A launchpad for action
An ambitious initiative to develop a sustainable matrix of transport routes using waterways rather than roads
Last Friday, Freight by Water launched an ambitious initiative to develop a sustainable matrix of transport routes using waterways rather than roads. The first of a series of Modal Shift Forums was held at the Chamber of Shipping on 11 June, with an agenda focused on more effective utilisation of the River Thames for freight transport.
Case study presentations were given by retailers Sainsburys and Homebase, as well as key stakeholders such as the Port of London Authority, Transport for London and Tilbury Container Services. The event was the first step in building viable services aimed at taking freight off the roads of London, reducing congestion and carbon emissions, as well as delivering a cost-effective sustainable solution for major businesses.
Against a background of increasing fuel costs, finding a viable alternative for freight transport has become a priority for major consumers of logistics – including the large retailers. However, the water transportation industry is highly fragmented and frankly would currently be unable to deliver a coherent schedule of routes that 3pls and their customers can rely on.
Our role as an independent industry body is to facilitate change by bringing together all the key stakeholders – from ports and operators to logistics providers and major retailers – to drive forward a sustainable solution.
The River Thames and London is an excellent launch pad for this important initiative, with subsequent events planned across the UK – our next will focus on the north-west UK ports and maximising the potential of the Manchester Ship Canal.
As businesses are forced to balance the trade-offs between lifestyle choices and cutting emissions, as well as costs, the role of waterborne transport has become increasingly important in forging sustainable supply chains for the future.
Modifying current distribution methods is critical to addressing climate change, given that freight transport is a major contributor to carbon emissions, and the case for “modal shift” is further strengthened, particularly for distribution of freight to, from and around the UK, by the impact of escalating fuel costs, underlining that road transport at current levels is simply unsustainable.
Against a background of fuel prices set to double within the term of this government, and UK natural gas prices likely to spiral too, the potential to shift, say, 80 lorry loads from the road to a single water freight journey on a 2,000-tonne coaster is three times more fuel efficient and, consequently, considerably more cost-effective. Water freight can no longer be considered the preserve of the movers of aggregates and other low-value bulks; leading manufacturers and retailers in the consumer durables and FMCG sectors must recognise this and weigh the options.
Given the compelling arguments, it is surprising that the concept has thus far remained largely under-developed. Apart from a few niche activities and a small number of coastal feeder operations, there is a dearth of scheduled route networks with matching price matrices. In other words, there are no “packaged” water freight logistics solutions currently available.
To address this situation and build a viable network-centric logistics service, we must prove the business case around demand, and it will fall to end users, be they manufacturers or retailers, to drive this demand. Simply talking about lower carbon footprints while tinkering around the edges will not do – now is the time for action and change, if we are to make a real difference.
3pls have a role to play too. Those industry leaders prepared to make brave decisions will take their customers on this new journey, to the benefit of all.
Driving this change will be no easy task – especially as the water freight industry is so highly fragmented. It does not enjoy the massive subsidies of rail. Improvements and enhancements to infrastructure will be required, and authorities will need to relax archaic working regulations as momentum builds; but the good news is that the waterways are readily available and free to use, and ports are open for business.
Case study presentations were given by retailers Sainsburys and Homebase, as well as key stakeholders such as the Port of London Authority, Transport for London and Tilbury Container Services. The event was the first step in building viable services aimed at taking freight off the roads of London, reducing congestion and carbon emissions, as well as delivering a cost-effective sustainable solution for major businesses.
Against a background of increasing fuel costs, finding a viable alternative for freight transport has become a priority for major consumers of logistics – including the large retailers. However, the water transportation industry is highly fragmented and frankly would currently be unable to deliver a coherent schedule of routes that 3pls and their customers can rely on.
Our role as an independent industry body is to facilitate change by bringing together all the key stakeholders – from ports and operators to logistics providers and major retailers – to drive forward a sustainable solution.
The River Thames and London is an excellent launch pad for this important initiative, with subsequent events planned across the UK – our next will focus on the north-west UK ports and maximising the potential of the Manchester Ship Canal.
As businesses are forced to balance the trade-offs between lifestyle choices and cutting emissions, as well as costs, the role of waterborne transport has become increasingly important in forging sustainable supply chains for the future.
Modifying current distribution methods is critical to addressing climate change, given that freight transport is a major contributor to carbon emissions, and the case for “modal shift” is further strengthened, particularly for distribution of freight to, from and around the UK, by the impact of escalating fuel costs, underlining that road transport at current levels is simply unsustainable.
Against a background of fuel prices set to double within the term of this government, and UK natural gas prices likely to spiral too, the potential to shift, say, 80 lorry loads from the road to a single water freight journey on a 2,000-tonne coaster is three times more fuel efficient and, consequently, considerably more cost-effective. Water freight can no longer be considered the preserve of the movers of aggregates and other low-value bulks; leading manufacturers and retailers in the consumer durables and FMCG sectors must recognise this and weigh the options.
Given the compelling arguments, it is surprising that the concept has thus far remained largely under-developed. Apart from a few niche activities and a small number of coastal feeder operations, there is a dearth of scheduled route networks with matching price matrices. In other words, there are no “packaged” water freight logistics solutions currently available.
To address this situation and build a viable network-centric logistics service, we must prove the business case around demand, and it will fall to end users, be they manufacturers or retailers, to drive this demand. Simply talking about lower carbon footprints while tinkering around the edges will not do – now is the time for action and change, if we are to make a real difference.
3pls have a role to play too. Those industry leaders prepared to make brave decisions will take their customers on this new journey, to the benefit of all.
Driving this change will be no easy task – especially as the water freight industry is so highly fragmented. It does not enjoy the massive subsidies of rail. Improvements and enhancements to infrastructure will be required, and authorities will need to relax archaic working regulations as momentum builds; but the good news is that the waterways are readily available and free to use, and ports are open for business.
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