To mark the occasion: update of our Brexit checklist

The EU withdrawal of the United Kingdom was completed on 31.01.2020. Currently we are in a transition phase which ends on 31.12.2020. A further extension of this transitional phase should have been agreed until 01.07.2020 and is therefore no longer possible. Thus, the United Kingdom will no longer be part of the internal market and the customs union as of 01.01.2021. If no agreement is reached between the UK and the EU in the remaining time of the transition phase, trade would in future fall under the rules of the World Trade Organization.

We at DACHSER cannot influence the political situation in the UK, but we can prepare you in the best possible way for regulated customs procedures. We have therefore adapted and updated our Brexit checklist to the current circumstances. You can download it here free of charge.

If you have any questions, please get in touch with your responsible contact person at the respective DACHSER branch

For a sustainable society: More and more NGOs are taking action around the world

In the course of globalization, internationally networked non-governmental organizations or NGOs are playing an increasingly important role. DACHSER’s partnership with children’s aid organization terre des hommes demonstrates how a company can support an NGO over the long term.

Latest update on DACHSER Air & Sea Logistics operations

With this update DACHSER would like to inform about the current DACHSER Air & Sea Logistics operations across the regions APAC, EMEA and Americas. In the attached document (see download below) it is listed whether a country organization of DACHSER is operational or, if only limited or not at all, why this is the case. Since the situation in the countries may change rapidly, the attached document will be updated on a regular basis and published on our website.

“When it comes to Brexit, many companies have their head in the sand”

The Brexit is complete and the transition phase will be history in a few weeks. No matter what agreements the EU and Great Britain may reach in the short term, January 1, 2021 will mean a deep cut for the movement of goods to and from Great Britain. Steffen Wiese, Head of Sales, European Logistics, North Central Europe at DACHSER, explains what companies urgently need to bear in mind and some even run the risk of oversleeping the preparations.

Would you say it’s still possible to avoid a hard, no-deal Brexit? How would a hard Brexit affect goods transport involving the UK?

There’s still a chance that a deal could be agreed. But the closer we get to the deadline, the less hope there is. DACHSER is definitely readying itself and its customers for a hard Brexit to ensure we’re prepared for all eventualities.

Post-Brexit customs clearance will make transporting goods vastly more complicated, expensive, and time-consuming. We expect a hard Brexit to majorly disrupt transports, especially at the beginning of next year. We’re noticing that some companies have already taken action and have moved operations to locations with the EU. In light of new customs clearance procedures, some business models are no longer very practical and will have to be revised. B2C shipments will become more expensive, even if simpler procedures are introduced for goods of up to a certain value. It just won’t be worth it for many senders. Since shipping times and costs for supplying the European market from the UK will also increase, many senders have already moved their distribution centers to the EU.

Are companies, including DACHSER customers, in Germany and the rest of Europe prepared? Where do you see room for improvement?

In addition to the well prepared companies, there are also quite a few that still need to take urgent action. They’ve waited too long, which will lead to problems—at the latest starting January 1. This holds especially true for companies that have up to now exclusively served the European domestic market, as they often lack the requisite customs expertise.

Many companies actually expect that a deal will mean everything remains as it is. What’s more, the Covid-19 pandemic has largely eclipsed Brexit as a topic in the public eye as well as at many companies.

But it’s important to know that no matter what happens on the political stage over the coming days and weeks, customs clearance will definitely be a hot topic among senders and recipients of goods transported between the EU and the UK. This means that preparation is non-negotiable.

A more general question: What must a company intending to export goods to or import them from the UK as of January 1, 2021 take into account?

Senders first have to check the extent to which their supply chains are affected. Special attention must be paid to preparing the information and documents required for customs clearance so that we, in our role as logistics provider, can take care of the customs formalities relating to imports and exports. This information includes the EORI number. Moreover, obtaining customs authorization from the respective importer is essential for processing shipments to and from the UK. For this reason, we are asking our customers to notify their recipients that they must provide us with the importer’s name so we can request the necessary authorization.

