consultants on how we can make our terminal capable of handling significant further capacity," he said.

He added that he wants to "transform" the airport.

In other news today, two new routes to Spain from Leeds Bradford International Airport have been announced by Ryanair, the Business Desk reported.

Commencing in October, the flights will link the region with both Girona and Alicante, with Bridget Dowling from the company stating the move will be "fundamental to the economic development of cities like Leeds and Bradford".

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Investment into Leeds' transport strategy secured

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Transport chiefs in Leeds are celebrating this week following a £2.3 million cash injection from the government to support a new infrastructure initiative.

The financial award will be used to determine the future of transport networks in the city, which must expand to accommodate economic growth.

While the grant will not cover the whole £4.6 million to be spent on the Transport Innovation Fund (Tif) project, the rest of the expense will be shared between the city council, Metro and Yorkshire Forward.

Among the congestion solutions that could be developed in Leeds is a public transport network using bus rapid transit, trolleybus or tramtrain technology.

It signals a huge reversal in Leeds' transport fortunes after funding hopes three years ago for a £486 million tram network were dashed by the government.

In related news, a public consultation on the proposed congestion charge in Manchester this week attracted a low turnout, it has been reported. Just 44 people attended the first of the consultations aimed at freeing up £3 billion of funding for public transport, according to the Manchester Evening News.

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Transport problems to be tackled by newly-qualified professionals

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The UK's transport problems will now be addressed by professionals who have recently qualified as Transport Planning Professionals (TPP).

Of the 22 taking part in the pilot round, 13 fulfilled the necessary criteria and received one of the new qualifications, reports Transport Briefing.

The qualification was set up by the Institution of Highways and Transportation (IHT) and the Transport Planning Society (TPS).

Keith Mitchell, chair of the TPP Professional Standards Committee, commented: "We are delighted with the interest in this important IHT and TPS initiative, with enthusiastic candidates who clearly see the qualification as an important recognition of their professional standing."

He added that it was hoped that the TPP qualification would strengthen the profession attract highly skilled entrants to tackle transport issues in the country.

The IHT will be holding a series of conferences in October on Road Safety Audit Guidelines, the first of which will be held at the Castle Green Hotel in Cumbria.

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MoD pledges to improve supply chain

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

The Ministry of Defence (MoD) has signed up to the Twenty First Century Supply Chains programme, or SC21, following an invitation from the Society for British Aerospace Companies (SBAC).

There are now 370 companies and organisations signed up to the agreement following a signing ceremony at the Farnborough air show, where the programme was launched in 2006.

SC21 was designed to improve performance in the UK's aerospace and defence sector, Public Technology reports, adding that it aims to provide a framework to advance the effectiveness of supply chains.

The SBAC suggests that improving supply chains is critical to continued competitiveness within the industry as international competition increases.

Seven commitments have been drawn up as part of the programme, including a promise to deliver innovation and through-life solutions, a pledge to ethical practices and an increased pace of change.

Baroness Taylor, minister for defence equipment and support, said: "We welcome SBAC's Twenty First Century Supply Chain programme, which is an excellent response to Defence Industrial Strategy and aligns well with our need to promote and influence an effective and competitive supply network."

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Congestion charge roadshow attracts little interest

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

A public consultation on the proposed congestion charge in Manchester attracted a low turnout, it has been reported.

In fact just 44 people attended the first of the consultations, according to the Manchester Evening News.

The plans are aimed at freeing up £3 billion of funding for public transport in the city and a mobile exhibition on the subject will be visiting all ten of the local authorities over the period of the next 13 weeks.

Plans that could see commuters being charged £5 per car journey - £2 to enter an outer cordon around the M60 (which encircles the city), another £1 to journey into the centre and a further £1 to leave each of the zones - have been backed "in principle" by the government.

Rita Quinn of the Greater Manchester Passenger Transport Executive said that while the turnout was disappointing it was expected that more people would take an interest in busier areas of the city over the next 66 days.

"We're open until 19:00 BST on some of those days to catch commuters and we're very keen to get everyone's opinions," she added.

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Heathrow expansion 'possible'

webmaster@ciltuk.org.uk — Wed, 23 Jul 2008 22:53:26 GMT

Heathrow could be expanding by gaining a third runway, it has been reported.

Business secretary John Hutton stated at the Farnborough air show that the government may take "difficult decisions" on the subject of expansion and suggested officials would focus on making flying more environmentally friendly rather than restricting flight opportunities.

He added that achieving a sustainable balance between economic, social and green concerns was "essential" to the continued success of every business.

"British businesses and ultimately the British people would not forgive us if we shirked our responsibility to do what's right because we wanted an easy ride from green lobby groups," Mr Hutton said in response to the environmental campaigners who expose any expansion plans.

He assured the aerospace industry, members of which were gathered at the event, that the sector would remain central to the British economy and to its future as a high-tech manufacturing nation.

In related news, Heathrow announced earlier in the month that Air New Zealand and United Airlines would operate from Terminal 1 as part of the West London airport's continued transformation.

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