Articles | Ziegler

The growth of international trade has been a major driving force behind the sea freight forwarding industry, leading to significant structural changes in the shipping industry since the end of World War II.

Historical background

The subprime crisis in 2008 led to a slowdown in global trade, causing a decline in sea freight transport growth and initiating a global economic crisis. This resulted in a collapse of demand for sea freight transport and freight rates, negatively impacting the profitability of shipping companies. As a result, the European Union revoked liner conferences that had been in operation for many years due to its opposition to rate agreements. This led to the creation of new agreements between shipowners called shipping alliances.

The health crisis

The present day

The pandemic and geopolitical conflicts have led to a rise in raw material prices. This has caused many companies to order in bulk to reduce costs and prevent possible shortages. As a result, there is now an overstocking of goods and a decrease in demand for transportation. At the same time, we are witnessing a slowdown in world demand with a possible recession.

In 2023, new vessels are being introduced, and some older vessels are being withdrawn due to the need for shipping companies to bring their fleet into compliance with the new IMO 2023 regulations to reduce carbon emissions from international shipping.

The acceleration of the decarbonization of the fleet should lead to a reduction or even disappearance of the chartering offer, i.e., vessels chartered on an ad hoc basis to relieve port congestion. However, it will also lead to a reduction in capacity on the main shipping lines. To meet emission standards, ships will need to sail slower, which will require 10% more ships to transport the same amount of goods. This could drive up transportation prices even further. Rail transport is indicated as an effective alternative.

Learn more about the evolution of rates in sea freight from our e-book. 👇

Today, we celebrate the beauty of our planet, raise awareness about the environmental challenges we face, and renew our commitment to protect it for future generations.

We are proud of our dedication to reducing our environmental impact.

We are aware of transportation being a significant contributor to global greenhouse gas emissions, and as a transport company, we recognize our responsibility to reduce our environmental impact. That’s why we have made a commitment to sustainability that includes reducing our carbon footprint, using alternative fuels, optimizing our routes, and strenghtening our modal shift expertise.

One of our top priorities is reducing our emissions. We have invested in alternative fuels and electric vehicles, which emit fewer pollutants than traditional diesel-powered trucks. We also optimize our routes to minimize the distance we travel and the emissions we produce. By using the latest technology and data analytics, we can plan the most efficient routes for our trucks, reducing our fuel consumption and emissions or offer alternative modes of transportation like train or barge.

In addition to reducing our emissions, we are committed to reducing waste and conserving resources. We have implemented a range of measures to reduce waste and recycle materials, from using reusable pallets to separating waste and energy saving at our facilities. We also work with our partners and suppliers to promote sustainable practices throughout our supply chain.

At the Ziegler Group, we believe that sustainability is a core value that should guide our actions every day. That’s why we are continually engaged in exploring new ways to reduce our environmental impact and promote sustainable practices throughout our industry.

This Earth Day, we invite you to join us in our commitment to sustainability. Whether it’s recycling more, reducing your energy consumption, or choosing sustainable products and partners, every action counts. Together, we can make a positive impact on the planet and create a brighter future for all.

Managing customs procedures can be a complex and time-consuming process that can distract companies from their core business activities.

That’s why the question arises whether it’s better to outsource these operations through subcontracting or implement an internal department to manage them in-house.

There are pros and cons to both choices, and companies must weigh them before making a decision.

Insourcing Customs: The Challenges & Benefits

Taking customs procedures in-house is potentially more profitable, as it avoids the involvement of third parties. However, it can come with its own set of challenges.

Companies need to consider the following:

Finding talent: Your company will have to find talent internally or hire someone who will require training on all the specifics of your company.
Investing in resources: You will need to invest in additional resources or facilities, thus increasing expenses (training, software, archiving).
Dealing with HR issues: You will need to deal with all HR issues internally (vacations/sick leave).
Staying compliant: You will be responsible for remaining up to date with new requirements of the European customs regulations, and ensuring your procedures are fully compliant.

