The 2020’s started out as going to be the decade in which going green was the only way forward for logistics companies. Decarbonisation and reducing the environmental impact of company’s supply chains looked like would feature as a major part in business plans.  Companies in the logistics sectors choosing to adopt a going green plan seem to have many advantages despite the additional expense.

• Positive PR for the company
• Advertisement and promotional tool to existing and new clients
• Long term cost savings
• Risk reduction to employees not having to handle liquid fuels
• Risk reduction to employees having better air quality in distribution centres and transport yards
• Reduction or elimination of storing flammable liquids
• Risk reduction of fuel spills and associated health and safety with storing the fuel
• Easier maintenance of vehicles

Then we entered the Coronavirus crisis which has within a few months has change the world completely. It will be interesting to see if the long term Coronavirus impacts the sectors green credentials. If we enter a long world recession which may mean lower oil prices. This then has a knock on effect of reducing the demand for replacing internal combustion vehicles with zero emissions vehicles.  While the green reform momentum started in the previous decade at lease has credit a solid base and it may well mean that we have reached a tipping point that there is no going back to the old polluting ways. Already several shipping lines have decided to take advantage of the lower oil prices and transit from China to Europe via South Africa. While this is a longer route, the shipping lines can avoid having to pay Suez Cannel Fees. However this means much more emissions per voyage from the vessels but this is an example of economic benefits outweighing the environmental ones.

IKEA have publicly said they will not be shipping on any service which takes this route as it will impact the company’s public green credentials. All their cargo must be shipped on the shortest most efficient route into Europe to reduce their emissions. This is probably one of the first times that a large shipper has used environmental impact factors in their supply chain choices. While no other large shippers have taken any similar action, it does show that some companies regard how the public see their handling of their environmentally impact is important.

With governments around the world looking to stimulating their economies, green technology and green infrastructure projects are going to be ones which start to get much more attention and investment.  In Stallingborough, UK final planning permission has been given for the go ahead of a fuel production facility which uses household waste as its source material. The facility is being developed by a specialist company called Velocys, but has backing from industrial giants including Shell and British Airways. Despite planning permission being given it will be a least a further 2 years before construction starts and it is estimated the plant will not be online until the middle of the decade. However the fuel produced is planned to be used in both the airfreight and trucking industry helping to reduce their impact while reusing waste which would normally be buried in the ground.

ElectricBusSlide

March 2020 Department of Transport

March 2020 Department of Transport

March 2020 Department of Transport

Decarbonising Transport

Setting the Challenge

Slide 2

March 2020 by Department of Transport

March 2020 by Department of Transport

March 2020 by Department of Transport

Decarbonising Transport Challenge

Replacing high emission vehicles with zero emission ones

Replacing high emission vehicles with zero emission ones

Replacing high emission vehicles with zero emission ones

Despite the Coronavirus  issues the UK issued a new report at the end of March the challenges on the “decarbonising transport” in order to get to the country to  a zero emissions  by 2050 across all modes of transportation. This report sets out how the government plans to engage with individuals, companies and other stakeholders through a series of workshops and public feedback sessions on  the decarbonising issues and the proposed government actions to address them.  The government additionally wants feedback on any other issues not mentioned but may have an impact the decarbonising strategy and what actions should be taken in order to address them. The final report currently is planned to be issued towards the end of 2020, though it may will be delayed now.

According to the report the transport sector overall is now the largest emitter of Green House Gases (GHG) since 2016. This is since energy sector in the past few years has dropped dramatically, while the transport sector has remain fairly static over the past 25 years. This does show one positive in that while emission have remained static the number of vehicles has increased considerable in this period. This will be down to the drive in the commercial sector for reduced pollution in the form of EUR engine standards, increased electrification of rail lines and an overall improvement in transport vehicle efficiency.

There transport decarbonising highlights six areas it wishes to address in order to achieve a nett zero transport system in the UK.

