May 17, 2020

New air cargo route from Ecuador to Madrid

madrid
spain
ecuador
quito
Freddie Pierce
2 min
From Ecuador to Madrid with IAG
Follow @JosephWilkesWDM One of the worlds biggest air cargo companies has announced it will begin to offer cargo services on a new route as it looks to...

One of the world’s biggest air cargo companies has announced it will begin to offer cargo services on a new route as it looks to reach the Latin American market.

Beginning October 26 this year, IAG Cargo, owners of the Iberia air travel company, will be providing cargo services connecting Quito in Ecuador with its Madrid Hub.

The route will be serviced by Iberia's largest aircraft the Airbus A340-600. This has been made possible due to the opening of a new facility in Quito capable of facilitating this large aircraft.

These flights are in addition to the existing Madrid-Quito-Guayaquil-Madrid flights, which will now operate four times a week, rather than the current seven.

Rodrigo Casal, Regional Commercial Manager at IAG Cargo, said: "One of the key differentiators for IAG Cargo is its reach into the Latin American market.

“In fact, we offer more flights from Europe to Latin America than any other airline. Today's announcement highlights our commitment to providing businesses with rapid freight solutions on this crucial route. As demand for perishables remains resilient in Europe, we are well positioned to support customers with the capacity options they require."

Through the IAG Cargo network, customers in Ecuador can connect to 350 destinations worldwide.

On the outward legs, the new flights will depart Madrid on Mondays, Wednesdays and Saturdays at 12:35, arriving in Quito at 18:05. The return legs, meanwhile, will see flights depart Quito at 21:20, arriving at Madrid at 14:05 the following day.

With these direct flights the company aims to provide an important trade link for businesses in, amongst others, the perishable goods sector, with Holland and Spain in particular being important export markets for Ecuadorian goods such as fresh flowers.

Customers will be able to book capacity on the new service via IAG Cargo's online booking portal, www.iagcargo.com.

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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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