Despite a year marked by supply chain challenges and the difficult task of merging two companies into one, SDK FREJA has delivered their best result ever, almost quadrupling the previous year’s result and reporting a revenue of more than DKK 6 billion along with an EBT of DKK 244 million.

The shipping- and logistics company SDK FREJA presents their first, complete 12-month report after last year’s merger. The company has succeeded in increasing their revenue to more than DKK 6 billion, which more than doubles last year’s revenue, corresponding to an increase of 128 percent.

SDK FREJA’s annual report finalizes a turbulent year with a COVID-19 pandemic that has yet to fully release the market, a new war in Europe, new legislation from EU and huge pressure on global supply lines, meaning that the shipping and logistics businesses have had a more complicated year than ever before.

“In spite of a global shipping- and logistics business marked by another year of continuous challenges, we, across the Group, have seen clear progress in both our top- and bottom lines, which we owe to the huge effort from our skilled coworkers,” Says Søren Gran Hansen, Group CEO of SDK FREJA and further elaborates:

“Both strategic acquisitions and a continued investment in our IT platform has increased the effectiveness of our internal business protocols and strengthened our solutions to our clients.”

With this year’s result, however, SDK FREJA has achieved a ten-fold growth in EBT over a five-year period, reaching DKK 244 million. This economic ballast will now secure SDK FREJAs strong position when continuing the company’s growth strategy in coming years, and allow for expansion, acquisitions, and growth.

SDK FREJA united in growth

In two of the group’s business units, SDK and FREJA respectively, this year has presented equal parts opportunities and challenges, placing considerable demands on the complexity of the company’s solutions for individual client needs.

”The assignments within stevedoring, agency and chartering have been marked by a change in the regular transport patterns. The markets have increased in complexity, which has demanded that we have had to continuously adapt. Apart from this, we’ve seen highly increased pressure on both harbors and stock facilities, as a natural result of an increase in global economic growth. This year’s result, however, indicates that we’ve succeeded in this task, and we attribute a large part of this to the excellent cooperation between our coworkers and our clients,” says Lars Jespersen, Group CEO SDK.

Although FREJA has experienced the same market challenges, they, too, have succeeded in creating the opportunity to develop and adapt their business practices and competencies.

”This year has been both challenging and eventful. The lack of capacity within both road-, ocean- and air transport as well as stock facilities has challenged our clients’ supply chain to the limit, which has meant that we had to rethink processes and at the same time be incredible flexible while maintaining a constant dialogue with our customers to find the optimum solution. Our coworkers’ skill in continuously securing extra capacity as well as adapting to a volatile market is a considerable part and cause of our growth,” says Ulrik Rasmussen, Group CEO FREJA

Apart from the successful integration of SDK Logistics and FREJA, which has resulted in larger synergies than expected, the previous fiscal year has also seen the addition of Swedish IRT Logistics and Norwegian Thoresen Transport to FREJA, which has strengthened the company’s Nordic market position.

Acquisitions create growth

The proactive acquisition strategy for SDK FREJA is part of a wider, future strategy that can be traced back to the company ownership; the family-owned United Shipping and Trading Company (USTC). A strong approach that secures the future growth of SDK FREJA.

“Our family ownership’s backing for acquisitions secures us, in the group, both the mandate and backing for a continued business strategy based on further strategic acquisitions. Last year we merged FREJA with SDK Logistics, and ever since then we’ve continued our dedicated focus on completing value-adding acquisitions, which is why we continually evaluate potential acquisition candidates. It is a cornerstone in our strategy for developing SDK FREJA,” says Søren Gran.

With last year’s purchase of 49% of stock in the Danish DSH and Nordic Waste, SDK FREJA has further added a new economic leg to the company portfolio. Nordic Waste thus specializes in cleaning polluted dirt with the purpose of using as much as possible of the cleansed material directly or in newly developed products primarily for the construction business – including infrastructural projects.

This year’s strong financial result, along with SDK FREJA’s strategic expansions through acquisitions of both new and existing business areas, jointly give the company a strong starting point for the coming years.

