Chartered Institute of Logistics and Transport UK News

Manhattan Associates 'boosts Weetabix supply chain'

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

Manhattan Associates has improved stock accuracy for the Weetabix Food Company from below 90 per cent to 99.9 per cent.

The breakfast cereal manufacturer has deployed a warehouse management solution from Manhattan Associates to enhance its operational efficiency at two of its facilities in Northamptonshire.

Located on its Burton Latimer site, two warehouses serving customers across the UK have implemented the new system to date and George Perry, Weetabix head of supply chain, announced plans to deploy the solution at a third warehouse at the location, which is dedicated to exports.

A review of Weetabix's existing technology infrastructure was conducted before Manhattan Associates' supply chain platform was implemented.

"Weetabix's thorough preparation in terms of testing, training and due diligence meant that the company was able to see benefits immediately after the implementation," Manhattan Associates UK managing director Allen Scott remarked.

Established 19 years ago, Manhattan Associates employs around 2,000 people and specialises in supply chain optimisation solutions for over 1,200 customers around the world.

Criticism for Royal Mail strike plans

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The business secretary has hit out at plans by Royal Mail workers to strike, describing it as a "head-in-the sand approach" to modernisation.

Lord Mandelson insisted that the postal service "needs to change and modernise" in order to compete effectively and called on staff to embrace the proposed overhaul.

The Communication Workers Union (CWU) has announced that staff in London will strike from July 8th to 10th in a series of rolling 24-hour walkouts over jobs, hours and wage cuts.

Delivery workers, distribution and logistics employees and mail centres are all involved in the industrial action, affecting the capital's mail network.

"We want automation, better industrial relations and faster progress on modernisation," CWU London divisional representative Martin Walsh declared, adding that current reforms were being "driven by bullies" and were not effectively modernising the business.

The CWU has welcomed an announcement by Lord Mandelson that the privatisation of Royal Mail will be postponed.

Union welcomes turnaround on ID card plans

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The decision by the Government to drop plans to make identity cards mandatory for airport workers and pilots have been welcomed by union leaders.

National officer of Unite Brian Boyd suggested that the proposal to trial compulsory ID cards for airside workers at Manchester and London City airports was "flawed".

"Our approach, in pursuing the government on behalf of many thousands of airside workers who would have been disadvantaged by the introduction of ID cards, has been fully vindicated," he added.

Home secretary Alan Johnson revealed this week that he plans to abandon the compulsory roll out of ID cards to aviation staff in order to boost airport security.

However, the government is accelerating its identity cards programme, with the scheme expanded from Greater Manchester to the whole north-west of England from the start of 2010.

An estimated 50,000 non-European economic area foreign nationals living and working in the UK have been issued with compulsory cards.

Final Napoli section lifted

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The last section of the MSC Napoli has been lifted and cutting work has now started on the remainder of the ship.

According to the Maritime and Coastguard Agency (MCA), salvors have suspended the wreck by lifting chains and locked it in place, with cutting operations beginning shortly after the lift was successfully completed.

The agreed salvage plan is continuing as proposed and no reports have been received by the MCA of pollution in the vicinity of the wreck, around which a 500m temporary exclusion zone has been placed.

Under the current contract with Global Response Maritime, the final part of the vessel - which ran aground during a storm in January 2007 - will be lifted, cut and transported for demolition and recycling to the facility of Scheepssloperij Nederland at Gravendeel in the Netherlands.

A test lift of the hull section was recently carried out before cut sections of the wreck could be removed from the sea off the coast of Branscombe in Devon.

Government launches £30m fund for green buses

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The Department for Transport has created a new £30 million fund to promote greener buses.

Intended to encourage more operators and councils to purchase low-carbon public transport vehicles, the pot is part of a government strategy to improve air quality in cities.

Commenting on the scheme, transport secretary Andrew Adonis remarked: "I'm delighted that this is an industry where UK manufacturers are leading the field."

The minister added that several hundred buses could be purchased through the fund, which he claimed would "help to safeguard up to 900 jobs in bus manufacturing".

Buyers will be able to apply for grants to help them to meet the initial costs of ordering low-carbon buses, which cut fuel consumption by around 30 per cent and carbon emissions by a third compared with conventional vehicles.

In related news, London mayor Boris Johnson recently announced that a number of major fleet owners in the capital have pledged to invest in electric vehicles in order to reduce their impact on the environment.

Calls to improve European HGV driver security

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

Hauliers within the European Union (EU) should be given greater protection against crime, it has been suggested.

