Food and drink supply chain and transport industry: evidence report

1: Adjusting supplier/ buyer expectations -

Seafood primarily

Managing the supplier and buyer expectations could include negotiating longer delivery times which would increase the flexibility for transportation.

Short-term.

Would require negotiation between processors and customers.

Technological advancements could assist in this option including the use of electronic auctions.

Other approaches could include changing the opening hours at markets to relieve pressures on the transport logistics (e.g. early opening of Peterhead market)

Low level of investment but potential impact on market price and transport costs.

Negotiating terms will potentially impact on viability and attractiveness of Scottish produce.

Longer delivery times could open up more transport routes for hauliers.

N/A

N/A

Yes – further consideration given alongside Option 2

2: Explore new markets and customers for seafood in addition to Boulogne sur Mer

Seafood

Increase flexibility and routes to different markets. Supplying other markets distributes the risk.

A study has recently been commissioned to investigate internal UK transport issues and other destinations apart from Boulogne-sur-Mer which may address this option.

Low level of investment but potential impact on market price and transport costs.

Boulogne sur Mer is Europe's seafood sector's central fish distribution hub with warehousing in close proximity. Using a different market will impact on the location of the warehousing and potentially processing.

Dependent on the new markets and routes.

N/A

Yes – further consideration given alongside Option 1.

3: Increase HGV driver numbers in UK

All exports.

Driver shortages in the UK – the industry has an ageing workforce and an existing shortage of approximately 45,000 drivers nationwide.

15% of drivers working in the UK are European and the current political situation increases the challenge of attracting drivers to the UK.

Short and medium term.

Government or haulier incentives to attract and retain drivers.

The FTA recommendations include 1) student style loans for vocational training, 2) better driver facilities and 3) a campaign to raise awareness of the logistics sector.

Low level of investment.

Government or haulier incentives to attract and retain drivers.

N/A

N/A

Increased driver numbers would potentially be of benefit to other growth sectors relying on road transport (e.g. Life Sciences, Energy).

Yes – further consideration to be given to increasing the number of HGV drivers in the UK.

4: Increased storage capacity at Scottish airports.

All exports.

Improved storage facilities, including refrigeration, at airports could support exporting seafood and other goods by air.

Short to medium term.

Edinburgh Airport is starting a review of their facilities, including storage. Short term solutions could be the hiring of refrigerated lorries.

Medium level of investment by airports.

Edinburgh Airport review may include details of costs required for development.

Care would be needed to avoid giving unfair competitive advantage to one location.

Investment in storage capacity needs to be considered alongside an export aviation strategy to drive demand for the facilities through increased flights and destinations.

Increased and improved storage facilities will increase freight being transported by air. Environmental impact will be dependent on the method: bellyhold of scheduled flights (marginal additional impact) or chartered flight

Improved facilities at airports would potentially be of benefit to other growth sectors relying on refrigeration (e.g. Life Sciences).

Yes

5: Create a Scottish Exports Working Group

All exports.

Regular Working Group with representatives from industry, hauliers, freight forwarders and Scottish Government.

Sub-groups for individual trade, e.g. seafood and whisky with an over-arching group to recognise inter-dependencies and cost savings between industries.

Group would also be able to respond to emergencies with speed and accuracy.

Short term.

Build on existing relationships to formalise a working group representing all aspects of the export market.

Working Groups would provide a good opportunity to develop Government supported pilot schemes to investigate and test new markets and routes to market.

Low level of investment.

Would require a commitment from industry and Scottish Government.

Working Group would provide a platform for recognising inter-dependencies and cost-savings between industries

N/A

N/A

Yes

6: New technology for transporting products.

Seafood primarily.

New technology for seafood storage may extend the shelf life of products.

Short term.

Recent research includes monitoring of seafood in transit to ensure freshness with schemes recently piloted in Norway and Iceland. New developments also include new ways of transporting live seafood in containers with the environment monitored and optimised.

Increased cost of transport.

N/A

New technology may reduce the time pressures for deliveries and open up the possibility of sea freighting instead of air freighting in some instances with associated environmental benefits.

N/A

Yes

7: Increased chartered flights or scheduled flights with bellyhold capacity for freight. Or market development on existing routes.

All exports.

Most seafood currently travels as bellyhold produce on long haul aircraft from Heathrow and to a lesser extent UK regional airports. Increasing the range flight destinations and improved storage facilities and market development at Scottish airports could open up new markets and routes.

The following points would need to be considered:

The portfolio of produce that could be combined, consistency and seasonality and the backloading implications and a large consignment might temporally flood a market, reducing the price it could command.

Medium level of revenue support required to pump start what would hope to be a viable new export option for Scottish produce.

Dependent on the development of improved storage facilities at Scottish airports.

Might require increased marketing effort to build demand in new locations

Environmental impact will be dependent on the method: bellyhold of scheduled flights (marginal additional impact) or chartered flight.

Increased flights and destinations would potentially be of benefit to other growth sectors (e.g. Life Sciences).

Yes

8: Enhanced Scotland – Europe rail freight capacity

All exports

Direct connection to Europe and reduced requirement for in demand HGV drivers.

Potential rail freight improvements could include a direct connection through the Channel Tunnel from Scotland and increased rail use for internal movements to English ports.

Low level investment.

Government funded plot scheme to test the route.

Inter dependencies with freight forwarders.

