Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom

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Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight matters
Insight into the UK freight industry’s
key data, trends and issues
July 2019
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                        AECOM

Foreword
Welcome to AECOM’s first
Freight Matters report.
The freight sector is an important
and growing contributor to the
UK economy. At the same time,
it is facing significant pressure
responding to evolving environmental
legislation and the costs and effects
of the UK’s changing relationship with       Keyvan Rahmatabadi
the European Union.                          Director,
Our Freight Matters 2019 report              Head of Transportation Planning, UK
provides expert analysis of the              and Ireland, AECOM
leading domestic and international
freight statistics and research
sources that matter, covering all
modes of transport — road, rail,
water and air.
It brings together, in one place, a
high-level overview of industry trends
with insight from AECOM’s freight
and logistics specialists.
We hope you find the information
useful and stimulating.

                                         2
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019             AECOM

Contents
The UK Freight Sector           4

Road Freight                   5

Air Quality Matters            8

Rail Freight                   9

EU Matters                    12

Water Freight                 13

Safety Matters                16

Air Freight                   17

Technology Matters            20

Sources                       21

AECOM Freight and Logistics   22

Authors                       23

                                    3
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                                                          AECOM

 Freight in the UK
  The freight sector is one of
  the UK’s largest industries                                                         Rail
  and plays a crucial role in the
  economy, contributing an
  estimated £62 billion Gross                                               Water
                                                                                      9%
  Value Added (GVA) yearly.
                                                                            13%     Total goods moved
  Domestic air freight                                                              (domestic, 2017)

  represents a small portion of
  goods moved compared to                                                          189 billion
                                                                                    tonne-kilometres
  the other modes.
                                                                                                            Road
  Road freight is the
  predominant mode for the                                                                                  78%
  domestic movement
  of goods.

 150                                                                                                         Road

 120

  90
                       Total goods moved (UK billion tonne-kilometres)
  60

  30
                                                                                                             Water
                                                                                                              Rail
   0
         08

                      09

                                   10

                                                11

                                                             12

                                                                       13

                                                                              14

                                                                                      15

                                                                                                16

                                                                                                       17
       20

                    20

                                 20

                                              20

                                                           20

                                                                       20

                                                                             20

                                                                                     20

                                                                                              20

                                                                                                       20

The linked sources for these figures are listed in Sources, page 21.

                                                                        4
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                                                                          AECOM

Road freight
In the twelve months ending March                Similarly, international road freight            The top freight commodity
2018, goods moved — which is a                   activity for HGVs registered in                  transported by road in 2017, as a
measure of freight that takes account            the UK and transporting freight                  proportion of goods lifted, is food
of the weight of the load and the                internationally decreased by two per             products.3 The UK food and drink
distance that it is hauled — in the              cent from the previous period, with              supply chain depends heavily on
UK by GB-registered heavy goods                  7.7 million tonnes of international              road transport to service regional
vehicles (HGVs) totalled 149 billion             goods lifted.2                                   distribution centres and stores.
tonne-kilometres. This represents
                                                 This decrease could be explained by              The following section provides up-to-
a 1 per cent decrease compared to
                                                 different factors, such as pressure on           date key statistics on domestic and
the previous twelve months. Goods
                                                 price, driver shortage, the increase in          international road freight activity in
lifted — which is the quantity derived
                                                 the cost of diesel and the uncertainty           the UK.
by adding together the weight of all
                                                 over Britain’s future relationship with
the loads carried — decreased by 7
                                                 the European Union (EU).
per cent, to 1.37 billion tonnes in the
same period.1

  ROAD FREIGHT JARGON
  CAN bus
  Modern vehicles use a CAN bus to transfer
  information between the various electronic
  vehicle components and devices. It helps
  register fuel consumption and driving style
  and streamline maintenance processes.
  Cabotage
  Cabotage is the transport of goods between
  two places in the same country by a
  transport operator from another country.
  Direct Vision Standard
  The Direct Vision Standard (DVS) for HGVs
  assesses and rates how much a driver can
  see directly from their HGV cab in relation to
  other road users. The DVS forms part of a
  proposed Safety Permit for all HGVs over 12
  tonnes entering London.
  Fleet Operator Recognition Scheme
  The Fleet Operator Recognition Scheme
  (FORS) is a voluntary accreditation scheme
  that measures fleet performance and aims to
  drive up standards across areas, such as fuel
  efficiency, carbon emissions and road safety.

1 h
   ttps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/748101/road-freight-statistics-
  april-2017-to-march-2018.pdf
2 Ibid.
3 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/728840/rfs0104.ods

                                                                       5
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                                                               AECOM

Road – Domestic
Contribution                                                           Goods lifted by commodity 2017
to UK economy:                                                         (million tonnes)

£12.4 billion
(up 4% on 2015)
                                                                       Groupage 129
                                                                                                Agricultural 97
                                                                                                    Coal, Lignite 7

                                                            Mail, parcels 36

Employment:                                                                                                       Metal ore,

284,000
                                                                                                                  other mining,
                                                                                                                  quarrying 287
                                                       Waste 153
individuals
(up 15% on 2015)
                                                          Metal 45

Licensed HGVs:                                                                                                    Food incl.

