Freight news april 2016


header paris
A week in Paris on a digital journey

Any new business is good business for us – one of the reasons why our sales and marketing team spend a week in Paris - at the SITL, International Week of Transport and Logistics. The show is built around the themes of transport, logistics and freight forwarding and was visited by 40,500 professionals.

For the first time in 20 years we participated in this show to look for growth in our business in Western Europe by meeting both potential and current customers. Our team has reported back that the trade show generated interesting leads and that it was an important brand awareness channel for Stena Line. We were pleased to note that the visitors had a strong professional interest in our services, with a lot of focus especially on our direct route from Cherbourg in France to Rosslare in Ireland. There was also a lot of interest shown about the services we provide on the North Sea and across Scandinavia.

We are sure that our joint efforts will greatly contribute to more development of an effective corporation between our customers and Stena Line.

Earlier in March we held our annual Freight Conference in Liverpool for our entire freight sales organisation. One of the topics at the conference was ‘The Terminal of the Future’, a presentation of the visions of the logistics systems from 2016 to 2036. There are enormous opportunities for gains in efficiency and productivity in terminal to vessel operations. Many of these gains are incremental in nature, optimisations as opposed to step changes in practice. Most are fundamentally reliant upon enabling Information and Communication Technologies (ICT) combined with a smart approach to using existing infrastructure.

This topic was on the agenda as both sustainability and digitalization ambitions will drive our company’s future business model, enabling us to lead and make a positive impact in an ever changing world. In Stena Line we are on this digital journey!

It is important that we maintain and extend our profile in the industry and following on from SITL, our sales teams have a presence at four more shows over the coming weeks; Transrussia in Moscow on 19 – 22 May, two events in the UK – the CV Show on 26-28 April and MultiModal on 10-12 May at the National Exhibition Centre in Birmingham - and finishing with Breakbulk in Antwerp on 23-26 May. We look forward to meeting with you, to share our business knowledge and keeping you up-to-date on the latest developments.

Björn Petrusson
Freight Director 

Spring and summer North Sea routes 2016

Some years ago Stena Line decided to build new vessels for the routes Hoek van Holland - Killingholme and Hoek van Holland - Harwich routes.

Initially, shortly after the financial crisis, the market was not very favourable. But fortunately, things have changed. The economy in the UK is favourable and looks promising for this year as well.

Last year we reached a record number of trucks transported on the North Sea. This was a result of both market development, as well as the customer looking for alternative routes for their supply chains.

For 2016 we are receiving strong signals that we can welcome a large number of trucks on our vessels again, not least because of the increased road tax cost in Belgium as of 1 April. The weather is improving and we are already starting to see an increase of the traditional export of fresh products to the UK. The high quality of the fresh products from Holland is well known abroad and the exports to the UK and Ireland look very promising. Historically, the peak period of the fresh products coincides with the increased passenger numbers during spring and summer so we can expect another busy period.

We trust that all of our regular customers will benefit from our services on the North Sea!

Rob Mittelmeijer
Freight Commercial manager

enviroment climat change
Understanding Climate Change

 

 

The 2015 United Nations Climate Change Conference, held in Paris negotiated a global agreement on the reduction of climate change, 

 

the text of the agreement represents a consensus of the representatives of the 196 parties, including 146 nations

 

The Paris Agreement, as it has become known, calls for zero net anthropogenic greenhouse gas emissions to be reached during the second half of the 21st century and limiting the post-industrial era temperature increase to, 1.5 °C. The parties will sign the agreement in New York between 22 April 2016 (Earth Day) and 21 April 2017, and also adopt it within their own legal systems through ratification, acceptance, approval, or accession. There is real urgency for global action because some scientists say the World needs to reach zero emissions sometime between 2030 and 2050 to achieve the targets that have been set.

 

One of the largest consumers of fossil fuels is transportation. Private cars, freight transport, aircraft and shipping all contribute to greenhouse gas emissions, driven by activity and wealth creation of the global economy. It is inevitable that as a result of the Paris Agreement, greater environmental demands will require further limiting legislation to change human behaviour and the way the world works. Most of us will realise that caring for the environment will come at a cost so it usually requires legislation to galvanize collective action. Last year for example, the Sulphur Emission Control Area (SECA) was introduced to the English Channel, North Sea and Baltic Sea (MARPOL 1973/1978 Agreements – short for Marine Pollution). So far, the impact of this transition has been muted due to a temporary fall in the global price of crude oil. SECA will, of course, be extended to the Irish Sea – in four years - at the start of this decade; it is inevitable that due to a design life of 30+ years for existing tonnage, the extension of SECA will result in a rise in Irish Sea Bunker Adjustment Factor (BAF) charges.

 

The decisions Stena Line takes today need to be vested in the long term for our customers, our society and for the future our planet. Stena Line’s Company Strategy leads with the vision of connecting Europe for a sustainable future, so that as a responsible shipping line, it will play a leading role in reducing emissions. Higher costs, as for any business, will bring even greater pressure to drive efficiency to mitigate the effects. This is why our business values are firmly rooted in delivering sustainability and efficiency through care – care for our customers, care for resources and care for each other.