Rail freight produces 76% less CO₂ emissions than the equivalent HGV journey^[67].

N/A

Yes – Investigation of operational feasibility and business case is required

9: Improved feeder short sea shipping services to EU markets and deep-sea ports

Whisky primarily.

Scottish ports have capacity for container traffic but limited boats and services. This would be a commercial response given demand for increased services.

The creation of a transhipment port to bypass deep sea ports such as Rotterdam would require vast investment and a significant increase in demand over current levels.

Revenue for operating services. Improved short sea shipping would be a commercial response to a market need but could be supported by a government led pilot scheme. Care would be needed to avoid giving unfair competitive advantage to one location.

Inter-dependencies with European deep-sea ports and land transport to Scottish ports.

Environmental impact for short sea shipping and road is dependent on the route, the vehicles and the efficiency of the loads with no clear benefit for either^[68].

Improved feeder short sea shipping would potentially be of benefit to other growth sectors (e.g. Life Sciences).

No – improved short sea shipping would be a commercial response given demand for increased services.

10: Extension to HGV Driver's Hours

Seafood and other short shelf life exports.

Short term.

The Emergency Exemption and Temporary Relaxation of Drivers' Hours and Working Time Rules include details of exemptions in emergencies (e.g. heavy snow). The EU has been lobbied unsuccessfully in the past to grant temporary exemptions.

Low level of investment.

N/A

N/A

Exemptions and extensions would potentially be of benefit to other growth sectors relying on road transport (e.g. Life Sciences).

No – existing legislation can be used however this is a short-term solution to emergencies and not of relevance for improving resilience.

11: New, central Scotland airport.

All exports. A single airport with improved storage facilities and air connections.

Long term.

Acceptability and feasibility anticipated to be very low.

High investment cost.

Inter-dependencies with freight forwarder facilities.

Substantial construction implications.

Consolidation of flights may reduce the number of flights and associated environmental aspect, however, the combined market may make new routes viable thus increasing the flights. Increased passenger land transport from Glasgow and Edinburgh to a central airport.

One central airport would potentially be of benefit to other growth sectors.

No – due to the anticipated acceptability of such an option.

12: RoRo service from East Scotland to Europe

All exports.

The Rosyth to Zeebrugge RoRo service stopped in 2018. Infrastructure remains at Rosyth and could be reinstated given demand, either to Zeebrugge or potentially other northern Europe ports.

A new European 'gateway' port for Scotland could be developed at Preston Links in East Lothian for passenger travel, freight and cruise liners.

When operating, food and drink products made little use of Rosyth-Zeebrugge due to the inflexibility of its relatively infrequent service for perishable goods.

Currently backloads are often destined for the Home Counties (DFDS deliver fruit, bread etc). A balance of loads for imports and exports would be required to progress the option.

Other European ports (Rotterdam, Ijmuiden, etc) may

Capital cost for a new port facility – £25million.

In the short term, a RoRo service could be reinstated from Rosyth with support initially from a Route Development Fund.

Care would be needed to avoid giving unfair competitive advantage to one location/service.

A new crossing would provide a direct RoRo link to Europe, a cruise liner terminus (with financial benefits of stocking a cruise liner).

Many of Scotland's exports are processed in England, e.g. seafood in Grimsby. Exporting direct from Scotland would require additional infrastructure.

Environmental impact for short sea shipping and road is dependent on the route, the vehicles and the efficiency of the loads with no clear benefit for either^[69].

Positive benefit for tourism.

Not as part of this study. As a driver for food and drink export resilience this option does not meet the objectives, however, combined with other benefits such as a direct RoRo link to Europe, a cruise liner terminus (with associated financial benefits of stocking a cruise liner) and duty-free sales, this option could be developed further.

offer a closer connection to Dutch and German markets, though issues of inflexibility and backloads remain for food transportation

13: Gourock to Spain RoRo

All exports.

The Dublin to Santander service could be extended to Scotland and provide a connection to Europe.

Short term.

The service could potentially operate twice a week which would not be attractive to the seafood industry but could provide a route for other exports

Currently backloads are often destined for the Home Counties (DFDS deliver fruit, bread etc). A balance of loads for imports and exports would be required to progress the option.

Medium level revenue support required to extend the service from Dublin to Gourock. Support could initially be part of a Route Development Fund.

A new crossing would provide a direct RoRo link to Europe and duty-free benefits.

Many of Scotland's exports are processed in England, for example seafood in Grimsby and meat products. Exporting direct from Scotland would require additional transport or the development of processing sites in Scotland.

Environmental impact for short sea shipping and road is dependent on the route, the vehicles and the efficiency of the loads with no clear benefit for either^[70].

Positive benefit for tourism.

Not as part of this study. As a driver for food and drink export resilience this option does not meet the objectives, however, combined with other benefits such as a direct RoRo link to Europe and duty-free sales, this option could be developed further.

14: Increased storage capacity and warehousing at Scottish ports.

All exports.

Warehousing at ports provides opportunities to address Brexit concerns. Capacity exists and products could be consolidated prior to exporting.

Short to medium term.

Scottish ports currently have spare capacity for warehousing which could be utilised – additional capacity is not required.

Low level of investment by ports.

Inter dependencies with freight forwarders.

N/A

Improved facilities at ports would potentially be of benefit to other growth sectors.

No