 

For further information please contact:

Thomas Jakobsgaard, Head of Strategy and M&A, SDK FREJA.

M +45 29 93 98 21, e-mail tja@sdkgroup.com

The Danish-owned shipping and logistics company SDK FREJA formalises their new ambitions within the sustainability agenda as they target climate footprint and people in the first collective sustainability report since the merger between SDK and FREJA in 2021.

In their first ever sustainability report, the family-owned SDK FREJA focuses on forming the basis for future work with social and environmental sustainability. Aiming to direct a data-driven and conscious effort to move in a more sustainable and responsible direction in the future, the report divides the different business areas within the recently merged company. The purpose is to prioritize efforts that ensure the maximum impact possible in the areas, where a real difference can be made.

“Sustainability has been on everybody’s lips in our business for many years. Reducing our climate footprint and securing a wider diversity in our employee ranks are not only crucial to the survival of our business but for the entire industry. Through our efforts to improve our environmental and social impact, we have constructed an ESG framework and established the baselines required to move ahead measurably and transparently with our sustainability commitments,” says Søren Gran Hansen, Group CEO of SDK FREJA and adds:

“In cooperation with the consultancy agency Deloitte, we have identified 12 topics within ESG where we intend to put intensive effort behind. These include employee retention, reduction of CO2 emissions, further strengthened compliance and strong governance.”

A united Executive Management consisting of Lars Jespersen, CEO of SDK, Ulrik Rasmussen, CEO of FREJA, and Søren Gran Hansen, Group CEO of SDK FREJA are behind the launch of the sustainability report and driving the important development of the ESG focus areas.

Specifically, SDK FREJA plans to dedicate their effort to reduce the company’s Scope 1 and 2 emissions by 60 percent by 2040, keep employee turnover under 15 percent, already maintaining a 12.5 percent turnover in 2020/21, and to train all SDK FREJA employees in the Group’s Code of Conduct (CoC), GDPR, and IT-security in 2022/23.

The shipping- and logistics company SDK FREJA was established at the turn of the year 2020/2021 in a merger between the SDK and FREJA. Ahead of the merger, FREJA had published several annual CSR reports and consequently, sustainability reporting is a natural step for the now unified company.

Framework forms the basis of development

Establishing formal business procedures in the work with sustainability is key to the development SDK FREJA face in the coming years. Apart from the considerable effort required to report on especially climate impact, the task involving working on the company’s joint sustainability goals also forms the basis of increasing coherence across the SDK FREJA organization and the different business entities.

As part of SDK FREJA’s objectives in their work with climate impact, among other things, SDK FREJA have committed to reduce Scope 3 emissions by 50 percent in 2040, corresponding to more than 460.000 tonnes of CO2. The company’s Scope 3 emissions currently comprise 97.3 percent of SDK FREJA’s collective CO2 footprint, and the work to reduce this will therefore be crucial for SDK FREJA’s total impact.

“SDK FREJA consider the work on our sustainability report as a good and solid starting point from which we can establish both frameworks and concrete goals to work within and towards. Among other initiatives, we intend to use the financial year 2022/2023 to establish milestones for our company’s reduction targets, building a decarbonization roadmap, where some of the areas that we can already now influence are such as empty haulage and utilization of load capacity, which will result in fewer trucks on the road,” says Eric Clausen, Head of ESG and Quality.

These targets place high demands on the utilization of synergy effects and require strong backing to support the transition.

The ownership fully supports SDK FREJA

The launch of SDK FREJA’s first sustainability report is an important step for the global Group towards a unified and streamlined approach to sustainability and decency. And the work with sustainability in SDK FREJA is not an isolated effort. The ownership in A/S United Shipping and Trading Company (USTC) fully supports the work and the direction taken by the shipping and logistics company.

“The work with sustainability is an enormous task for a company such as ours operating in several countries and various types of businesses. For this reason, it is essential for us to have the full support of our ownership to invest time and resources in sustainability initiatives,” says Eric Clausen.

SDK FREJA have identified core sustainability areas that are aligned with the overarching goals set forth by the ownership in USTC: Corporate Governance, Climate Impacts, Diversity, Equality, and Inclusion, and Compliance. These key areas set the tone for efforts across all USTC subsidiaries.