• Encourage the transition of road vehicles to those which emit zero emissions. It aims to do this by supporting the construction of more refuelling and recharging infrastructure. This will ensure confidence in the public that they are not going to end up in a location with no ability to recharge. Supporting this ensuring that the energy network is capable of supporting the new demands on it. New regulations on emissions which will favour zero emission vehicles will be increased.  Finally ensure there is easy access to adequate supply and choice of zero emissions vehicles.  With most major vehicle manufactures committed now to making low and zero emission this should see this issue fulfilled.
• Introduce clean air solutions tailored specifically to the demand from the local population. Analysing why the emissions occur at these locations and how to address them. Specifically recognise that one solution does not fit all and encourage local management to actively address these issues.
• Encouraging the general public to move away for the use of private vehicles for all journeys and use of public transport or other active forms such a cycling.  If this was to be implement this will be probably the biggest infrastructure undertaking ever by any government, even greater than the investment announced by the current government The majority of UK roads are completely unsuited to accept thousands of new runners, cyclists mixing with the existing road traffic. While existing traffic levels would drop.
• How to make the UK into a centre for green technology and transport. Already mentioned in a previous article on Maritime Zero Emissions. This report wants to have ideas on how to make the UK a leading innovation centre. This will then allow the UK to become then a leading exporter of these solutions. The government wants to introduce more grants and loans specifically for companies who come up with solutions to existing pollution problems.
• Reducing carbon overall in the world’s global economy. Encourage the use of biofuels and electric in transport such as aircraft and ships which visit the country. By developing infrastructure to support these type of aircraft and vessels it will encourage other countries to follow suit.
• Decarbonising goods supply chains. Consider how changing consumer behaviour for buying goods(ie less shops more e-commence) is going to impact on future transport demands. Encouraging the use of zero emission vehicles specifically in the last mile sector, where vehicles are frequently stop/starting and covering less mileage. Using technology to increase the use of data sharing so deliveries can be optimised and less vehicles are moving around empty.

Future articles will deal with the current situation and detail planned steps on how the conversation will be taken forward. The full report from the Department of Transport Decarbonising Transport, Setting the Challenge can be downloaded here

Possible one of the most common use of containers once they have finished their shipping life is transforming them into a liveable family home. Shipping containers appear to inspire not just your average home builder but leading architects. There are now multiple different homes of all different shapes and designs all based around a container. The UK home building show Grand Designs has featured them several times. One of the most famous one was the award wining home in Northern Ireland, the Grillagh Water House. Constructed out of four previously used containers, this house shows just what an amazing design can be created out of a standard shipping container, with some very heavy modification of course.

Making a container a liveable space does require some effort. A shipping container is just a metal box, so very hot in summer, very cold in winter and not very large comapared to a normal house. The metal construction means they attract a lot of condensation and therefore damp. However this has not deterred one group of builders who are following the current trend of creating tiny homes to live in. This tiny home trend is being driven by high land prices and people wanting cheap homes but not poor quality. The shipping container is seen as a great framework to start with and can be easily modified. A container is self supporting and very strong, so the conversion does not require any structural construction work, meaning any person with some DIY skills can fit it out. There are many support groups out on the Internet giving hints and tips on the best way to convert the container. Finally for these builders the important factor is that shipping containers are very common, so finding one is easy and they are relatively inexpensive to purchase.

Some of these tiny homes are used as off grid homes constructed in the rural countryside and are fully self sufficient in water and electric. They designed to have as small as possible environmental impact in the location they are placed. Other tiny homes are in towns and cities and there owners live in them all year round. With clever designing they are fitted out with all the modern conveniences and impressive view inside. You can often not belive that this was once a shipping container

Of course all these homes are fixed to one location. But if you are looking for a mobile container home then there plans for these as well. A design from atelierworkshop which is not yet in full production is based on one container. It is made to be sufficient for a small family and unlike other home designs keeps all of its container parts. When the owners want to move to another location, the container is just packed up on it self and just looks like and normal shipping container. It can then be loaded and moved on any container fitted trailer to its new location. While maybe not quite as efficient or as easy to use compared to a caravan, it is certainly a unique design for the versatile shipping container.

