Chartered Institute of Logistics and Transport UK News

Fall in congestion delays during 2009

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

Average vehicle delays on roads in England fell on the slowest ten per cent of trips to 3.55 minutes per ten miles, down from 3.90 minutes, last year.

The 2009 data is compared with a baseline 12 months to March 2008 and also shows that person journey times across the country's ten largest urban areas fell by 5.5 per cent in 2008-09 to four minutes and one second per mile.

According to the Department for Transport report on congestion in major urban areas in England, person miles travelled dipped over the 12 months of the 2008-09 academic year by 0.8 per cent.

Meanwhile, average journey times across local authority-managed 'A' roads in England dropped by one second per mile compared with 2006-07 to two minutes and 14 second per mile, or 27 miles an hour.

Average journey times could fall still further under new government plans to provide councils with greater powers to tackle roadworks delays and problems.

Recovery forecast for express delivery sector

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

The express markets are expected to benefit from the global economic recovery that is gradually taking place, a new report suggests.

According to Datamonitor, the e-commerce etail sector has been boosted by growth in online retail witnessed during the downturn and has not seen the same sluggish performance as other parts of the industry.

"This offers post offices and other firms a much-needed lifeline out of a difficult trading environment," the study claims, adding that spending over the internet was pushed up during the festive period by offers of free delivery and discount codes.

Datamonitor's Verdict Research also reveals that TNT has moved its focus towards home delivery and is partnering with large retailers looking to establish themselves online in Europe, following a trend for "cross-border business-to-consumer volumes".

Meanwhile, figures from the IMRG Capgemini e-Retail Sales Index recently showed that UK e-retail activity rose by 14 per cent in 2010 despite the recession.

DSV wins M&S drinks distribution deal

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

A new agreement has been signed between DSV and Marks & Spencer (M&S) for the distribution of beer, wine and spirits around the UK.

Under the two-year deal, DSV Road will be responsible for the transportation of products from suppliers to the Daventry M&S Distribution Centre using both dedicated and network vehicles.

The agreement includes one-hour time slots for deliveries and is expected to enhance efficiencies and reduce costs for the retailer through the implementation of a range of new measures.

"Not only have we designed the collection routes to minimise road miles as much as possible, our vehicles meet the highest emissions standards and all our drivers are SAFED trained to reduce fuel consumption," DSV Road head of sales and marketing Chris Malyon said.

Danish firm DSV operates in more than 60 countries worldwide and has three divisions providing a range of transport and logistics solutions -the Road, Air & Sea and Solutions units.

BAWC reports increase in Q3 traffic

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

British Airways World Cargo (BAWC) has revealed that traffic increased over the third quarter of its financial year by 3.2 per cent.

Volumes rose over the period in question year-on-year to 1,203 cargo tonne kilometres and the carrier also revealed that sales dipped by 25 per cent over the nine months to the end of December to £402 million, Logistics Manager reports.

Commenting on the latest figures, BAWC managing director Steve Gunning explained to the news source that although "it is by no means certain that we are on a straight path to recovery", he is "cautiously optimistic" about the company's future prospects.

The company has reduced capacity over the first three quarters of the fiscal year by 4.9 per cent, having witnessed drops in traffic and overall yield over the period.

BA recently reported its operating loss for the nine months to December was lower than expected at £86 million, down from £89 million for the same period of 2008.

Food supply chains 'need to focus on sustainability'

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

Operators of foodservice supply chains and companies are failing to place enough emphasis on green issues, a new report claims.

The Chain Reactions study by Keystone Distribution suggests that 73 per cent of operators in the industry believe that it needs to start focusing more closely on sustainability, Logistics Manager reports.

It is based on a survey of 40 foodservice chains and 40 manufacturers in the sector, which revealed that 46 per cent and 36 per cent respectively do not believe the issue is taken seriously enough by most firms.

The poll also found that the greatest barriers to the implementation of environmentally-friendly measures included a reluctance to collaborate within the industry, high costs and problems with supply chain partners.

"It's important to seek out a supply chain partner who can use innovation," Paul Pegg, Keystone Distribution Europe vice-president told the news source.

In related news, research by AT Kearney on the Carbon Disclosure Project recently found that climate change issues are having a major impact on supply chain operations.