SDK FREJA has joined forces with the consultancy agency Deloitte in their work on the publication of this first sustainability report. Going forward, SDK FREJA will release annual sustainability reports covering the progress made by SDK FREJA on the ESG topics material to the Group.

Read the full sustainability report here

 

For further information, please contact:

Mikkel Wenzel Andreasen

Communications Officer, Group Communications

M +45 26 79 91 63

miwa@ustc.dk

 

About SDK FREJA:

SDK FREJA Group is a full-service logistics and shipping company. The main activities of SDK FREJA include freight forwarding within Road, Air & Sea, and Project Cargo, Logistics, as well as Stevedoring, Agency, Customs Clearing, Commercial Chartering, Liner and Cruise services, as well as recycling raw materials in the treatment of contaminated soil and industrial waste materials.

SDK FREJA is a privately owned logistics and shipping companies. With +1400 employees in eight countries the focus is on providing one entry point for a consistent and effective solution within the business areas.

SDK Freja Group is part of the Danish, family-owned United Shipping & Trading Company (USTC). USTC holds a portfolio of activities that include oil & energy, shipping & logistics, ship owning, risk management, car activities, IT, sustainable energy, and environment & recycling, and is present in 40 countries with more than 4000 employees.

 

Read in Danish

Dear reader

Welcome to FREJA's third newsletter in 2022, where we would like to share what is happening in our part of the transport & logistics world.

Our first overall sustainability report focuses on climate and people

From 2025 and onwards, trucks must pay road tax in Denmark according to how much CO2 is emitted from driving.

The entire Danish transport industry and the Minister of Transport have made the EU Commission roll back their decision on the interpretation of 'return-of-vehicle'

We thank you for your interest in our newsletter and wish you a pleasant reading.

Yours sincerely
Jan Sunde

From 2025, a new CO2 differentiated and kilometer-based toll for trucks will pave the way for the green transition - But the revenue will not be used for green transition.

"From now on, trucks will have to pay road tax in Denmark according to how much CO2 is emitted from driving. The government, Radical Liberals, Socialist People's Party and Enhedslisten agree on this. The change will take place from 2025, so truckers and others will be given the opportunity to adjust. The overall agreement is estimated to reduce CO2 emissions by approx. 0.3 million tonnes in 2025 and approx. 0.4 million tonnes in 2030.”

Writes the Ministry of Transport in a press release. on 24 July 2022.

The agreement is another step on the way to realizing the goal of 70 per cent greenhouse gas reduction in 2030.

FREJA supports the green transition and looks positively at initiatives that help convert the industry. FREJA is ready for change and has worked through several initiatives to create the best framework for hauliers. However, it is crucial that the tax is allocated to the green transition and not just become another tax that is not fed back into the industry. Immediately, we cannot see any plan for a real green transition in the agreement on road charges. According to the agreement papers, it indicates that the income from the agreement will not support the green agenda, but instead administration.

Read also: Bestseller and FREJA cut 500 tonnes of CO2 per year with trucks and used cooking oil.

It is a pity, as FREJA would like to see a green development of the industry, hand in hand with the initiatives proposed by the government. And if you want to be sure that the agreement has the desired effectiveness. FREJA would like the income to be invested in the green transition instead of going to the state treasury.

The mentioned initiatives from the government are the following:

Road tax for lorries: From 1 January 2025, lorries must pay road tax according to how far they drive in Denmark. The tax will be differentiated according to the trucks' CO2 emissions. Green trucks will thus pay the least in tax. The average tax rate will be approx. DKK 1.2 per km in 2030.

Making road freight transport more efficient: The measures are expected to make road freight transport more efficient in Denmark. This is done by changing the national regulations on weight and dimensioning of lorries in road freight transport. The changes also come into force on 1 January 2025.

Better conditions for rail freight in Denmark: The initiatives are expected to improve the conditions for rail freight in Denmark, including a pool with a loan scheme for freight operators on the railway as well as a mapping of the challenges with the rail freight terminals in Hirtshals and Esbjerg.

