The Road is clear for delivering to France Pg 2

In 2008, France was the UK’s third largest export market (the second in Europe after Germany) and the UK’s third largest supplier. Visible exports to France amounted to some £20 billion, of which manufactured goods represented 80%, energy 12% and agri-food products 7%. Up until May 2009, the trade balance was in France’s favour, although the UK had substantial surpluses in the machinery, pharmaceutical and energy sectors. 

This trade imbalance between imports and exports had a direct effect on export freight costs. Because imports outweighed exports, there was, generally speaking, a much lower demand for export freight services than for import deliveries, and there were much more trailers available for France than there was export cargo to fill them. This shortfall meant that hauliers and freight forwarders reviewed their price structures in order to be competitive to win the business from exporters. 

The effect on price was very appreciable. For example, a full lorry load from Paris to London might typically cost as much as Euros 1400, whereas the same vehicle, from London to Paris, might cost less than Euros 525.  As a result, UK exporters to France had an immediate comparative advantage over many of their foreign competitors in terms of transport costs.  However, since before the summer, the situation has changed quite dramatically. With little going out of France, the number of trailers crossing the Channel from France has considerably decreased, and with the weak pound discouraging many French hauliers to come to the UK, there has been a shortage of vehicles in the market, which has resulted in an increase in freight rates.

Customer service a high priority

Although conscious of transport prices, over the last 15 months or so, due to the challenging economic climate, many UK exporters put much more emphasis on customer service and on getting their products to France in an efficient and professional manner. As such, many companies, whether established exporters or newcomers to exports to France, choose to maximise their export potential by not overlooking the transport to their French customers, and by working with a specialist haulage company / freight forwarder who would provide them and their customers with added values, thus helping them increase their competitiveness.

 “The French Road Freight Specialist!” France Line International Transport Ltd benefited from this situation and actually saw an increased demand for their door to door transport services from the UK to France since the economic crisis began, which resulted in a 15% increase in its turnover in 2008.

France Line have carried on and are continuing developing existing accounts whilst winning new customers and business, and are well positioned for future growth. One of their new customers since the beginning of the year 2009 is a North-West based company producing plastic sheeting who started exporting to France after “Passport for Export” training. They matched the funding received from the government and went out to France with a list of 10 contacts established by UKTI. They won 2 contracts and started exporting to 2 very different areas of France. They choose France Line for all their transports to France as they wanted to ensure a smooth transport of their products to their final destinations, and could relate to France Line’s approach of going the extra mile for their customers.

France Line’s Manager, Marie Boyer commented: “As the last part of the export and supply chain process, transport is very often seen as a commodity market, which can be a costly mistake. Generally speaking, more and more exporters have been realising that it is best to use a specialist transport company for each of the different countries they export to, they will receive a more personal and expert service and tangible commercial benefits, and they will save money too.”   

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