Jaguar Land Rover shipment deal renewed

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

Wallenius Wilhelmsen Logistics (WWL) has announced that Jaguar Land Rover has renewed a contract with it for the shipment of vehicles from the UK.

Distribution of cars to North America and Oceania is covered in the deal and the finished vehicle logistics firm claims that it is "significant".

It will see 45,000 or more cars shipped by WWL each year on behalf of Jaguar and Land Rover to destinations in the US, Canada, Australia and New Zealand, with terminal services provided at the port of Southampton.

Managing director John Speakman notes that the agreement "further extends our relationship with two of the world's most prestigious vehicle brands" in a "tough economic climate".

The two companies have worked together since the 1980s and the long-term pact will expand the relationship further, with a view to creating more efficient supply chains and reducing the impact of operations on the environment, he added.

In related news, data from the Society of Motor Manufacturers and Traders has revealed a 29.8 per cent increase in new car registrations year-on-year during January to 145,479 units.

UK traffic falls in Q4 2009

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

Traffic levels in Britain fell by 0.9 per cent overall during the fourth quarter of last year.

New Department for Transport figures for the last three months of 2009 show that the fall comprised a one per cent drop in car volumes and a dip of five per cent in heavy goods vehicles on the roads.

However, the data was pushed up by light van traffic, which increased by three per cent during the quarter.

During 2009 as a whole, a 1.3 per cent decrease was seen in traffic levels compared with 2008.

Additionally, motorway volumes were unchanged and falls were seen on all other types of highway except for urban A roads.

Traffic on UK roads has been severely disrupted over the past few months by plummeting temperatures, snow and ice, with many local authorities running low on supplies of grit and forced to cut back on their usage.

BA results better than expected

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

BA losses for the first three-quarters of the financial year were lower than expected, the company has reported.

In its nine-month interim management statement for the nine months to December 31st, the carrier revealed that its operating loss for the period was £86 million, down from a £89 million profit the previous year, while revenue fell by 12.9 per cent over the period in question.

However, operating profit during the third quarter rose to £25 million compared with a £51 million loss for the same three months of 2008.

Additionally, total operating costs fell during the nine-month period by 10.5 per cent and unit costs were 6.7 per cent lower year-on-year as a result of attempts to reduce expenditure across the company.

Willie Walsh, BA chief executive, remarked: "We've adapted quickly to the new business realities created by the global recession."

However, he added: "While we are on the right track, we still expect to make record losses this year."

BA cargo traffic rose by 6.5 per cent in January 2010 compared with the same month of last year, while passenger traffic dipped by seven per cent.

Further rise in new car registrations

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

UK new car registrations increased by 29.8 per cent year-on-year in January, new figures show.

Reporting the seventh monthly rise in a row, the Society of Motor Manufacturers and Traders revealed that 145,479 units were sold during the month.

The scrappage scheme was responsible for 17.8 per cent of purchases during January, despite a return to the 17.5 per cent VAT rate from a discounted 15 per cent introduced to combat the effects of the recession.

SMMT chief executive Paul Everitt said that the data "provides a better than expected start to 2010 for the UK motor industry" and welcomed the news that the cash for bangers initiative is being extended by another month to the end of March to allow for remaining budget to be used up.

However, he warned that 2010 could be "another difficult year" for the vehicle manufacturing sector, although there "encouraging" signs that recovery is taking place in the fleet and business sectors.

The government's scrappage scheme provides discounts of up to £2,000 off the price of a new car when an older model is traded in.

Smaller firms will not have to pay Crossrail levy

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

The Mayor of London has unveiled plans to exempt up to 4,000 of the capital's smaller businesses from a proposed levy that will be used to fund the Crossrail project by riaisng the rateable value threshold to more than £55,000.

A levy of 2p per pound is planned for firms and areas of the city that will benefit most from the cross-London rail link will be expected to pay more, according to Boris Johnson.

Over 80 per cent of businesses in London will not pay a supplement for the infrastructure project, with the Crossrail Business Rate Supplement (BRS) payable from April 2010 and contributing more than £4 billion to the project.

"When Crossrail is completed in around seven years, London will be the best connected city in the world where people will be able to criss-cross the capital at speed and in comfort," Mr Johnson said.

Designed to boost capacity on the capital's rail network by ten per cent, Crossrail is aimed at tackling congestion and will traverse the city from east to west.