However insourcing customs procedures can be more profitable for some companies, as it avoids the involvement of third parties, and once your internal team is built up, it allows your company to more quickly respond to changes in customer requests or industry conditions.

Outsourcing Customs: The Benefits & Disadvantages

Outsourcing your customs procedures offers many advantages that should be weighed against the challenges of insourcing.

Outsourcing customs procedures offers five key advantages:

Focus on core business: By outsourcing customs procedures, companies can focus on their core business activities.
Consistent results and supply chain quality: Customs service providers have years of specialist knowledge, networks, and offer unavailable to private companies. They know the best practices in customs regulations and can avoid as much hassle as possible while thinking about future stability and flexibility of your supply chain when issues arise.
Control costs: The customs partner will scale their service appropriately to the customer’s needs by providing rates that support their activities and goals.
Instant competence: Engaging the services of a specialized customs partner instantly provides companies with skills that are difficult to develop or provide otherwise. The customs partner can bring valuable know-how and be a source of operational optimization for the supply chain.
Increase operational flexibility: To adapt to the rules of a competitive market quickly and appropriately, the customs partner can assist companies to make these changes at the right time.

It should also be kept in mind that the relationship must be grown and maintained, which should be a win-win, but can also be a point where issues can develop.

These need to be weighed against your situation and goals.

Why Choose Ziegler for Customs Solutions?

If companies want to outsource customs procedures, they need a reliable and experienced partner that can ensure custom solutions that match their needs.

Ziegler Group is an international transport and logistics company that offers specialized customs solutions. Our customs experts can work across many countries at once and are organized in interconnected customs support teams to offer the best service quality.

Ziegler’s customs experts are constantly monitoring the evolution of customs regulations and best practices, so we can provide companies with the best regulatory solutions at any given point in time as the world continues to change.

Conclusion

While insourcing customs procedures might seem more profitable at an initial glance, it comes with its own set of challenges. Outsourcing customs procedures, on the other hand, offers many benefits such as focusing on core business activities, consistent results, control costs, instant competence, and increased operational flexibility. If companies choose to outsource customs procedures, they need a reliable partner that can provide custom solutions that match their needs. Ziegler Group’s experienced and passionate international team and global network can help your company navigate complex customs regulations and provide the best possible solutions.

As we move towards a greener tomorrow, technology has made it possible to develop environmentally friendly shipping options for both consumers and transport companies – solutions that reduce our carbon footprint while maintaining high productivity levels simultaneously.

Challenges remain, but the benefits to both the end customer and the environment outweigh the hassle, and it will only get easier as companies help lead the way.

To help mitigate rapid climate changes, the EU has implemented sustainable transport policies as an obligation, and logistic companies now face heavier public demand for sustainable options.

To improve sustainability in the shipping industry, companies are now taking the lead in offering solutions that comply with new environmental regulations without reducing profit.

Many new eco-friendly technologies are becoming available for logistics companies at present, and Ziegler is already taking the necessary steps towards this goal with the “Ziegler. Now even greener” program.

Here are three ways we are doing that:

Optimising customer supply chains with more efficient, fast and ecologically-responsible transport solutions.
Reducing our energy dependence with solar panels in our facilities and other programmes to reduce our electrical usage.
Reducing our emissions by implementing electric delivery vehicles, biodiesels, eco-driving software on our trucks, and much more.

These changes can be challenging at first, as they require altering the status quo and asking our customers to take the leap with us.

But the benefits are already being felt.

Lessening our carbon footprint, fossil fuel and energy consumption, acts to improve compliance with sustainable transport policy and guidelines, while transforming our business into an environmentally-conscious corporation.
A well-developed sustainable management system attracts stakeholders who prefer eco-friendly transport solutions. Sustainability becomes our unique edge among competitors who lag in compliance and innovation.
Sustainable transportation optimises logistic operations. Current innovations offer numerous tools and features that increase fleet efficiency. This includes software that tracks fuel efficiency, driving performance and more.

