Aristotle University of Thessaloniki Lectures on freight : contemporary economics and policy issues Structure and strategy of freight industry : Aristotle University of Thessaloniki Lectures on freight : contemporary economics and policy issues Structure and strategy of freight industry Michel Savy
savy@enpc.fr
professor, ENPC and University of Paris 12
director, OPSTE ( www.cnt.fr )
1. Road transport : 1. Road transport
Interest of the topics (road haulage) : Interest of the topics (road haulage) Transport production is still strongly structured according to modes, intermodal transport is limited
Dominant position of road in inland freight transport in Europe
quantitative domination
sets reference price and quality of service for other solutions
The organisation of road haulage market is an example and gives proper keys to understand all other modes
industrial economics
transport, organisation, logistics
Modal split in Europe 1970-2004 (ECMT, 44 members, %, t.km) : Modal split in Europe 1970-2004 (ECMT, 44 members, %, t.km)
Differences in modal split, within EU 27 : Differences in modal split, within EU 27
Structure of road haulage : Structure of road haulage Technical specialisations
local
interurban
vehicle renting with driver
removal
Economies of scale ?
limits in vehicles size
network effects, organisation ?
Interaction between firms within haulage industry
Average size of road transport firms in European Union : Average size of road transport firms in European Union NB : firms and not groups
Road transport structure (4 criterion) : Road transport structure (4 criterion)
Turnover per capita : Turnover per capita
Investment per capita : Investment per capita
Subcontracting rate in turnover : Subcontracting rate in turnover
Share of investments apart from transport equipment : Share of investments apart from transport equipment
2. Inland freight organisation : 2. Inland freight organisation
Division of labour : Division of labour Inside road haulage, a division of labour
no dualism, "bipolarisation"
hierarchical interaction (integration of organisation, uneven profitability)
no gap between transport and freight organisation
Freight organisation
parcel service (!)
chartering
international transport organisation (freight-forwarding)
Share of investments apart from transport equipment : Share of investments apart from transport equipment
Other criterion for classification : Other criterion for classification Statistic division only partly corresponds to actual market divisions
transhipment
type of product, size and packaging of consignment
served territory
quality of service, additional services
make or buy ?
The "rule" of 3.10n : The "rule" of 3.10n n = 0, from 0 to 3 kg, courrier and small parcels
n = 1, parcel service up to 30 kg
n = 2, traditional parcel service (several parcels for one consignment) and heavy parcels, up to pallets (average 300 kg)
n = 3, bulking, 1 to 3 tons consignments
n = 4, full truck load, according to type of product and of packaging
From transport to logistics : From transport to logistics Transport and warehousing
Tendencies : Tendencies Concentration
multi specialist groups setting up
multinational
following changes in production and distribution (flexibility)
tracking and tracing, IT
transport, logistics, supply chain
Bipolarisation
3. Biggest transport groups : 3. Biggest transport groups
Two types of transport: market (1) and organisation (2) : Two types of transport: market (1) and organisation (2)
Biggest transport groups in the world (2005) : Biggest transport groups in the world (2005)
Acquisitions of Deutsche Post AG : Acquisitions of Deutsche Post AG DHL
Securicor (UK)
Trans-O-Flex (Germany))
Ducros (France)
Danzas (Switzerland)
Nedloyd (Netherlands)
ASG (Sweden)
Air Express International (air freight-forwarding US)
Burlington (inland parcel service US)
Exel (which bought Tibbett and Britten)
BPD (Belgium)
TNT Netlog (Germany)
ITG (Germany)
GP Paketlogistik (Switzerland)
Guipuzcoana (Spain)
MIT (Italy)
Sevisco (Poland)
Quickstep (Austria, Switzerland, Tcshek Republic)
Van Gend & Loos (Benelux)
Sernadis, Arcatime (France) Technical and commercial integration (DHL)
Staff : 500 000 Turnover : 55 G€
Biggest groups for post, transport, logistics (2003) : Biggest groups for post, transport, logistics (2003)
Biggest 3PL (2004) : Biggest 3PL (2004)
Biggest freight-forwarders (2004) : Biggest freight-forwarders (2004)
Biggest shipping companies, liners (2005) : Biggest shipping companies, liners (2005)
Port terminal operators in Europe : Port terminal operators in Europe
Biggest airline companies and airports (freight) : Biggest airline companies and airports (freight) Italiques : intégrateurs
Specialisation / versatility of groups : Specialisation / versatility of groups
Late Hays portfolio of activities : Late Hays portfolio of activities parcel service
express parcel
transfer of funds
logistics
archiving
invoicing
equipment renting
organisation of fairs and exhibitions
staff recruitment
surveillance
real estate management
maintenance
systems of communication
services informatiques
software development
e-commerce
etc.
Express: an unfinished globalisation : Express: an unfinished globalisation CA 2003
Perspectives : Perspectives Situation is not stable
Heterogeneous situation in Europe, some firms and countries in dominating position
Geographic strategy, European market control, enlargement
Multimodal alliances, joint-ventures, fusions ?
Continental models (Europe – USA – Japan)
integrated groups
marketing coordination of means providing companies
Worldwide alliances, global players ?