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06:02:50 pm on September 12, 2009 |
Germany is actually the largest exporter of merchandise in the world, with a string of famous brands in the luxury automobile sector such as Porsche, Mercedes- Benz and BMW, as well as Audi and Volkswagen also delivering well engineered car exports right across the globe.
The fame of these luxury brands is legendary and they have become symbols of engineering excellence, an industry in which Germany is truly world class. Little wonder then that in order to serve this buoyant and high value export trade, the freight services market has developed in tandem and is able to provide a very high level of service, with a number of specialist facilities offered from a wide range of freight forwarders.
These top of the range car exports are perhaps the best known of German exports but they are certainly not the only ones. In 2007, Germany exported nearly 1.5 trillion dollars of goods, spanning a wide range of sectors. The strength of the export sector helps compensate for sluggish domestic demand. In fact, German companies derive one third of their total revenue from exports. The international freight sector has developed in order to underpin this thriving trade and freight transport operates efficiently at all levels.
Vehicles are the largest single sector within export trade, followed by industrial machinery and chemicals. Medicinal, dental and pharmaceutical preparations are also a large sector, as well as scientific, medical and hospital equipment.
Many of these products require specialist care during freight forwarding, for example in terms of temperature control or especially safe packaging, and the freight company or shipping company operating to and from Germany will be sure to do their utmost to ensure that these factors are all taken care of.
Germany conducts more than half of its trade with the other countries in the European Union, followed in terms of importance by the United States, Canada, European countries that are not in the European Union (such as Switzerland and Iceland) and Japan. So there are a growing number of international freight services and shipping companies serving these countries.
The single most important trading partner for Germany is France, then closely followed by the United States. France accounts for over 10% of all of Germany’s exports, with the United States accounting for just under 10%. These countries are then followed in terms of magnitude by Italy and the United Kingdom, both accounting for around 6% of total exports, then Belgium, Spain, Italy, the Netherlands, China and the neighbouring country Austria.
The strength of international trade with other countries in the European Union is in line with the policy objective of the European Union to build trade as much as possible within the countries making up the European Union and also reflects the World Trade Organisation ambition of increasing global trade liberalization.
As well as with other European Union countries, there is also growing German trade with China and Russia. In fact, there is particular emphasis on building exports to Russia and it is interesting to note that Germany is already Russia’s leading trade partner, particularly in the energy sector. Meanwhile, China has now overtaken Japan as Germany’s top trade partner in Asia and Germany has been making significant investment in China as its economy expands. So the freight services sector has seen considerable growth in activity between these countries.
The fastest growing exports to the United States are precious metals (especially copper), railway equipment, television receivers, DVDs and other video equipment.
The United States is the second largest trading partner for Germany after France. The total value of trade between the United States and Germany is approaching 100 billion dollars, with Germany exporting approximately twice as much as it imports. Imports making up international freight from the United States include aircraft, telecommunications equipment, electrical goods and motor vehicle parts.
Given this picture of export strength and its pivotal role in the economy of Germany, Germany has a policy of aiming to reduce trade barriers at all levels, including any involving tariffs. This policy also extends to a progressive transport policy that helps support freight transport to and from the country. These policies at central level will continue to ensure that Germany remains a leading world exporter as its trading partners emerge from recession. There can be no doubt that the freight forwarders that serve the German market will also continue to stay at the leading edge.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Germany
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05:59:33 pm on September 12, 2009 |
Italy has a fundamentally robust economy and high national incomes, with a GDP per capita of over 30,000 dollars. There has been consistent GDP growth until the arrival of the global economic slowdown in 2008. The economy of Italy has transformed since the Second World War as over this period the country has developed from an agriculturally based economy to an industrial nation that can now stake claim to being the world’s seventh largest market economy. The fact that Italy is a member of the Group of Eight (G8) industrialized nations is a testament to this remarkable latter day renaissance.
Italy’s economy benefits from some natural resources, in particular in agriculture, fishing and natural gas. However, the country is a net importer of food as much of the land in Italy is not suitable for agriculture. Natural gas is the country’s most important natural mineral resource, mainly in the Po Valley and offshore in the Adriatic. Most raw materials for manufacturing have to be imported into Italy, as well as more than three quarters of its energy requirements. So this situation has had an impact on the development of freight services to Italy, with a highly developed system of freight forwarders and shipping companies serving the import market and making use of a developed intermodal transport system.
