New product, CO2 fees, Insurance and new trainees – FREJA newsletter Q3 2023

Welcome to FREJA’s third newsletter of 2023. In this newsletter, we would like to share with you what’s happening in our part of the transport and logistics world.

In a time where sustainability and environmental priorities are increasingly playing a crucial role, we see a trend towards the implementation of more transportation fees. In this newsletter, we will go through the fees that are on the horizon and the significance they will have on transportation costs.

It is important to consider cargo insurance. The NSAB regulations have their limitations, so in case of accidents, you must consider the need for cargo insurance before the transportation begins. Read in the newsletter how FREJA can assist with this.

At FREJA, we are excited to have welcomed new trainees on September 1st. For us, it is important to contribute to the education of young individuals and future talents. Read what motivated Silje to start her education.

A new product has been introduced at FREJA. We call it FREJA Courier, and it is a transportation solution where transit time and economy are crucial elements. Meet the employees in FREJA Courier and see what we offer in this segment.

I would like to thank you for your interest in FREJA’s newsletter.

Happy reading,

Jan Sunde

New transportation fees: How do they impact the transport industry and our customers?

In a time when global sustainability and environmental concerns are playing a crucial role, we are witnessing a growing trend where authorities are implementing transportation fees as a means to regulate and shape the transport industry. These fees have the potential for far-reaching consequences for businesses and stakeholders within the transportation sector, thereby affecting our customers who will experience increased costs.

In the following section, we will summarize some of the known fees that the transportation industry will face in the future, including the new Danish road tax, the increase in German Maut fees (German road tax), as well as the Emission Trading System (ETS) 2024 fee for maritime and ferry transport, and how they may impact the transportation industry.

Danish road tax 2025: Challenges and adjustments for businesses in Denmark

With the introduction of the Danish road tax in 2025, transport companies will face new challenges. The tax, based on the vehicle’s characteristics and emissions, will increase operating costs for all trucks using the Danish road network. This is intended to motivate companies to consider more fuel-efficient vehicles or alternative transportation methods to reduce costs and minimize environmental impact.

Unfortunately, viable alternatives are currently limited. These need to be rolled out first and involve vehicles capable of using new “fuels” as an alternative to regular diesel, namely hydrogen, biogas, and electric trucks. These alternative fuels require infrastructure where vehicles can charge/fuel up with the new types of fuels, and their acquisition cost needs to decrease to contribute to the green transition.

Members of the European Parliament approved new EU rules on the establishment and regulation of infrastructure for alternative fuels (AFIR) during the plenary session on July 11, 2023. Thus, the responsibility lies with the Transport Minister, Thomas Danielsen. AFIR sets out the deployment of alternative fuels’ infrastructure for both battery-powered and hydrogen-powered vehicles on the trans-European transport network (TEN-T), at urban hubs, and secure parking areas.

According to the agreement, electric charging infrastructure for heavy vehicles should be installed every 120 km along 15 percent of the entire length of the TEN-T network by the end of 2025. The distance will then be reduced to 60 km on the most heavily traveled roads and 100 km on the remaining road network.

Regarding hydrogen, refueling infrastructure should be possible every 200 km on the TEN-T core network by the end of 2030. Currently, there is a long way to go from the above with only two public charging stations in Denmark (as of August 2023).

Increase in German Maut fees (road tax): Impact on international road transport

Germany’s decision to increase Maut fees by nearly doubling the fee per kilometer starting December 1, 2023, will have a significant impact on the cost structure of international transport to and from Germany, as well as transit through Germany. For businesses, this will mean increased freight costs.

ETS 2024 fee: Maritime and air freight, as well as ferries

New guidelines for the Emission Trading System (ETS) in 2024 will directly impact maritime freight and ferries. Going forward, companies will need to invest in CO2 quotas, which will reflect CO2 emissions. These quotas will be traded on a commodities exchange. This change aims to steer the transportation industry towards more sustainable practices and promote investments in greener technologies, particularly in the context of maritime transport and ferry services. Fluctuations in the prices of these CO2 quotas may translate into increasing costs for these modes of transportation from 2024 onwards.

ETS will be gradually implemented, with ships required to report on 40% of CO2 emissions in 2024, increasing to 70% in 2025, and finally reaching 100% in 2026.

Are your goods insured while in transit with FREJA?

The short answer is: No! Unless cargo or transportation insurance has been taken out to cover your goods during transport. Has your company taken out cargo or transportation insurance?

