PRESS RELEASE

The acquisition of IRT Logistics brings new colleagues and a strengthened business area for groupage transport between Sweden and the UK to the fast-growing Danish logistics company SDK FREJA.

To strengthen the competencies of road transport of groupage between Sweden and the UK, the Danish company SDK FREJA has invested in the Gothenburg-based niche logistics company IRT Logistics.

“IRT Logistics has been on our radar for a long time, and now the time was right for us to enter into an agreement. It is an acquisition that will strengthen our business considerably on groupage transports between Sweden and the UK. At the same time, both existing and new customers will experience that the new customer-facing IT solutions that a company of SDK FREJA's caliber brings to IRT Logistics, will strengthen the services they demand”, says Søren Skive, EVP in FREJA Transport & Logistics AB.

Founder of IRT Logistics, Björn Steenstrup, is also pleased to know that his life's work will continue under SDK FREJA.

“For a long time, we have considered FREJA a qualified partner to run our company with the right visions, and now it was time. This year, we were able to celebrate our 20th anniversary, and it seemed an appropriate time to pass on the torch to someone who shares our values ​​and who can and will further develop the company that we have built”, says Björn Steenstrup.

IRT Logistics itself has been on a growth journey with a 65 percent increase in the annual result over the past five years, and it is acquired with an expected annual turnover of SEK 45 million. All nine employees in IRT Logistics will continue under the new ownership.

The growth journey continues in 2022

The acquisition of Swedish IRT Logistics is the third acquisition under FREJA Transport & Logistics in 2021, and it is the latest addition to SDK FREJA's growth journey. Since the two logistics companies merged in December 2020, the journey has included a partial acquisition of the Danish company Nordic Waste and three acquisitions of logistics companies throughout the Nordic region: Finnish TL Trans, Norwegian Thoresen Transport, and now Swedish IRT Logistics.

It is this acquisition approach that will ensure continued growth towards SDK FREJA's goal of a total turnover in 2025 of DKK 8-10 billion.

“We expect an increasing need in the market for one-stop-shop logistics services. By always being on the lookout for new partners and companies that can supplement and improve our services, we are well on our way to being the obvious choice”, says Ulrik Rasmussen, Group CEO of FREJA Transport & Logistics Holding A/S, and elaborates:

“The most important thing in our acquisition strategy, however, will always be that we can find common ground between potential companies and ourselves in both values ​​and business. Logistics is a people business, and it is best built on trust and understanding. A motto that governs everything we do in our business”.

SDK FREJA is part of the Danish family-owned group United Shipping and Trading Company, USTC. An international conglomerate with a wide range of companies in areas such as logistics, shipping, bunker, IT, and alternative energy.

The transaction price will not be disclosed.

For more information, please contact:

Björn Steenstrup, owner/CEO, IRT Logistics AB

E-mail: bjorn@irtab.se or phone: 0046 – 73 531 3181

Søren Skive, EVP, FREJA Transport & Logistics AB

E-mail: ssk@freja.com or phone: 0045 – 6025 4600

Read the full press release here

PRESS RELEASE

SDK FREJA delivers record financial performance despite challenging market conditions.

SDK FREJA reports a remarkable financial result following a year characterised by challenging market conditions. The company can report a revenue of DKK 6.6 billion, an EBIT of DKK 331 million - an increase of 25% compared to the previous year and an EBT of DKK 287 million.

The financial year 2022/23 was marked by SDK FREJA’s ability to adapt and stay customer focused in a market dominated by volatile energy prices, rising inflation and interest rates, and challenges in relation to freight and storage capacity.

In recent years, SDK FREJA has been through a major expansion of its business portfolio. Today, the company consists of three business areas: Shipping, Logistics, and Environment & Recycling.

“Each of our three business areas have impressively demonstrated adaptability and strong competitiveness in an unpredictable market. Our employees have once again proven their strong capabilities and flexibility and have further ensured that we can continue to offer customers the best solutions and services,” says Søren Gran Hansen, CEO at SDK FREJA.