499,400
                                                                                                                  beverages and
                                                        Glass, cement,                                            tobacco 287
                         HGVs were                      other non-metallic
licensed in Great Britain at the end of                 minerals 135
2017, of which around 408,200 were                                      Chemical 51
taxed as goods vehicles.                                                                  Coke, Refined
                                                                                          petroleum 43

                                                                ▽
                              GOODS MOVED

                              149 billion
                              tonne-kilometres
                                                                          DOWN 1%

                                                                                      ▽
                              GOODS LIFTED

                              1.37 billion tonnes                                      DOWN 7%

    Artic                                                                                    Rigid
    3.19 km                                                                                  3.26 km
    per litre, 2016                                                                          per litre, 2016

The linked sources for these figures are listed in Sources, page 21.

                                                                         6
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                                                                   AECOM

Road – International
Top EU countries trading with the UK:
      Imports to UK                 Exports from UK

Goods lifted by road 2016                                                   Goods moved by road 2016
(thousand tonnes)                                                           (thousand tonnes)
1400                                                                        800
                                                                            700
1200
                                                                            600
1000
                                                                            500
800
                                                                            400
600
                                                                            300
400                                                                         200
200                                                                         100
  0                                                                           0
          m

                     ce

                                y

                                         nd

                                                     s

                                                                                   m

                                                                                            ce

                                                                                                    y

                                                                                                          nd

                                                                                                                    s

                                                                                                                         ly
                                                   nd

                                                                                                                   nd
                              an

                                                                                                  an

                                                                                                                        Ita
        iu

                                                                                  iu
                  an

                                                                                         an
                                       la

                                                                                                         la
                              m

                                                                                                 m
       lg

                                                                                  lg
                                                rla

                                                                                                                  rla
                                     Ire

                                                                                                        Ire
                Fr

                                                                                       Fr
                          er

                                                                                                 er
      Be

                                                                              Be
                                               he

                                                                                                               he
                         G

                                                                                                 G
                                             et

                                                                                                              et
                                            N

                                                                                                              N
                                                         GOODS MOVED
      2.6 billion                                                                                     2.5 billion
      tonne-kilometres                                                 5.1 billion                    tonne-kilometres

                                                                 ▽
      to the UK                                                   tonne-kilometres                    from the UK
                                                                            DOWN 1%

                                                         GOODS MOVED
                                                                 7.7 billion

                                                            ▽
                                                            tonne-kilometres
              3.6 million                                              DOWN 2%
                                                                                                 4.0 million
              tonnes
              Exported from the UK
                                                                                                 tonnes
                                                                                                 Imported to the UK

The linked sources for these figures are listed in Sources, page 21.

                                                                        7
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                                                              AECOM

 Air quality matters
                                              Raj Sharma
                                              Principal Consultant,
                                              Freight and Logistics,
                                              AECOM, UK and Ireland

There has been a growing trend               Both LEZs and CAZs are reactive           — such as Kuehne + Nagel,
of local authorities across the              responses to combat poor air quality,     Wincanton and Asda — will trial the
UK planning or implementing                  but how successful can these              effectiveness of gas-powered heavy
Low Emission Zones (LEZ) or, like            initiatives be and what impact do they    goods vehicles (HGVs) new to the
Birmingham, Leeds, Nottingham,               have on the freight industry?             UK market, as well as new cryogenic
Derby and Southampton, being                                                           transport refrigeration units.
                                             Current impacts
mandated by the Government to
                                                                                       There are other solutions, including
introduce Clean Air Zones (CAZ).             Studies have shown that the
                                                                                       out-of-hours deliveries that move
                                             introduction of LEZs and CAZs do
Reactive solutions                                                                     delivery and servicing activity out-of-
                                             indeed help reduce emissions in
                                                                                       peak hours, and last-mile deliveries
The Government expects 23 local              those areas. There is also evidence,
                                                                                       that use electric vehicles or cycles,
authorities to reach illegal pollution       however, showing that the level of
                                                                                       that involve minimal cost for the
levels by 2021. In response, they            air quality is significantly reduced
                                                                                       operator to implement and could
must all carry out a feasibility to          outside these boundaries.
                                                                                       even result in improved efficiencies.
determine whether a CAZ is required.
                                             Many of these zones ban older freight
                                                                                       The reality for most operators,
Nottingham City Council and                  and servicing vehicles, but operators
                                                                                       however, is that, with charges of up to
Southampton City Council have                will typically use their most polluting
                                                                                       £100 a day for HGVs below the Euro
recently rejected plans to implement         fleet outside of these zones, again
                                                                                       VI standard, the only option will be to
a CAZ, because they feel the                 decreasing the air quality beyond
                                                                                       pass the costs on to their customers.
measures they already have in place          of the set boundaries. So, is the
                                                                                       Yes, it is true that these zones may
to improve quality meet the legal            problem just being pushed from one
                                                                                       encourage operators to upgrade
requirement.                                 area to another? It would be useful for
                                                                                       their fleet, but the impact on smaller
                                             policy development to monitor the
Nottingham City Council’s existing                                                     operators will be greater and they
                                             air quality levels outside the zones
projects to improve air quality include                                                may find this difficult to achieve.
                                             before and after the introduction of
retrofitting 180 buses with clean
                                             these initiatives.
exhaust technology, requiring every taxi
and private hire vehicle in the city to be   Making zero-emissions
low emission, and the council replacing      technology work
its own fleet of heavy vehicles — such
                                             From an industry perspective,
as bin lorries — with electric or other
                                             operators and manufacturers have
low-emission vehicles.
                                             to explore options to make zero-
                                             emission technology work for them.
                                             For example, companies, such as
                                             Calor, have explored alternative
                                             fuels and schemes. This includes
                                             the ‘Dedicated to gas’ trial led by
                                             Air Liquide, under which operators