Sustainability is coming to the transport industry. Ziegler Group is determined to be ahead of the pack.

Why now is the best time to invest in Autonomous Delivery

There’s no better time than the present to begin implementing autonomous vehicles (AVs) as part of the solution to many challenging problems that cities face.

Not only is the need greater than ever before, but also this generation’s environmental awareness level and the availability of new technologies make materializing this vision feasible at last.

Here’s how.

The world now has better opportunities for AVs

As the demand for road mobility increases, congestion and pollution have become major problems for European cities. According to Annelies Develtree, Knowledge Group Manager of Vias Institute, approximately 16,000 trucks and 26,000 vans enter and leave Brussels daily, and those numbers are only expected to increase.

These compounding issues require innovative and unconventional solutions – solutions that citizens are then more open to if they can really make a difference, such as autonomous delivery.

Even though some unknowns still exist and market acceptance will need time, if AVs can prove their safety and demonstrate their benefits, acceptance will swiftly follow.

AVs can now identify the most efficient delivery routes, troubleshoot mobility issues, and maintain safety even with minimal human supervision.

Automation isn’t just about self-driving, but it’s now about taking a leap away from pollution and congestion while actually increasing productivity.

Various Belgian road safety and knowledge groups are collaborating toward a carbon-neutral society by 2050, and electric AVs will contribute massively to successfully reaching this goal.

Current AV technology is becoming available that will allow for smoother implementation of AVs on roadways and maintenance when needed.

Brexit has made importing and exporting goods between the UK and Europe more complicated than ever before. In this article, we explore how the Ziegler Group uses its know-how, experience, and international internal network to support our customers in importing to and exporting from the UK, reducing their costs and increasing competitiveness.

One of the major challenges that have arisen since Brexit is Import procedure 42, which is a VAT-exempt supply in the EU. This regulation allows for goods to be imported into the European Union and exported to the UK while avoiding VAT payments. However, this is not an easy process and requires expertise in international shipping and customs regulations.

Thanks to our international network of customs and compliance experts and internal cooperation, Ziegler Group has introduced a streamlined procedure for navigating this complex landscape by advising our customers on how to use regime 42 to clear goods through Belgium before being transported to their final destination. By doing so, customers can reduce the amount of VAT payable when exporting between their UK and EU entities, which allows them to become more competitive against EU competitors.

This solution also benefits the exporter as they become the importer using their EU details, eliminating the need for EU receivers to complete POA’s. This makes the selling conversation between customers more attractive as many EU buyers were unfamiliar with the requirements of importing from the UK.

The Ziegler Group works with dedicated vehicle solutions to ensure full control and visibility of the movement from the UK to Belgium, and then clearing customs. This enables our customers to offer a DDP* option and offset VAT payments.

Additionally, we utilise our road freight network to move goods to Belgium and then onto the final EU destination country. Zielger’s customers have successfully started using a combination of the above solutions.

Congratulations to Ziegler Newport and the entire Ziegler UK team for seamlessly implementing the new procedure for our customers, which demonstrates our unwavering commitment to customer satisfaction in the face of diverse transportation challenges.

If you need help with import/export between the EU and the UK, just contact us.

Ziegler.Southwest@zieglergroup.com

+44 (0) 1633 493050

*Delivered Duty Paid (DDP) is a term used in international shipping that means the seller is responsible for all costs and risks associated with transporting goods to the buyer’s destination. This includes customs duties, taxes, and other fees. DDP INCO terms are used to specify who is responsible for paying these costs in a given transaction.

The transport and logistics sector is no longer confined to being a man’s industry and Ziegler Group is one of the companies leading this change with our talent and competence-based approach to employment that is providing more jobs for women than is the norm for our industry.

International Women’s Day is an important occasion to recognize and celebrate the contributions of women across all industries, and especially in industries that traditionally provided few opportunities for women.

