Memorandum from the Association of International
Courier and Express Services (AICES) (FT 25)
1. The Association of International Couriers
and Express Services (AICES) is the UK trade association for companies
handling international express documents and package shipments
and its members include household names such as DHL, FedEx, TNT
and UPS. Our members are responsible for over 95% of the international
courier and express shipments moved through the UK every day,
providing the "just-in-time" information and goods that
organisations from hospitals to major financial institutions rely
upon.
2. The sectors that are most reliant on
express services are among the most productive and the fast growing
areas of the UK economy including the manufacturers of electronic
components, telecoms and financial services. Rapid, cost-effective
delivery is increasingly important to these sectors' ability to
compete in global markets with more than two-thirds of companies
reporting that express delivery services are vital or very important
for their business success.
3. A recent independent report by Oxford
Economic Forecasting entitled "The Economic Impact of
express Carriers for UK Plc" reveals that the sector
currently contributes nearly £1 billion to GDP and £1.3
billion of economic activity to the UK economy and directly employs
32,000 people and indirectly supports a further 72,000 jobs.
4. The Association would like to submit
the following as evidence to the Transport Select Committee as
part of the forthcoming inquiry into the Department for Transport's
approach to freight transport.
The TC will also examine whether the Department's
responsibilities should be extended, to developing and implementing
an integrated freight plan, for example
5. The Association is sceptical of the value
of adopting an Integrated Freight Plan by the Department for Transport.
The difficulties faced by the department in reducing high levels
of private car use and the challenge associated with encouraging
greater use of public transport should remain the department's
key priority.
6. The idea of a DfT Integrated Freight
Plan in addition to work being undertaken by TFL, local authorities
and devolved bodies risks more bureaucracy and regulation being
imposed on top of existing arrangements with no measurable improvement
in the operation of freight transport.
7. Members already operate full vehicles
having consolidated them effectively. An integrated freight plan
could not, therefore, reduce the number of freight vehicles operated
by the large express carriers.
Is the Department's investment in logistics programmes-including
the Sustainable Distribution Fund-good value for money and meeting
the objectives?
8. The Association is concerned with the
continuous emphasis on modal shift from road to rail and water
borne freight. The express sector is based on rapid and time specific
deliveries with heavy emphasis on using planes, lorries and vans.
The scope for moving to alternatives is extremely limited.
9. Regarding the efficiency programme the
association believes that a great deal more could be done to encourage
and promote the engagement of the sector with this work.
10. The Association is of the view that
the SDF should include a work stream based on research and development
into alternative fuel technologies.
International distribution patterns involving
air freight increase carbon dioxide by up to 30 times that of
sea transport-what more can be done to promote modal shift from
road and air freight to inland waterway, shipping and rail?
11. AICES members are fully supportive of
measures to improve the environment and actively promote their
own initiatives, such as the introduction of quieter, more fuel
efficient aircraft engines and environmentally friendly vehicles.
One example of the numerous voluntary projects AICES members have
been working on is the initiative to reduce the impact of night
operations:
12. Investment in new aircraft—To
reduce noise and emissions, the express industry is investing
over 3,300 million euros in quieter and cleaner aircraft for use
in Europe.
13. Adaptation of operational and flight
procedures to minimise noise impact—Express operators co-operate
with airport authorities to develop flight procedures which have
the least impact on the environment, while respecting safety requirements.
14. Divert the transport of shipments from
air to road or rail—Whenever possible, express operators
divert from air to road, but the emphasis must be laid on whenever
possible. This diversionary approach cannot be allowed to undermine
the crucial role played by the express sector.
How can the Government encourage and incentivise
further efficiency improvements?
15. The sector needs plenty of time to adapt
to change and avoid haphazard and un-coordinated change from a
multiplicity of different policy directions—the EU, the
DfT and TfL. The emphasis needs to be on more positive encouragement
rather than negatives.
Air freight in the South-East is forecast to grow
from 2.2 million tonnes a year in 2003 to 14 million tonnes by
2030. Has the Department adequately planned for the capacity and
access implications of this very significant growth?
16. Practically every organisation relies
on fast and efficient transportation of goods, components and
documents in order to ensure their commercial competitiveness
and success. The express industry specialises in time-definite,
reliable transportation services for documents, parcels and freight.