                                                                 8
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                                                                       AECOM

Rail freight
Rail freight activity contributes                emissions, with 8.2 million lorry               Rail freight trains through the
£870 million to the UK economy                   journeys avoided in 2017.3 Rail is also         Channel Tunnel offer the advantage
and employs approximately 6,300                  an increasingly safe form of transport,         of a Channel crossing without the
individuals.1                                    with a 54 per cent reduction in freight         need for modal shift, in an eco-
                                                 train accidents over the last ten-year          friendly means of transport; and
Overall, freight moved by rail has
                                                 average.4                                       with a service quality independent
declined in 2018, with approximately
                                                                                                 of weather conditions and road
17 billion tonne-kilometres moved.               Internationally, the value of trade
                                                                                                 networks. After a significant surge
This represents a 1.7 per cent                   transported via the Channel Tunnel
                                                                                                 in traffic from 2010 to mid-2015,
drop from 2017, and 9 per cent                   — including Le Shuttle — was worth
                                                                                                 Channel Tunnel rail freight trains in
of UK’s total goods moved. This                  £121.92 billion in 2016, equivalent to
                                                                                                 traffic dropped by one-half due to
recent decline in freight moved                  26 per cent of total UK-EU trade.
                                                                                                 disruption by migrants in the Calais
by rail has been the result of a fall
                                                 EU imports from the UK reached                  area, before stabilising in 2016 and
in coal moved.2 This is due to the
                                                 £61.05 billion in 2016 and exports              returning to strong growth, reflected
Government’s energy policy phasing
                                                 accounted for up to £60.87 billion,             by 2,077 freight trains running
out coal-fired electricity generation in
                                                 with postal and carrier freight the             through the tunnel in 2018.6
the UK by 2025.
                                                 largest category of both imports and
                                                                                                 The next section presents recent
Rail freight has contributed to                  exports.5
                                                                                                 data on UK rail freight operations.
reducing congestion and carbon

  RAIL FREIGHT JARGON
  Total Operations Processing System
  The Total Operations Processing System
  (TOPS) is a computer-based program used
  to monitor the movements of all freight and
  passenger rolling stock and locomotives.
  Rolling Stock
  This is any stock that can run on the track.
  It includes locomotives, carriages, freight
  wagons and maintenance vehicles.
  Loading Gauge
  The maximum height and width for railway
  vehicles and their loads to ensure safe
  passage through bridges, tunnels and other
  structures.
  Intermodal Transport
  The transport of freight in an intermodal
  container/vehicle, using multiple transport
  modes, without any handling of the freight
  itself when changing modes.

1 https://www.unipartrail.com/assets/oe_report_ria2018.pdf
2 http://orr.gov.uk/__data/assets/pdf_file/0010/27919/freight-rail-usage-2017-18-quarter-4.pdf
3 Ibid.
4 https://www.rssb.co.uk/Library/risk-analysis-and-safety-reporting/annual-safety-performance-report-2017-18.pdf
5 https://www.getlinkgroup.com/uploadedFiles/assets-uk/the-channel-tunnel/180604-EY-Channel-Tunnel-Footprint-Report.pdf
6 https://www.getlinkgroup.com/uk/eurotunnel-group/operations/traffic-figures/

                                                                       9
Freight matters Insight into the UK freight industry's key data, trends and issues July 2019 - Aecom
Freight Matters | July 2019                                                                                                                 AECOM

Rail – Domestic

                                                                                                                        ×
GOODS MOVED                                        GOODS LIFTED                            LORRY JOURNEYS
2017–18                                            2017–18
                                                                                           AVOIDED 2016–17

    17 billion
    tonne-kilometres
                                                        75 million
                                                        tonnes                                 8.2 million
                                                                                               lorry journeys
                                                                                               avoided

Total output of the                                                           Goods lifted by commodity 2017
freight rail sector, 2016:                                                    (million tonnes)

£0.9 billion
                                                                                               Oth

                                                                                                                .24
(up 4% on 2015)

                                                                                                                  1
                                                                                               er 1

                                                                                                             Coal

                                                                                                                                  2
                                                                                                                               1.4
                                                                                                .70
                          Employment:

                                                                                                                           als
                                                                                                                         et
                          6,300
                                                                                                                        M
                          individuals
                          (2016)                                                                                                    Con
                                                                                                                                       struc
SAFETY                                                                                 estic
                                                                                  Dommodal
                                                                                                                                             tion
                                                                                                                                           4.31
                                                                                  inter 6.72

                      54%
                                                                                                                 Oil, p

                               reduction in
                                                                                                        International

                      freight train accidents
                                                                                                                       etro 4.31
                                                                                                                           leum

                      (from last ten-year average)
                                                                                                        0.49

  500,000

                                                                             Total number of freight train
  400,000                                                                        movements per annum

  300,000

  200,000
              4

                       5

                               6

                                        7

                                                 8

                                                          9

                                                                   0

                                                                        1

                                                                               2

                                                                                      3

                                                                                               4

                                                                                                     5

                                                                                                              6

                                                                                                                           7

                                                                                                                                      8
            -0

                     -0

                              -0

                                       -0

                                                -0

                                                        -0

                                                                 -1

                                                                        -1

                                                                              -1

                                                                                     -1

                                                                                           -1

                                                                                                   -1

                                                                                                            -1

                                                                                                                         -1

                                                                                                                                    -1
          03

                   04

                              05

                                     06

                                              07

                                                      08

                                                               09

                                                                       10

                                                                             11

                                                                                   12

                                                                                          13

                                                                                                   14

                                                                                                         15

                                                                                                                        16

                                                                                                                                   17
        20

                 20

                          20

                                   20

                                            20

                                                    20

                                                             20

                                                                       20

                                                                             20

                                                                                  20

                                                                                        20

                                                                                                20

                                                                                                        20

                                                                                                                    20

                                                                                                                                   20

The linked sources for these figures are listed in Sources, page 21.

