Employee welfare and environmental-friendly initiatives continue to be in focus for FREJA

FREJA is pleased to present our CSR report for 2019. In this report, we present the actions we have taken to improve our environmental impact and ensure employee welfare.

“In 2019, we reached our goal of recycling a minimum of 60% of the waste in Norway, and we completed the implementation of ISO 14001 in Finland as well. At 10,3% in 2019, we expect that our Swedish branches in 2020 will reach our group goal of a maximum of 10% when it comes to driving empty km”, Eric Clausen, QES Manager in FREJA explains.

To continue the journey for a better understanding of how our efforts support the environment and climate, we have structured the 2019 CSR report according to UN’s Sustainable Development Goals (SDGs) as was the case in 2018. The SDGs provide a good framework for guidance and inspiration to areas on which companies and society can improve.

[caption id="attachment_14282" align="alignnone" width="800"] Our focus is on SDG 3, 4, 5, 8, 9, 12, 16, and 17.[/caption]

We must take responsibility

As one of the largest transport and logistics companies in the Nordic countries, we have a responsibility towards the environment when it comes to preserving and taking care of our planet. The transport industry is number two when it comes to CO2 emissions per year, only followed by the energy industry, and this is something that we are working hard to change for the better. Our company and our employees have an important role in society as we need to make sure the supply chains are running continuously, but we are well aware that our core business has a negative impact on the environment. For this reason, we feel obliged to come up with sustainable solutions that benefit both our customers and the environment.

Innovation and CSR goes hand in hand

We believe that we need to think innovatively to improve. Innovation has always been a part of our work and core values, and recently we decided to increase our focus on innovation in FREJA. In 2018, we established whiteboard meetings, and our innovation concept, Operations Driven Innovation, is being implemented in the organization. Innovation has become an integrated part of our work, and we strive to find innovative solutions in everything we do – whether it is creating innovative value propositions for customers or working with open innovation by teaming up with partners to reduce our CO2 footprint. Not only is innovation the focus point for SDG 9 that concerns industry, innovation, and infrastructure, we also consider it the basis for the rest of the SDGs we work with.

“I am proud of FREJA’s work with the SDGs. We have to keep improving, so we can continue to deliver new results and reach the goals we have set. Everyone in FREJA works hard to find new innovative ways to be more sustainable than we already are, and I am grateful for the effort all the FREJANS put in every day to become more environmental-friendly”, says Ulrik Rasmussen, Group CEO.

Read the CSR report 2019

People Business, modern technology and a solid platform are still keywords for ambitious FREJA

The transport & logistics group FREJA Transport & Logistics Holding A/S raises the result for 2019. Once again, the subsidiaries in Norway and Finland are the ones to deliver results above market level. Again in 2019 the Swedish subsidiary disappoints, even though the trend for the last six months was on the rise. 2019 was “year two” after the acquisition of Transcargo. The Danish part of Transcargo is 100 % implemented and merged into the Danish FREJA, and the result in the Danish subsidiary meets the expectations for 2019. In 2020 focus is still on the integration and construction of the Polish subsidiary. The trucking part operates as an independent company and FREJA invests in an expansion and upgrade of the fleet into environmental friendly units. The new ultramodern transport HUB on a 75,000 m2 site in Szczecin will be ready in the beginning of June 2020, and the implementation of FREJA’s it-platform has progressed as planned, so FREJA has good reason to believe in continued growth and is optimistic.

The FREJA Group continues stabile development and is profitable in 2019
FREJA Transport & Logistics Holding A/S has a growth in turnover from 2018 to 2019 of 7.1 %. The total turnover in 2019 amounts to DKK 3.34 billion.

EBIT amounts to DKK 73.1 mill in 2019 compared to DKK 51.4 mill in 2018. The result before tax amounts to DKK 53.7 mill in 2019 compared to 38.1 mill in 2018. The result in 2018 was influenced negatively by the integration of Transcargo, and 2019 has been influenced negatively by costs for restructuring of the Swedish subsidiary.