Within agriculture, important products in Italy include wheat, rice, grapes, beef, dairy products, olives, citrus fruit, potatoes and sugar beets.
The most important industries are tourism, iron and steel, chemicals, machinery, precision engineering, automotives, textiles, clothing, footwear and ceramics.
The international freight systems are sophisticated and well geared up to handling the specific needs of these kinds of merchandise.
In 2008, Italy exported over 500 billion dollars of merchandise, primarily mechanical products, clothing, textiles, transportation equipment, metal products, chemical products, food and agricultural products. Germany is the single most important destination for exports, accounting for over 12% of the total, followed by France, at just under 12%, then Spain at 7%, United States at 7% and the United Kingdom at 6%. So there is considerable existing expertise and knowledge within shipping companies about the most efficient ways of arranging international freight between these countries.
At the same time as there is such a vibrant export market, there are also around 500 billion dollars of imports to Italy. The most important trading partner is Germany again, accounting for 17% of all imported goods, followed in terms of magnitude by France, then China, Netherlands, Belgium and Spain. Many a shipping company has recently entered the comparatively new freight services market serving the business between Italy and China.
Imports to Italy include machinery and transport equipment, foodstuffs, metals, wool, cotton and energy products.
The country has significant budget deficits and high public debt. This situation is under increasing strain at present due to the global economic slowdown and the budget deficit is expected to grow higher than the 3% ceiling stipulated as a condition of its membership of the European Union, which it joined in 1998. The global economic crisis has had a negative impact on both exports and domestic demand in 2008 and 2009. The freight services market has suffered in turn as a result of this downturn. There has been a decline in income for the freight forwarding sector operating in Italy in 2008 and 2009, but the impact of increasing competition has been a spur to development as the better freight companies raise their game to compete more effectively.
Apart from the current economic slowdown, Italy is struggling with the long term impact of increasing competition from China and other low wage countries on Italy’s lower end industrial product sector. As a result, Italy, like other industrialised nations is increasingly looking to build competitive advantage through added value and knowledge based differentiation. Over time, this change of emphasis should help protect the Italian economy and the freight services sector will doubtless respond to reflect any changes.
One particular point worth noting regarding the economy in Italy is that it is also affected by a large black economy, thought to represent around a third of total GDP, which represents considerable lost revenue in tax to the government, and is a perpetual challenge as the government in Italy look to find ways to strengthen the economy further. This is just one of the many challenges facing Italy and its economy, but there is little doubt that the economy and the freight services sector that supports its international freight will continue to thrive over the longer term.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Italy
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03:23:52 pm on September 3, 2009 |
Italy has a contemporary and efficient freight transport infrastructure, which facilitates an effective system for freight forwarding. Most of the transport infrastructure was built after the Second World War and is continually updated. Most freight forwarding in Italy is carried out by road and there is an excellent road network, especially in the north of the country, which is well utilised by shipping companies and those involved in freight transport. The main routes are Turin-Milan-Venice-Trieste, Milan-Bologna-Florence-Rome, Milan-Genoa and Rome-Naples. There are over 4000 miles of expressways, mainly in the north and central areas of Italy.
As well as the road network, Italy also has an efficient system of railways, rail and sea ports which together combine to provide the main routes for international freight. Italy also has 1500 miles of waterways although these remain largely undeveloped.
The rail system in Italy is also well developed and very punctual. Mussolini has been credited with getting the Italian trains running on time and whether or not this is factually accurate, the punctuality of the Italian rail system is remarkable. The Italian trains are also cheap and comfortable, compared with those in neighbouring European countries, and the rail network is about to be improved further as the state owned rail company, Ferrovie dello Stato, is developing a project to introduce high speed trains. This will boost further the importance of the rail network to freight forwarders.
However, there is still a shortage of railways in the south and east of Italy and government projects to improve this situation have stalled, together with other planned projects to improve the transport infrastructure in the south such as creating a subway in Naples. The road network is also less efficient in the south of the country. This situation reflects the fact that most of the industry and economic activity is in the north and central areas, so the development of the infrastructure for freight transport has been prioritised by the government in these places whilst the south has lagged behind, with the exception of its seaports. Southern Italy includes 37% of Italy’s population, 40% of its land area but only produces 24% of its Gross Domestic Product. So the freight services options are more curtailed in the south of the country than in the north, although the shipping company with good local knowledge can easily overcome these challenges related to freight services in Southern Italy.