Throughout the year, the Group has continued to strengthen the organisation and business platform by investing in IT and digitalisation among other initiatives, which has contributed to strengthening SDK FREJA’s position in the market.

"We are proud to deliver our best result in shipping to date. It has been a year of high activity throughout all of our segments in Agency and Stevedoring, which has required an extraordinary effort from our valuable employees,” says Lars Jespersen, CEO at SDK Shipping.

 

Ulrik Rasmussen, CEO at FREJA Transport & Logistics Holding adds:

"We have effectively carried out our strategy, which will make it easy and seamless to be a customer to FREJA and where we will always go above and beyond for our customers. It has paid off, and we are very pleased to be able to deliver a record performance this year. However, the primary reason for our record result can be attributed to our valuable employees, who have been exceptional in navigating an unpredictable market."

Acquisitions remain a high priority

SDK FREJA is preparing for new times. Rising interest rates and inflation have led to less construction work and a lowering in private consumption, which has already resulted in some reduction in freight volumes. Therefore, SDK FREJA expects a normalisation of the shipping and logistics market as the world economy will grow more subdued. However, SDK FREJA still has high ambitions within M&A.

"Organic growth as well as growth through mergers and acquisitions remain strategically important to us. M&A can generate value through agile geographical expansion, achieving economies of scale, new products, and core competencies. It is therefore a cornerstone in the development of SDK FREJA to continue to be aggressive on the acquisition front and be on the lookout for new opportunities ahead," says CEO Søren Gran Hansen.

The ongoing dedication and desire to conduct acquisitions leads to the company to proceed in evaluating potential acquisition candidates. The proactive acquisition strategy for SDK FREJA is part of an overall strategy that can be traced back to the company's ownership, the family-owned A/S United Shipping and Trading Company (USTC).

 

Focus on CO2 emissions in Scope 2
In connection with the publication of the annual results, SDK FREJA will also publish its consolidated sustainability report.

"In SDK FREJA, we have determinedly worked to reduce our Scope 2 emissions figures during this year. Among other initiatives, we have invested in improving terminals and office buildings over the past year with the aim of reducing the consumption of electricity and heating," says CEO Søren Gran Hansen.

SDK FREJA has seen a significant reduction in the consumption of energy and heating and at several of SDK FREJA's sites, there is a reduction in energy consumption by more than 50%. This is a result of upgrading both the infrastructure and technology at its largest sites e.g., by installing BMS (Building Management Systems). For SDK FREJA's largest terminals, the result is a reduction of carbon emissions by 25% compared to the last reporting period 2021/2022.

SDK FREJA’s financial highlights
DKKm	2022/23	2021/22	2020/21
Revenue	6,600	6,000	2,630
EBIT before special items	331	265	97
Operating margin %	8.9%	8.3%	8.5%
Total Equity	917	785	542
Conversion ratio %	22.5%	20.4%	15.4%
Employees	1,515	1,350	1,247

For further information, please contact:

Mikkel Wenzel Andreasen,
Communications Officer, USTC Group Communications.

M +45 26 79 91 63
e-mail: miwa@ustc.dk

 

About SDK FREJA
SDK FREJA Group is a full-service shipping and logistics 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 and as Environment & Recycling business. The company offers specialist logistics solutions within Healthcare, Warehousing and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain.

SDK FREJA is one of the few independent and privately owned local mid-sized shipping and logistics companies. With +1,500 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 4,300 employees.

Read in Danish

 

Dear reader

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

The financial year 2021/22 was a milestone for SDK FREJA with the company’s first consolidated financial report and the best result to date.

FREJA has expanded its online services. We are proud to announce that now you can track your shipments by air or sea with higher precision and easy accessibility.

FREJA is expanding its endeavors with a new location in Herning. The office opened on 01.06.2022 and it is already functional and operational.

In July 2020, the EU adopted the so-called EU Road Package, which lays down rules for remuneration and working conditions for truck drivers. A recent development (13th of July, 2022) has us continuously observing the changes and impacts of the mobility package as the implementation continues.