Group equity has increased from DKK 285.5 mill in 2018 to DKK 294.2 mill in 2019. As a consequence of the transition to IFRS 16, the solvency ratio drops from 29.6 % to 18.4 % the end of 2019.

We have seen a stable and good development in Denmark, China, Norway and Finland.

Sweden did not live up to the expectations for 2019, and many efforts have been made, especially in 2HY by our dedicated Swedish organization with support from Group Management. These efforts have resulted in substantial improvements. Q1 2020 has shown a positive trend and budgets have been met, however the Swedish subsidiary still estimates a minor deficit for 2020 and the parent company has added the necessary strengthening of the capital.

The newly acquired subsidiary in Poland has shown an excellent development. In the beginning of 2020 Tomasz Cegielski started as new country manager and the potential for continued growth is significant.

In spite of massive investments in new technologies, transport is still a People Business
For more than 10 years, FREJA has invested massively in the development of our it-platform, and 2019 is no exception. We invest partly to optimize our own business, partly to become more competitive, but also to give our customers advantages in the value chain. The launch of MyFREJA - and particularly the associated, extra services such as consultancy services - have been a success and we continue to develop our it-platform to benefit our customers. It is still our ambition that the product will provide significant, financial advantages to all parties involved and thereby help increase FREJA’s position in the European transport business.

“Our focus is to continue to develop long-term relations with customers as well as suppliers. In spite of our large focus on efficiency improvements, we are also aware that people are still the most important resource in the cooperation – transport is a People Business. The key-words for us in a cooperation are transparency, trust and credibility. We have always managed our business on the basis of strong values. We work on a daily basis to make a difference for our customers and make sure that together we will become a little bit better every day”, says Jørgen Hansen founder of and Chairman of the Board in the FREJA Group.

Readiness, humility and continued ambitions set the agenda in the always ambitious FREJA Group
“A reasonable annual result for 2019, and we are both ready and have the ambition to show that we can do better in future. In 2019 it has been the consolidation and continuous integration of Transcargo which has had our focus. In 2020 it will be especially our new positioning on the Polish market together with the reconstruction of the Swedish market, which will have our largest focus – however it will not influence our development in China, Norway, Finland and Denmark”, says Group CEO Ulrik Rasmussen.

COVID-19
Naturally, COVID-19 has an influence on our everyday life at the moment, and on some markets we have seen a relatively large cutback of activities. However, these are partly compensated for on other markets and segments, where we have seen increased activities.

However, we are convinced that our business model and qualified organization is ready to continue to develop FREJA in a positive direction – also during this extraordinary situation – so FREJA will stand stronger when we have overcome the crisis.

“The development of Q1 2020 shows that we are on the right track. We have a solid platform and we are ready to reap the benefits of the past years’ massive investments. And should there be further consolidation possibilities, we are also ready to take a look at that,” Jørgen Hansen concludes.

For further information please contact Group CEO Ulrik Rasmussen or Chairman of the Board Jørgen Hansen.

Link annual report 2019

03-06-20

In China the situation is practically back to normal and we operate according to standard procedures.

06-05-2020

All business activities are back on track in China. Operation on all transport modes are up and running. There is still on-going capacity pressure for airfreight going out of China. There will be some blank sailings from container carriers from Far East into Europe therefore some capacity challenges may be expected during May and June. Therefore, early planning would be recommended.

26-02-2020

All of our colleagues are now back in the office, and production and operation activities are almost back to normal.

20-02-2020

All of our colleagues are still working from home. If the situation continues to improve, our colleagues expect to be in the office from next week. Production and operation activities are slowly getting back to normal again.

07-02-2020

Our colleagues in China are currently working from home according to government requirements. They will continue to work from home in week 7, and until the 17^th of February, 2020. We will make sure to update you if there are any changes regarding this.

Many factories are closed and are expecting to be up and running again on the 17^th of February. At the moment, the shipping capacity is low on all modes of transport.

We are following the situation closely, and we recommend you to keep in touch with your local contact person in China for updates about the situation.