New plans 'to simplify speed limit regulations'

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

A series of new proposals will simplify the current system of motorway speed limits for coaches, buses and heavy goods vehicles (HGVs) in the UK, the government claims.

The Department for Transport has published plans to clarify the rules in light of differences between newer models fitted with speed limits and older vehicles.

According to the government, the variation can cause confusion for motorists and reduces the incentive for businesses to invest in more fuel-efficient, safer fleets.

Under the proposals, a limit of 65mph will be imposed for all buses, minibuses and coaches with nine or more passenger seats and a motorway maximum of 60mph for all HGVs weighing more than 3.5 tonnes.

Restrictions will also be placed on the use of the right-hand lane by such models.

"We want to provide clarity for everybody - drivers, operators, other motorists and the police," road safety minister Paul Clark commented.

Additionally, the reduced 65 mph speed limit will also apply to any dual-purpose vehicles and motor-caravans in excess of 3.05 tonnes or adapted for more than eight passengers.

Businesses 'turn to alternative distribution channels after strikes'

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

Last year's Royal Mail strikes, which disrupted millions of pieces of post, have caused many firms in the UK to seek alternative couriers.

Marketing director for the Internet Media in Retail Group (IMRG) Tim Jones explained that surveys have shown "high levels of dissatisfaction" with both the national carrier and other delivery agents.

"A lot of retailers were able to minimise the disruption of the Royal Mail strikes, either by informing consumers that their deliveries were going to be later, or by switching to alternative carriers," he stated.

The e-commerce expert noted that overall courier companies coped well with the spike in demand caused by the industrial action.

Mr Smith's remarks follow a November study by the IMRG, which indicated that the strikes by postal workers affected online sales, causing them to drop by five per cent during a single week.

Distribution specialist DPD has unveiled a new service that provides customers with a one hour home delivery slot to reduce inconvenience and waiting times.

Commercial space travel will be "life changing"

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

The experience of going into space is "life changing" and the advent of commercial travel will "revolutionise access", it has been claimed.

According to Virgin Galactic president Will Whitehorn, astronauts who have been into space claim that the experience has altered their lives, with "this vision of the planet earth below you" and views of around 1,500 miles in each direction.

His comments come after Virgin Galactic unveiled its SpaceShipTwo (SS2) at the end of last year, which has been dubbed the world's first manned commercial space craft.

"It is expensive and ultimately we can get the price down, but at the end of the day, gravity doesn't give you a discount," Mr Whitehorn warned, stating that tickets would never become cheap and would retail at around £50,000-£60,000 after six years in operation.

He called those people taking the first flights into space "pioneers", with US citizens the biggest purchasers of tickets followed by those in the UK, France, Japan and Australia.

Work reaches completion on Bank station

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

Bank station in London has reopened as upgrade work has finished at the facility.

According to Transport for London (TfL), Docklands Light Railway (DLR) has confirmed that platforms at the station are now back in use.

It has been enhanced to allow for three-car operation in order to permit the gradual introduction of longer trains between Bank and Lewisham in east London.

Improvements have been carried out on platforms, lighting and signage.

"These upgrades represent the final piece in the three-car jigsaw on the Bank-Lewisham route, so we look forward to seeing the first of our longer trains shortly enter service," DLR director Jonathan Fox said.

In related news, Mayor of London Boris Johnson recently visited Shoreditch High Street station to inspect work being carried out on the new East London Line of the overground rail network in London.

It forms part of a multi-billion pound Investment Programme by TfL and 12 trains an hour will operate between the north east and south east of the capital when it opens.

Manufacturing export orders 'starting to rise'

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

In a further sign that the UK manufacturing sector is stabilising, export orders rose in the quarter to January 2010.

This is according to figures from the Confederation of British Industry (CBI), which show that volumes expanded over the three months following seven quarters in a row of decline.

In its latest SME Trends Survey, the body reveals that the balance of overseas orders was +2 per cent over the period in question, the highest level it has stood at since January 2008, while manufacturing production was up by +1 per cent.

The CBI reports that "small and medium-sized manufacturers are starting to benefit from the relative weakness of sterling" and export activity is expected to grow further over the next quarter, with firms becoming increasingly optimistic about their future prospects.

