Issue 5, Vol 1

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FSDF Events Day

Come and join us back at the fantastic purpose built Waterfront venue for a day filled with thrills and spills and of course, some friendly competition. Thursday 14th May 2009 at The Waterfront, North Warwickshire  details here

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FSDF Announces New Chief Executive

The FSDF has announced that Christopher Sturman has been appointed as the new Chief Executive of the Food Storage and Distribution Federation.click here for more

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Important Update on the FSDF Climate Change Agreement (CCA)

As many will already know, the FSDF operates the CCA for Temperature Controlled Storage on behalf of the Department of Energy and Climate Change (DECC). The CCA allows qualifying companies to reclaim 80% of the Climate Change Levy charged by the Government on all business use of energy in the UK. This CCA is only available through the FSDF. click here for the more details

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Business Support Helpline

click here for updated details for the support helpline free for all FSDF members

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This Weeks Economic Data

Latest Economic data from the CBI click here for the more details

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"Green Shoots" for US Economy

As the UK economy seems to track behind that of the U.S. there may be some good news on the horizon or should we say “Green Shoots,” for UK citizens and businesses alike. The latest retail-sales report for the U.S. showed sales in February fell less than forecast and a gain in January exceeded the previous estimate, indicating the biggest part of the economy may be starting to stabilize. click here to read full article

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Asda Awards Reed Boardall's Green Credentials

Frozen food consolidator Reed Boardall has won ‘Environmental Carrier of the Year’ in ASDA’s inaugural awards for its distribution service providers. The Boroughbridge-based company, which operates a single site cold storage operation of 112,000 pallets and is ASDA’s only frozen food consolidator, was also runner up for the ‘Carrier of the Year’ category.

click here to read more

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Chillnet announces improved service for Scotland

Leading temperature-controlled groupage operator Chillnet has opened a new depot in Glasgow, based on the TDG site at Shieldhall.

click here for more

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Plan now for virgin R22 crackdown, say experts

The industry should be prepared for a crackdown on virgin R22 once it becomes illegal to use for maintenance after 31st December 2009, speakers at the RAC09 show warned.

click here for more details

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Jobs to be axed at Sainsbury's DC

At Sainsbury’s Distribution Centre in East Kilbride, Scotland management have started a 30-day consultation period with union representatives, which may result in the loss of up to 70 jobs. About 450 people are currently employed at the site, which is run by courier company DHL.

click here for more details

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Consultation released by the Government on new Climate Change Agreement (CCA) Scheme in 2013

The Department of Energy and Climate Change (DECC) that has recently taken over the responsibility for CCAs from DEFRA has a consultation on proposed arrangements for the extension of CCAs from the end of the current scheme in 2013 until 2017.

click here for more details

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Corporate Events Day

FSDF Announces New Chief Executive

The FSDF has announced that Christopher Sturman has been appointed as the new Chief Executive of the Food Storage and Distribution Federation.

From his early days with TDG, NFC/BRC Southern, Ross Youngs and Wincanton, Chris has wide experience of the food supply chain. This has continued in recent years with senior roles as Managing Director of West Kent Cold Storage and Chief Executive of Linq Alliance. Chris also has considerable experience as an independent consultant undertaking high profile assignments across the logistics sector in both the UK and Europe.

Chris is a well known and respected figure in the food storage and distribution sector and will bring a wealth of experience to his new role.

FSDF President, James Woodward commented, "We are delighted to welcome Chris Sturman to the role of FSDF Chief Executive. His background and personality are ideally suited to driving forward the already high profile of the FSDF and to developing further the wide range of valuable services that are provided to all our members.

Chris takes up his new position later in March 2009.

Important Update on the FSDF Climate Change Agreement (CCA)

As many will already know, the FSDF operates the CCA for Temperature Controlled Storage on behalf of the Department for Energy and Climate Change (DECC). The CCA allows qualifying companies to reclaim 80% of the Climate Change Levy charged by the Government on all business use of energy in the UK. This CCA is only available through the FSDF.

Membership of the FSDF CCA now covers some 250 sites in the UK with a further 25 applications currently being processed. These sites are collectively saving  £ millions on their energy bills.

However, there remain a significant number of companies that could qualify for the FSDF CCA who haven’t yet applied.

WHY IT IS URGENT THAT YOU TAKE ACTION NOW

We have recently been advised by DECC that NO new entrants to the CCA will be accepted after 30th September 2009. However, the scheme will continue to operate through to 2013.

Due to the processing time required, we will not be able to accept new applications after 1st July 2009.

Therefore, time is of the essence and you need to act NOW or you will lose out.