DACHSER itself is well prepared to make future customs clearance for goods transports between the EU and the UK as smooth as possible. It’s now up to senders to once again check thoroughly that they have made all necessary preparations. On our website, we’ve published a checklist that allows our customers to see at a glance what they have to be aware of. And of course, DACHSER’s local contact persons are always ready to answer any questions.

It’s absolutely clear what the worst-case scenario would be: goods remain stuck with the sender and we are unable to collect them. The transport can start only once all the paperwork required for customs clearance has been made available. Starting January 1, there will be no transition period or exceptions and the paperwork cannot be submitted later. These are the conditions that logistics providers must now observe. In this worst-case scenario, customer warehouses would overflow as the goods remain where they are.

What specific preparations has DACHSER made as a logistics provider?

DACHSER has been preparing for Brexit for years now. We formed an internal project team made up of experts from all areas of the company. It’s this team’s job to address all aspects of Brexit—from customs clearance, volume monitoring, and traffic routing to IT, staffing, and communications.

To prepare for all eventualities, we’ve invested particularly in customs and created software solutions to help ensure customs processes are performed efficiently. As well as adding resources to our IT infrastructure, we’re making sure that DACHSER UK and DACHSER Ireland both have sufficient personnel—especially those trained in customs matters. On the mainland, our global logistics network provides us with ample expertise and resources. We’ve also formed an internal task force to support our colleagues in the UK and Ireland as well as our distribution platforms in the EU starting January 1, 2021. Task force members are being trained on how the various systems work so we can stem any additional costs, and our country organizations are working closely together to minimize any disruption. And because we have AEO status in the UK and in numerous EU countries, we can see to it that goods clear customs as quickly and seamlessly as possible.

What’s the situation in the Republic of Ireland? The majority of transports to and from Ireland pass through the Channel. Are there alternative routes?

There are bound to be obstacles when transporting goods to Ireland. But what’s particularly unclear is how things will work with Northern Ireland, which as we all know is a very political issue. There are alternative routes to Ireland and while all options involving ferry companies are being explored, these will ultimately lead to longer transit times.

After years of Brexit preparations, what lessons have you learned?

It’s all about staying flexible in the face of inevitable surprises, especially political ones. Personally, I hope that the nightmare scenarios predicting thousands of trucks stranded on each side of the Channel don’t come true and that the authorities also do their part to implement the process efficiently. I’m also curious to see how the economy develops and whether Brexit will scare other countries away from pursuing any desire to leave.

For a sustainable society: More and more NGOs are taking action around the world

In the course of globalization, internationally networked non-governmental organizations or NGOs are playing an increasingly important role. DACHSER’s partnership with children’s aid organization terre des hommes demonstrates how a company can support an NGO over the long term.

Environmental protection, human rights, joint development projects, migration, anti‑discrimination: the importance of non-governmental organizations, or NGOs, for society is great. Independent of states and governments, they advocate for social, socio-political, or environmental issues. The coronavirus crisis is making the work of NGOs more urgent, as humanitarian aid in developing countries is now more important than ever. This is a challenge for many such organizations, as their work is often hampered by travel bans as well as difficult working conditions and hygiene measures on site. In addition, many of those who donate are less willing to do so in times of crisis. Yet this is exactly what NGOs depend on, because in addition to membership fees, donations are their main source of financing. Transparency with regard to an organization’s cash flow and what it achieves with those funds is now all the more critical for strengthening donor confidence. Many NGOs inform their donors regularly via press releases, newsletters, or on their website about individual projects and the use of funds. NGOs are also monitored by auditing companies and the relevant tax authorities to ensure that they are using donations correctly. A “donation seal” from the German Central Institute for Social Issues (DZI), headquartered in Berlin, helps engender even greater trust on the part of the donors. The seal guarantees that the respective NGO is trustworthy and that the work they do is respectable.