The Ziegler Group is proud to be an employer that recognizes talent, potential, and competence in its team above all. We stand out in our industry with a growing number of women employed and holding management positions. This is not the result of some deliberate gender-based hiring strategy, but rather the natural outcome of our competence-based approach of hiring whoever is the best match for the job!

And the truth is best told in numbers…

According to publicly available data, women comprise only 19% of employees in the transport and logistics industry. However, at the Ziegler Group, women make up 35.2% of employees. In many countries where we operate, such as Hong Kong, China, Greece, and Tunisia, women comprise most of staff and management. For instance, in Ziegler China, 71% of employees are women, while in Ziegler Greece, 65% of employees are women.

In just the past two years, the number of women working at the Ziegler Group has increased by 9.4%. Most of these women work in administrative, operational, and sales positions, and many hold management positions. At the Ziegler Group, 15.5% of management positions are held by women (including our CEO!) This is in stark contrast to the Fortune 500 list, where 95% of management positions in the supply chain are held by men.

This commitment of promoting employees, regardless of gender, into leadership roles has allowed us to achieve a competitive edge in the industry.

At the Ziegler Group, we recognize the importance of creating a workplace culture that is inclusive, supportive, and empowering for everyone. We believe that the best way to achieve this is by recognizing and promoting talent, regardless of gender. And we will continue to do so!

Happy International Women’s Day!

Statistics provided by The Ziegler Group, Generix Group and Fronetics.

We take our social responsibility seriously

Do you know that 99% of everything you buy, consume, eat and drink was transported to you by emissions-generating combustion engines? Most goods and food are not produced near your home. They need to be transported by vehicles with combustion engines to stores, depots, and even directly to your doorstep. At Ziegler, this is what we do – ensuring goods get to where they are needed. But combustion engines emit excess carbon, which is responsible for warming our climate by retaining heat in the air. We are architects for transport and logistics, but not ‘engineers’ who can invent low-emission engines or build stronger, lighter batteries. But we are ‘entrepreneurs’, and as such we take our social responsibility seriously.

How seriously? It was more than a century ago when we first began our transport business, and we used a horse and carriage. Horses needed hay, comfortable accommodations, and veterinary care to sustain them. Ziegler needed coachmen for the horses and carpentry to maintain the carriages. And then one day, a new and mind-boggling technology changed everything – combustion engines had arrived! Ziegler needed to completely transition its infrastructure and people towards transporting goods with trucks, boats, trains, and planes. Ziegler successfully navigated that transition and continued to thrive in the new paradigm. This experience gives us the entrepreneurial courage and conviction that we will successfully tackle the next transition, and continue to thrive as the future becomes the present.

We envision that electrification is the next transition our industry will undergo, and it will be the operating model for transportation in the years to come. To get there means investing in autonomous electric vehicles and cargo bikes. It requires experimenting, not just with solar panels to produce renewable energy, but also linking them with industrial batteries to store electricity and charge e-vans. It also means finding and implementing a CO²-measurement framework that is coherent, transparent, and based on internationally accepted frameworks. It also means helping our customers figure out how to make their supply chains more sustainable.

Sustainability is not limited to electrification or CO² reduction.
There are more topics to delve into and we do this by engaging with our stakeholders, bringing to bear our materialities, and planning out a solid road map to tackle them. This is our blueprint for thriving during the next great transition.

As the backbone of global trade, ocean freight commands 65% of the world’s freight traffic, outpacing road, rail, and air. In the wake of recent years’ historic surge in ocean freight rates, the question on everyone’s mind is: why the fluctuation?

The COVID-19 pandemic exposed the vulnerability of global trade when supply chains are centralized in certain regions of the world. As the economy picks up steam and demand rises, shipping has been struggling to keep up, resulting in rising ocean freight rates.

Terminal congestion, limited ship capacity, port personnel shortage, and a shortage of containers have all contributed to the skyrocketing rates, with the price of a 40′ container on the Asia/Europe route increasing almost 8 times from 2019 to 2022.