Sea ports used to be very important for freight forwarding in Italy and until 1975, a significant amount of cargo went through them. However, their importance has declined in the last thirty years, due to the development of other means of handling international freight. Nevertheless, the ports of Genoa, Trieste, Naples, Taranto, Augusta, Gioia Tauro and Livorno are still very important to their respective regional economies and Italy is still a major player in container shipping and international freight in the Mediterranean. The Italian merchant fleet consists of over 2000 ships, over half of which are over 100 tonnes.
The national air carrier Alitalia connects Italy to 60 countries and Italy has 136 airports. The most significant are Fiumicino (Rome), Malpensa and Linate in Milan, Ronchi dei Legionari (Trieste), Caselle (Turin) and Marco Polo (Venice). Again, the list of the most significant airports shows a bias to the north and central areas of Italy.
The Italian economy has grown rapidly since the Second World War and Italy is the world’s seventh largest economy, in USD exchange rate terms, although the economy has faltered more recently, showing sluggish growth since 2002. This economic strength over the last 50 years has led to the development of a thriving and efficient freight services sector, with a large number of shipping companies and freight forwarders operating throughout the country and assisting with the efficient freight forwarding of both exports and imports.
The main economic strength of Italy is in the processing and manufacturing of goods, primarily in small and medium sized family-owned firms. Italian industrial companies, often of small size, are mainly located in the ‘industrial triangle’ created by Milan, Turin and Genoa. The main Italian exports are precision machinery, motor vehicles, chemicals and electrical goods, but its more famous exports are related to food or fashion.
Agriculture is important, with the northern part of Italy producing grains, rice, maize, meat, fruits and dairy products, whilst the south of the country produces fruit, vegetables, olive oil and durum wheat. Italy is also one of the world’s top two wine producers. So the freight services industry has evolved to be able to cater for the specialist demands of Italian products.
Italy’s most important trade is with other countries in the European Union, which account for nearly 60% of total trade. Of these, the most significant is Germany, followed by France, then the Netherlands.
Many a shipping company and freight company have therefore developed expertise in providing freight services between Italy and the various other countries of the European Union.
It is to be expected that the infrastructure for freight transport in Italy will continue to improve and that the disparity between the north and the south of the country will begin to close over time.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Italy
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05:31:04 pm on August 30, 2009 |
The land-locked country of Austria has an important position at the centre of Europe where it is a significant hub between East and West. The freight transport industry has evolved and developed in response to this increasingly important role, with new streamlined freight services available to facilitate trade between Austria and its trading partners in Eastern Europe.
Until the late 1980s, the government and its state owned industries played an important role in the Austrian economy but since the early 1990s. most of these state owned firms have been privatised either wholly or partially. Austria now has a well developed economy and is one of the richest countries in the European Union, fourth after Luxemburg, Ireland and the Netherlands.
In fact, Vienna is the fifth richest region in Europe, just behind Inner London, Luxemburg, Brussels and Hamburg. The sophistication and efficiency of the shipping companies and freight companies operating in Austria reflect the high standards that would be expected of such a rich and well developed country.
The economy of Austria is heavily integrated with neighbouring Germany and increasingly with the countries to its east. The freight transport industry has established connections and networks to ensure that freight transport is effective within these regions.
The economy in Austria has been growing well, with growth of around 1% per annum during 2001-2003 but then accelerating to nearly 3% in 2004 and 2005.This was fuelled by booming exports and primarily higher growth in Central and Eastern Europe.
Having joined the European Union in 1995, and adopted the Euro in 2002, the effects of European integration on the economy of Austria have been highly positive. Trade with other European Union countries accounts for nearly three quarters of Austrian imports and exports, dominating the country’s international freight.
Expanding trade and freight forwarding with the new EU members of central and eastern Europe that joined the EU in May 2004 and January 2007 make up a major element of Austrian economic activity and account for 14% of all trade activity. In addition, Austrian firms have made sizeable investments in these countries and there is a trend towards moving labour intensive low tech production to these countries of central and eastern Europe. In fact, about half of Austria’s foreign direct investment is in the countries of central and eastern Europe. The focus of development in the freight services sector has mirrored this trend.
Although the boom years have now passed, Austria still has the potential to attract international firms seeking convenient access to developing markets in eastern and central Europe and the Balkan countries. Approximately 350 United States companies have made investments in Austria, most with this in mind, and there is scope for considerable further expansion of Austria’s role as a bridge between east and west.