DACHSER supports terre des hommes

According to estimates, there are currently tens of thousands of NGOs worldwide, providing medical care in crisis areas, looking after refugees, supporting micro-enterprises in the start-up phase, and more. One of the leading children’s aid organizations is terre des hommes. Founded in Germany in 1967, the organization protects children from slavery and exploitation, cares for the victims of war, violence, and abuse, and provides education and training for children. The German arm of terre des hommes currently supports 386 projects around the globe. International logistics provider DACHSER has been supporting the work of terre des hommes in South Asia, southern Africa, and Latin America since 2005. In keeping with the principle of “helping people to help themselves,” terre des hommes implements local aid projects to permanently improve the lives of children and the others in their villages. “As a global logistics company, we have operations around the world that bring people, markets, and manufacturing closer together. Yet not everyone is experiencing the benefits of globalization. It is our responsibility to stand up for these people and improve their living conditions,” explains Bernhard Simon, CEO at DACHSER.

By extending its contract with terre des hommes through 2025, DACHSER will be supporting the North Indian state of Bihar as well as projects in New Delhi and Uttar Pradesh. Taking a look at the latter, Ingrid Mendonca is coordinating an aid project there for terre des hommes Germany and is enthusiastic about the commitment of the locals, especially now during the coronavirus pandemic. “Not only do the youth groups support their own communities, sew masks, and procure food, but they are also getting in touch with young people in other villages, districts, even states and getting organized,” Ingrid Mendonca says. “Their commitment to improving the situation is inspiring.”

DACHSER employees also benefit from their employer’s commitment to social responsibility and can support terre des hommes projects on site. For example: Melanie Diem, Team Leader Project Management at DACHSER, coordinated a sustainability project by terre des hommes and DACHSER in Livingstone, Zambia. DACHSER Young Professionals and students from the terre des hommes network took part in the project. “The participants’ commitment to the cause was very impressive. DACHSER employees have the opportunity to immerse themselves in the work of an NGO, an area with which they might otherwise never come into contact,” Melanie Diem explains.

A special kind of commitment

The partnership between DACHSER and terre des hommes shows that together, a commercial company and an NGO can achieve amazing things. “Our collaboration with DACHSER is particularly valuable and important to us because it involves a huge personal commitment and open and honest dialogue,” says Stephan Stolze, head of the fundraising department at terre des hommes. “DACHSER’s employees and CEO Bernhard Simon in particular are deeply involved in the terre des hommes projects funded by DACHSER. They want to know how the people on the ground are doing and to what extent DACHSER’s support succeeds in helping to improve the living conditions of the local people.” In 2018, DACHSER’s commitment was recognized with the German CSR Award in the “Social Engagement” category. Partnering with an NGO makes DACHSER a pioneer, as only a few companies in Germany support internationally active NGOs. “Larger, international companies in particular should seriously consider the UN’s 17 Sustainable Development Goals and support projects in these areas for as long as they can,” Stephan Stolze says.

Craft food trend requires suitable logistics concepts

Since the outbreak of the coronavirus, the demand for craft food has increased significantly. Throughout Europe, more and more consumers are attaching importance to sustainably produced food, produced in small manufactories and not by large industrial companies. A trend that requires dedicated logistics experts.

The demand for sustainably produced food is increasing significantly. For example, 82 percent of all Germans already make sure when buying food that the product comes from the region. This is the result of the representative survey "Nutrition in the Corona Crisis" conducted by forsa on behalf of the German Federal Ministry of Food and Agriculture (BMEL) among 1000 citizens. Small businesses with craft competence and food start-ups wanting to position themselves in the market with craft food and wanting to preserve the tradition of the food craft increasingly profit from this development.

"Regionality and sustainability are gaining importance."

Consumers focus on sustainability and, in small quantities, food produced according to traditional methods. "Sustainable" has become the buzzword for healthy, environmentally friendly food. "The world is changing. It is a genetic phenomenon that in times of upheaval, people look for new sources of food," explains futurologist Max Thinius. For years he has been conducting research on the subject of food, advising various regions in Germany on the digitization of everyday life, the working and nutritional world of the population and is a frequent guest on the German government's scientific advisory council.

"Regionality and sustainability of food, but also the health of the individual, are becoming increasingly important. In the future we will have food of the best quality and new technologies to evaluate and use this quality in relation to our health". According to Thinius, new production methods such as intercropping, in which different plants are cultivated that complement each other in terms of growth and soil use, and selective care carried out by care and harvesting robots will make up to 90 percent of pesticides redundant in the future, he says.

