May 17, 2020

Euro legacy air carriers will 'exit long haul freighter market'

Carriers
Europe
Air freight
Economy
Freddie Pierce
2 min
Coyne claims large air freight firms are a thing of the past
Larry Coyne, CEO of Coyne Airways, claims a new air cargo world order will emerge over the next five years, as European combination carriers make way f...

Larry  Coyne, CEO of Coyne Airways, claims a  new air cargo world order will emerge over the next five years, as European combination carriers make way for new kids on the block.
 
According to Coyne, niche carriers will come into their own, resulting in some, if not all, European legacy leaving the long haul freighter business as competition increases, yields from China continue to fall, economies tighten their belts, and shippers turn to surface transport.
 
The combination carriers have suffered a series of setbacks including 9/11, SARS, the volcano dust cloud, and, most seriously, price fixing charges,” said Coyne.
 
“They will increasingly concentrate on passenger cargo services, and the owners of long range freighters, like the B747-800, will need niche carriers like Coyne Airways to help them optimize loads. We can tap into local hubs where a single destination is not able to support a freighter operation.”
 
Coyne, whose airline Coyne Airways will celebrate its 20th anniversary next year, said the face of the business was changing, with Asian and Middle East operators stepping in to fill the long haul gap, small, agile regional carriers prospering in regional markets, and express operators continuing to target heavy cargo and new markets.
 
“We believe that ease of doing business will be an important differentiator as we prepare to celebrate 20 years in the business,” said Coyne
 
“Customers want to deal with real people with the right experience and knowledge, something we pride ourselves on at Coyne...Performance, especially speed, will continue to be important."

About Coyne Airways

Coyne Airways is an all-cargo airline based in London, UK, with a separate operation in Dubai, UAE, from where it serves all Gulf destinations with connections from North America, Europe, and Asia via a large network of interline partners. It operates scheduled cargo flights to Georgia, Armenia, Azerbaijan, Kazakhstan, Afghanistan, Iraq, and the UAE, using Antonov, Boeing, and Ilyshin aircraft, as required. 

Coyne Airways, which celebrates its 20th anniversary in 2013, provides reliable and secure scheduled cargo services to some of the world’s most difficult to reach destinations and has pioneered routes into the Caucuses, Central Asia, the oil and gas rich Sakhalin Island and, more recently, into Iraq, Afghanistan, and Africa.

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Jun 19, 2021

Driver shortages: Why the industry needs to be worried

Logistics
SCALA
supplychain
Brexit
Rob Wright, Executive Director...
4 min
Logistics professionals need urgent solutions to a shortage in drivers caused by a perfect storm of Brexit, COVID-19 and compounding economic factors

While driver shortages are a global problem, with a recent survey from the International Road Transport Union suggesting that driver shortages are expected to increase by 25% year-on-year across its 23 member countries, the issue has very much made itself felt for UK businesses in recent weeks. 

A perfect storm of factors, which many within the industry have been wary of, and warning about, for months, have led to a situation wherein businesses are suddenly facing significant difficulties around transporting goods to shelves on time, as well as inflated operating costs for doing so. 

What’s more, the public may also see price rises as a result due to demand outmatching supply for certain product lines, which in turn brings with it the risk of customer dissatisfaction and a hit to brand and stakeholder reputation. Given that this price inflation has been speculated to hit in October, when the extended grace period on Brexit customs checks comes to an end, the worst may be yet to come.

"Steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole"


That said, we have already been hearing reports of service interruption due to lack of driver availability, meaning that volumes aren’t being transported, or delivered, to required schedules and lead times. A real-world example of this occurred on the weekend of 4-6 June with convenience retailer Nisa, with deliveries to Nisa outlets across the UK affected by driver shortages to its logistics provider DHL.

But where has this skills shortage stemmed from? 

Supply is the primary issue. Specifically, the number of available EU drivers has decreased by up to 15,000 drivers due to Brexit alone, and this has been further exacerbated by drivers returning to their home country during the COVID-19 pandemic, as well as changes to foreign exchange rates making UK a less desirable place to live and work. This, alongside the recent need to manage IR35 tax changes, has also led to significant inflation in driver and transport costs.

COVID-19 complications have also meant that there have been no HGV driver tests over the past year, meaning the expected 6,000-7,000 new drivers over the past year have not appeared. With the return of the hospitality sector we understand that this is a significant challenge with, for instance, order delivery lead times being extended.

It is little surprise, therefore, that the Road Haulage Association (RHA) earlier this month became the latest in a long line of industry spokespeople to write to the government about the driver shortage for trucks. The letter echoed the view held by much of the industry, that the cause of this issue is both multi-faceted and, at least in some aspects, long-standing. 

So, many in the industry are in agreement as to the driving factors behind this crisis. But what can be done? 

Simply enough, outside of businesses completely reorganising their supply chain network, external support is needed. In the short-term, the government should consider providing the industry with financial aid, and this can also be supported more widely with legislative change. 

Specifically, immigration policy could be updated to place drivers on the shortage occupations list, which would go some way towards easing the burden created by foreign drivers returning to their home countries. Looking elsewhere, government should also look for ways to increase the availability of HGV driver tests after the blockage created by the coronavirus lockdowns.

Looking more long-term, steps must be taken to make a career in the industry a more attractive proposition for younger drivers, which will require a joint effort from government, industry bodies, and the sector as a whole. As it stands, multiple sources suggest that the average age of truck drivers in the UK is 48, with only one in every hundred drivers under the age of 25. We must therefore do more to increase the talent pipeline coming into the industry if we are to offset more significant skills shortages further down the line. 

On the back of a turbulent year for the supply chain industry, it has become increasingly clear that the long-foretold shortage of drivers is now having a tangible and, in places, crippling effect on supply chains. 

Drivers, and the wider supply chain industry, have rightly been recognised for the seismic role they played in keeping the nation moving and fed over the past year under unprecedented strain. If this level of service is to continue, we must now see Government answer calls to provide the support the sector needs, and work hand-in-hand with the industry to find a solution. If we do not see concrete action to this effect soon, we are likely to be in for a turbulent few months. 
 

Rob Wright is executive director at SCALA, a leading provider of management services for the supply chain and logistics sector

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