The blockage of the Suez Canal and the political situation in Europe only added to the already tumultuous landscape, leading to an increase in raw material prices and companies ordering in bulk to cover shipping costs and prepare for potential shortages.

Transport capacities have improved since then, and port congestion is less of an issue than it was in 2022. And the weakening global economy is slowing down China’s exports, making the once “lucrative” shipping routes (Asia/USA) less attractive, and forcing shipping companies to revise their transport plans and lower prices.

The introduction of new vessels in 2023 will increase the market’s transport capacity, but this increase will be offset by the withdrawal of older vessels and the need for shipping companies to comply with new IMO 2023 regulations.

We must wait for the arrival of the new ships ordered which will be put into circulation at the beginning of 2023 to estimate the impact on capacity and prices. The new standards that came into force on January 1, 2023 to limit toxic gas emissions will have an impact, as only 55% of the world fleet today met those standards previously.

Decarbonisation of shipping will take some ships out of commission as they are brought up to the new standards. Sailing more slowly is one factor that could slow down shipments and cause a rise in demand for capacity.

Looking ahead, predicting freight demand in the coming years remains a challenge. Tensions between carriers and shippers have been strained due to the significant rise in transport costs, but the tide is now turning in favour of shippers as demand decreases and shipping lines seek to fill their vessels.

We’ve already seen a drop in rates on most routes, and we can expect rates to stabilize back to pre-COVID levels at some point.

Throughout this unusual fluctuation, Ziegler Group is helping our customers to diversify their supply chains to be more resilient against future shifts, offering, among other things, alternative transportation methods from China to Europe, such as rail freight.

For personalized service and a reliable global partner that can support you through industry fluctuations, get in touch with us.

For the last two years, Ziegler Group has prioritised and invested in pursuing sustainability. We are pleased that we are making progress, even if it is just the beginnings of our ambitions.

So what’s next? What do we plan for 2023?

We now have a Group Sustainability Manager to facilitate and extend corporate sustainability efforts, and we designed a three-fold sustainability strategy for 2023:

Integrate our long-term sustainability goals and road map into Ziegler’s business strategy.

We are working towards integrating our sustainability goals and road map into Ziegler’s long-term business strategy.

To achieve this, we will proceed with a classic ‘stakeholder mapping’, ‘materiality analysis’ and then determine sustainability goals. The result will be an integrated Business Strategy that will help guide our sustainability efforts in the coming years.

We are currently working on these goals and expect them to be finalized by mid-2023.

Provide carbon emissions data throughout the Group.

Since our activities produce emissions, whether during transport or from on-site operations, it is important that we understand these emissions, and provide calculations and analysis to reduce them, not just for ourselves but also for our customers and partners.

Our Brussels Headquarters facilities have been certified as carbon neutral, and our TMS (Transport Management System) will be able to provide carbon emission calculations for each shipment starting on the first of January 2023.

For our other sites, we are looking for a data solution to record carbon emissions. Once selected, we plan to implement that capability during 2023.

Continue to pilot innovative projects

Our team gained valuable experience and knowledge in the last two years, by taking bold decisions to launch new sustainability projects whenthe outcome was not guaranteed. This is how we gain practical experience in the real world, learning what works and what does not work and how we can improve. We walk the talk.

Projects like electric Cargo Bikes, Autonomous Delivery Vehicles and improvements to facilities were started because we saw the opportunities and believed in them. They fit within Ziegler Group’s philosophy of piloting, doing, falling, getting up again, trying again and learning from the whole experience.

We will continue our dedication to more sustainability projects as we go into 2023. We also look forward to discovering new projects that will challenge us and push us further towards our goal of sustainable transport.

Conclusion

In 2023 we plan to have our sustainability goals integrated into Ziegler’s Business Strategy, which will provide structure and vision to our activities in the coming years. We also plan to track carbon emissions for individual shipments. And you can expect more new projects in the area of sustainable transportation.