Read the text of the agreement here for the specific decisions.

SDK FREJAs first sustainability report after the merger

SDK FREJA formalizes our new ambitions within the sustainability agenda as we target climate footprint and people in the first collective sustainability report since the merger between SDK and FREJA in 2021.

In our first ever ESG report, SDK FREJA focuses on forming the basis for future work with social and environmental sustainability. Aiming to direct a data-driven and conscious effort to move in a more sustainable and responsible direction in the future, the report divides the different business areas within the recently merged company. The purpose is to prioritize efforts that ensure the maximum impact possible in the areas, where a real difference can be made.

The following are  the focus areas that SDK FREJA wishes to engage in the future:

ENVIRONMENT

Climate impacts under our control

• We seek to lower emissions under our control by 60% by 2040
• SDK FREJA wishes to convert our own truck fleet to use alternative fuels by 2035.
  and reducing our empty Haulage on road transport to 8%.

Climate impacts from our value chain

• We seek to lower emissions in our value chain 50% by 2040
• SDK FREJA want to create more options for our customers to choose other forms of transportation such as Rail freight to create more opportunities for partners in our value chain to use alternative fuels.

Resource and waste management

• SDK FREJA wishes to increase our waste sorting from 54.75% this year to 65% by 2025 already.

SOCIAL

Health and safety

• Lost time injury frequency per 1,000,000 in 2024 below 8.
  Sickness absence below 2.5%.

Diversity, Equality, and inclusion

• Our ambition is to have 33% of the underrepresented gender on the SDK FREJA Board of Directors by 2023.
• In the upcoming years, we will prioritize a more balanced gender composition in all of SDK FREJA.

Employee attraction and retention

• It is a clear priority of ours to set up various programs to educate and attract the next generation of talent.
• By treating our drivers with decency and respect, we open up for an equal dialogue that fosters respect and motivation.

Community engagement

• Our strategy is to support smaller communities and sports athletes that hold the same values as SDK FRJEA, and to whom our contribution can make a meaningful difference to their development.

Corporate Governance

• Our ISO Certifications are an important part of our governance, we aim to have ISO 9001 certification of our Quality Management Systems for all our entities by 2024.

Compliance

• FREJA is AEO (Authorized Economic Operator) certified in Denmark, Sweden, and Finland.
  For operations at harbors, cross docking terminals, and warehouses, compliance to Health and Safety regulations and requirements are supervised by QHSE.
• Road transport is a mix of EU and national regulations within different requirements for hours of resting, cabotage, minimum wages, the return of vehicles to their countries of origin, and customs requirements in and out of the EU.

Data Privacy and security

• we continuously strive to ensure we embed more digital innovation and IT security.
  Our information security management system conforms to internationally accepted best practice as defined in relevant standards such as ISO 27002..

Reporting and handling of misconduct

• SDK FREJA’s whistle-blower service is managed by a third-party and available in several languages for easy access. Our whistleblower service provides our employees with the opportunity to anonymously and freely express concerns or grievances in confidence through our website and our intranet.
• We currently have two separate Codes of Conduct – one for our employees and one for the suppliers of our Logistics division. In Q3 2022, a unified Code of Conduct for SDK FREJA will replace our current Codes of Conduct, and it will, like the existing ones,

Transparency

• We aim to be compliant with the Corporate Sustainability Reporting Directive (CSRD) before entry into force in 2025/2026.

Sustainability is in focus going forward

SDK merged with logistics and transport company FREJA in 2021. A perfect match which gave rise to the perfect opportunity to compile and launch the Group’s first unified Sustainability Report. The synergy creates seamless opportunities for cooperation in-between the entities, which benefits all of SDK FREJA and the customers.

Sustainability is the dawn of new possibilities to create a better future. We are certain the sustainable agenda will be a benefit for successful operations across our organization all our partners.