ANOTHER REASON TO APPLY NOW FOR A CCA

Starting in 2010, another business focused energy scheme will be launched by the Government. The Carbon Reduction Commitment (CRC) will be mandatory for all companies with a total half-hourly metered electricity consumption over 6,000MWh i.e. an electricity bill over £500,000. In brief, the CRC will require companies to purchase up front carbon allowances to cover their anticipated electricity consumption. This will be done though an online auction. Based on actual performance, bonuses or penalties will be given depending on the position in a league table that will be published on the web. BUT, the important thing is that companies with over 25% of their energy consumption within a CCA will be exempt from the CRC in whole or in part.

Full details of the CRC can be found at: www.defra.gov.uk/enviromnment/climatechange/uk/business/crc

FINALLY, full information on the FSDF CCA is at www.fsdf.org.uk or you can call Mike Thomas at the FSDF Offices for further assistance.

REMEMBER THERE IS NOW A DEADLINE TO GET YOUR COMPLETED CCA APPLICATION TO US

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This Week's Economic Data

#Industrial production fell by 5.6% in the three months to January, largely driven by a 6.4% fall in manufacturing output over the same period. On an annual basis, industrial production was 9.6% lower than the same three months a year ago.

#Manufacturers' input price inflation fell further in the year to February, to 0.5% from 1.5% in January. Output price inflation also fell to 3.1%, from 3.5% in the previous month.

#RICS survey data showed that activity in the housing market remained weak, with the number of surveyors reporting falling house prices remaining high. Average sales per surveyor fell to a new survey low (since 1978), but new buyer enquiries rose for the fourth consecutive month.

#The British Retail Consortium (BRC) reported broadly flat retail sales values in February - sales were only 0.1% higher than a year ago.

"Green Shoots" for US Economy

As the UK economy seems to track behind that of the U.S. there may be some good news on the horizon or should we say “Green Shoots,” for UK citizens and businesses alike. The latest retail-sales report for the U.S. showed sales in February fell less than forecast and a gain in January exceeded the previous estimate, indicating the biggest part of the economy may be starting to stabilize.

This small glimmer of hope was more than Wall Street economists dreamed possible. With the figures indicating that the decline in gross domestic product this quarter will probably be less than anticipated. In fact, consumer spending in first-quarter GDP could turn positive. It is now thought that it may be possible for the U.S to see positive GDP growth by as early as Q2.

The retail-sales upturn is hugely important, with possibly two major factors at work to create it. First is the energy tax-cut plunge — most especially with retail petroleum prices halving since last summer. This means the existing level of personal income is worth more to consumers in terms of buying power because of zero inflation and the energy tax cut, which probably amounts to $400 billion annually.

Asda Awards -Reed Boardall's Green Credentials

Frozen food consolidator Reed Boardall has won ‘Environmental Carrier of the Year’ in ASDA’s inaugural awards for its distribution service providers. The Boroughbridge-based company, which operates a single site cold storage operation of 112,000 pallets and is ASDA’s only frozen food consolidator, was also runner up for the ‘Carrier of the Year’ category.

The awards have been launched to recognise the contribution ASDA’s carriers make towards the supermarket’s success and sustainability is high on the agenda.

“The assessments for the environment award covered six criteria based around training for efficiency and collaboration to reduce empty running,” said Robert Place, ASDA’s primary operations manager. “The awards and presentation event is a major step to improve ASDA's sustainable statement and an encouragement to our carriers to embrace this message further. We have been aware of Reed Boardall’s commitment to environmental practices for some time and they certainly met all the criteria in our new awards scheme.”

For fifteen years Reed Boardall has been investing in environmentally friendly practices across the board. So, apart from helping manufacturers to meet their service levels consistently with supermarkets, wholesalers and food service suppliers, Reed Boardall is also proving to be a forward-thinking eco-warrior.

Tom Cassells, Managing Director of Reed Boardall Transport Ltd, who received the award from Sally Boazman – or ‘Sally Traffic’ as she is better known to BBC Radio 2 listeners, said:

“Everyone is striving to be green and the frozen food market is no exception. We are the only single-site consolidator within Britain’s frozen food industry and this is helping food manufacturers and retailers meet their environmental targets in many ways including minimising vehicle journeys. The number of suppliers we serve ensures that more vehicles are full more often, which in turn guarantees lower CO2 emissions in the supply chain.

“It is great to receive this accolade from ASDA because minimising our environmental impact is one of our most important goals. We aim to tick all the right green boxes to help our food manufacturing customers, as well as their customers - such as the supermarkets - achieve their own corporate responsibility goals.”

After pioneering the use of refrigerated double-deck trailers with moving floors, Reed Boardall now has the largest fleet in the UK. These trailers allow 53% more product per load than a standard refrigerated trailer. The latest innovation on the double-decks is the sloping aerodynamic roof with solar panel to charge the lifting deck battery. Added to which the entire low emission fleet is run on bio-diesel.