As a freight forwarder, we naturally assume responsibility for your goods while they are in our care. This responsibility is regulated by NSAB 2015 and international legislation applicable to various modes of transportation. In all cases, the forwarder’s liability is limited in comparison to the actual losses that the cargo owner often incurs in rare cases of transport damage or loss of goods during transportation.

These shortages are not limited to the well-known transport law restrictions of 8.33 SDR (approx. DKK 75) per kilogram for road transport and 2 SDR (approx. DKK 18) per kilogram for sea transport. For example, the forwarder is not directly responsible for repair costs or liable for the cargo owner’s often significant expenses for assistance from a surveyor or similar for assessing and documenting a damage claim. Finally, there are cases where the forwarder is entirely free from liability for damage or loss of goods.

In fact, our experience shows that in cases of damage or loss where our customers obtain compensation directly from the forwarder, they may be left with a greater or lesser loss of their own.

However, we can help you avoid such losses by offering you the option to take out cargo insurance through us for the transports we perform for you.

Get professional courier solutions with FREJA’s new service – FREJA Courier

In FREJA Denmark, we are happy to finally unveil a new service for our customers – FREJA Courier. Throughout the spring and summer, we have worked hard to get FREJA Courier up and running and have everything in place for the launch. We are proud to finally offer this service to our customers.

“Courier services have long been a wish for FREJA. Many customers have continuously requested it, and therefore, we explored the possibility of adding it to our product portfolio. The timing was right, but it was important that we had the right person to drive the project, and for that, we found René Rasmussen, who has more than 30 years of experience in the transport and logistics industry”, says Sales Director at FREJA Denmark, Franz Andersen.

About his new start as Director Courier & Express at FREJA Denmark, René says: “The future prospects, visions, strategies, and the support from the management were crucial factors for me to accept the challenge and become a part of FREJA Transport & Logistics on February 1st of this year. It has long been a dream to be involved in building up a new product from scratch, and to do so in such an established and reputable company as FREJA is simply exceptional, and an opportunity I could not resist.”

Together with Rikke Hansen, Operational Manager Courier, René has been working diligently since spring to establish FREJA Courier. Rikke also has significant industry experience and an in-depth knowledge of courier solutions. The two, in close collaboration with FREJA’s IT department, have developed our new courier service. With FREJA Courier, existing and new customers have the opportunity to access more flexible freight solutions, where both transit time and economy are important. We offer three different services to choose from, ensuring our customers can always find a freight solution that suits their shipments, whether it’s related to import, export, or cross-trade.

Regardless of which service you choose, you get access to a user-friendly and fast online booking platform, where you can easily and quickly create a booking, follow up on your shipments and check prices and transit times before dispatch.

Initially, FREJA Courier is only offered in Denmark, but we expect to eventually provide the same service in other FREJA countries.

Read much more about our courier service on our website www.dk.freja.com/kurer/ or contact us at courier.dk@freja.com if you want to know more.

The road to success – become a trainee in FREJA

In FREJA we believe it is important to contribute to the education of young people. Therefore, we offer a number of trainee positions each year in our different locations in Denmark. We were delighted to welcome 8 new trainees on September 1st divided between Taastrup and Stilling.

Being a trainee in FREJA, you become a part of the team from day one. The trainee will be matched with a mentor in his/her department and will have thorough training. The trainee will learn about the various aspects of the work as a freight forwarder and will soon have responsibility for his/her own assignments. We plan the education so that the trainee will be placed in two or three different traffic departments and thereby have a wide knowledge of the job as a planner.

Silje Vinther is a trainee in FREJA in her second year. We have asked Silje why she chose this direction and she replies: “This line of business appeals to me because of the many different work assignments related to handling various types of transports. As a trainee, no two days are the same. In FREJA you quickly become a part of the team, you have helpful colleagues and you soon have the full responsibility for your own tasks”.

Silje continues: “During this type of education you have a variation between going to school and working in FREJA. This allows you to test the theory in practice which is not the case for very many other educations.”

In FREJA our intention is to keep most of our trainees onboard after the end of their education. We aim to hire as many as possible in order to benefit from their knowledge in the long run. During the trainee period, we invite the trainees to a number of internal training sessions in order to give them the best possible knowledge about FREJA and the business in general. At a later stage, we offer other possibilities for supplementary education or leadership training.

If you want to know more about becoming a professional in transport and logistics in FREJA, please visit our website or contact us at hr@sdkfreja.com.