· Ensuring cost competitive and reliable connections from ports to factories and shops is vital to ensuring the competitiveness of UK firms and the UK as a location for foreign firms to do business.
· There are 4 key mothods of freight transportation by which goods enter and leave the UK:
1. Container (lo lo) Lift on/Lift off – the transports of containerised freight, which is loaded and unloaded ay gateway terminals by cranes onto containerships and transported by sea. Container freight is carried by either deep sea services calling directly at the UK from the port of origin or smaller short sea feeder services carrying goods from Mainland Europe.
2. Roll on Roll Off (ro ro) – freight units are driven on/off sea ferries or on/off specialised trucks at the rail services through the channel tunnel.
3. Bulk goods – the movement of either liquid commodities e.g. oil and fuel or solids e.g. coal, are transported by sea
4. Air freight – the transportation of goods in the hold of passenger service of on dedicated freight service
· Almost one third of all UK port tonnage goes through Greater South East Ports – those lying between Southampton and Felixstowe
· For most journeys the distribution chain consists of multiple organisations which in turn creates challenges for optimising the supply chain from end to end to ensure the efficient movement of goods.
· Containerisation is the movement of goods in standard size shipping containers that are loaded onto containerships, road trucks and rail carriages.
· Dedicated container vessels were first introduced in the 1960s when the container shipping and ports industry realised the vast potential of the container transport mode.
· Transporting goods by container have become an increasingly inexpensive method of moving freight despite rising fuel costs.
· The standardisation format of container transport has enabled increased economies of scale in shipping and discharging, lowering costs of importing and exporting goods. Furthermore lower manufacturing costs in China and India have contributed to a surge in container trade from the Far East to the West, although this has seen significant slowing in recent months due to the global economic decline.
· Container growth in the UK is predicted to increase by on average 4% per annum between 2005 and 2030.
· Port capacity is a function of a number of variables including the number and length of available berths, draught clearance, crane performance and yard space.
· Berth capacity, ship size and the volume of container traffic to load and unload determine the number of ships that can be processed through the port during the course of the day.
· Southampton and Felixstowe dominate container traffic in the UK. These ports have the terminal capacity to accommodate the largest vessels and they are closer to the Asia/ North West Europe shipping route making them attractive destination vessels calling from East to Northern Europe.
· Refrigerated containers or ‘REEFERS’ which are used to transport temperature sensitive commodities are insulated and rely upon an external power supply. During onward land distribution, containers transported by road are powered by a diesel generator on the truck. There is no equivalent power supply for rail transportation meaning that all REEFER wagons must move either by road or sea.
· Shipping lines are required to declare the contents of all containers arriving and departing to/from UK to HRMC when the goods have originated from or are destined for outside the EU.
· Some shipping lines operate in alliances such as the New World Alliance (MOL, APL and Hyundai Merchant Marine.
· The Suez Canal in Egypt links the Med and Red sea enabling a passage between Europe and Asia. The largest vessels capable of passing through the canal are termed ‘Suezmax’.
· A Suezmax vessel would measure approve 14,000 TEU, be 400 metres long, more than 50 metres wide and have a draft of 16 metres such as the Emma Maersk.
· The Panama Canal links the Atlantic and Pacific Oceans. Largest would be called the ‘Panamax’.
· Direct call traffic travels through the port of destination without the goods changing ship en route.
· Transhipment traffic calls at an intermediate port en route to its ultimate destination and is discharged and reloaded onto a secondary vessel for final shipping. This serves as a more cost effective way for shipping lines to maintain long distance, deep sea operations of their largest vessels and allows containers to be shipped by smaller vessels to ports incapable of handling the larger ships due to draft clearance or operational constraints.
· In order to maximise productivity and turn around times the largest vessels will seek to call at ports with minimum deviation from the global shipping line.
· When a vessel calls at a port the containers bound for that port are discharged to the quay and moved to be stacked, loaded containers for export are then loaded on to the vessel and finally empty containers are loaded.
· Straddle carriers – cranes designed solely to transport and stack containers in ports. Straddle carriers can stack containers up to five high.
· The Department of Transports Transport Security and Contingencies Directorate (TRANSEC) is responsible for implementing the International Ship and Port facility Security Code (ISPS Code) in the UK. The ISPS Code mandates the minimum security requirements for ships and ports.
· Ports are responsible for meeting the requirements of the Dangerous Goods in Harbour Areas Regulations and the International Maritime Dangerous Goods code. HMRC are responsible for operating the equipment at UK points of entry (seaport, airport and international rail terminals) and for the detection of any imported nuclear or radiological material.
· The Container Security Initiative (CSI) was introduced in 2002 by US Bureau of customs and border protection.
· Goods are declared by shipping lines to customs prior to the arrival of the vessel, however only a small proportion are moved to temporary storage to be physically checked.
· Port Community Systems control the movement of import/export freight at most UK ports. These provide a means for traders to submit declarations to the UKs electronic declaration processing system. The CHIEF system handles over 21 million import and 5 million export declarations per annum and relay release messages via the community system on each container.
· Distribution of containers within the UK is a key component of the end – to – end journey.
· Golden Triangle – prevalence in distribution centres and accessibility to the rest of the UK. The Midland’s is advantageously placed for distribution by roads as it is served by the M1 and M6 to the North and M40 and M1 to the South.
· Operation Stack is a traffic management system implemented when port stoppages result in a build up of traffic. Initially vehicles are stacked in port holding areas. When these are full, Operation Stack is invoked and vehicles are queued on key roads close to the ports. Operation Stack has been criticised by shipping lines and road hauliers for the inefficiencies realised when port conditions return to operations. At this point, vehicles move to the port in the order they were ‘stacked’. Those at the front of the queue leave the stack and therefore arrive at the port first, not accounting for those vehicles which are required in the port to meet ferry/rail connections most urgently.
· All major UK container ports have a Vehicle Booking System (VBS) for the HGV collections and deliveries. VBS is an online booking system requiring hauliers to select a designated slot for container delivery and collection to the port. VBS aims to spread the load for vehicles throughout the working day, minimising congestion from hauliers. A charge is incurred if the haulier does not arrive at the designated time.