Recent data from Markit Economic and CIPS supported the CBI's findings, showing that the measure of production activity reached 56.7 last month last month, up from 54.6 in December.

Climate change 'becoming key factor of supply chains'

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

Carbon management is playing a growing role in supply chain management, it has been claimed.

This is the conclusion of a new report published by AT Kearney, which showed that six per cent of leading firms will choose to deselect suppliers failing to address green issues and 56 per cent plan to do so in the future.

It is the second study based on the Carbon Disclosure Project (CDP) and covers 710 companies including global corporations such as Dell, National Grid and PepsiCo, with members of the scheme found to be leading the way in terms of carbon management both within their own operations and those of their suppliers.

"It is clear that some companies are now requiring their suppliers to address carbon management as a core business issue," CDP chief executive Paul Dickinson remarked.

However, the report notes that measuring emissions across supply chains still remains a challenge, with just 20 per cent of CDP members currently publishing such figures.

In January, the government unveiled plans to increase the security of food supply changes in light of the future impact of climate change and rising fuel costs.

MCA praised for regulatory improvements

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

A new report from the Better Regulation Executive has noted that progress has been made by the Maritime and Coastguard Agency (MCA).

The Department for Business, Innovation and Skills body concluded that the agency has been "putting better regulation principles into practice" by improving the way in which it operates in an international regulatory environment, its risk-based outlook and communication with external stakeholders.

Identifying ways in which the MCA could further enhance its performance, the report recommended a "more systematic implementation of regulation", greater focus on specific sectors and a stronger emphasis on customers in order to fully implement better regulation principles.

The assessment is one in a series of reviews of regulators in the UK based on principles of effective regulation outlined in 2005 by Philip Hampton.

With 97 per cent of UK trade by weight transported by sea, the MCA is charged with the implementation of the government's maritime safety policy in line with national and international rules.

Electric car charging capacity 'may not be available'

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

There are many questions that need to be answered before it is determined whether or not future plans for electric vehicles are viable, an expert has claimed.

Association of British Drivers (ABD) spokesman Brian Macdowell suggested that the capacity needed for the charging of such vehicles may not be available if they are to go "mainstream".

He explained that "the government is refusing to answer the question of whether there will be sufficient power in the power stations" to supply a potential 32 million cars, as they currently require a huge amount of electricity to be run and serviced".

Mr Macdowell noted "there is also a big question about the lithium required for the batteries" and whether there are enough resources around the world to support a sharp increase in production.

His remarks follow an announcement by vehicle manufacturer Think that it is collaborating with AeroVironment to develop fast-charging infrastructure for electric vehicles in the US.

Logistics property market 'expanded in 2009'

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

The logistics property market in the UK has remained relatively resilient during 2009 and is showing signs of growth.

New figures from commercial real estate advisor CB Richard Ellis (CBRE) showed that the level of investment in UK distribution warehouses rose from £1.3 billion in 2008 to £1.4 billion last year, with activity in the south of England particularly high.

The company has suggested that the UK logistics market appears to be returning to "better health", with signs of a "sustained recovery" in prime yields and improved confidence among investors.

CBRE head of industrial agency Paul Farrow remarked that although occupiers are expected to remain cautious this year and levels of speculative development are likely to remain low, "the industrial and logistics market is undeniably in better health going forward than at the end of 2008".

Previous data from CBRE revealed that commercial property rents expanded one per cent during the last three months of 2009.

Sharp rise in production index indicative of recovery

webmaster@ciltuk.org.uk — Tue, 09 Feb 2010 03:07:22 GMT

A key manufacturing index expanded at its most rapid rate in 15 years to 56.7 during January 2010.

The latest figures from Markit Economic and CIPS revealed that the measure of activity grew from an upwardly revised 54.6 in December, exceeding analysts' predictions.

Any figure above 50 indicates growth in activity and exports were boosted by the weak pound to push up the index, suggesting that manufacturing is recovering from the economic downturn.

"The survey raises hopes that the sluggish recovery from recession signalled by GDP data in the final quarter of last year will have gained momentum as we move into 2010," Markit senior economist Rob Dobson remarked.

According to the data, January also saw growth in the employment index, with producers gradually starting to hire more staff.

Commenting on the index, Howard Archer of Global Insight claimed that it provides a welcome surprise and predicted that economic growth could be revised up for the fourth quarter of 2009.