It has allowed British business to rely on the predictable, expeditious
delivery of supplies, thereby enabling them to attain and maintain
global competitiveness.
17. This usually requires goods to be picked
up at the end of the working day for delivery early the following
day. The only way to achieve such a delivery schedule is by the
operation of aircraft outside of normal business hours, including
those defined as night, between 11pm and 6 am. Night flights are
only used when no other alternatives are available.
18. Typically, the types of goods transported
by express services are high-value items such as electronic components,
automotive spares, product samples and pharmaceutical products.
With e-commerce becoming a major driver for the UK economy, the
express industry will play an increasingly important role in the
supply chain ensuring business efficiency and consumer satisfaction.
The ability to fly at night is therefore particularly important
for express operators to meet the "next day" needs of
customers.
19. AICES members have taken numerous voluntary
initiatives to reduce the impact of night operations as much as
possible. These include, investment in new aircraft; the adaptation
of operational and flight procedures to minimise noise impact
and, wherever possible, diverting the transport of shipments from
air to road.
20. As the Government recognised in its
aviation white paper, the demand for express industry services
is growing. A balanced approach must therefore be struck between
providing businesses with vital modern transportation and logistics
and the needs of the communities living nearby airports.
21. Failure to find a balance could result
in severe consequences. If restrictions or even bans on night
flights are imposed, carriers may be forced to move to more favourable
locations within the European Union. With them will go considerable
national and local economic benefits.
22. The loss of a next day delivery service
would damage UK business considerably, particularly the hard pressed
manufacturing sector. In a recent CBI and Oxford Economic Forecasting
survey, over 90% of firms in the computer and office equipment,
electrical engineering, motor vehicles, printing & publishing
and precision and optical instruments sectors reported that they
would be very badly affected by the cessation of nightflights
and next day delivery services.
23. The express industry welcomed the "balanced
approach" on aviation noise, agreed in October 2001 at the
International Civil Aviation Organisation General Assembly and
implemented by EU Directive 2002/30/EC on the establishment of
rules and procedures with regard to the introduction of noise-related
operating restrictions at Community Airports.
24. The "balanced approach", if
effectively implemented by Member States, should provide legal
certainty to the express industry whilst at the same time ensure
a reduction in the number of people affected by noise.
25. AICES supports and advocates sensible
noise regulation, but believes that such regulation is best achieved
within an international framework. AICES is of the opinion that
ICAO is the most appropriate organisation responsible for managing
the environmental effects of the global aviation system.
26. The demand for express delivery services
is growing. We are proud of our contribution to the UK economy—local
and national—and the efforts we have made to adapt our operations
to address environmental concerns. We look forward to working
with decision makers at all levels to ensure we are able to do
so in the future.
27. If the UK economy is going to remain
competitive, it is vital that existing airport capacity is used
to the full to support the future growth in trade and that freight
should be entitled to a share of any additional capacity derived
from the expansion of Heathrow.
28. The continuation of dedicated freight
night flights at East Midlands Airport, Luton and Stansted are
vital in ensuring that sufficient capacity is maintained to meet
the large volume of demand for time definite express deliveries.
How will transport networks need to adjust to
serve the growing air freight market?
29. he Association supports the principle
of road pricing provided that the schemes are proven to have a
positive cost-benefit. The Association is also strongly of the
view that consulting with the transport sector should be a compulsory
requirement included in the Local Transport Bill. The Association
would recommend that freight only lanes on motorways should be
subjected to examination in a pilot study.
How effective are the Freight Quality Partnerships
in improving the local experience of freight and deliveries?
30. AICES are actively involved in the Central
London Freight Partnership which has working groups on loading/unloading/PCNs
and consolidation centres. Progress is slow but there is now agreement
that both local authorities and the private sector have a shared
interest in reducing the number of incorrectly applied PCNs, which
involve costs being incurred by both. The Association is of the
view that traffic and parking restrictions should be restricted
to considerations of safety and traffic flow.
Are the restrictions on night-time deliveries
still appropriate? What impact would weakening the restrictions
have on quality of life and other factors?
31. The majority of our deliveries are done
during the day.
How can the road safety record of haulage vehicles
be improved?
32. Road safety is an important issue for
the industry—many of our members have significant driver
training and road safety programmes to minimize the risk to others.
October 2007
| 