                                                                        10
Freight Matters | July 2019                                                                                         AECOM

Rail – International
2,077 freight trains                              through the Channel Tunnel in 2018

    UK trade through the Channel Tunnel — 2017

                          £60.87                                                             £61.05
                          billion                                                            billion
      EXPORTS                                                                                            IMPORTS

                                       TOTAL: £121.92 billion                including Le Shuttle

     2.0

               Rail freight carried through the
     1.5
               Channel Tunnel (million tonnes)

     1.0
            08

                          09

                                        10

                                                       11

                                                                       12

                                                                             13

                                                                                       14

                                                                                                    15

                                                                                                          16

                                                                                                               17
           20

                        20

                                      20

                                                     20

                                                                   20

                                                                             20

                                                                                      20

                                                                                                    20

                                                                                                         20

                                                                                                               20

The linked sources for these figures are listed in Sources, page 21.

                                                                        11
Freight Matters | July 2019                                                                                                          AECOM

EU matters
                                               Daniel Bowden
                                               Principal Consultant,
                                               Freight and Logistics, AECOM, UK and Ireland

In the year ending March 2018, 3.5             EU remain complex — namely how                 Flexible, resilient and responsive
million road goods vehicles travelled          goods coming through borders will
                                                                                              While it is important not to play
from Great Britain (GB) to Europe; and         be managed. Even if the transport
                                                                                              down the potential adverse impacts
in 2017, UK heavy goods vehicles               sector in the UK post-Brexit may not
                                                                                              of a no deal Brexit, UK logistics
(HGVs) made 261,000 trips from GB              look wildly different to how it looks
                                                                                              operators have a reputation for being
to mainland Europe and 83,000 trips            now, the big question is how UK
                                                                                              flexible, resilient and responsive.
from GB to the Irish Republic. Some            transport providers and businesses
                                                                                              When faced with difficult situations,
99 per cent of these journeys did not          will interact with the EU in the future.
                                                                                              such as adverse weather or when
require customs checks.
                                               Future interaction                             industrial action occurs, the industry
EU hauliers operate over 80 per cent                                                          is praised time and again for its ability
                                               In July 2018, the Haulage Permits
of the freight transported by heavy                                                           to adapt. While trade may not be
                                               and Trailer Registration Act 2018
goods vehicles (HGV) between the                                                              frictionless, the logistic industry will
                                               received Royal Assent, providing for
UK and Continental Europe. Intra-                                                             face challenges, but certainly won’t
                                               a registration scheme for trailers in
EU aviation routes grew by 303 per                                                            collapse.
                                               international circulation. Coupled
cent between 1992 and 2015, and
                                               with additional arrangements around            Whatever the outcome, the freight
rail connections via the Channel
                                               driving licences, trailer registration         transport sector, along with other
Tunnel continue to provide a critical,
                                               and potentially Driver Certificate             sectors, will be affected by Brexit.
high-speed Roll-on/Roll-off (Ro-Ro)
                                               of Professional Competence                     The best way to prepare is to
connection between the UK and
                                               (CPC), the no deal scenario adds               familiarise the industry with the
mainland Europe.1
                                               significant difficulty to an already           possible outcomes, be aware of new
Maintaining the status-quo                     heavily regulated sector, as well              requirements that may be imposed
                                               as challenges around borders,                  post-Brexit, and carefully consider
The UK Government is keen to
                                               customs/security declarations, driver          the resilience of the industry towards
maintain the status-quo in terms
                                               resourcing and traffic management.             a possible temporary disruption.
of transport operators’ rights and
freedoms following the UK’s exit from          Industry associations, such as the
the EU. Aligning on safety, security           Road Haulage Association (RHA)
and regulation will also be key,               and Freight Transport Association
through a combination of bi-lateral            (FTA) continue to lobby government
agreements or as part of a wider               around the needs of the industry and
free-trade deal.                               the imperative to ensure ‘frictionless
                                               borders’ as well as holding them to
As well intentioned as that may be,
                                               account when they fall short of their
the practicalities of a deal with the
                                               expectations.

1 h
   ttps://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/714676/Framework_for_the_UK-EU_
  partnership_Transport.pdf

                                                                   12
Freight Matters | July 2019                                                                                                             AECOM

Water freight
The freight maritime sector                     last 30 years. In 2017, freight traffic          accounting for 55 per cent of all
contributes over £14.5 billion per              through all UK ports accounted for               international cargo moved.4 The
year to the UK’s economy, with                  481.8 million tonnes.3 Liquid bulk and           UK continues to import more than
around 95 per cent of all imports and           Roll-on/Roll-off (Ro-Ro) are the major           it exports.
exports being transported by sea. It            cargo types to be handled.
                                                                                                 The water freight statistics provided
also supports directly 186,000 jobs.1,2
                                                Domestic water freight traffic                   in this report focus on the distribution
The amount of waterborne freight                accounted for 19 per cent of all                 of trade throughout UK ports, as well
moved has been steadily decreasing              tonnage through major UK ports.                  as key trade partners by both short
since its peak in 2000, with the 2008           International water freight reached              and deep sea.
recession resulting in the largest              383.6 million tonnes in 2017. The
year-on-year decline recorded in the            majority of this was with the EU,