Long-haul heavy goods vehicle (HGV) drivers are the subject of a campaign by Anne Jensen, a substitute member in the EU parliamentary transport committee, to create safer and more secure stops for trucks.

Recent data from Europol indicates that thefts from long-haul trucks in Europe total €8.2 billion (£7 billion) a year and Ms Jensen claimed that HGVs are "a very vulnerable part of the transport chain", adding that people could be deterred from becoming drivers if the trend continues.

Per-Anders Grosfjeld, marketing manager for transport information systems at Volvo Trucks, stated: "These attacks are a serious threat to the safety and security that commercial vehicle drivers have the right to enjoy in the pursuit of their profession."

The company is supporting the EU initiative to tackle cargo thefts within European supply chains - particularly incidents of roadside piracy - and has launched a new security surveillance service for goods transport.

Volvo recently unveiled its new FH16 700 haulage truck, which provides companies with improved performance and fuel economy.

Conference tackles seafarer fatigue

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The problems associated with seafarer fatigue have been the subject of a conference in Warsash, Southampton.

Part of a multi-partner European research project, the Hampshire meeting launched the 30-month study, which involves 11 academic institutions and organisations and will use "bridge, engine and liquid cargo handling simulators" located in both the UK and Sweden to produce potential scenarios.

According to the Maritime and Coastguard Agency (MCA), the €3.78 million (£3.24 million) project will explore the ways in which the "cognitive performance" of watchkeepers is affected by fatigue and develop a toolkit and working patterns to improve safety at sea.

"The MCA is pleased to be part of the consortium for this highly significant project," Captain David Turner, the organisation's human element policy manager, remarked.

The agency - which is responsible for implementing the government's maritime safety policy around the 11,072 miles of UK coastline - has agreed a three-year plan to combat seafarer fatigue focused on enforcing existing hours of work regulations, securing international recognition of the problem and achieving a "culture shift" in the shipping industry.

Optimism 'returning to shipping sector'

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The international shipping industry has witnessed a slight increase in confidence over the past quarter, new data has revealed.

Research by consultancy Moore Stephens found that its latest Shipping Confidence Survey rose from 5.4 on a scale of one to ten in the three months to February 2009 to 5.5 during the past quarter, although optimism among brokers fell slightly over the period.

According to the study, the highest confidence levels were found in Asia and the number of respondents planning to make a "major investment or significant development" over the next 12 months rose slightly to 5.0.

However, concerns exist over a "glut" of new ships that will enter the market over the coming year and toxic debt associated with them.

Recent figures from the Department for Transport revealed that freight traffic fell by five per cent at UK ports over the year to the end of the first quarter of 2009.

Clipper Logistics nets Asda processing and delivery contract

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

Clipper Logistics has been chosen by the Asda/George Direct online operation to manage its website orders and deliveries.

Under the terms of the deal, the Leeds-based logistics specialist has provided the retailer with a goods delivery service and a complex warehouse system at its site in Ollerton for the processing of internet orders.

A number of conveyors for garments and cartons have been installed at the facility and a new warehouse team has been appointed to the Asda contract as part of the 16-week project.

According to Logistics Manager, Ian Stansfield, distribution director at Asda, praised Clipper Logistics, stating: "Working within very short and demanding timescales, the team has provided Asda with robust solutions for some of our supply chain challenges."

The Clipper warehouse management system has been integrated with the Asda IT network to provide enhanced customer support.

Founded in 1992, Clipper Logistics is an independent logistics specialist with an annual turnover of around £200 million, a network of 28 distribution centres and 2,500 employees.

National Express loses East Coast franchise

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The government has revealed that the East Coast rail franchise is being taken back into public ownership from today (July 1st).

According to National Express - which has operated the franchise since 2007 - losses made as a result of the contract are likely to total £20 million for January to June 2009 and it is no longer prepared to provide financial support for the routes.

A fall in passenger numbers has been blamed for the drop in profits across the franchise and ministers turned down a request from National Rail to renegotiate the deal, announcing plans instead to tender the contract from late 2010.

"It is simply unacceptable to reap the benefits of contracts when times are good, only to walk away from them when times become more challenging," transport secretary Lord Adonis said in a statement.

Existing operational staff will be transferred to a new state-owned East Coast Main Line company and all services will continue to run.

National Express has also announced that its current chief executive, Richard Bowker, will leave his post at the end of August 2009 to take up a new role in the UAE.