Apart from within the European Union, there is significant trade with the United States and so there are also many shipping companies serving this sector of the international freight market. The total value of trade with the United States is 13 billion dollars. Imports from the United States total over 5 billion and exports to the United States were nearly 8 billion in 2007.
Although there are some large iron and steel producers, chemical plants and oil corporations, most enterprises in Austria are relatively small.
The service sector is very important in Austria and generates the majority of its Gross Domestic Product. This includes, for example, finance, consulting and law firms in Vienna which also operate in central and eastern Europe. Very well known Austrian firms include AKG Acoustics, Wienerberger, Red Bull, Swarovski and Doppelmayer. The freight transport industry has evolved to serve the needs of this diverse market, connecting producers with markets in the east and west.
Austria has a unique position as an East-West hub. It also has a unique position as a moderator between industrialised and developing nations and has been active in bridge building to the east, increasing contacts at all levels with Eastern Europe and the states of the former Soviet Union.
In this way the role of Austria as hub between East and West is about more than simply its geographical position and its tradition of neutrality has allowed the country to develop a role as broker and moderator between the developed counties of the West and the emerging economies of the East. The combination of these factors create perfect conditions for the growth of the freight services industry in Austria as the importance of its hub position consolidates in future.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Austria
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10:51:07 pm on August 2, 2009 |
Since there are no significant trade or investment barriers in the Netherlands, the country has a thriving trade in both exports and imports. This has led to the establishment of a comprehensive freight services industry, boosted by Holland’s geographical position which makes it an important transit route for Europe as a whole.
Services account for almost three quarters of the national income and are mainly in transportation, distribution and logistics as well as financial services. This statistic reveals the importance of the freight transport industry to the economy of Holland.
The strategic importance of the Netherlands extends beyond its geographical boundaries as its largest port, Rotterdam, is one of the busiest ports for freight forwarding in the world. Rotterdam is the largest port in Europe and the rivers Meuse and Rhine provide access to the hinterland upstream as far as Switzerland and France. Between 1962 and 2004, Rotterdam was the world’s busiest port, although that distinction has since been claimed by Shanghai.
In addition to services, industrial activity generates the remaining quarter of national income and is mainly in steel and aluminium, oil refining, chemicals and food processing. There is a small proportion of national income generated by agricultural products such as dairy, poultry and meat, vegetables, fruit and cut flowers.
The biggest exports are in mineral fuels, chemicals, machinery, processed food and tobacco, so freight forwarders and shipping companies have developed specialist skills in handling these kinds of cargo, all of which bring with them their own special requirements that need to be considered by the freight company or shipping company.
Holland’s biggest trading partner is other parts of the European Union, which accounts for 66% of all exports and 47% of imports to Holland. Germany is the single most important of these EU countries for international freight, followed by Belgium and then the UK. The United States is the next most significant trading partner, accounting for 5% of exports and 8% of imports.
The Netherlands is the eighth largest freight transport destination for American exports in the world and the USA is the third largest investor in the Netherlands, with more than 1600 United States companies having offices or subsidiaries in Holland.
In fact, the strong partnership between the United States and Holland dates right back to the American Revolution. The close relationship is based on historical and cultural ties as well as a shared belief in the importance of individual freedom and human rights. What’s more, the Netherlands also shares with the United States a liberal trade policy and a firm commitment to the principle of free trade. This common approach has given rise to the robust level of trade and mutual investment, which means that the international freight companies supplying this sector have been able to grow in parallel. The Netherlands is the fourth largest direct foreign investor in the United States as well as the United States being the third largest direct investor in Holland.
The geographical location of Holland means that its freight forwarding infrastructure has been able to develop to attain a dominant position at the heart of Europe’s transportation network. Through its close association with the United States, this extraordinarily important role at the heart of Europe’s infrastructure also takes on a global dimension.
The Netherlands had a record trade surplus of 41 billion Euros in 2007 and so has been well placed, compared with some other countries, to withstand the worst effects of the global recession.
Given its strong record of freight forwarding and trade with other European counties and also the importance of its transport infrastructure to the whole of Europe, Holland is heavily engaged in international affairs. Priority is given to enhancing European integration and ensuring European security.
