Mike Parr, PML Seafrigo CEO UK & Ireland, talks exclusively to Freshtalk Daily about the biggest challenges currently being faced by the logistics industry
How has Brexit reshaped your operations, particularly with regard to customs processes and cross-border efficiency?
In preparation for Brexit, PML Seafrigo substantially increased the road freight team, in anticipation of the increased amount of work generated by the need for additional inspections of consignments. The initial guidance from government indicated that these inspections would be taking place as part of the initial Brexit plans but four years on, they have yet to be implemented. PML Seafrigo’s Kent transport and logistics hub invested in training key personnel who would be able to undertake the inspections typically handled by Defra, under the Approved Operator Status scheme.
We were one of the first to be trained but the latest missive from government has highlighted continued uncertainty as to the official rollout of the scheme, with the latest update intimating that a decision will be made end of 2025.
We have put every measure in place from start of Brexit to ensure a seamless transition for our customers in response to what we believed would happen, but we have been met with constant U-turns and revised timings. This is why ports such as Port of Dover have been considering legal action against the government, to protest against the injustice of the money spent on preparing the necessary infrastructure to cope with the changes associated with Brexit, only to find that the protocols that have been put in place are no longer needed.
What are the biggest challenges the industry faces in light of the ongoing driver shortages and how are you adapting to overcome these issues?
PML Seafrigo is not faced with any driver shortage issues. However, a key challenge which the industry is facing would include sourcing suitably experienced and motivated staff to work within the office-based operations associated with the logistics sector.
We are increasingly frustrated with the fact that individuals coming into the work force are displaying a less than enthusiastic approach to putting in the necessary hours and commitment into the various roles on offer, exhibiting a limited appetite to demonstrate dedication and a desire to progress.
A further challenge is the ongoing need to renew fleet lorries to ensure they are compliant with changing legal requirements and represent the best-in-class vehicles to transfer our customers’ goods. This represents a significant investment, at a time when the industry is facing increasing costs, especially in relation to the fees being charged by the airline warehouse sheds. In 2025 we will be purchasing an additional 15 vehicles.
What role is technology playing in your business’s evolution, particularly in terms of digital transformation and sustainability efforts?
It would be great to say that a move to digital has transformed our business but sadly, this is not the case. PML Seafrigo designed a digital transport log to overcome the potential delays associated with handwriting every movement on a paper report, which results in the completion of four sheets a day filled in for each consignment. However, this move has been rejected by HMRC who continue to insist that a driver needs to manually sign off the paperwork.
This is despite a meeting that I had some 25-years ago with the customs team who stated at the time that there was a commitment to making the industry paperless. Yet it appears that far from making improvements, the situation has actually deteriorated further.
In terms of sustainability, PML Seafrigo recycles all the cardboard associated with packaging and we document the CO2 emissions associated with each shipment.
How are rising fuel costs and increased pressure on sustainability impacting your business model, and what strategies are you deploying to manage these pressures?
Fuel costs are less of an issue currently but the increase in the minimum wage, heightened NI contributions and suggestions that the UK moves to a four-day-working week will heavily impact a business which is required to deliver a 24/7 service to deliver fresh, perishable foods.
Everyone in the sector is facing these challenges but the multiples continue to put pressure on logistics providers by showing a reluctance to accept that the increase in operational costs is reflected in our fees.
Given the growth in e-commerce and next-day delivery expectations, what strategies are you implementing to maintain service levels and customer satisfaction?
PML Seafrigo has staked its reputation on the provision of a speedy, seamless delivery service, receiving and dispatching on the same day / next day to ensure maximum shelf life during the last mile logistics.
In terms of imported goods, our Kent facility provides not only a quicker solution (we are less than 15 minutes from the Port of Dover, compared with Sevington’s 25 minutes and have our own Border Control Post for customs clearance) but also a more cost-effective one, avoiding the Common User Charge for medium risk plants and produce which applies at Sevington, regardless as to whether or not the consignment is selected for sanitary and phytosanitary checks.
Are there particular opportunities for growth or efficiency that you believe the logistics sector is currently overlooking, and how is PML Seafrigo positioning itself to seize these opportunities?
The efficiency of our operations would be greatly improved if the government would make a decision to finally roll out the AOS (Approved Operator Scheme) as this would enable us to clear consignments without having to wait for a Defra representative to attend which can obviously cause delays, impacting the shelf life of goods, supply of essential foods and ultimately the price to the end user ie the consumer.
New markets which we are currently considering include India, Morocco, Tunisia and many others, which all represent potential growth markets.
Comments