Logistics companies 'look to China for growth'

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

In the current economic climate, a number of international logistics business are looking at China and Asia to drive growth forward, it has been suggested.

According to Transport Intelligence analyst Thomas Cullen, trade in China is entering a "new phase" and Lloyds List has reported that Danish container line Maersk is examining the potential of its intra-Asian shipping business for future expansion.

With some indicators of future growth now being seen in the global logistics industry, he claimed that reports on the Chinese economy have indicated a shift from exports towards domestic consumption.

This movement means that the country will increasingly import raw materials from developing nations and items and services from more developed nations in the Asia-Pacific region.

Mr Cullen predicted that trans-pacific and China-Europe shipping routes will "reduce and rebalance", with intra Asia-Pacific and other trade lanes will "grow in their stead".

Recent data from the Association of Asia Pacific Airlines indicated a fall in international freight traffic in the region of 18.6 per cent during May this year, while cargo capacity dipped by 16 per cent.

Olympic routes roads announced

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The Department for Transport has announced the roads that will make up the Olympic Route Network (ORN) during the London 2012 Games.

Following a public consultation on the issue, a series of highways have been designated part of the ORN and will be subject to traffic management measures during the sporting event, such as upgraded signals and control from a London centre.

More than 70,000 athletes, officials, media professionals and sponsors are expected to travel between the various Olympic venues during summer 2012, including venues and accommodation.

Transport minister Sadiq Khan commented that the plans would be implemented "in a way designed to keep London and other competition areas moving" and added that they would leave "a positive legacy for the city in terms of improved traffic management infrastructure".

The Olympic Delivery Authority now intends to discuss the ORN with residents, businesses and other parties to determine the specifics of the plans.

In related news, Nick Mercer, commercial director of Eurostar, recently noted that the London 2012 Olympic Games will have a significant impact upon business travel in the city throughout the course of the 16 day event.

Strict new penalties for drivers

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

Drivers who fail to wear their seatbelts or who are found behind the wheel with illegal numberplates will face tougher penalties, the Home Office has announced.

Intended to improve road safety, the change to current legislation will see motorists issued with steeper on-the-spot fines of £60 for the two offences.

The fixed penalty notices or not wearing a seatbelt or putting illegal plates on a vehicle have increased from £30 to £60 following a public consultation on continuing non-compliance with seatbelt legislation.

Failure to wear a seatbelt can place passengers and drivers in danger and Home Office minister Alan Campbell remarked that "those who do not obey the rules are not only risking their lives but others too".

Commenting recently on Department for Transport figures indicating that the number of casualties on British roads is falling, Neil Greig, director of policy and research at the Institute of Advanced Motorists, urged road users to view driving as "a skill for life" and to take responsibility for their safety.

Culina teams up with SHS in Ireland

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

Culina Logistics has revealed that it has teamed up with SHS Group in Ireland to form a new business.

The joint venture will develop a "major ambient and chilled warehouse" south of Dublin for the storage and distribution of products.

Covering 160,000 sq ft (14,850 sq m) on the Aerodrome Business Park, the facility is scheduled for completion in January 2010 and will feature a Culina warehouse management system.

Culina SHS Ireland will offer British manufacturers a "seamless supply chain solution" that includes the Irish market, according to the logistics specialist.

"Manufacturers have long seen the potential in Ireland, but many have lacked the operational platform to take full advantage of the available opportunities," Culina chief executive Thomas van Mourik remarked, adding that the joint venture will allow them to integrate the country into a single system.

Culina Logistics recently appointed Mark Carrol, former Wincanton divisional finance director, as its new chief financial officer.

Highways Agency issues heat warning to motorists

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

Drivers should take regular breaks and carry drinking water with them during the current spell of hot weather, the Highways Agency has advised.

According to a warning issued to road users, journeys should be carefully planned before setting off and traffic information services consulted.

The Met Office has forecast hot weather across the UK, with temperatures of up to 30 degrees C expected in some areas along with high humidity.

Officers from the Highways Agency will be patrolling roads and operating control rooms in order to ensure that traffic flows smoothly and drivers who get into difficulty receive assistance.

Anyone who breaks down on a motorway should park on the hard shoulder as far away from the carriageway as possible, contact the agency through an emergency roadside telephone and wait behind a safety fence.

Drivers are have been advised by motor care provider Autoglym to protect the paintwork on vehicles from the sun with a coating of wax or polish, as rays can break down the polymers that hold paint together.

London 2012 Games 'to impact business travel'

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The London 2012 Olympic Games will have a significant impact upon business travel, Eurostar has suggested.

