Peel Ports Group and Westfal-Larsen Shipping working together with new Far East break bulk service for Port of Liverpool
Peel Ports and Westfal-Larsen Shipping has worked closely to create an innovative cost-effective solution which consolidates customer demand across these two commodities, ensuring the critical volume required to support a regular service via the Port of Liverpool is met.
The new break bulk service will give customers more choice and open up the option of shipping smaller parcels from Far East suppliers. The UK does not produce plywood so all market demand is met by way of imports, the vast majority of which – circa 550kt per annum - comes from the Far East.
Roy Merryweather, Business Development Manager at Port of Liverpool for Peel Ports, said: “Working with Westfal-Larsen Shippingto expandbreak bulk services to include Liverpool will allow us to tap into new business markets.
As a service industry business, we are constantly assessing our offering and reshaping our business to ensure our customers benefit from the best logistics solutions and a consistent quality of delivery with added value to their supply chains.”
He also said: “Plywood and steel are proving to be two growing import commodities for the UK. With the housing market in the north recovering, we expect to see demand for these commodities increase accordingly – making Liverpool the obvious import location for non-EU products such as this.”
The Port of Liverpool is the UK’s most centrally positioned port and can connect to the major conurbations of Glasgow, Dublin, Belfast and Manchester, via the Manchester Ship Canal by water. Its geographic advantage makes the Port of Liverpool the most sustainable inland route for goods destined for the Midlands, Northern England, Scotland, Ireland and North Wales and helps eliminate the need for costly trans-UK road and rail haulage.
Ann-Christin Eggum, Vice President of Chartering and Operations at Westfal-Larsen Shipping, said: “By working together, WLS and Peel Ports hopes that this first vessel will be the start of a long and fruitful relationship between the two companies, both of whom are looking to develop the service and attract additional cargoes.”
The M/V Osakana, one of Westfal-Larsen’s O class fleet of vessels, was the first vessel to arrive at the Port of Liverpool on March 24 discharging 4,000 tonnes of plywood and steel coil cargo. Peel Ports is able to discharge, handle and store the cargo on a single quayside facility.
This is the first time in ten years that a route will combine shipments of steel and plywood via the Port of Liverpool. It is hoped that this service will resurrect the trade of Plywood through Liverpool, increasing potential business opportunities and port coverage.
Driver shortages: Why the industry needs to be worried
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