For further information visit www.reedboardall.com

Chillnet announces improved service for Scotland

Leading temperature-controlled groupage operator Chillnet has opened a new depot in Glasgow, based on the TDG site at Shieldhall. This arrangement mirrors successful existing collaborations with TDG at their Peterborough and Luton cold stores where TDG provide pallet cross-docking and holdover transit storage facilities for frozen and chilled pallets.

Strategically situated just off the M8 in Glasgow the new depot is managed by Malcolm Wilde who has extensive experience in controlled temperature logistiscs in the region. Malcolm is advising existing and prospective customers of significantly reduced lead times for pallets moving into and out of Scotland with a next day service (five day week) now extending from the south coast of England right up to Aberdeen.

Well over 100,000 pallets per month are moving through the Chillnet network which consists of four partners operating 12 depots - including Ireland (North and South). Partners are Langdons, David Price Food Services, Sawyers and STL Logisitics. Most the of the depots are directly connected with each other using dual temperature night trunkers and all partners operate a common IT platform. Almost all the vehicles involved are satellite tracked and temperatures inside the trucks and trailers are monitored via the satellite connection.

Plan now for virgin R22 crackdown, say experts

The industry should be prepared for a crackdown on virgin R22 once it becomes illegal to use after 31st December 2009, speakers at the RAC09 show warned.

Ray Gluckman, a Director of Enviros Consulting, said council inspectors were being given special training in refrigerants.

“If you have virgin supplies after that date, you are not allowed to use them “he warned, “There are plenty of people who would love to buy your old R22, but one thing you can be certain of is that there will be a lot more activity from the regulators”.

If a firm is prosecuted over flouting the rules, they could face a fine of up to £5,000 in magistrate’s court. But if the case goes to crown court, the fine is unlimited.

This view was backed by John Davey of R22 distributor Harp International: “Please don’t think that you will be able to cheat. We know where our containers are, and we will be asking for them back.”

End users were also advised to plan their exit strategy, since the alternatives – continue with existing equipment, using recycled or reclaimed R22; upgrade to an alternative refrigerant; or place equipment –needed careful thought. Ray Gluckman said: “It is not illogical to continue with existing equipment, provided you can find existing stocks of recycled product, and that is a big ‘if’.”

Suppliers warned that reclaimed R22 was already being sold for 15 Euro a tonne in Europe. “It will be £10 a tonne minimum in the UK,” said Mr Davey, “but end users need to bear in mind that they will be competing with oil companies, for whom any lost time is critical, so they will pay anything to ensure stock.”

End users were also advised to plan for remaining stocks of virgin R22 this year. Peter Dinnage of IDS said “We don’t want to be sat with tankers full on 31st December. We are an industry that doesn’t forecast, and suppliers have had no previous experience of this situation.

“We have to predict as best we can, but if we have a hot summer or people buy a lot in September it could clear suppliers out.”

The European Parliament is proposing amendments to the law covering R22 and other HCFCs, the Ozone Depleting Substances Regulation, to bring it in line with F-Gas regulations.

This is likely to see a higher inspection regime and a greater distinction between ‘reclaimed’ gas, which is cleaned up offsite, and ‘recycled, which is recovered from a system and filtered on site, to prevent illegal trade in used R22. The proposed amendments would only allow contractors to use recycled R22 on the site it has been received from.

Ray Gluckman said, “This may happened as soon as April, but it may happen much later, depending on the European Parliament.”

Jobs to be axed at Sainsbury’s DC

At Sainsbury’s Distribution Centre in East Kilbride, Scotland management have started a 30-day consultation period with union representatives, which may result in the loss of up to 70 jobs. About 450 people are currently employed at the site, which is run by courier company DHL.

Staff at the Sainsbury's depot at Langlands Business Park were told they could face redundancy at a meeting last week.

A spokeswoman for the firm said: "DHL can confirm that it has informed its colleagues at the Langlands Park site in East Kilbride that there will be a reduction in the workforce that operates at that location.

"The exact number of people affected by the proposal will be determined during the 30-day consultation process."

She added: "DHL is committed to a full and open consultation process with its colleagues and their elected representatives.

"We would like to thank the team at the Langlands Park site for their ongoing contribution and dedication."

Consultation released by the Government on new Climate Change Agreement (CCA) Scheme in 2013

The Department of Energy and Climate Change (DECC), that has taken over the responsibility for CCAs from DEFRA has published a consultation on possible arrangements for the extension of CCA from the end of the current scheme in 2013 until 2017.

DECC indicate in the preamble to the consultation that their aim is to simplify the scheme albeit that the major elements should remain the same as at present.

Nevertheless, some of the proposals are of interest and could possibly affect CCA members to an extent.

We suggest that you look at the proposals that can be found at www.fsdf.org.uk/iimni/usefiles/Text3/consultationclimatechangeagreements.pdf

Please provide the FSDF with any comments you may have by 22nd May latest. We will then submit a consolidated response on behalf of the Temperature Controlled CCA sector.