Espace Europe Ltd

Corporate Social Responsibility (CSR) is an essential aspect of modern business practice, focusing on the positive impact companies can have on society and the environment. Freight Forwarders, in their pivotal role within global supply chains, can play a significant role in assisting other businesses in their CSR efforts. This article explores exactly how Espace can support and collaborate with your businesses to enhance your corporate social responsibility initiative.

Sustainable Logistics Solutions:

We can help your business to improve sustainability by providing innovative logistics solutions. By route optimisation, consolidation and implementing efficient inventory management practices, Freight Forwarders can reduce your companies carbon emissions and provide eco-friendly transport options.  We can also advise on sustainable packaging materials and practices, minimising waste and environmental impact throughout your supply chain.

Supply Chain Transparency:

Transparency is a key element of CSR, and Espace can help you to achieve greater transparency within your supply chain. We can provide real-time visibility into the movement of goods, ensuring ethical sourcing, and promoting fair trade practices. This collaboration will enhance your accountability and help your business to build trust with other stakeholders.

Ethical Sourcing and Compliance:

Espace can also ensure ethical sourcing and compliance. We can assist in verifying suppliers’ adherence to social and environmental standards by conducting audits, and promoting responsible practices. By working with a Freight Forwarder that prioritises ethical sourcing, your business can strengthen its own CSR initiative and have a positive social and environmental impact.

Community Engagement and Partnerships:

Freight forwarders can even facilitate community engagement and partnerships for businesses, helping them to make a tangible difference in local communities. By leveraging our networks and resources, we can connect you with charitable organisations, social initiatives, and volunteering opportunities.

Knowledge Sharing and Best Practices:

Espace have over 23 years valuable industry knowledge and experience to share that can benefit your business in its CSR endeavours. We will gladly organize webinars and workshops to share best practices in sustainable logistics, responsible sourcing, and community engagement.

With sustainable logistics solutions, supply chain transparency, ethical sourcing guidance, community engagement facilitation, and knowledge sharing, Espace can be your valuable partner and help you to achieve your CSR goals. By collaborating with a freight forwarder that prioritise CSR, you can enhance your own sustainability offering, social impact, and reputation. Together, our efforts contribute to a more responsible and sustainable business ecosystem that will benefit both society and the environment.

Two new freeports in Wales! Taking the UK planned total up to 12.

Today two new freeports have been announced in Wales. Anglesey Freeport and the ‘Celtic Freeport’ including Port Talbot and Milford Haven the Institute of Export & International Trade reports.

This is on top of the 10 freeports already announced.

At time of writing, only 6 of these freeports are open and operating, being Felixstowe, Liverpool, Plymouth, Teesside, Thames and Solent. East Midlands Airport and Humber freeports are still in development.

How do freeports help UK traders?

For UK traders, there are several advantages to operating within a freeport. One of the most significant benefits is the reduction or elimination of customs duties and taxes on goods that are imported into the zone. This can make importing goods cheaper and more attractive, which in turn can boost your business.

Additionally, freeports often have simplified customs procedures and streamlined regulations, making it easier and quicker for businesses to move goods in and out of the zone. Making life much easier for traders.

All going to plan, this is good news for these communities in Wales. Inevitably, they will bring a boost to these areas as well as opening up new trade options for Welsh businesses.

It may be several years yet till these freeports are up and running effectively. That said, Espace wholeheartedly support investment in these areas, knowing that they will effectively reduce barriers to trade for more UK businesses. 

Take a look at Espace EUroad for exporting into Europe

Prices continue to go up meaning rising freight costs

Transport and freight costs have been steadily increasing over the past few years and even more so in the last 12 months, leaving many people wondering why. Various factors have contributed to rising transport and freight costs and explore how a freight forwarder can help keep these down. By the end of this article, you should have a better understanding of why transport and freight costs have increased and what can be done to reduce them.

The main factors

• Covid – a high demand for transport driven by post-pandemic recovery of economies.
• Brexit – decreased appetite of EU drivers to come to the UK, additional customs fees, port fees – hassle factor so any EU hauliers that do come want a premium.
• Drivers Mobility package – implemented to safeguard the working rights of truck drivers in Europe by imposing work, rest and cabotage regimes. Inevitably drivers rates have increased and the rules on rest / monthly breaks will mean fewer drivers available at any one time – hence an increase in rates to cover wages.
• Fuel increases (a consequence of the War on Ukraine) – energy hikes across the board.
• Driver shortages – wage pressure from the small pool of professional drivers, lack of desire from the younger generation to begin a driving career.
• Inflation

The Role of Port Fees in Rising Freight Costs

Port fees are charges that are imposed by port authorities for the use of their facilities and services. The fees cover a variety of costs, including maintenance and operation of the port, as well as security and environmental protection. In recent years since Brexit, port fees have been steadily increasing due to a variety of factors such as increased port traffic, as the UK is using these ports a lot more thus causing an increased demand for services.