As part of helping deliver this objective, the Netherlands is an active participant in the Container Security Initiative at Rotterdam. Since 2004, the Dutch have purchased and installed 40 portal monitors that give almost complete coverage of the Port of Rotterdam. The Dutch Government have also permitted United States CBP Immigration Liaison Officers to return to Schiphol Airport to assist with US-bound passenger screening.
Again, the Netherlands are showing how they regard their role as being that of a vital facilitator in relation to other countries in Europe as well as the United States. The Netherlands works in partnership with its trading partners for mutual gain and takes its role at the heart of Europe’s transport infrastructure seriously. The size and vitality of the freight transport industry in the Netherlands is testament to the lasting success of this approach.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Holland
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08:47:00 pm on August 2, 2009 |
Germany has a transport infrastructure that is the envy of the world and this has helped enable the development of a highly effective freight services industry. The phrase ‘Germanic’ is often used as a byword for efficiency and with good reason, if the freight services industry in Germany is seen as a measure.
The efficiency of the transport network throughout the country is all the more remarkable when you consider that it is less than twenty years since the Berlin Wall came down and East Germany started its process of integration within Germany.
Since the reunification of Germany in 1990, there has been a programme of extensive development throughout Eastern Germany to bring the freight transport infrastructure up to the same standard as the more developed west Germany.
This programme has been highly successful and the freight transport infrastructure in Germany is now amongst the best in the world, with every mode of transport fully maximised. The speed of development following reunification has presented a challenge for freight forwarders as they have kept up to date with the evolving transport infrastructure, that has increased the options to be considered by the shipping company or freight company.
There is a very efficient network of waterways, railways and motorways that make internal connections fast and straightforward and also connect Germany with other countries throughout the world. This has been a spur to economic activity, as access to markets is fully facilitated.
The road network is particularly impressive in Germany, with the Autobahn world famous for its outstanding efficiency and speed. There are over 650,000 kilometres of paved roads in Germany, which includes over 11,000 miles of expressways. There are no speed limits on some roads, meaning that freight forwarding by road can be a particularly effective option. The roads also tend to be free of traffic jams, as the German public are very keen on public transport and also make above average use of travel by bicycle, thus helping reduce overall traffic congestion. This has a positive impact on the freight services industry, meaning that journey times and costs can be accurately predicted and that risk is minimised.
As well as the excellent roads, there is also an impressive rail system in Germany. There are over 40,000 kilometres of railroads, which are run by the national railroad carrier, Deutsche Bahn AG. Deutsche Bahn AG was privatised in 1994 although it still received subsidies from the government, reflecting the government’s prioritisation of the country’s transport infrastructure.
Lufthansa, the flagship air carrier in Germany is one of the leading airlines in the world. Since the liberalisation of air transport in the European Union in 1997, Lufthansa has fought hard to retain its dominant position in Germany’s internal routes, in the face of burgeoning competition from low cost carriers and others.
There are no less than 320 airports in Germany, including 14 with runways over 3 km. There are over half a million departures from airports in Germany every year. The busiest airport in terms of passenger services and freight forwarding is the Rhein-Main airport at Frankfurt am Main. Cologne-Bonn is the second biggest in terms of freight transport. The other most important airports for international freight are Berlin-Tegel, Dusseldorf and Hamburg. The federal government and cities such as Berlin and Cologne are preparing to sell their shares in major airports.
With such an extensive airport network, freight forwarding by air is extremely efficient in Germany and the freight services provider will fully consider all the available options when designing the best freight forwarding solution for a client.
Marine transport is also very developed, with major ports in the Baltic Sea including Kiel, Rostock and Luebeck, and also on the North Sea, including Hamburg, Bremen, Emden and Bremerhaven.
There are also many major river ports. The most notable are at Bonn, Cologne, Duisberg, Mannheim and Karlsruhe on the Rhein; Magdeburg and Dresden on the Elbe and Kiel on the Kiel Canal. The Kiel canal is an important strategic transport link, connecting the North Sea and the Baltic Sea.
The most important port for Germany is actually not in Germany at all – it is Rotterdam in the Netherlands. Meanwhile, Hamburg is the largest port within Germany, accounting for about a third of all the international freight.
The amount of freight shipped through German ports is very high, at over 200 million tonnes a year.