Read the full report  here

Before ESG, FREJA put out CSR rapports every year since 2017. You can see them all here

The entire Danish transport industry and the Minister of Transport have made the EU Commission roll back their decision on the interpretation of 'return-of-vehicle'

On 23 June, a united Danish transport industry wrote a letter to the Ministry of Transport in which, among other things, stated the following:

"It will be devastating for the competitiveness of the European road freight sector if the Commission's interpretation is allowed to remain in force. The logistics and the organization of the flow of goods and goods in Europe will be complicated to an unprecedented degree, which will lead to a noticeable decrease in the efficiency and productivity of the sector. Capacity will be sucked out of the market in a situation where the opposite is needed, and this will result in increased costs for companies, consumers and society, without anyone benefiting from it.”

The letter is a response to the EU Commission's decision and interpretation of the EU's Road Package, which came into effect in February 2022.

Read also: The EU Commission insists that the law on the return of lorries also applies to trailers.

A few days after the letter was sent, Transport Minister Trine Bramsen met the industry's wishes and sent a letter to the EU Commission, in which the minister writes that Denmark does not expect to follow the Commission's interpretation of sending both trailers and semi-trailers home every eight weeks .

On 14 September 2022, the EU Commission rolled back their previous interpretation and only trucks must return every 8 weeks – no longer the trailer.

The latest Mobility Package rules, which included the 8-week mandatory return of vehicles, were approved by the European Parliament in summer 2020 with effect from February 2022.

The mobility package included the mandatory return truck rule, which states that a vehicle must return once every eight weeks to the location from which the business is operated. However, the legislation should also apply to trailers and semi-trailers, according to a Q&A sheet published by the EU in the summer of 2022.

Read the full letter from the Danish transport industry to the Minister of Transport here.

 

Synergies and opportunities in sustainability across the entire USTC

Following the company’s strongest financial year to date, United Shipping and Trading Company (USTC) presents its first unified Sustainability Report, showing baselines and ambitions across the Group based on individual reporting by subsidiary companies of USTC including SDK FREJA, Unit IT, Uni-Tankers, and Bunker Holding.

Corporate Governance

As USTC has grown both organically and through acquisitions, we have had a continuous focus on strengthening governance across the Group. At the same time, we have slowly and steadily been implementing a generational shift in the ownership, ensuring that Torben Østergaard-Nielsen’s baton has been passed to his two daughters Mia Østergaard Rechnitzer and Nina Østergaard Borris. These developments have been natural, intentional, and highly connected.

Climate Impacts

Group companies operate as intermediaries and facilitators, and the overwhelming share of the carbon footprint of each company comes in the form of indirect emissions from their value chain. For USTC, these Scope 3 emissions account for 99.9 percent of the total footprint.

Diversity, Equility and Inclusion

USTC supports all companies in the Group which encompasses people as diverse as bunker traders, IT specialists, truck drivers, dock workers, and financial experts. Whilst each company in USTC works with Diversity, Equality, and Inclusion, as the challenges and potential solutions relate to them and their markets

Compliance

The world that USTC operates in is not the same as when the company was established more than 40 years ago. It might not look that way, as we still essentially support our customers with bringing their goods and services to market in the best possible way. But the way we do this is shifting fundamentally, especially during the last decade.

 

Once a small local shipbroking company, SDK’s journey can be traced all the way back to parent company USTC’s tentative beginnings in 1876. Over time, SDK experienced tremendous growth through acquiring smaller companies; a growth journey only made possible by the active engagement and involvement of the family-owned parent company USTC – or United Shipping and Trading Company. In the latest of its endeavors, SDK merged with logistics and transport company FREJA in 2021. A perfect match which gave rise to the perfect opportunity to compile and launch the Group’s first unified Sustainability Report.

Open conversations between the owners and USTC entities around aligning efforts and ambitions for sustainability have of late been high on the agenda.

By setting direction and ambitions for sustainability, parent company USTC is creating value for the entire group of companies and ensuring their long-term prosperity

Read USTCs full sustainability here.

Before ESG, FREJA put out CSR rapports every year since 2017. You can see them all here

With serialization of the supply chain flow, manufacturers, wholesalers and logistics service providers within the pharmaceutical industry fight counterfeit medicines and thus improve patient safety.