We predict we will see a standardisation of port fees across the next few years.

Click here for current port fees.

Government information on port codes

So how does a Freight Forwarder help?

All these factors over the past few years have proven why freight forwarders have a place in the market.

From a practical point of view freight forwarders can reduce costs by providing a range of services that can streamline the process of shipping goods.

These services include helping to negotiate better rates with carriers, consolidating shipments to save on costs, and providing advice on the most efficient way to ship goods. Additionally, freight forwarders can help manage paperwork and customs clearance, which can save time and money

From a knowledge point of view freight forwarders have a deep understanding of the shipping industry, which allows them to provide valuable advice and services to their customers. They have knowledge of the various regulations and laws that govern shipping, even more useful with Brexit and the changes the UK is still getting to grips with.

As well as an understanding of the different carriers and their pricing structures. This market knowledge allows freight forwarders to negotiate better rates with carriers and provide helpful advice on the most efficient way to ship goods. By utilizing a freight forwarder’s market knowledge, businesses can reduce their transport costs while ensuring their goods are shipped safely and on time.

A red lane and green lane? Brexit finally done? VAT changes?

A lot has happened in the past 48 hours with the Prime Minister looking to reach an agreement on the Northern Ireland Protocol. This new agreement has been dubbed “The Windsor Framework” but what does this mean for transport and freight?

What is the Northern Ireland Protocol?

The NI Protocol is the trading agreement that was first negotiated during Brexit allowing goods to be transported across the Irish land border – allowing goods to move without the need for customs checks.

However the EU has strict rules for some items on non-EU trade. Thus making it hard to strike a deal.

This special agreement was to keep a level of continuity in trade and to uphold and protect The Good Friday Agreement. Now the UK is looking to change things with agreement from the EU.

Red light, green light

The new plan sets up a green lane and red lane, green for goods only going to Northern Ireland, meaning no checks on the majority of shipments and minimal paperwork. The red lane would be for goods due to travel into the Republic of Ireland or deemed “at risk” of doing so and would face customs checks at NI ports.

Exporters and importers will now need to be registered as a ‘trusted trader’ to use the green lane. All UK-based traders are eligible to apply with HMRC and will need to provide details of any goods they move.

The old way

Goods are checked at ports in NI on arrival, regardless of if they are destined for NI or ROI, then moved to their final destination.

The new way

Goods arrive in NI in one of two lanes, Green lane goods for NI only and this will eliminate unnecessary paperwork, checks and duties.
Red lane for ROI and the EU are checked and moved on. Data-sharing and labelling arrangements will keep this system in check.

A shift in VAT?

Under the old NI Protocol EU VAT rules apply to NI, meaning that any change in UK rules won’t affect NI. Now the UK has “secured full, lasting powers for the UK to set VAT and excise rules in NI. We have done this by removing existing rules and preventing other new EU VAT rules from applying in NI.”

The rules on movement of certain goods have shifted from UK exports to NI. Chilled Lincolnshire sausages are now back on the menu for Northern Ireland. Less restrictions on the movement on such goods we would expect to uptick food freight movement.

Stormont’s say on The Northern Ireland Protocol

Northern Ireland lacks a say in changes in EU rules, whilst being still affected by these rules as part of the Protocol. The changes now seem to be moving towards Stormont having more say and greater input in the future, a new “Stormont Brake” will allow the NI assembly to prevent some EU rules.

A statement from our Commercial Director, Geoff Yates on The Northern Ireland Protocol

“There are so many reasons to be cheerful with the announcement of the newly agreed Northern Ireland Protocol. The financial markets certainly relished it with strong performances reported on the stock exchange on Monday afternoon and Sterling rising rapidly against both the US Dollar and the Euro too.

Brexit is finally done. A full six years after the 2016 referendum an agreement to suit both sides of the separation is certainly welcomed by Northern Ireland.

A good sign of things to come was the sight of the smiling European President, Ursula von der Leyen and Prime Minister Rishi Sunak, signalling an improvement between the UK and the EU.

In practice, it’s difficult to say what it will mean for the movement of goods from GB to Northern Ireland. The introduction of a “Green lane” for British goods via a trusted trader scheme certainly points to a significant easement but as ever the devil will be in the detail.