 

Richard Horswill

Head of Freight UK & ROI

 

Sustainability Jargon Buster

Emissions

In the climate change space, emissions refer to greenhouse gases released into the air that are produced by numerous activities, including burning fossil fuels, industrial agriculture, and melting permafrost, to name a few. These gases cause heat to be trapped in the atmosphere, slowly increasing the Earth’s temperature over time.

 

Greenhouse Gas        

A greenhouse gas is a chemical compound found in the Earth’s atmosphere, such as carbon dioxide, methane, water vapor, and other human-made gases. These gases allow much of the solar radiation to enter the atmosphere, where the energy strikes the Earth and warms the surface. Some of this energy is reflected back towards space as infrared radiation. A portion of this outgoing radiation bounces off the greenhouse gases, trapping the radiation in the atmosphere in the form of heat. The more greenhouse gas molecules there are in the atmosphere, the more heat is trapped, and the warmer it will become.

 

Carbon dioxide (CO2)

The chemical compound carbon dioxide (also known by its shorthand CO2) is the primary greenhouse gas and driver of climate change. It’s an integral part of life cycles on earth, produced through animal respiration (including human respiration) and absorbed by plants to fuel their growth, to name just two ways. Human activities are drastically altering the carbon cycle in many ways.

Two of the most impactful are: one, by burning fossil fuels and adding more carbon dioxide into the atmosphere; and two, by affecting the ability of natural sinks (like forests) to remove carbon dioxide from the atmosphere.

 

Increased frequency and capacity on the Baltic Sea North

Stena Line is one of the leading ferry operators on the Baltic Sea North. At the moment we operate six weekly departures from Latvia to Germany and 16 weekly departures from Latvia to Sweden. From 25 April the latter will be increased to 18 weekly departures from Ventspils in Lavtiva to Nynäshamn in Sweden. This increase in departures is based on our customers growing demand for transport of their units to and from the Scandinavia market. With stable and scheduled departures Stena Line meets the customers’ needs and expectations to a reliable business partner.

The extra departures on the routes on the growing Baltic’s market give our customers the opportunity to plan for, ship and deliver different types of cargo and at the same time save on storage expenses.

The Route on Ventspils-Nynäshamn plays a major freight link on the Baltic Sea, connecting the Baltic States, Russia and the CIS countries with Scandinavia. The latest forecast shows that the route counts for around 70% of the cargo flow to and from the Baltic States and 30% to and from Russia and the CIS countries to Scandinavia.

In the area of developing and enhancing our services and products to our customers we have launched the brand new roller trailers, ‘SLIM’ on our route from Liepaja to Travemünde.  The new roller trailers increases our capacity and gives us a more efficient handling process.

Since the introduction in March the new roller trailers have proven to be very successful and therefore we will also introduce them on our Ventspils-Nynäshamn route.

Oskars Osis
Freight Commercial Manager, Baltic States, Russia & CIS

Rostock-Trelleborg, Swap agreement

From 4 April we offer our customers an extended sailing schedule with five departures per day during off peak season and six during peak season in each direction and a sailing frequency which will increase from one departure every sixth hours to every third hour. A huge increase compared to the previous three. This is possible through a capacity Swap agreement with TT-Line.

The competition on this route is fierce with competition from other ferry operators as well as from substitutes such as the Oresund Bridge. The number of departures is here a key competitive factor, and by sharing vessel and capacity with TT-Line, we can strengthen our customer offer on the route from Rostock-Trelleborg.

This will be very positive for our current and future customers. It gives both our freight customers and passengers a greater flexibility to choose the most suitable departure at the same time as we reduce waiting times at the port.

Customers will be offered the same level of comfort they are used to on all vessels and the crossing times will remain as today, seven hours at day time and eight hours at night time.

We pleased about this consistent development of our freight product and hope that this change will also improve and further optimization of our customers transport planning.

Christof Weichbrodt
Freight Commercial Manager, Central Europe

Stena Nautica in Dock

Our route from Varberg to Grenaa is showing very positive development and therefore it is important that our docking period with the Stena Nautica (which operates on this route) have minimum impact on the traffic.

We decided to replace Stena Nautica with Stena Gothica over the docking period from 31 March to 12 April.  However Stena Gothica is longer than the Stena Nautica and it is not possible for her to call at Varberg, which is why she was transferred to Halmstad (a little more South than Varberg) but this is still an optimal destination with excellent connections to the transport corridors in Sweden.

We believe that our customers will see this as a positive move and will be supporting us during this docking period.

Claus Riis
Freight Manager, Denmark & Norway

 

The Association of European Vehicle Logistics
Stena Line has joined ECG

ECG is the only association that represents our sector across Europe. The association has almost 100 members. These include all of the significant operators in road, rail and shortsea shipping, as well as some inland waterways, in the European finished vehicle logistics industry.