Contact us to stay compliant with the new EU Directive that enters into force the 9th of February, 2019.

 

 

 

 

 

 

 

 

Read in Danish

Dear reader

Welcome to FREJA’s third newsletter in 2021 in which we want to share with you what is happening in our part of the transport and logistics business.

FREJA wants to be greener and we are doing trials with alternative fuels in cooperation with chosen clients and hauliers. There is no agreement in the EU countries on which alternative fuels to invest in and research is done on several fronts. Read our article about alternative fuels and our considerations on environmental considerations.

In this newsletter we also give you an article about the EU Mobility Package which regulates the working conditions for drivers and the costs this adds to the transporter.

At FREJA, we advise our clients to invest in customer/supplier relationships that support and absorb the challenges on your way. FREJA’s 4PL Services can help your company. We have digital tools to calculate models to support your supply chain. Read more about this in on of our articles.

In the more entertaining part of the scale we give you a greeting from the golf event “Challenge Tour” where FREJA mid-August participated in a ProAm tournament in Esbjerg. A victorious day – in the eyes of FREJA.

Enjoy reading

The EU Mobility Package sets the working conditions for truck drivers, but unfortunately, it also leads to increased costs

After several years of negotiations, the EU passed the so-called Mobility Package in July 2020. The EU Mobility Package sets the standards for truck drivers’ salaries and working conditions. Some parts of the Mobility Package have been implemented, while others will become effective gradually during the following years.

We find it positive that the EU creates common regulations regarding working conditions for drivers, but unfortunately, tightening the regulations increases our costs. The new regulations mean that drivers are entitled to return to their home country every fourth week, and therefore, the transports must be planned accordingly. Furthermore, the vehicle itself must return to the company’s registration address every eight weeks. The travel costs related to the driver’s return to his home country must be covered by the employer.

Regarding resting related to the rules of driving and resting times, all rests lasting more than 45 hours must be held outside the truck, and it is required to have documentation for these rests. Finally, it is a requirement that the drivers are paid the same as national drivers in the country in which they drive.

The above has resulted in several questions from FREJA’s customers if we are able to price the increased costs in relation to the implementation of the Mobility Package. However, we are not able to do so presently. It is highly uncertain how many drivers and hauliers will choose to leave the transport industry because of the increased requirements of returning to their home country, the salary, and the increased administration. We will wait and see what will happen and how the situation develops over the coming months and years.

Yes to a green transition, but it requires agreement in the EU on alternative fuels

FREJA wants to be greener, but it seems to be a bigger challenge than expected due to divergent taxes and a pressured market.

There is no agreement in the EU countries on which alternative fuels to invest in. Some countries want to focus on biodiesel, other countries on gas, and then there are those countries that have not yet made up their mind. Limited refueling options and large price differences, and the fact that some truck manufacturers require shorter service intervals for B100 diesel, make it difficult for hauliers to be a part of the green transition.

FREJA is doing trials in collaboration with a few customers and hauliers on the B100. This is only a reality in cases where the infrastructure allows it, and when there is a customer who wants to pay for the additional cost it gives our haulier.

FREJA has initiatives underway with the HVO100 on a couple of our own trucks. The experiment will take place by refueling in Sweden, as it will be impossible to refuel HVO100 in Denmark due to the large charges.

Sustainable alternatives

HVO (Hydrotreated Vegetable Oil) is second-generation biodiesel. HVO100 can provide up to a 90% reduction in CO2. B100 is first-generation biodiesel and provides up to 60% CO2 reduction. B100 comes primarily from rapeseed crops.

Biogas is also an environmentally friendly alternative. CBG (compressed biogas) has a relatively short operating radius, making it unsuitable for international transport and dependent on land, as there are only limited refueling stations.

LBG (liquid biogas), which could be an alternative, has even fewer options for refueling and is financially impossible for our hauliers.

Like most of our colleagues in the industry, these few alternative trials only happen in limited driving areas and in collaboration with customers, who are willing to pay for the costs. Many hope that the hydrogen solution will be the sustainable alternative to diesel and therefore also have expectations that it will be economically viable, but there are no real facts on the table yet about the economy. It requires more than just political declarations of intent - it requires real action and common guidelines across the EU.