  WATER FREIGHT JARGON
  Roll-on/Roll-off
  Roll-on/Roll-off (Ro-Ro) ships are vessels
  designed to carry wheeled cargo, such as
  cars, trucks and trailers, that are driven on
  and off the ship on their own wheels or using
  a platform vehicle.
  Deep sea
  Deep sea is maritime traffic that crosses
  oceans, as opposed to short sea traffic that
  can move along a coast within a continent.
  Lift-on/Lift-off
  Lift-on/Lift-off (Lo-Lo) ships are cargo ships
  with on-board cranes to load and unload
  cargo.
  Twenty-foot Equivalent Unit
  Twenty-foot Equivalent Unit (TEU) is a
  standardised measure for the cargo-carrying
  capacity of a container ship. It allows for the
  different sizes of container boxes. One TEU
  is equivalent to a standard 20-foot container.

1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/725560/maritime-annual-report-2017-2018.pdf
2 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/762200/port-freight-statistics-2017.pdf
3 Ibid.
4 Ibid.
                                                                      13
Freight Matters | July 2019                                                                                                                             AECOM

Water
                                                                                                               UK major port freight by cargo type, 2017
                                                                                                               (million tonnes / Mt)
UK major ports by traffic
over 2 million tonnes 2017

                                                                                                                                 Other cargo
                                                                                                                                 18.8
     Inward                                                                      Sullom Voe

     Outward                                                                                                           Ro-Ro
                                                                                                                       107.0
                                                                                                                                                        Liquid
                                                                      Orkney                                                                             bulk
                                                                                                                                                        189.1

                                                                                                                       Lo-Lo
                                                                                                                        64.0

                                                                                                                                     Dry bulk
                                                                                                                                      91.7
                                                                              Aberdeen

                                    Glensanda

                                                                                                             Total all UK port
                                                                                                             freight traffic cargo
                                                 Clyde         Forth

                          Larne
                                                                                Tyne                                                 481.8 Mt
                                                                                 Tees and
                          Belfast                                                Harlepool

         Warrenpoin
                      t                                                                                                   Domestic             International

                                                                                                                      98.2 Mt 383.6 Mt
                                                               Heysham

                                                                                           Hull

                                    Holyhead                Liverpool
                                                                                                         d
                                                                                              Grimsby an
                                                                             Rivers Hull      Immingham
                                                                                and
                                                                 Mancheste
                                                                           r   Humber
                                                                                                                  Harwich
                                                                                                                                               Ex 6
                                                                                                                                                 po %
                                                                                                                                                  3
                                                                                                                                                   rts
                                                                                                                                                    Im 64
                                                                                                                                                       po %
                                                                                                                                                         rts

                                         en         Port                                                         Felixstowe
                             Milford Hav                    Newport
                                                   Talbot

                                                                Bristol                        London

                                                                         Southampt
                                                                                       on                         Dover
                                                                                                        Medway
                                                                                           Portsmouth

                                      Plymouth

The linked sources for these figures are listed in Sources, page 21.

                                                                                                 14
Freight Matters | July 2019                                                                                AECOM

                                                of international tonnage passing
                  55%                           through major UK ports in 2017
                                                was traffic with the EU.

     Imports to UK                  Exports from UK

       Sweden
                                                               Top five EU countries trading
                                                               with the UK in 2017
 Irish Republic

       Belgium

        France

  Netherlands
              0

                                 5

                                                  10

                                                                       15

                                                                                  20

                                                                                       25

                                                                                             30

                                                                                                         35
                                                                                              million tonnes

     Imports to UK                  Exports from UK

          Qatar

  South Korea
                                                               Top five deep sea countries
                                                               trading with the UK in 2017
       Canada

          China

           USA
              0

                                              5

                                                                             10

                                                                                        15

                                                                                                         20

                                                                                              million tonnes

The linked sources for these figures are listed in Sources, page 21.

                                                                            15
Freight Matters | July 2019                                                                                                   AECOM

Safety matters
                                                 Paul Wilkes
                                                 Associate Director,
                                                 Freight and Logistics, AECOM, UK and Ireland

Road transport is a vital lifeline for the       the amount of direct vision for a         driver fatigue. Although, a driver may
UK economy, with goods transported               driver. The focus is on ensuring that     be operating within the legal number
many thousands of miles every day                the risks are minimised when these        of hours they are able to work, this
to meet growing customer demands.                vehicles enter urban environments         does not take into account lack of
Roads are becoming busier, and our               where they are most likely to meet        sleep or ill health that could lead to
evolving consumer lifestyles — with              vulnerable road users, such as            a driver being more at risk. Studies
the rise of e-commerce — means                   cyclists and pedestrians.                 have shown that driver fatigue may
commercial vehicle traffic is increasing.                                                  be a contributory factor in up to 20
                                                 The right skills and experience
It is a tough environment for any fleet                                                    per cent of road incidents.1
operator in a market where margins are           Many fleets are also ensuring that
                                                                                           Fatigue monitoring devices appear
kept low due to the high operational             their drivers have the correct skills
                                                                                           to be an emerging solution, with
costs of vehicles, driver compensation           and experience for the type of vehicle
                                                                                           the widespread use of wearable
and the highly competitive nature of             they are using.
                                                                                           technology. The devices can monitor
the haulage industry.
                                                 For HGVs, this is a simpler process       and detect changes in the driver’s
Safety as a differentiator                       due to the requirements of the            behaviour and activity, including eye
                                                 existing licensing arrangements.          movements, blink rates and head
Many fleets are focusing on safety
                                                                                           motion, to determine an accurate
as a key differentiator in the market.           For vans, however, this is more of a
                                                                                           level of driver fatigue or drowsiness.
Schemes, such as the Fleet                       problem. The fact that drivers are able
                                                                                           Alerts and beeps are sent to inform
Operator Recognition Scheme                      to operate vans with their car licence
                                                                                           the driver.
(FORS), are used by many fleets as               means that a driver may not be used
an independent benchmark of how                  to such a large vehicle, and may          Whatever the technology, a well-
they are operating. FORS and new                 require some familiarisation training     rested driver is a safer one. It is both
requirements in London around the                before taking to the roads.               the responsibility of managers and
Direct Vision Standard (DVS) are                                                           drivers to protect themselves, their
                                                 Tackling driver fatigue
mandating specific safety equipment                                                        colleagues and other road users.
for heavy goods vehicles (HGVs) to               Another area that is becoming more
eliminate blind spots and increase               of a focus related to HGVs and vans is