A mobile container

Break bulk shipments and Out of Gauge generally refers to the movement of non containerisable cargoes. In the modern world driven by complex supply chains the majority of dry goods are containerised, however this still leaves a wide range of cargoes that cannot fit into a standard container. These shipments are referred to as Out of Gauge cargoes often shortened to the term OOG.

At AJF we have been involved in moving break-bulk shipments around the world since the company was founded. The company’s joint owner is a break bulk specialist having over 40 years of experience, and is one of the top specialists in this sector in Europe. Often AJF is the first port of call for both shippers and other forwarders when planning cargoes and we have been involved in shipments moving all over the world. When issues have arisen with break-bulk movements our experience in this field has proven invaluable for our clients.

An example of breakbulk cargo

When AJF is evaluating shipping an OOG cargoes we evaluate the best shipping equipment or method to use. For some cargoes it may be possible to move them on a flatrack or opentop container. For larger cargoes and non standard ones such as those which are over length, width, height or weight then we would may arrange to have the cargo moved using a part charter or full charter of a vessel. We would assess if the vessel need to be geared (have its own onboard cranes) or not, depending on the loading and discharge ports. It is not much use having a vessel turn up and find out the local cranes can not handle the shipment. Depending on the shipping terms and what we are contracted to cover then we would check out the specifications of the ports being called at. This would included maximum weight which can be placed on the quay. You do not want the cargo overloading the quay and causing it to collapse, which has happened in the past.

Breakbulk cargo being loaded into a vessel

AJF has recently been contracted to move vehicles from the UK to Dubia, UAE. Initially it was planned to moved these on flat racks. The size of the vehicles meant that it was going to be a very tight fit to ensure that once the vehicles had been secured to remained in gauge and avoid damage when being loaded.  We therefore looked at other options and it was decided that the most cost effective and safest route was moving them using a RO/RO vessel from Southampton. All the cargo was move successfully and without any damage.

A second case study involved another forwarder which had arranged a charter of a vessel to move an oil project. However the vessel operators got into difficulties and the forwarder was unsure of his liabilities and how to get the goods to the final destination. We were asked to look at the situation and were able to devise a course of action to ensure the cargo was not going to be abandoned. The cargo was finally delivered successfully.

If you have a out of gauge shipment you are looking to move from the USA, Europe and Asia to another part of the world, or need representation to manage the loading or discharge, contact us today and with our in depth knowledge we will be able to help.

With the exception of the Coronavirus outbreak, probably one of the biggest topics of the conversation in the world is the environment. While activists such as Greta Thunberg have being campaigning about the lack of action, the logistics sector has been getting on with reducing not only its carbon footprint but its overall impact. Organisations environmental awareness has resulted in more and more of them reviewing their processes and seeing if they can be made more sustainable. They have realised that this can actually have an effect on their profit/loss bottom line. Examples of this are companies reducing their packaging requirements or using products which will rapidly decompose rather than plastics. The increasing awareness of the environment has led to continuing improving polices from the various legislative bodies which oversee transport operations world wide. The international maritime organisation (IMO) has introduced various legislation to reduce the environmental impact of shipping on the world. Two of the major ones are ships’ waste and the low sulphur fuel regulations for vessels.

• IMO Marpol V waste regulations aim to control the dumping of waste at sea. Over 150 countries have now signed up to this and it has reduced the general dumping of waste. There is still an issue with plastics entering the food chain from the accidental loss of equipment at sea. The IMO has proposed an action plan to tackle this issue and hopefully significantly cut it down once adopted.
• IMO Sulphur regulations. Most ships sailing on open seas currently burn a very low grade of fuel which is very polluting. The IMO proposed that all ships should no longer burn this fuel with a high sulphur content. This was accepted by the countries signed up to the IMO and was introduced in 2020. It is anticipated this will make a significant impact on saving human life from respiratory issues. Further reductions are planned in subsequent years.