While we wait for the right sustainable alternative, we continue to do what we can, which is to focus on increasing our overall unloading rate as well as reducing the number of miles driven.

New times requires new measures for handling the supply chain

During the pandemic, we have faced multiple factors that have increased complexity and constrained our operating model in a historically inefficient manner, shifting from a lean and responsive supply to a “just get the goods moving, we can sell anything” perspective.

The challenges are many. On a global scale, material scarcity is a reality, as insufficient inputs have been a concern since the pandemic began, due to an abrupt rise in consumer demand like never before, resulting in increased costs.

Capacity has been challenged at all facilities within mining, production, warehousing, and transportation, which are all elements of the supply chain that create bottlenecks and exploding cost levels.

Professionals have had to reconsider

• Difficult demand forecasting
• Port congestion
• Changing consumer attitudes

And yet still develop and lead change in the right strategic direction while being (very) busy getting the goods available to buy off the shelf.

How are you managing the supply chain projects during the pandemic, and do you have the time to run optimizations and gain profits? If the demand flips once again, how do you cope with the bull-whip effect that has reduced supply chain efficiency for ages? Today, the theory is more relevant than ever as purchasers buy whatever they can get hold of in large quantities for inventory, or accepting prolonged lead time in planning, production, and transportation services.

Digital tools are hailed as the solution to many challenges, but how do you deploy them into your supply chain department?

At FREJA, we advise our clients to invest in customer/supplier relationships that support and absorb the challenges on your way. FREJA’s 4PL Services can help your company by building a shared forecasting model to reduce the bull-whip effect in your supply chain. Our 4PL specialists will also code the mathematical model that tells you who to source material from and where to store your products to keep cost at a minimum. Thereby, you are aware of the optimum supply chain and this allows you to wind more market shares and service the market with the required flexibility and lead time.

Read our case about mathematical modelling to get a glimpse of what coding of your supply chain is really about and how that may reduce your costs by 5,9% and improve your responsiveness. Introducing mathematical modelling to be a part of your team makes unmanageable decisions manageable. Imagine millions of combinations and thousands of parameters. How can the human brain manage such complexity? In a winning supply chain, you need to know your best-case options to make the best decisions. That is served by FREJA.

What is the Bullwhip effect? The bullwhip-effect describes the phenomenon, where the customer’s change in demand effects the whole supply chain to a point, where the variance in demand, becomes greater than the actual sales. This causes the manufacturer to increase its production without any increment in the actual sales at the retailer. This effect causes more goods on stock, less accurate forecast and a more expensive operation for all involved parties. This can be prevented with information-sharing (forecast sharing).

Top class golf experiences at ‘Made in Esbjerg Challenge presented by FREJA and TotalEnergies’

From August 11-14, the Challenge Tour tournament ‘Made in Esbjerg Challenge presented by FREJA and TotalEnergies’ took place. In this connection, FREJA had the pleasure of inviting 24 customers and business associates to participate in the Pro-Am the day before the tournament start. FREJA lined up with 12 teams and enjoyed an unforgettable day at the golf course, where the atmosphere was top-notch, and the professionals shared their best golf advice.

A total of 26 teams participated in the Pro-Am, and there was a prize for the six best teams. FREJA ended up having four teams in the top six, including a well-deserved first place. It was FREJA's Team 2 with Lars Wejrup from Søms A/S, Michael Pedersen from Give Steel A/S, Kasper Hansen from FREJA, and the Italian professional golfer, Matteo Manassero, who took home the victory.

We appreciate all the positive feedback we have received, and we would like to thank everyone who participated and helped make this day memorable. We look forward to many more exciting golf experiences in the future.

Read some of the positive feedback from our customers here:

Dear FREJA,

We would like to thank you for a fantastic day at the golf course at the Challenge Tour & Pro-Am in Esbjerg. The golf course was like never seen before, the weather was great, and we got some good scores. It is always a pleasure to feel the atmosphere at these events, and we especially enjoy the good dialogue with the pro. It provides an opportunity to gain direct insight into life as a pro and the challenges they face daily. As the pro said, there is a reason it is called "Challenge Tour".