From our point of view, at the front line of cross border movements, Mondays announcement regarding the Northern Ireland Protocol and improving UK-EU relations was greatly received.”

More information on the government website

Check out EasyEU

Espace have been handling time critical freight for the automotive sector for many years now. We handle global import contracts for several tier 1 companies and regularly move urgent parts and equipment for senior F1 teams.

On many an occasion our clients are battling against tight budget constraints (now more than ever!). They are at times tempted to book their urgent freight on a standard freight service in advance rather than spending that little bit extra for a guaranteed dedicated express shipment. Of course, this is not an option in many cases but, there are many reasons why booking J.I.T transport is often cheaper than it’s J.I.C equivalent in the long run.

Just in time transport

is a method of transportation that involves delivering goods to their destination as close to the time they are needed as possible. The transport costs for dedicated express are of course higher than standard movements but there are clear benefits

• Reduced costs associated with storage and inventory
• Reduced risk of goods becoming obsolete or damaged due to long-term storage
• J.I.T allows for more efficient use of resources, as goods are only transported when needed

Just in case transport

is a method of transportation that involves delivering goods to their destination well before they are needed. Of course, moving freight via groupage / standard freight mode is never guaranteed and delays are common occurrence. Moving via a network means that you would also have less control over your shipment but there are other benefits

• Goods are available when needed if they can be delivered well in advance
• Reduced risk of running out of stock, which can thus lead to lost sales and customer dissatisfaction
• J.I.C provides a buffer against unexpected events that could disrupt the supply chain

Not exclusive to the automotive industry J.I.T transport is often used in industries that require a high degree of coordination and reliability, such as aerospace, electronics, and pharmaceuticals. Such industries have high levels of service and customer expectation to manage. The implications of a late delivery could be catastrophic for their business. A production line stoppage, medicine / healthcare equipment shortage, plane delay could be so much more costly than paying for a dedicated express shipment in the first place, not to mention a lot more hassle.

These days, dedicated express can be facilitated quickly and easily for very reasonable prices. Pre Brexit Espace could guarantee placing a van anywhere in Europe within 2 hours. Two years on we see the market stabilising and we are confident once again with our promise. With our own in-house UK customs team and network of EU customs agents we can ensure smooth transition to the continent alongside a quick, hassle free express service. Another load off your mind.

Winter is upon us, both in a physical and financial sense. With frost laying heavy on the grass in the mornings, car windows to scrape before the commute to work or school run, this can be a very difficult time of year.

We are in the depths of winter in a financial sense too. An economy in recession, interest and inflation at their highest for decades, a war in Europe playing havoc with commodities and a squeeze on real-term incomes. Not to mention the economic effects of BREXIT. If you allow it, this unprecedented combination could overwhelm you.

But businesspeople are a resilient breed. Just like in a meteorological winter, where we don extra layers, warmer boots, gloves and hats to protect ourselves against the cold, we can do the same for our businesses. Doing things the same will only result in the same or lesser results (or freezing appendages!).

Support for your Export

Early in a year is an important time to start planning for the new financial year too. We’re often asked by clients for support to help grow export lanes and more recently for advice on winning back European business which was lost because of BREXIT.

Reasons to be Optimistic

As our closest neighbour and biggest trading partner, Europe is the logical first step for a company to explore export trade into. British goods are well respected for their quality within Europe and the devaluation in Sterling has made them very attractive financially.

Brexit = Customer Inconvenience

BREXIT not only brought about issues for British companies but for their European customers too. Goods which are exported by default, need to be imported – adding additional layers of complexity which often results in frustration, delays and as we’ve seen over the last two years, loss of trade.

Complexity such as

• Finding a customs agent
• Paying or accounting for import VAT
• Understanding and paying duties
• Unforeseen delays in transport and associated downtime

Make your Exports Attractive Again

There are ways however, of making all these problems for European importers disappear which in turn allows UK exporters to compete on a level playing field with their European competition. Using innovative cross-border solutions could allow UK exporters to re-win the business they lost after BREXIT and use the same tactics to grow new export lanes too.

As sure as springtime will replace winter, Britain will climb out of recession. Re-opening the European market will allow UK exporters to retain and grow the business they had before Brexit.

If we don’t the UK risks losing out to less inconvenient European or Worldwide sources and the overall quality of the products on the market are reduced as a result.

What Next?

Read about our innovative DDP Incoterm solution to deliver goods into the EU – EasyEU or speak to one of our team on 01543 418700