1 https://www.rospa.com/road-safety/advice/drivers/fatigue/

                                                                   16
Freight Matters | July 2019                                                                                                           AECOM

Air freight
Air freight only handles a small                computer and electronics, among                 In the UK, the five London airports
proportion of the total freight activity        others.1 In 2017, 2.6 million tonnes            — Heathrow, Gatwick, Stansted,
in terms of tonne-kilometres, focusing          of freight was handled by air, a 10             Luton and City — accounted for 78
on high-value and time-sensitive                per cent increase from 2016 and the             per cent of freight. Heathrow is the
goods. Although air is the mode that            largest amount on record.2                      main airport, both for domestic and
moves the least volume of goods                                                                 international movements, handling a
                                                In 2017, air freight represented 49
within and outside the UK, air freight                                                          total of 64 per cent of freight traffic in
                                                per cent of the UK’s non-EU exports
brings a Gross Value Added (GVA)                                                                2017.4
                                                by value, approximately £91.5 billion,
of £87.3 billion to the UK annually,
                                                and 35 per cent of imports, which               The next section presents recent
including a significant proportion of
                                                accounted for £89.9 billion. For non-           data on the air freight industry and its
the GVA of several key industries,
                                                EU trade, air represents over 40 per            value to the UK economy.
such as pharmaceuticals, transport
                                                cent of traded value, and only one per
equipment, machinery and equipment,
                                                cent of volume.3

  AIR FREIGHT JARGON
  Hub
  A transport hub is a central location
  where cargo is transported to, and then
  consolidated with other freight going to the
  same destination.
  Air Transport Movements
  Air Transport Movements (ATMs) are all
  scheduled aircraft movements (whether
  loaded or empty) and loaded charter
  movements.
  Unit Load Device
  A Unit Load Device (ULD) is a device used to
  consolidate and move cargo being shipped
  onto an aircraft.
  Chargeable weight
  Chargeable weight is the amount that the
  carrier will charge to move a shipment. It is
  whichever the greater of the gross weight or
  the volumetric weight.

1 h
   ttp://airlinesuk.org/wp-content/uploads/2018/10/Assessment-of-the-value-of-air-freight-services-to-the-UK-economy-Final-Report-v22-Oct-
  2018-b-SENT.pdf
2 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/762011/tsgb-2018-report-summaries.pdf
3 h
   ttp://airlinesuk.org/wp-content/uploads/2018/10/Assessment-of-the-value-of-air-freight-services-to-the-UK-economy-Final-Report-v22-Oct-
  2018-b-SENT.pdf
4 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/762011/tsgb-2018-report-summaries.pdf

                                                                     17
Air – Domestic
Freight Matters | July 2019                                                                                                                                           AECOM

Freight traffic at UK airports 2017

                                           Heathrow 64%

                                                                                                Gatwick 3%

                                                                                                             Manchester 5%

                                                                                                                                           Luton 1%

                                                                                                                                                          Other 18%
                                                                                                                             Stansted 9%
                                         HAN                     DLED
                              FR   EIGHT                          to n n es
                                            2.6           million
                                                               on 201
                                                                       6
                                                      up 10%

                                                                  Gross Value Added dependent
                                                                  on air freight by industry
        Employment:                                               £ billion

        150,000
        individuals                                                                                                          Pharmaceuticals
                                                                                   Other 14.30                               13.90
        (2018)

                                                                                                                                                      Machinery and
                                                                                                    Total                                             equipment

                                                                        Other                       £87.3                                             8.80

                                                                    transport
                                                                   equipment
                                                                        14.30
                                                                                                    billion                                           Other
                                                                                                                                                      manufacturing
                                                                                                                                                      8.30
                                                                                          90
                                                                                        2.
                                                                                                                              Colectr opti
                                                                                                  ls and

                                                                                  ing
                                                                                                                               e d
                                                                                                        0

                                                                                                                                mp on cal
                                                                                                     3.0

                                                                                                                                 an 30

                                                                              th
                                                                                               ica m

                                                                                                    nd

                                                                                                                                  8.
                                                                                                    0

                                                                                                                  Basic meta

                                                                            lo
                                                                                            em leu

                                                                                                                  6.00

                                                                                                                                   ut ic
                                                                                              t 5.3
                                                                                              rts a

                                                                           C
                                                                                         ch etro

                                                                                                                                      er,
                                                                               ente tive a
                                                                                        men
                                                                                           ,p
                                                                                         ke
                                                                                     Co

                                                                                   rtain
                                                                                  Crea

                                                                                                                            ls

The linked sources for these figures are listed in Sources, page 21.