 

ECG will help us with information, awareness and education. ECG has made standards for carrying, shipping and other safety rules that are accepted by almost all vehicle industries around the World. Being part of ECG now gives us access to all this information, which we can share with our customers.

 

ECG is based in Brussels and is also lobbying body for our transport sector inside the EU. Last, but definitely not least this gives Stena Line a good opportunity for networking directly with the major vehicle industry all over Europe.

 

For further information do not hesitate to contact us.

 

Peter Kleberg

Head of Shipping Logistics

new roro ferries
Stena signs contract for four new RoPax ferries

Stena has signed a contract, subject to Board approval by the end of April, for an order of four new RoPax ferries with planned delivery during 2019 and 2020, with an option for another four vessels. The vessels will be optimized for efficiency and flexibility and will be built by AVIC Shipyard in China.  The intention is that the four initial vessels will be used within Stena Lines route network in Northern Europe.


“We are very pleased that Stena have signed a contract for four vessels with an option for another four. During the course of the past 24 months our engineering staff has managed to develop a design that is not only 50% larger than today’s standard RoPax vessels, but more importantly, incorporates the emission reduction and efficiency initiatives that have been developed throughout the Stena Group during the past years. These ships will be the most fuel efficient ferries in the world and will set a new industry standard when it comes to operational performance, emissions and cost competitiveness, positioning Stena Line to support its customers in the next decades”, says Carl-Johan Hagman, Managing Director of Stena Line.


wildlife footprints
Stena Line joins global fight to shut down illegal wildlife trafficking routes

The signing of a new declaration at Buckingham Palace committing the leaders of the global transportation industry to major steps to fight criminal wildlife trafficking has been hailed by The Duke of Cambridge as ‘a game changer in the race against extinction’.

Stena Line's UK Chairman, Hans Noren joined 40 CEOs, Chairmen, and other leaders of airlines, shipping firms, port operators, customs agencies, intergovernmental organisations and conservation charities from around the world to become the founding signatories of the Declaration of the United for Wildlife International Taskforce on the Transportation of Illegal Wildlife Products. The Buckingham Palace Declaration is the result of a year's worth of meetings, research, and coalition building by the United for Wildlife Transport Taskforce, convened by The Duke of Cambridge and chaired at His Royal Highness's request by Lord Hague of Richmond. Transport representatives on the Taskforce include companies and organisations based in China, USA, UAE, Kenya, the UK and Denmark.

Hans Noren, Chairman of Stena Line UK said: "Stena Line is fully committed to the vision and dedication of the United for Wildlife International Taskforce and this historic declaration is an extremely important step in helping to put the mechanisms in place to help reduce and hopefully eradicate this illicit trade. Over the last 15 months it has been very inspiring to see the collaboration of some of the world's leading transport organisations and at Stena Line we undertake to do everything within our power to help deliver on the commitments that have been made at the Buckingham Palace Declaration."

Mafi Roller Trailer
Warehouses and a new area in Gdynia

We are working very closely with our colleagues in ports and terminals to develop the handling of unaccompanied cargo, export chassis and cargo on roller trailers in a more effective way. Cargo, which is important to operate the way is does - amongst other things - gives our customers added value and Stena Line the opportunity for improved utilization of the decks.

 

On the route from Karlskrona to Gdynia the number of cargo transported on roller trailers (mafis) is increasing. When the cargo arrives at Stena Line’s terminal in the Port of Gdynia it is reloaded from the trailer to the roller trailer (cross docking) for the sea transportation. When the cargo arrives at Karlskrona it is reloaded on to a new trailer for transportation in Scandinavia or placed in a storage warehouse.

 

The major part of cargo must be handled as wet sensitive and as cross docking and storage must take place under protection from the rain and snow therefore  a new built tent warehouse (54x20 metres) has been built and put in to service from March this year.

 

At the moment Stena Line is in negotiation with the authorities of the Port of Gdynia for new space and access to the Puckie Quay just south of the RORO ramp. Puckie Quay is essential for us to meet the increased demand for cargo volumes, storage of unaccompanied units and export chassis in a more effective way.

 

Henryk Kaluzny

Freight Manager, Poland

Freight 20 years
Freight 20 years ago

As you may already have noticed our sales and marketing team were exhibiting at SITL in Paris a couple of weeks ago. Our 20 year old publication ‘FreightTime’ had an article about our participation at SITL in 1996, where we made a lot of contacts with customers in the transport industry – long lasting contacts and relationships which we are still happy to have.

 

On the front cover of the same publication there was an article about Stena Jutlandica – at that time the largest ship in our fleet. This brand new ship was put into service on our route from Gothenburg to Frederikshavn as a freight ship for most of the year to cover our freight customers increasing demand for more capacity. Stena Jutlandica should represent the type of ship which we at Stena Line believed would rapidly become extremely important for the ferry industry. This turned out to be a good prediction and decision; the ship has fully proven to have the right constellation for this service and the traffic has increased ever since.

 

As a little curiosum we are pleased to inform you that both our French sales team and Stena Jutlandica are still going strong and in good shape.



Inge Rosenbæk Carlsen
Head of Freight Marketing