Nick Mercer, commercial director of the company, explained that "you can over exaggerate the impact on business travel", but "most companies will have special plans" for the 16 days the games are on, in particular airlines and Eurostar.

He added that the "good news" is that the event is held during August when business travel falls to around half its usual level.

Mr Mercer's comments follow a recent study from Barclaycard revealing that around 75 per cent of business travellers expect to take trips more or the same amount this year as in 2008, with expansion of their operations in the UK or overseas given as reasons for planning to increase travel in 2009.

However, figures from the Association of Corporate Travel Executives indicated that the recession has forced firms to cut back on business travel, with many turning to communications technology as an alternative and others choosing lower-cost options.

Work commences early on new road scheme

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

A project to widen the A46 in Nottinghamshire has started early, the Highways Agency has announced.

Transport minister Chris Mole launched the scheme, which is scheduled for completion in 2012 and will cover a 17-mile stretch of single carriageway.

The widening work will upgrade the road from a single to a dual carriageway in order to improve driving times between the A1 and the M1.

Part of a £700 million fiscal stimulus package from the Department for Transport, work on the development between Newark and Widmerpool is intended to finish four years earlier than planned.

Speaking at an opening ceremony near East Bridgford, Nottinghamshire, Mr Mole said that the road widening would "benefit road users and many businesses in the region by providing quicker, more reliable and safer journeys between three of the major economic centres in the East Midlands."

However, the latest figures from the Department for Transport show that motor vehicle traffic levels fell by 0.8 per cent - or 4.1 billion vehicle kilometres - between 2007 and 2008, the first fall in traffic since 1979.

Freight demand falls further in May

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

International air cargo demand fell by 17.4 per cent during May this year compared with the same month in 2008, it has been revealed.

However, new data from the International Air Transport Association (IATA) indicated that the drop in freight demand was less acute than the 21.7 per cent fall recorded in April 2009.

The Geneva-based organisation noted that cargo demand has remained around -20 per cent each month since December 2008, and the dip in April is "one of the first physical signs of the economic recovery being anticipated in equity markets".

"We may have hit bottom, but we are a long way from recovery," Giovanni Bisignani, IATA director general and chief executive, cautioned. "Capacity is not aligned with demand."

Passenger numbers also declined last month by 9.3 per cent compared with May 2008, a fall from the -3.1 per cent seen in April but an improvement on March's 9.3 per cent decrease.

International passenger load factors declined from 74.5 per cent over the year to 71.2 per cent.

In related news, Andrew Haines has been appointed as the new chief executive of the Civil Aviation Authority from August this year.

New business plan launched by NCA

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

Nippon Cargo Airlines (NCA) has launched a new version of mid and long-term business plan in the wake of the global economic downturn.

The Tokyo-based venture has called the new proposal the Phoenix Project Declaration of Evolution and noted that lower demand for production had created an "unprecedented" slowdown in the cargo industry since the second half of 2008.

Designed to establish the airline's independence and to build on strong market growth, the original NCA Phoenix Project included an ambitious strategy to expand its operations, which was achieved in the 2008 financial year.

However, president Tadamasa Ishida explained that the company has readjusted its plans in light of the "current poor financial conditions" and to enable it to "take advantage" when the market starts to recover.

NCA now intends to improve its revenue and operating costs by cutting costs, simplifying scheduled services and increasing air logistics opportunities with a view to breaking even in 2011.

Founded in September 1978, NCA operates a fleet of eight Boeing 747-400F freighters and employs almost 1,000 people.

Royal Mail part-privatisation plans on hold

webmaster@ciltuk.org.uk — Sat, 04 Jul 2009 12:52:28 GMT

The business secretary has revealed that plans to sell a minority stake in Royal Mail to a private firm will be delayed until after parliament's summer break.

According to Lord Mandelson, the bill has been "jostled for space" in the House of Commons' legislative programme and will now be put before MPs at a later date.

However, the part-privatisation proposals have proven controversial and have been opposed by MPs from both sides of the house.

"I have to concede that the original linking of the legislative passage and the bidding process for the strategic partner has been decoupled," Lord Mandelson said in an interview with the Financial Times, pointing to the current economic climate as a further reason to postpone the planned sale.

However, he said that he still intended to implement the plans before the next general election in order to address its £8 billion pension deficit.

Commenting on the government's decision, chief of staff to the leader of the Liberal Democrats Danny Alexander stated: "This is a purely political decision made because the government is desperate to avoid another humiliating defeat."