FREJA Transport & Logistics Oy has been analyzed as an Achiever in the achiever classification by Alma Talent Tietopalvelut in Finland. A comparison of the key indicators has put us in the top tier of the industry and the entire country for five successive years.

The certificate states that FREJA is a reliable partner for the international transport industry. Matti Urmas, Managing Director in FREJA in Finland, thanks FREJA’s customers for the trust and good cooperation that has helped FREJA gain success in Finland. That we have received this certificate each year in over half a decade reflects our strong position in the international transport sector in Finland. The certificate is proof of FREJA’s reliability as an international business partner.

"The Achiever certificate is a recognition of the well-done work of the employees here in Finland. The certificate documents the reliability and quality we aim for in everything we do", says Matti Urmas.

According to Alma Talent Tietopalvelut, companies receiving the Achiever certification are stable businesses with solid growth, good financial results, profitability, and a strong financial structure and liquidity to ensure continued operation. A comparison of the key indicators has put us in the top tier of the industry and the entire country for five successive years.

The Continuous Achiever 2016–2020 ranking is based on the financial years between June 2015 and May 2020.

If you want to know more or have any questions, please feel free to contact FREJA Finland’s Managing Director Matti Urmas.

The organizers of the golf tournament "Made in Denmark Presented by FREJA" have decided to cancel the event in 2020.

Because of the Covid-19 situation and the uncertainty of the situation, they find it has been unrealistic to set a new date in September and to conduct the event in the way known for the tournament.

They will soonest announce the dates for Made in Denmark Presented by FREJA 2021.

In FREJA we respect the decision and we look forward to the event in 2021.

On the occasion of FREJA’s birthday on the 1st of April, 2020, FREJA’s founder, Jørgen Hansen, reflects on the past 35 years. Jørgen says:

“On the day of FREJA’s 35th birthday, and in the middle of a worldwide crisis, which has not been seen before, it is obvious to let your thoughts wander back in time.

Everything is relative, but when FREJA was in the making, we were also in the middle of a crisis. At that time, the Danish government had just used an intervention to end a lockout/strike situation which had been going on from the 24th of March to the 1st of April, 1985.

But just as FREJA got started, we were faced with harbor strikes in Sweden. This made it impossible for us to sail directly from Denmark to Sweden, and we were forced to go via Norway. Being a new player in the market, we fully depended on the personal relations we had with the shipping lines. We received a lot of help back then after a very difficult and challenging start and this has not been forgotten now 35 years later. Then, as well as now, we learned that strong relations and orderliness are crucial for success.

We went through a challenging time in the early nineties, as the Swedish currency suddenly devalued by more than 20%. Back then, Sweden was a very big market for FREJA and the fact that the balance in our favor had suddenly decreased by more than 20%, hurt our contribution ratio. Furthermore, we had intense discussions with our Swedish customers about an adjustment of the prices.

In the beginning of the nineties, the Nordic postal war began and especially the Finish Itella and Norske Post (Bring) completed many acquisitions. At that time, FREJA lost many of our partners, and we were compelled to open own offices and make several acquisitions ourselves during the years 2003 – 2008. For example, FREJA built a new location in Taastrup in 2004 and a new in Stilling (Denmark) in 2008.

As for myself, I had resigned as Group CEO in 2006 to become chairman of the board, but suddenly in week 42 in 2008 the financial crisis appeared out of the blue. Because of this, I had to return as CEO.

Back then, like today, I am glad that FREJA at no time has paid dividends to the shareholders. All the money has stayed in the company and has been invested in improvements and spent on the consolidation and optimization of the company.

Now we are once again facing an unpredictable period with a COVID-19 crisis that has appeared out of the blue. The present is very much similar to 2008 because also in 2020 FREJA is in the middle of larger investments. These are investments that we neither can nor will put on hold, as we believe the crisis will make us stronger if we just stick to our values, maintain and strengthen our strong relations, and show orderliness in all that we do.