The integrated and comprehensive transport infrastructure is a model of efficiency, meaning that shipping companies can provide streamlined and cost-effective freight services for their clients.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Germany
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11:04:44 pm on July 10, 2009 |
It’s all change in Denmark following the decision by Anders Fogh Rasmussen to step down as Prime Minister so as to take up the position of Secretary General at NATO. The new Prime Minister, the Liberal Party’s Lars Lokke Rasmussen takes up the role at the head of Denmark’s coalition government after experience as Denmark’s Finance Minister. This change at the top of the government comes hot on the heels of the economic maelstrom being experienced in Denmark as a result of the global economic crisis.
What could the double whammy and upheaval in Denmark signify for the international freight and freight forwarding market?
In the face of the weakening economy in Denmark, which is buffeted by the same winds that are creating economic crisis worldwide, the new prime Minister is having to deal with an increasingly vociferous opposition. The opposition party, the Social Democrats, are buoyed by public opinion polls that suggest that their leader enjoys more popular support on a number of issues, especially healthcare, welfare and the integration of immigrants.
But as a former Finance Minister, Rasmussen enjoys most support for his ability to handle the economic crisis.
It is his handling of the economy that will be of interest to freight forwarders and shipping companies,which will be directly affected by Rasmussen’s decisions regarding spending on transport infrastructure projects.The deteriorating budget deficit and debt position of the public finances in Denmark are likely to have an impact upon the investment in the transport infrastructure on which international freight depends.
Rasmussen’s hopes of winning a fourth election for the Liberal-Conservative coalition will depend on how successful his policies are at mitigating negative effects from the economic downturn.
The government will need to show the long term sustainability of the public finances through reforms to public services and the welfare system. Future investment in transport infrastructure is likely to be a casualty of government spending cutbacks and this could have a negative impact on the freight forwarding industry.
However, the Danish government is keenly aware of the importance of international trade and is likely to do all it can to balance the need for cutbacks with the need to maintain efficient freight forwarding for exports. Because the domestic market is limited, Danish manufacturers are highly export orientated. Denmark has a healthy trade balance as a result.
European markets account for 70% of all exports. Germany, Sweden, UK and United States together account for 50% of all Danish exports. Other significant export markets, in order of magnitude, are Norway, Netherlands, France, Italy, Finland and Spain. New markets have also been opening up in Central Europe, Eastern Europe, Australia and the Far East, necessitating the creation of new partnerships and ways of working within the Danish freight services industry.
With real GDP in Denmark forecast to shrink by 3.5% in 2009, and a severe contraction of the economy predicted, it remains to be seen whether future plans to improve the transport infrastructure will be put on ice or whether Denmark’s dependence on exports will mean that the transport infrastructure remains a high priority despite the economic crisis and the need to cut government expenditure.
It is to be hoped that the government in Denmark take a long term view and continue to invest in their freight transport infrastructure and their international freight and freight services industry.
However, if Rasmussen decides to rein in spending to help balance the budget, at least Denmark is better placed than most other countries worldwide to weather the storm, as it already has such a strong transport infrastructure in place.
Stephen Willis is Managing Director of a UK based freight forwarder RW Freight Services established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Denmark
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03:57:13 pm on July 10, 2009 |
The global economic downturn is leading to decreases in the amount of international freight. In China, this is acting as a spur to development and innovation within the container ports industry, as the various ports respond to declining volumes. The government in China has taken a robust and proactive response to the economic crisis and has put in place a wide-reaching strategy to safeguard its international trade and maintain the attractiveness of the China import sector.
2008 marked the end of China’s run of double digit growth in international freight. Amongst the ‘Top Five’ ports in China, three ports saw only single digit increases in throughput in the last year. Shenzhen experienced the lowest percentage increase with only 1.5% growth in freight transport throughput in 2008. Although Shenzhen is still the second most important port in China in terms of overall level of traffic, this is a situation that has caused port operators to launch some new strategies aimed at maintaining their share of the freight forwarding market and helping each and every freight company.
For example, Shenzhen port operators are now targeting domestic container boxes that until now have been mainly handled at nearby Nansha, which is also under the jurisdiction of Shenzhen Port.This is a marked shift in the port’s freight transport marketing strategy.
Meanwhile, another innovative development can be seen from another major player in the freight forwarding world in China – Yantian International Container Terminals. They are based in eastern Shenzhen and alone accounted for a staggering 45% of the city’s freight transport throughput last year. They have now started feeder services, in association with Sinotrans Guangdong, to and from smaller ports in the Pearl River Delta where many manufacturers needing freight services are based. In so doing, they are trying to replicate the succesful strategy employed by rival port Guangzhou, which has recently established a shuttle barge service in the Pearl River Delta, helping shipping companies to transport boxes from second and third tier ports at very low cost. Freight transport of domestic box traffic made up 70% of Guangzhou’s volumes last year. The strategy appears to have been a success as Guangzhou showed an overall increase of 19% in 2008 compared with 2007, so it is little wonder that other ports are now seeking to learn lessons from its innovation and adopt a similar strategy to stimulate the freight services market in China.
