"SHAVING BOTH LEGS"
Trans-shipment ‘smoothes’ journey legs by reducing costs
P&O Ferrymasters knows a few things about how to make Europe’s least attractive legs financially smoother - by becoming expert in shaving costs from uneconomic transit journeys.
With the marked differential between export and import costs on key routes, the European freight management specialist is using ‘transhipment’ or ‘cross-docking’ to help customers looking to achieve competitive advantage on the often disadvantageous return journey, a process that cuts transportation costs and reduces the industry’s notorious ‘empty running.’
Millions of kilometre miles are currently driven empty between consignment drop offs and collections while businesses pay premium rates to move goods on so-called uneconomic routes, resulting in higher costs and - with the current emphasis upon climate change - a larger carbon footprint across Europe.
In the UK alone, an independent survey last year revealed the industry is responsible eight million kilometres (five million miles) being run empty in 2005. Figures are not available for Europe, but even with greater intermodal movement by train, empty running will still represent a large percentage of truck movements.
But in Europe Ferrymasters is proving that the service is already showing signs of becoming a long-term sustainable relationship.
“The whole point about transhipment is keeping goods moving while keeping costs down and reducing empty running which is made possible by road operators delivering perishables such as fruit and flowers and searching for re-loads to enable them to return swiftly to the European port for another fresh delivery,” says Eric Staal, P&O Ferrymasters General Manager for Sales and Development.
“We manage the entire process by marrying up available loads from the uneconomic regions with the drivers that would otherwise be running long legs of their journey with no loads. We do this by cross-docking palletised goods into our Ferrymasters containers and trailers at either of our trans-shipment centres near Rosenburg or Zeebrugge. There are no storage costs and we are simply providing a service that keeps the two parties happy and, with increasing focus upon the carbon emissions and climate change, it is better for the environment,” he adds.
Cross-docking works best with pre-assembled goods that are palletised or fast moving such as drinks, food or paper. The bottled water market is a classic example with millions of units needing to reach parts of Europe economically to sustain demand for what has become an everyday life-style drink. Transhipment is therefore implemented by Ferrymasters on behalf of a number of customers to keep the goods moving cost-effectively from the mountainous northern European producers to the sun-baked southern European consumers.
Ferrymasters has the experience and contacts to identify the most competitive European rates between the UK and mainland Europe and provides the customer with a single invoice at the end of the process.
And the service is growing in popularity with in excess of 40 transhipments per day for European customers from Rotterdam or Zeebrugge.
Cross docking supports the Ferrymasters strategy of reducing empty kilometres for the fleet and increasing overall volumes.
“We have great plans for the service as it continues to develop. Our objective is to continue to minimise empty running in Europe by working closely with other haulage partners,” adds Staal.
With the marked differential between export and import costs on key routes, the European freight management specialist is using ‘transhipment’ or ‘cross-docking’ to help customers looking to achieve competitive advantage on the often disadvantageous return journey, a process that cuts transportation costs and reduces the industry’s notorious ‘empty running.’
Millions of kilometre miles are currently driven empty between consignment drop offs and collections while businesses pay premium rates to move goods on so-called uneconomic routes, resulting in higher costs and - with the current emphasis upon climate change - a larger carbon footprint across Europe.
In the UK alone, an independent survey last year revealed the industry is responsible eight million kilometres (five million miles) being run empty in 2005. Figures are not available for Europe, but even with greater intermodal movement by train, empty running will still represent a large percentage of truck movements.
But in Europe Ferrymasters is proving that the service is already showing signs of becoming a long-term sustainable relationship.
“The whole point about transhipment is keeping goods moving while keeping costs down and reducing empty running which is made possible by road operators delivering perishables such as fruit and flowers and searching for re-loads to enable them to return swiftly to the European port for another fresh delivery,” says Eric Staal, P&O Ferrymasters General Manager for Sales and Development.
“We manage the entire process by marrying up available loads from the uneconomic regions with the drivers that would otherwise be running long legs of their journey with no loads. We do this by cross-docking palletised goods into our Ferrymasters containers and trailers at either of our trans-shipment centres near Rosenburg or Zeebrugge. There are no storage costs and we are simply providing a service that keeps the two parties happy and, with increasing focus upon the carbon emissions and climate change, it is better for the environment,” he adds.
Cross-docking works best with pre-assembled goods that are palletised or fast moving such as drinks, food or paper. The bottled water market is a classic example with millions of units needing to reach parts of Europe economically to sustain demand for what has become an everyday life-style drink. Transhipment is therefore implemented by Ferrymasters on behalf of a number of customers to keep the goods moving cost-effectively from the mountainous northern European producers to the sun-baked southern European consumers.
Ferrymasters has the experience and contacts to identify the most competitive European rates between the UK and mainland Europe and provides the customer with a single invoice at the end of the process.
And the service is growing in popularity with in excess of 40 transhipments per day for European customers from Rotterdam or Zeebrugge.
Cross docking supports the Ferrymasters strategy of reducing empty kilometres for the fleet and increasing overall volumes.
“We have great plans for the service as it continues to develop. Our objective is to continue to minimise empty running in Europe by working closely with other haulage partners,” adds Staal.