The 2018 UK Greenhouse Gas Emissions report showed that the transport sector in 2018 was responsible 33% of all CO2 emissions. The report did state that emissions had fallen by 9% since the 2007 peak, despite continued growth in the sector. Driven partly by the continued advancement of environment regulation, such as the EUR emission standards which commercial vehicles follow which is currently on EUR6 standard. It is expected in order for vehicles to comply with the EUR7 standard vehicle suppliers will need to have a hybrid or alternative clean engine. The EUR7 standard is to be introduced in the next few years

Distribution firms are actively purchasing zero emissions vehicles already for the last mile deliveries. The use of routings software is now common place to ensure the most efficient route is used when a vehicle is doing multiple deliveries and collections. As battery technology improves and falls in price within the next few years heavy goods vehicles will move over from being diesel to electric powered.

While reefer containers are commonly found plying the oceans between continents moving all kinds of products these particular reefer containers are helping to saving several species of frog. In 2010 the Maersk shipping company donated six reefer containers to the Smithsonian Institution and their partners working in Panama City, Panama to help protect and breed various indigenous frogs which were facing extinction. The reefer container have been heavily adapted to create a controlled and protected area.  In this area individual environments where made specific to a particular frogs requirement where they could be observed and managed with the hope that the this would help to ensure their on going survival in the wild.

The images below show the outside of the converted reefer containers, and the inside with the individual controlled environments for the frogs laid out.

Above the exterior view of the reefer container

Inside the reefer container

Both photos are credit of the Smithsonian Institution

The newspaper headlines and finance sites have been full of stories about India’s economy going to beat China’s growth by 2016 or 2017 according to which export who you prefer to belive. In this case it is two world heavy weights the IMF otherwise know as the international monetary fund and the World Bank. So it would seem that after year’s of living in China’s shadow the India economy is finally going to start to leave up to the potential it has been showing for the past decade.

However unfortunately it is more due to China’s downturn in economic growth which is going to make it happen then what is going on in India. According to the predictions given by these two heavy weight bodies.

Instead, it is China’s slowing growth that’s making India look better. While India’s growth is only going remain around 6.3% over the next 2 years it is the fact the China’s economy is going to slow down so much that it gives India the ability at long last to over take is neighbour.

If you are looking to expand into India and need help and guidance in doing this, then our wealth of experience and contacts are here to help you at Andrew James Forwarding. Contact us with you requirements and we will see how we can help you.

So with Narendra Modi and the BJP part winning a landslide in the election last week. Whilst in the eyes of the western world he carries baggage from the incidents in 2002, his considerable efforts to reform and  boost the economy in Gujarat which has had success over the past 10 years should not be overlooked. This has made him a very popular person in the region and the slick media campaign ran throught the election built on this and cemented his win. Hopefully after his swearing in ceremony on Monday 26th May, he can get to work on the rest of India. If he can replicate the reforms Gujarat has seen in other states, then it will help transform India into a power house for the 21st century.

As India wealth increases a growing and richer middle class will translate for an increase in consumer goods, which in turns will place increasing demands on the distribution networks within individual states and across India as a whole. It will become no longer acceptable to have lorries loaded and then waiting while they eventually make it to their unloading point. Customs will need to increase their efficiency so goods which are being imported and exported are not held for days awaiting clearance approval. It will be interesting to see how this changes over the next five years.

So will this be the boost that the Indian economy needs? Can he get corruption and bribery under control and get the India economy to its rightful place challenging China and other growing Asian economies. The next five years will tell.

A general warning to first time importers or exporters from the EU. Currently there is a popular scam using google ad words to promote companies charging money for services which you can easily do yourself or would be done undertaken by agents you are already using. This can include websites which are copies of the genuine site and other websites which try to pass themselves off as the official site. We have now see that  Economic Operator Registration and Identification scheme (EORI) is being targeted.

Registration and getting an EORI number is free in most European countries and this includes the UK. The forms are relatively easy to fill in and any reputable UK-based freight forwarder including ourselves do not charge for  helping a client complete the form if required.

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