The most important port for international freight in China remains Shanghai. Shanghai accounts for over 27 million TEU of traffic in 2008. Although volume growth slowed in 2008 in line with the decline in international trade and the China import sector, growth of throughput was still comfortable at 7%. Nevertheless, the slowdown in growth rate has prompted another innovative scheme from this giant in the freight services stratosphere. Together with Qingdao, Shanghai Port has launched a scheme offering free storage to freight forwarders for their empty boxes, as well as special discounts for shipping companies on handling empty boxes.
The reason that this is a useful scheme for the ports is that empty boxes are counted within the throughput figures for the port. Discounts are offered to the shipping company for their empty box storage according to their monthly container volumes. Free storage is offered to freight companies with more than 30,000 TEU of imported empty boxes each month, whereas discounts are offered to those with smaller or erratic throughputs. The scheme has been well received by shipping companies.
These developments demonstrate the innovative and nimble approach of the freight forwarding industry in China. Despite slowing growth in 2008, it is worth noting that all the top 10 Chinese container ports still showed growth in throughput. Indeed, Lianyungang showed astounding growth of over 48% year on year. Those ports that experienced a slowdown, such as Shanghai and Shenzhen, have responded to the challenge by creating fresh strategies and demonstrated that innovation is still alive and kicking in the freight services industry in China.
Stephen Willis is Managing Director of a UK based freight company RW Freight Services established in 1971 and operating worldwide freight forwarding services including specialist services for UK Importers from China
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03:55:04 pm on July 10, 2009 |
The global economic downturn is leading to decreases in the amount of international freight. In China, this is acting as a spur to development and innovation within the container ports industry, as the various ports respond to declining volumes. The government in China has taken a robust and proactive response to the economic crisis and has put in place a wide-reaching strategy to safeguard its international trade and maintain the attractiveness of the China import sector.
2008 marked the end of China’s run of double digit growth in international freight. Amongst the ‘Top Five’ ports in China, three ports saw only single digit increases in throughput in the last year. Shenzhen experienced the lowest percentage increase with only 1.5% growth in freight transport throughput in 2008. Although Shenzhen is still the second most important port in China in terms of overall level of traffic, this is a situation that has caused port operators to launch some new strategies aimed at maintaining their share of the freight forwarding market and helping each and every freight company.
For example, Shenzhen port operators are now targeting domestic container boxes that until now have been mainly handled at nearby Nansha, which is also under the jurisdiction of Shenzhen Port.This is a marked shift in the port’s freight transport marketing strategy.
Meanwhile, another innovative development can be seen from another major player in the freight forwarding world in China – Yantian International Container Terminals. They are based in eastern Shenzhen and alone accounted for a staggering 45% of the city’s freight transport throughput last year. They have now started feeder services, in association with Sinotrans Guangdong, to and from smaller ports in the Pearl River Delta where many manufacturers needing freight services are based. In so doing, they are trying to replicate the succesful strategy employed by rival port Guangzhou, which has recently established a shuttle barge service in the Pearl River Delta, helping shipping companies to transport boxes from second and third tier ports at very low cost. Freight transport of domestic box traffic made up 70% of Guangzhou’s volumes last year. The strategy appears to have been a success as Guangzhou showed an overall increase of 19% in 2008 compared with 2007, so it is little wonder that other ports are now seeking to learn lessons from its innovation and adopt a similar strategy to stimulate the freight services market in China.
The most important port for international freight in China remains Shanghai. Shanghai accounts for over 27 million TEU of traffic in 2008. Although volume growth slowed in 2008 in line with the decline in international trade and the China import sector, growth of throughput was still comfortable at 7%. Nevertheless, the slowdown in growth rate has prompted another innovative scheme from this giant in the freight services stratosphere. Together with Qingdao, Shanghai Port has launched a scheme offering free storage to freight forwarders for their empty boxes, as well as special discounts for shipping companies on handling empty boxes.