                                                                           18
Air – International
Freight Matters | July 2019                                                                                AECOM

                                                                                   EU    Other international
      Gatwick

   Heathrow

London City
                                               International freight at
                                               London airports 2017
          Luton

    Stansted
                0

                                               5

                                                                        10

                                                                                    15

                                                                                                       20
                                                                                           million tonnes

            Air                                           Other
            49%                                           modes               £185.5    EXPORTS

                                                          51%                 billion   non-EU

                                                                        Air                  Other
              IMPORTS                     £253.7                        65%                  modes
                          non-EU
                                          billion                                            35%

The linked sources for these figures are listed in Sources, page 21.

                                                                       19
Freight Matters | July 2019                                                                                            AECOM

Technology matters
                                          Prof. Geoff Clarke
                                          Regional Director,
                                          Freight and Logistics, AECOM, UK and Ireland

Technology is not only changing
the way we live and work, but also
fundamentally transforming the
supply chain. With the rise in global
sourcing, the effective use of cloud-
based Information Technology (IT)
provides transparency and efficiency.
Notable changes are happening in
the following key areas:
Communication and data
IT facilitates the seamless integration
of end-to-end transport by enabling
quick electronic data transfer            Operational efficiency                     New concept innovations
between the freight carriers, facility
                                          IT is used to monitor real-time traffic    Aerial drones, robotic delivery
providers and other parties in the
                                          information and provides reliable          agents, driverless trucks, Hyperloop,
supply chain. Paperless information
                                          estimates of arrival times, and thus       maglev (derived from magnetic
flow saves handling time and
                                          improves operational efficiency.           levitation) trains, solar-powered
provides real-time data transfer,
                                          IT equipment, both in the control          planes, engineless flight and crewless
enabling electronic transactions
                                          centre and on-board, facilitates the       automated cargo ships are all
and data analysis, supported by
                                          monitoring of real time positions by       projects at different stages of testing.
the emergence of 5G Network
                                          using satellite navigation. If incidents   Time will tell which of these become
communications. Price, agility and
                                          occur or congestion is detected, then      mainstream.
availability of emerging technologies
                                          intelligent re-routing is performed —
within cloud platforms contribute to                                                 At a time of uncertainty and ever-
                                          leading to time and fuel savings.
the rapid adoption of electronic data                                                tighter margins for the freight
transfer across the globe.                People and productivity                    transport sector, the successful
                                                                                     implementation and use of new
Vehicles and systems                      Companies are reliant on a safe
                                                                                     technologies can generate greater
                                          and efficient workforce. On-board
There are various trials of vehicle-                                                 operational efficiencies.
                                          diagnostics systems help managers
based technology, including lorry
                                          to understand driver behaviour.            Any innovation must be safe,
platooning, and semi-autonomous
                                          Sensors record aggressive or poor          affordable and secure industry and
and autonomous vehicles.
                                          driving behaviours with on-board           public acceptance to make a real
In Sweden, Volvo’s first self-driving     cameras that capture the driver’s eye      difference. This, in turn, requires good
bin lorry is under trial and should       view on the road/railway and provide       business practice, organisational
be safer and more environmentally         evidence in the event of an accident.      skill, and planning from across the
friendly. The lorries follow a            IT is used to assess driver skills and     UK freight industry to fully realise the
programmed route, going from one          inform both the company and drivers        potential benefits.
wheelie-bin to the next, with no driver   of ways to improve their driving
in the cab. If the trial is successful,   habits, saving fuel and money and
the lorries could be among the first      improving safety.
unmanned heavy goods vehicles
(HGVs) on the road.

                                                             20
Freight Matters | July 2019                                                                                                                 AECOM

