A reaction to near-shoring
Group7 strengthening truck transports to improve connections for shippers. It’s the talk of the town that many shippers from industry and commerce have relocated production sites for transport reasons. Group7, from Munich (Germany), has developed a strategy for this, as Günther Jocher, a member of its board of directors, explained.
Shippers have reacted to the fact that global supply chains remain fragile. The Munich-based logistics services provider Group7, which operates nine centres in Germany, found that many of its customers are planning to relocate their production – perhaps to neighbouring countries in Eastern Europe, which are being scrutinised, or to North African countries, such as Egypt, Tunisia or Morocco.
“Our customers from the textile industry, the automotive sector as well as from the pharmaceuticals segment aren’t relocating their production processes completely, however, but are simultaneously maintaining their offshore locations, for example in Asia,” as Günther Jocher, a member of the executive board of Group7, explained recently. He has drawn his own conclusions from the trend. “For us this means we need to consistently expand our truck transport solutions.”
Investing in customs expertise
Extending Group7’s customs expertise is one priority in this context. “We’re now expanding our know-how and enlarging our specialist departments, especially for countries such as Turkey and those in North Africa,” he elaborated.
When Brexit came into effect last year the service provider scored with its pre-lodgement procedures, which sees documents preparing customs clearance submitted electronically in advance. One of the results was a 40% increase in turnover in truck transports to and from the UK compared to the previous year.
The firm is expanding its many weekly truck services to and from Eastern Europe, Turkey, Tunisia, Morocco and Egypt. “In the process we’ve also had to contend with the driver shortage, of course, but have nevertheless been able to maintain the necessary flexibility and security,” Jocher said.
“Our new truck hub, due to be launched at our Hamburg centre in two months, also creates competitive advantages.” It will make transports faster and more flexible, because, says Jocher, “import and export boxes will be packed and unloaded at our own premises.”