The actual investments are new transport facilities in Szczecin in Poland at a 75,000 m2 large site and an extension of our fleet of trucks with as much as 75 trucks over the next 9 months.

I am extremely proud of all of our skilled and committed employees and not least all of our sub-suppliers. We have a group of fantastic haulers and drivers, who every day do what we ask them to do in respect of and in large consideration of our customers.”

[caption id="attachment_13103" align="alignnone" width="600"] Heinrich Sørensen Hald sent this picture to us. The picture was taken in Skive. [/caption]

FREJA Transport & Logistics regrets to inform you that the golf tournament Made in Denmark presented by FREJA, which was scheduled to take place from the 21st - 24^th of May at Himmerland Golf & Spa Resort, has been postponed. The tournament's management team has, together with the PGA European Tour, decided to postpone the tournament, and will in the upcoming time try to find a new date for the tournament.

“We are very concerned about the current development of Coronavirus, and we believe that the best decision is to postpone the event. We will, as soon as possible, together with the European Tour, find a new date for Made in Denmark presented by FREJA. It is still too early to say when, but both we and Himmerland Golf & Spa Resort are looking forward to presenting a fantastic course and tournament to players and fans when we are on the other side of this unfortunate situation”, Flemming Astrup, Made in Denmark presented by FREJA Promoter, says.

About the postponement of the tournament, FREJA's founder and chairman, Jørgen Hansen says: “Of course we think it's a shame that we have to postpone the tournament as we had been looking forward to the festivities in May, but we do agree that it is the right decision. As the situation is now, we do not think it would be justifiable to go ahead with the tournament, as public health and safety is the most important thing after all”.

FREJA will keep you updated as soon as a new date is found, and we can invite you to Made in Denmark presented by FREJA again.

If you have any questions about this, you are always welcome to reach out to your local contact person at FREJA or our Sales Director, Franz Andersen.

FREJA is keeping the supply chains running despite the COVID-19 situation, but unfortunately,  disruptions are unavoidable.

The coronavirus is spreading fast all over Europe, and the situation is changing more or less every hour. During the last few days, several countries have made large restrictions, which most likely will continue in many other countries across the world.

In FREJA, we are as prepared as we can be for the current situation, and two weeks ago, we implemented our COVID-19 contingency plan. Our management directs all key activities during this period to the entire organization, which means that all staff is working in a safe environment and following all the instructions from the local national authorities such as working in small scale teams or virtually from home. Even under these very critical circumstances, the entire organization is ready and fully committed to serving our customers 24/7, and we will continue to make the necessary changes needed.

Several countries have implemented heavy control by the borders, and we have already seen delays. At the same time, many countries are making significant local restrictions to the daily business, to minimize the number of people getting infected. In the Nordics, we have experienced that multiple ferry routes have been canceled. The above means that our current services are less flexible and we expect longer transit times, which unfortunately will have an impact on our capacity. We will do our utmost to find alternative solutions to secure that the transportation flow stays intact.

Since this is an extraordinary situation and therefore also a very challenging time for all, we recommend you stay updated on www.freja.com, and as always you are welcome to reach out to your local contact person in FREJA, who as usual is ready to serve you.

FREJA is pleased to announce that we have opened a third office in China. The new office is located in Qingdao, which is one of the biggest seaports in the Shandong province in North China and the most preferred location for shipping businesses. Currently, many Chinese manufacturers move their factories or build new factories in the Shandong province, and Qingdao is the most favorable port for all kinds of international trading.

The office in Qingdao is headed by Ms. Susan Zheng. Ms. Zheng has a wide experience in the transport and logistics business since she has been involved in industrial project forwarding for 10 years. She will handle all activities such as marketing, project handling, and price sourcing in North China.

[caption id="attachment_12141" align="alignnone" width="800"] FREJA welcomes our new Project Manager in Qingdao, China, Susan Zheng.[/caption]

With the opening of the new office, FREJA now has a service network that covers most of China. With offices in Shanghai, Guangzhou, and now Qingdao, we offer a wide range of value-added services, so please feel free to contact us to learn more about what we can do for your business.