It is a great way to create relations that goes beyond the daily collaboration, and we appreciate the effort FREJA puts into these events.

Scandi-Roc ApS
Jes Rasmussen & Thomas Jacobsen

__________________________________

Dear FREJA,

We had a super good day in good company. It is always nice to meet new people and feel the good spirit from the staff at FREJA.

Our pro was a very likable person, and I think he gave a lot of himself to us as a team.

All in all, a lovely day with a great result. Thanks to Kasper Hansen/FREJA, Michael Pedersen/Give Steel, and our pro, Matteo Manassero.

Søms A/S
Lars Wejrup

If you wish to join a FREJA team in the future, you are welcome to contact Franz Andersen or Kenneth Christensen.

Strict collective bargaining is underway in key sectors for Finnish exports and imports.

- We are closely monitoring the situation and doing our best to anticipate the impact on international transport. By law, industrial action must be announced at least two weeks before it starts. For our customers, the emphasis is now on being on the road early, so it pays to place transport orders well in advance," says Matti Urmas, Managing Director of FREJA Transport & Logistics Oy.

The stevedoring sector is already subject to an overtime ban issued by the Transport Workers' Federation (AKT), which came into force on 1 February.

- The main impact of the overtime ban is on weekends, so there are no major delays in transport in the foreseeable future. For up-to-date information on the status of your shipment, please contact your contact person. Of course, it would be desirable for all sectors to reach an agreement without industrial action.

Your FREJA contact will tell you the status of your shipment

Finnlines announced on Monday 30 January that if the overtime ban comes into force and no agreement is reached, work in ports will be suspended between 15.30 on Saturday and 06.45 on Monday. The Sunday departure from Helsinki to Travemünde at 15.00 and the Monday departure from Travemünde to Helsinki at 2.00 will be cancelled. According to Finnlines, there will be other changes to the timetable. These changes will cause congestion in the port, and you should be prepared for delays in unloading and loading times.

AKT strikes will start on Wednesday 15 February if no agreement is reached

On Tuesday 31 January, the AKT has issued a strike warning to the stevedoring sector, in addition to the current overtime ban.

Below are the strike timetables if the strikes go ahead.

According to the AKT, a total of around 9 000 workers will be affected.

AKT strike timetables

- Strike in the stevedoring sector from 15 February at 06.00 until further notice: If the strike starts, it will cover all port operations, including unloading, loading, reception and release of units.

- Trucking strike 15.2. from 00.00 to 21.2. from 24.00

- Tanker and oil products strike 15.2. 00.00-21.2. 24.00

- Terminal sector strike 15.2. 06.00-22.2. 06.00

Page on the state of the negotiations maintained by the AKT.

Finnlines will not transport trucks without a driver during the strike

Finnlines announced on Monday that units without drivers will not be loaded at all in the event of a strike. The HansaLink line between Helsinki and Travemünde will operate as scheduled, but will only transport trucks with a driver.

If no agreement can be reached during Monday, Finnlines will not load trailers or other units without a driver, starting with the departure from Travemünde to Helsinki at 2.45 am on 14 February. Departure from Helsinki to Travemünde on 14 February at 16.15 will be loaded as normal. If a strike starts, only units with a driver will be loaded.

The Naantali-Kapellskär line (FinnLink) will operate as scheduled, but units without a driver will not be loaded.

 

Strike situation in other sectors

The PAM Service sector union has called off all industrial action after reaching an agreement on working conditions.

The Technology Industry and the Trade Union Pro reached an agreement on working conditions and the strike was suspended.

The Employees' Federation ERTO and the Trade Union Confederation Pro also reached an agreement on working conditions before the strike in the financial management sector started.

The website of the Office of the National Mediator provides comprehensive information on the bargaining situation in the various sectors, provided that the National Mediator is involved.

News updated 13.2. throughout at 15.15.

News updated throughout 1.2.2023 at 15.05.

News updated for the start date of the PAM warehouse strike on 3.2.2023 at 9.30 am.