We thank you for your interest in our newsletter and wish you a good read.

Sincerely
Jan Sunde

SDK FREJAs Annual Report

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.

For more information about the financial result of 21/22, you can read the full press release here:

Expanding offices and partnerships in Denmark

FREJA is expanding its endeavors with a new location in Herning. The office opened on 01.06.2022 and it is already functional and operational. This office will expand and reinforce our customer engagement as they will provide sales- and forwarding expertise along with continuous service to our customers.

The opening of an office in Herning underlines our ambition to believe in local engagement and localized workforces. This applies to customer, employee, and partner values, as we consistently invest in decentralized offices.

FREJAs local Senior Account Manager at the new office, Peter Stensfeldt, believes that to be a part of a local industry you need commitment and presence in the local activities.

Because of this, we are proud to announce that FREJA will expand its partnership with FC Midtjylland and Herning Bluefox. We are excited to continue this collaboration as we believe their values align with the values of FREJA Transport & Logistics. FREJA will continue our partnership, and expand it as we seek to engage more in the local activities in and around Herning.

With more than 35 years of experience in transport and logistics, FREJA can offer professional advice and sparring as well as create solutions based on the customer’s needs.

FREJA looks forward to establishing close customer relationships in Herning, and we aim to create an even stronger foundation in Jutland as the customers’ preferred full-service provider by road, sea, and air.

If you want to know more about how FREJA can help you, feel free to reach out to Peter Stensfeldt or Franz Andersen.

FREJAs Track & Trace services for Air & Sea transportation have expanded

FREJA has expanded its online services. We are proud to announce that now you can track your shipments by air or sea with higher precision and easy accessibility. Now with extended and precise information about your shipment on Air and Sea freight.

To use our Track & Trace service, please head over to the following webpage, where you can enter your Air – MAWB no. or Sea – Container no.

Click here for instant access.

After entering your information a screen prompt will pop up with the information about your shipment immediately.

Get instant information about your shipment. No need for a user ID or password. Just insert your tracking ID in our formula to view the latest updates on your shipment – fast, easy, and convenient.

If you have any questions about the functionality or accessibility, please reach out to your FREJA representative, and we will provide you with the necessary information for you to access updates and information about your shipments.

The EU commission insists that the return of trucks act also applies to trailers.

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

The Mobility Package included the mandatory return truck rule, which states tat a vehicle must return once every eight weeks to the location from where the business is operated. However, the legislation should also be applied to trailers and semi-trailers, according to a Q&A sheet that the EC just released.

This is not set in stone, as Transport en Logistiek Nederland objects to this explanation and interpretation. TLN contests this and believes that this action does nothing to further the objectives of the new European transportation regulations. As they stress: “Trailers are basically the same as containers and they are not returned every eight weeks,” 

FREJA Transport & Logistics is monitoring this development intensively as the conclusion could have a major impact on the capacity available in the market. When we can say something with certainty, we will inform our partners and customers with great haste. Once we know the details.

In July 2020, the EU passed the mobility package that determines the salaries and working conditions for truck drivers. Parts of the mobility package were already implemented in 2020 and 2021. From the 2^nd of February, 2022 another part of the package come into effect. This involves the part of the agreement that mentions the harmonization of salaries.

We find it positive that the EU has a common wish to improve the conditions for drivers and create better salaries- and living conditions, but it is not without extra costs. Specifically, better conditions for drivers and increased taxes and administration are the main contributors to the increase of prices in the future.

SDK FREJA at Breakbulk Rotterdam 2022

As the largest event in the world for the project cargo and breakbulk industry, Breakbulk Europe was the right event to have SDK FREJA’s first official outing as one company. The event in May drew around 10,000 professionals to Rotterdam from more than 120 countries.

Breakbulk Europe has become the global hub for the industrial project supply chain, including the world’s foremost manufacturers, oil & gas companies, EPCs, carriers, ports, logistics firms, specialized transporters, and related service providers.