Sources
  Freight in the UK, page 4                        Rail | Domestic, page 10                        Air | Domestic, page 18
  –– Gross Value Added: https://                   –– Goods moved by commodity: https://           –– Freight traffic at UK airports; Freight
     www.parliament.uk/documents/                     www.gov.uk/government/statistical-data-         handled: https://assets.publishing.service.
     commons-committees/Exiting-the-                  sets/rai04-rail-freight                         gov.uk/government/uploads/system/
     European-Union/17-19/Sectoral%20                                                                 uploads/attachment_data/file/762011/
     Analyses/33-Road-Haulage-and-                 –– Goods moved; Goods lifted; Freight              tsgb-2018-report-summaries.pdf
     Passenger-Transport-Report.pdf                   train movements: http://orr.gov.uk/__data/
                                                      assets/pdf_file/0010/27919/freight-rail-     –– Employment: https://assets.publishing.
  –– Total goods moved (Domestic, 2017);              usage-2017-18-quarter-4.pdf                     service.gov.uk/government/uploads/
     Total goods moved (Domestic, 2008 –                                                              system/uploads/attachment_data/
     2017): https://assets.publishing.service.     –– Total output of the freight rail sector;        file/775077/future_of_mobility.pdf
     gov.uk/government/uploads/system/                Employment: https://www.unipartrail.com/
     uploads/attachment_data/file/778713/             assets/oe_report_ria2018.pdf                 –– GVA by industry: http://airlinesuk.
     tsgb-2018.pdf                                                                                    org/wp-content/uploads/2018/10/
                                                   –– Lorry journeys avoided: http://orr.gov.         Assessment-of-the-value-of-air-freight-
  Road | Domestic, page 6                             uk/__data/assets/pdf_file/0010/27919/           services-to-the-UK-economy-Final-
                                                      freight-rail-usage-2017-18-quarter-4.pdf        Report-v22-Oct-2018-b-SENT.pdf
  –– Contribution to the economy;
     Employment; Licensed HGVs: https://           –– Safety: https://www.rssb.co.uk/Library/      Air | International, page 19
     assets.publishing.service.gov.uk/                risk-analysis-and-safety-reporting/annual-
     government/uploads/system/uploads/               safety-performance-report-2017-18.pdf        –– International freight at London
     attachment_data/file/728937/domestic-                                                            airports: https://www.caa.co.uk/
     road-freight-2017.pdf                         Rail | International, page 11                      uploadedFiles/CAA/Content/Standard_
                                                                                                      Content/Data_and_analysis/Datasets/
  –– Goods lifted by commodity: https://           –– Imports and Exports through                     Airport_stats/Airport_data_2017_annual/
     assets.publishing.service.gov.uk/                the Channel Tunnel: https://www.                Table_14_International_and_Domestic_
     government/uploads/system/uploads/               getlinkgroup.com/uploadedFiles/assets-          Freight.pdf
     attachment_data/file/728840/rfs0104.ods          uk/the-channel-tunnel/180604-EY-
                                                      Channel-Tunnel-Footprint-Report.pdf          –– Non-EU imports and exports:
  –– Goods moved; Goods lifted: https://                                                              http://airlinesuk.org/wp-content/
     assets.publishing.service.gov.uk/             –– Freight trains through the Channel              uploads/2018/10/Assessment-of-the-
     government/uploads/system/uploads/               Tunnel: https://www.getlinkgroup.com/           value-of-air-freight-services-to-the-UK-
     attachment_data/file/748101/                     uk/eurotunnel-group/operations/traffic-         economy-Final-Report-v22-Oct-2018-b-
     road-freight-statistics-april-2017-to-           figures/                                        SENT.pdf
     march-2018.pdf
                                                   –– Rail freight carried through the
  –– Artic MPG; Rigid MPG: https://www.gov.           Channel Tunnel: https://www.gov.uk/
     uk/government/statistical-data-sets/             government/statistical-data-sets/rai01-
     energy-and-environment-data-tables-env           length-of-route-distance-travelled-age-
                                                      of-stock
  Road | International, page 7
                                                   Water, pages 14 and 15
  –– Top EU countries trading: https://assets.
     publishing.service.gov.uk/government/         –– UK major ports by traffic; UK major
     uploads/system/uploads/attachment_               port freight by cargo type; Total
     data/file/627121/international-road-             Freight Tonnage handled by all
     freight-statistics-2016.pdf                      UK ports; Domestic; International;
                                                      Imports and Exports; International
  –– International goods moved;                       tonnage through UK ports; Top 5 EU
     International goods lifted: https://assets.      countries; Top 5 deep sea countries:
     publishing.service.gov.uk/government/            https://assets.publishing.service.gov.uk/
     uploads/system/uploads/attachment_               government/uploads/system/uploads/
     data/file/748101/road-freight-statistics-        attachment_data/file/762200/port-freight-
     april-2017-to-march-2018.pdf                     statistics-2017.pdf

                                                                       21
Freight Matters | July 2019                                                                                              AECOM

AECOM Freight and Logistics
AECOM is a global network of                 Understanding the bigger picture,         Our core offer includes:
experts working with clients,                we can offer informed solutions to
                                                                                       –– Freight and logistics research
communities and colleagues to                help tackle the industry’s biggest
develop and implement innovative             challenges, as well as enable clients     –– Freight and logistics master
solutions to the world’s most                to leverage future opportunities. Our        planning
complex challenges.                          work extends across road, rail, air and
                                                                                       –– Freight demand forecasting for
                                             water modes, with specific emphasis
As a specialist offer within AECOM’s                                                      road, rail and water
                                             on measures that drive social value,
overall service portfolio, the Freight
                                             economic growth and environmental         –– Supporting transportation by non-
and Logistics team provides specific
                                             sustainability. We provide robust            road modes
expertise across all aspects of
                                             and cutting-edge advice on freight
freight transport. We work for a wide                                                  –– Freight and logistics infrastructure
                                             activity, current and future transport
range of public and private sector                                                        feasibility and design
                                             trends, the important determinants
clients, offering balanced and tailored
                                             of freight demand, evidence-based         –– Truck parking solutions
solutions to local, regional, national and
                                             policy making and technological
international issues. Our people are our                                               –– Freight safety, quality and
                                             advances.
greatest asset, combining industry-                                                       efficiency programmes
leading knowledge and experience in
                                                                                       –– Effective planning for safe and
transport, logistics and economics to
                                                                                          efficient deliveries to sites
help our clients succeed.
                                                                                       –– Premises and developments

                                                                                       –– Carbon emission reduction

                                                               22
Freight Matters | July 2019                                     AECOM

Authors

                              John Hix
                              Head of Freight and Logistics,
                              AECOM
                              UK and Ireland
                              john.hix@aecom.com

                              Dr. Aida Kaddoussi
                              Principal Consultant,
                              Freight and Logistics,
                              AECOM
                              UK and Ireland
                              aida.kaddoussi@aecom.com

                              Patricia Calixto Pires
                              Graduate Consultant,
                              Freight and Logistics,
                              AECOM
                              UK and Ireland
                              patricia.calixtopires@aecom.com

                                               23
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