The reason that this is a useful scheme for the ports is that empty boxes are counted within the throughput figures for the port. Discounts are offered to the shipping company for their empty box storage according to their monthly container volumes. Free storage is offered to freight companies with more than 30,000 TEU of imported empty boxes each month, whereas discounts are offered to those with smaller or erratic throughputs. The scheme has been well received by shipping companies.
These developments demonstrate the innovative and nimble approach of the freight forwarding industry in China. Despite slowing growth in 2008, it is worth noting that all the top 10 Chinese container ports still showed growth in throughput. Indeed, Lianyungang showed astounding growth of over 48% year on year. Those ports that experienced a slowdown, such as Shanghai and Shenzhen, have responded to the challenge by creating fresh strategies and demonstrated that innovation is still alive and kicking in the freight services industry in China.
Stephen Willis is Managing Director of a UK based freight company RW Freight Services established in 1971 and operating worldwide freight forwarding services including specialist services for UK Importers from China
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12:51:29 am on May 8, 2009 |
Sweden is a staunch advocate of free trade and this is enshrined in Sweden’s liberal trade policies. The whole concept of free international trade is at the heart of Sweden’s economic policies and its roots were established as much as a thousand years ago. Sweden is not blessed with a terrain or climate that is good for agriculture and this led to Sweden starting to import from Russia and South East Europe as long ago as the 11th century. It is strange to think that even at that time and long before the phrase was invented, Sweden was engaged in freight forwarding!
The long tradition of international trade has continued to evolve since that time and a thriving international freight sector has sprung up to service the needs of both importers and exporters.
Both the imports and exports from Sweden are now at a high level. Sweden has a very strong export sector and has made large surpluses on its trade for the last decade. The largest single export category is machinery and equipment, making up a third of all exports from Sweden. This has evolved directly from the important iron ore industry that began to be formed in Sweden as early as the seventeenth century. After machinery and equipment, the next most important exports are motor vehicles, paper products,chemicals,iron and steel products and pulp and wood. The vast majority of these exports are bulky items and some, such as chemicals, require freight forwarders to pay especially close attention to their safe freight transport. So the shipping companies that service Sweden’s exporters are highly experienced and have developed systems to ensure that every load is transported safely and securely.
Nearly 60% of all Swedish exports go to other countries in Europe. Of these, Germany is the most important, accounting for a share of 11%, followed by the United Kingdom, Norway and the United States of America, which account for 9% each. Stockholm Airport is an important freight forwarding hub for the transport of goods overseas and especially to the United States, although shipping by sea is also used extensively.
Of slightly less importance as trade partners are the neighbouring countries of Denmark and Finland, accounting for 6% and 5% of Swedish exports respectively. Trade with Denmark is now made easier since the creation of the Oresunde Bridge, which spans the kilometres of water separating the two countries. Freight forwarders have been able to trim journey times and costs since the bridge was opened.
Although much of Sweden’s exports are raw materials and resources such as pulp, wood and iron ore, Sweden also exports branded products. Some Swedish export brands are incredibly well known right across the globe. Indeed, there surely cannot be many people who have not heard of household names such as Ericsson, Volvo, Saab, Electrolux or IKEA.
European countries also account for the majority of the imports into Sweden. The main imports are chemicals, clothing, foodstuffs, motor vehicles, iron and steel, machinery, petroleum and petroleum products.
Indeed, nearly 70% of all imports to Sweden come from within the European Union, with the most significant amount coming from Germany, United Kingdom, France and Norway. The United Kingdom is single-handedly responsible for 10% of all of Sweden’s imports.
This steady stream of international trade between Sweden and the United Kingdom has spawned the development of an effective infrastructure for international freight between the two countries, with a number of freight forwarders having established expertise and robust systems, so that the whole process of the freight transport of goods can be relied upon to be speedy and trouble free.
In recent years, freight forwarders have started making increasing use of IT and technology to make the systems still more streamlined and customer-focussed and freight forwarding between the UK and Sweden is at the forefront of this trend.
Sweden has a long and illustrious history of international trade and the freight services sector is now embracing modern technology to ensure that it has a bright future too. The economy in Sweden is robust and has been less rocked than most other countries by the current period ofeconomic turbulence. The freight company or shipping company involved in Swedish international freight can face the future with confidence, despite the downturn, knowing that for Sweden, imports and exports are its lifeblood.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from SwedenRelated Blogs about companies, company, forwarders, forwarding, freight, international, services, shipping, transport, business
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