– We were delighted to showcase for the first time on a live event our truly broad portfolio and all the opportunities we provide to our current customers and our future customers, says Lars Jespersen, CEO of SDK Shipping.

Although the merger in 2020 was widely reported, the CEO of FREJA, Ulrik Rasmussen believes that Breakbulk Europe was a good event to present all the services SDK FREJA can offer.

– The range of our portfolio is so wide; I believe many of our current customers will be pleasantly surprised by the possibilities SDK FREJA as a full-service logistics and shipping company can offer with local knowledge, regional setup, and a Global Network! Ulrik Rasmussen, CEO of FREJA Transport & Logistics A/S

The company offers specialized logistics solutions in Healthcare, Warehousing, and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain. FREJA Transport & Logistics has offices in seven different countries, namely Denmark, Sweden, Norway, Finland, Poland, Holland, and China.

SDK FREJA is part of the family-owned USTC Group with activities covering the supply of bunkers to the shipping industry, tanker shipping, door-to-door logistics, risk management, IT activities, and sustainable energy solutions. The USTC Group is continuously evolving, currently with offices in 38 countries and 4,000 employees worldwide. Each and every one supporting you 24/7/365.

SDK FREJA at stand 2J61!

As the largest event in the world for the project cargo and breakbulk industry, Breakbulk Europe is the right event to have SDK FREJA’s first official outing as one company. The event in May draws around 10,000 professionals to Rotterdam from more than 120 countries.

[caption id="attachment_42703" align="alignleft" width="150"] Lars Jespersen.[/caption]

– We are delighted to showcase for the first time on a live event our truly broad portfolio and all the opportunities we provide to our current customers and our future customers, says Lars Jespersen, CEO of SDK Shipping.

Although the merger in 2020 was widely reported, the CEO of FREJA, Ulrik Rasmussen believes that Breakbulk Europe is a good event to present all the services SDK FREJA can offer.

[caption id="attachment_1210" align="alignright" width="150"] Ulrik Rasmussen.[/caption]

– The range of our portfolio is so wide; I believe many of our current customers will be pleasantly surprised of the possibilities SDK FREJA as a full-service logistics and shipping company can offer with local knowledge, regional setup, and a Global Network!

Breakbulk Europe will be held in Rotterdam at Rotterdam Ahoy, adjacent to the Port of Rotterdam.

The venue Rotterdam Ahoy will include six halls offering an additional 5,000 square meters to comply with the pent-up demand from the industry to meet as one after a two-year event hiatus. Breakbulk Europe will be held 17–19th May 2022.

Breakbulk Europe has become the global hub for the industrial project supply chain, including the world’s foremost manufacturers, oil & gas companies, EPCs, carriers, ports, logistics firms, specialized transporters, and related service providers.

A broad range of services for shipping and logistics

SDK FREJA is one of the few independent and privately owned local mid-sized logistics and shipping companies. SDK FREJA has approx. 200,000 m2 multi harbour terminals in Denmark and Sweden, more than 3,000 trailers on the roads daily as well as a fleet of coasters operated by SDK.

The main activities of SDK FREJA include freight forwarding within Road, Air & Sea, Project, Logistics, as well as Stevedoring, Agency, Chartering, Liner, Cruise and Customs services.

The company offers specialist logistics solutions within Healthcare, Warehousing and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain. FREJA Transport & Logistics has offices in seven different countries, namely Denmark, Sweden, Norway, Finland, Poland, Holland, and China.

SDK FREJA is part of the family owned USTC Group with activities covering supply of bunkers to the shipping industry, tanker shipping, door-to-door logistics, risk management, IT activities and sustainable energy solutions. The USTC Group is continuously evolving, currently with offices in 38 countries and 4,000 employees worldwide. Each and every one supporting you 24/7/365.

Find us, check the Breakbulk Europe exhibitor list!

SDK FREJA A/S, owned by the USTC Group, presents its annual result which showcases the position as a new strong player within the shipping, transport, and logistics industry.

