Cargo owners sign-up for campaign to cut haulage miles

by Kaleidoscope
19th May 2018
  • 50 shippers, representing 400,000 teu of UK trade, back Cargo200 initiative
  • Supporters to date include international manufacturers and retailers
  • Ambitious plan to save UK economy 200 million road and rail miles by 2020

eel Ports has today (Thursday 19 November) announced that it has secured 50 advocates for its Cargo200 initiative and is urging other shippers in the North-west to add their weight to the campaign.Launched in May, Peel Ports called for importers and exporters whose goods began or ended their journey in the north of the UK to switch current delivery of ocean freight from south-east ports to the centrally-located Port of Liverpool.

The initiative aims to cut freight mileage by 200 million miles over the next five years. In addition to achieving significant carbon reduction, the company also estimates that the move could save shippers up to £400 per container in transportation costs by delivering to the heartland of the UK.Diageo, JCB, B&M, Jaguar Land Rover, Matalan and Typhoo are among the first 50 customers to respond to the Cargo200 initiative, encouraging the UK freight and logistics industry to deliver a fundamental shift in supply chain and services routes.

The news comes as the company is in the process of commissioning its recent delivery of five new ship-to-shore (STS) megamax cranes for its Liverpool2 development.Jerome Wildsmith, Head of Supply Chain at retailer B&M, said: “Shipping through Liverpool offers B&M massive benefits. By removing four million miles of transport we save significantly in our onward transport costs, reduce the carbon emitted and reduce the likelihood of delays on the UK network.  Not only that, but by using the port close to our distribution centre, we can use Peel Ports’ value-added services, such as their flexible storage and warehouse offerings. The first line to offer direct calls into Liverpool on our key shipping routes is likely to benefit in a huge volume gain, not just from B&M, but the many companies like us in the North-West region.” Gareth Williams, Distribution Manager at Jaguar Land Rover, said: The growth of our business on a global level brings challenges as well as opportunities. With plants in the West Midlands and in Liverpool, we join the call to shipping lines and logistics service providers to make better use of the infrastructure in the north of England to shorten supply chains, reduce carbon and improve transport economics.”

Retailer Matalan, which has its new warehouse within 10 miles of Liverpool, is another signatory. Imports Operations Manager, Mark Taylor, said: “The benefits we could realise by shipping our 10,000 boxes through Liverpool are not just sourced from the transport cost savings associated with lower mileage, but from the benefits we will see in our entire supply chain.  Our fleet of trucks that serve our stores during the day can continue to support the shunt of our containers onto our warehouse site at night without the need of a rail leg from a southern port. Additionally, the short distance and night time running all but eliminates the threat of congestion between port and warehouse.  Equally, we can prioritise which containers we bring off the port and when, so we can be much more responsive to changes in demand from our customers.”

The Chief Executive of Typhoo, Somnath Saha, added: “We have been shipping as much of our cargo as possible through Liverpool for a number of years now and have had a fantastic collaborative relationship with Peel Ports. This has helped us gain recognition for sustainable practices of managing the carbon footprint from major customers, such as Tesco, Morrisons and ASDA.  However, not all of our volume can be routed by feeder and so direct calls will help us maximise the environmental and supply chain benefits we already enjoy by shipping through Liverpool.” Peel Ports’ Group Commercial Director, Patrick Walters said: “With 50% of demand for all UK cargo coming from the northern half of the UK, including Scotland and Ireland – the Port of Liverpool is strategically important as the most centrally located port in the UK. Efficiency and sustainability lie at the heart of the Cargo200 initiative and with the opening of Liverpool2, cargo owners and logistics operators can benefit from a viable, cost effective alternative to southern ports.“Industry recognition and support for the initiative are invaluable to our long term objectives of reducing costs, carbon emissions and congestion resulting from inland transportation. We look forward to welcoming further customers from the shipping and UK logistics sector on board. Our next step will be to work with current and new backers on sharing data and carrying out further modelling to reinforce the arguments for shipping via Liverpool.”The initiative has garnered further testimonials, including Joannes van Osta, General Manager Group Transport & Finished Machine Distribution, JCB who said: “Cargo200 is an excellent opportunity for JCB to help influence the development of new UK shipping connections, which is vital in securing greater efficiency and lower carbon in our supply chains.” and Peter Samuels, Category Manager, Diageo who added: “By linking into Glasgow, Belfast and Dublin, the Irish Sea Hub concept, Liverpool2, potentially enables us to more easily source empty containers where we need them, and enable shorter links connecting with deep sea vessels from Liverpool.”

The success of the campaign to date underlines Peel Ports’ efforts to improve the logistics infrastructure and offering in the North-West. In April this year, the company secured General Mills as the first tenant at its Port Salford warehouse and distribution hub, which will be connected to Liverpool2 by road, ship canal and ultimately rail.

Speaking at the time, General Mills’ UK & Ireland Supply Chain Director Dave Howorth said: “We are very excited about this new distribution agreement as it reinforces our commitment as a company to finding solutions that are best for customers, consumers and the environment, and our move to Port Salford ticks all those boxes.”

19th May 2018