"Soon, Craft Food will no longer be confined to the small regional grower. Together with intelligent working environments and modern technologies, large new food structures are in the process of being created here.” But the new food culture’s pioneers are currently still the small, innovative farms.

Small quantities safely transported – all across Europe

This rapidly growing craft food movement requires logistics concepts that meet the requirements. "Food manufacturers place different demands on logistics providers than industrial companies do", says Marc Hackländer, Head of European Network & Partner Development at DACHSER. The products are only manufactured in small quantities for narrow, like-minded target groups, not for an anonymous mass market where availability and price are the focus. As a result, the major European retail chains and discounters are often excluded as recipients. Nevertheless, these manufacturers, which up to now have often been regionally oriented, are looking for new sales channels and are attracting interest from customers in neighboring European countries.

The European Food Network specializes in the Europe-wide transport of food, even in small quantities. The member companies of the alliance are ideally positioned for this type of job. The food logistics companies are regional specialists who have grown over many years from family structures to national players, but have always remained close to their customers. Marc Hackländer: "The vehicles must be able to cope with the conditions at the pick-up and delivery location, often there are no ramps. Communication and customer processes take place on other levels - this is where listening and consulting are required, flexibility, solution orientation, thinking along with the customer. This is time-consuming, but it is worth it and it is a pleasure to be able to grow with the companies".

Dachser Rheine expands capacity

Kempten, September 10, 2020 – Dachser’s Rheine logistics center is creating more space for storage and value-added services. Construction is underway close to the company's site on a new distribution center, which will go into operation in October 2020. The heart of the facility on Sandkampstrasse is a 20,800 m2 logistics terminal with 26 loading gates for trucks and up to 36,800 pallet spaces. In addition, there is some 1,200 m2 of office space.

Dachser Rheine will use this modern new facility to consolidate existing warehouse locations in the surrounding area while ensuring additional capacity for future growth. This enables the logistics provider to optimize transport flows and operating conditions. The new distribution center will be operated for customers in various sectors, including the manufacturing industry, healthcare, DIY, and the textile trade. In addition to warehousing, picking, and shipping goods, the employees will provide additional services such as display building, repackaging, special labeling, assembly work, and returns handling, depending on customer requirements.

“In the warehousing segment, we’re seeing continued growth and increasing demand in the region,” says Markus Dodt, General Manager of Dachser’s Rheine logistics center. “A strong local economy, good availability of qualified workers, and favorable transport connections make Rheine and the Münsterland region an ideal location for integrated logistics services.”

Dachser has been present in Rheine since 1990 and currently employs 390 people there. Of these, 60 employees will be transferring to the new location, and a further 60 jobs will be created there in the medium term. 

Dachser SA delivers specialist pharmaceutical logistics for Dr Reddy’s

The partnership between multinational pharmaceutical company Dr Reddy’s and Dachser, one of the global leaders in system logistics, started in 2011 in Hyderabad, India, when the supply chain tender was awarded to Dachser India. Soon afterwards, Dachser South Africa delivered the first local shipment and has since supported the continuous growth of Dr Reddy’s in the country.  

DACHSER strengthens its interlocking presence at Frankfurt Airport

On 1 July 2020, DACHSER strengthened its networking between the Air & Sea Logistics and European Logistics business segments at Frankfurt Airport and is now bundling air freight import traffic for Germany and other European countries at Frankfurt Airport.

Once the air freight arrives at Frankfurt Airport and is accepted into the air freight warehouse, it is fed directly into the DACHSER European Logistics network, which has a branch office at the airport. With Europe-wide delivery from Frankfurt via the network, DACHSER thus offers its customers a uniform and reliable solution from the point of departure overseas to delivery in Europe. It is now also possible to offer customers end-to-end monitoring of their consignment via eLogistics.

If you have any questions in this regard, please contact your personal contact person at the relevant DACHSER branch.

DACHSER organizes first direct charter flight from China to Spain

DACHSER Air & Sea Logistics arranged for medical equipment to be transported from Asia to Spain at the end of May. This was the first flight from China to Madrid since the beginning of charter activities during the coronavirus pandemic.