• Earnings (EBIT) have increased from DKK 37.7 million to DKK 97.2 million
• Revenue increased 90 percent to DKK 2.6 billion
• Strong organic growth and optimisation of existing activities

The 2020/21 financial year was a landmark year for SDK FREJA with the best-ever performance
Compared to last year, the operating profit (EBIT) before special items has increased from DKK 37.7m to 97.2m, corresponding to a 158 percent increase.

The impressive results partly build on the great performance of the existing activities prior to the major acquisition that took place in December 2020. But obviously the actual acquisition, when SDK A/S bought 74.7 percent of FREJA Transport & Logistics Holding A/S to consolidate the two large family-owned companies is a key factor. As a natural consequence of the acquisition the company name was changed to SDK FREJA which today has approx. 1250 employees.

“With the acquisition, we wanted to create a new strong player in the shipping, transport and logistics industry and strengthen the overall market position, as well as pave the way for future development and growth. Our results are a testament as to how far we have already come with all three goals", says CEO Søren Gran Hansen, SDK FREJA A/S.

Strong results within both logistics and shipping
Strong organic growth and optimisation related to both the shipping activities as well as the logistics activities in the individual countries play a significant role. Particularly Denmark, Finland, Norway, Sweden, and the Netherlands have made good progress and can report strong earnings. Poland continues to improve its revenue as brand awareness rises in the Polish market, and China performed according to budget with positive earnings, despite a weak project market.

“The integration of SDK’s existing logistics activities with FREJA is going according to the plan. With the strengthened market position, and stronger organisation which has delivered an extraordinary effort during the pandemic, we expect to be able to utilise the opportunities within the new FREJA to the maximum. No doubt we stand far better equipped now with new and improved customer solutions”, says Ulrik Rasmussen, Group CEO of FREJA Transport & Logistics Holding A/S.

Also the performance within shipping demonstrates earnings growth: “Despite challenges relating to the impact from the global Covid-19 pandemic on our Cruise agency business, working from home, staggered working hours and Teams meetings, our strong organization has managed to maintain high service levels and achieve satisfactory financial performance in almost all of our core areas: Stevedoring, Agency and Chartering” says Lars Jespersen CEO of SDK Shipping.

Expectations for the year ahead
Despite the disruption caused by the Covid-19 pandemic which led to an extended period of unpredictability, the company has stayed on its course and earnings have been very satisfying. A comprehensive strategy process that involved a number of key employees was launched this year. The process crystallised into an ambitious strategy plan for developing the company through geographic expansion, organic growth and further acquisitions. Equipped with this strategy and backed by the financially strong and committed ownership, SDK FREJA looks very much forward to exploring and delivering new and better customer solutions in the year to come. The expectations for the period 2021/22 are to benefit from a stronger set-up - and the acquisitions do not stop with FREJA.

“We will not just compete on price but will increasingly maximise the opportunities that come from being a company with a wide range of products and services. Acquisitions are an essential part of our ambitious strategy plan. We have identified a number of specific acquisition opportunities to further strengthen SDK FREJA’s strategic market position”, says Søren Gran Hansen.

FACTS:

• Operates in 8 countries
• Number of offices: +50
• The financial impact from the acquisition of FREJA on the Group for 2020/21 only cover a 4-
  month period. Thus, expectations for 2021/22 are significantly higher earnings (EBIT) than for
  2020/21

Three-year financials overview

SDK FREJA A/S consolidated financials

The SDK FREJA Group is a full-service logistics and shipping company. The main activities of SDK FREJA include freight forwarding within Road, Air & Sea, Project, Logistics, as well as Stevedoring, Agency, Customs Clearing, Commercial Chartering, Liner and Cruise services.
The company offers specialist logistics solutions within Healthcare, Warehousing and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain. SDK FREJA is one of the few independent and privately owned local mid-sized logistics and shipping companies.

United Shipping & Trading Company (USTC) is present in more than 30 countries through its worldwide portfolio of activities that include oil & energy, shipping & logistics, ship owning, risk management, and IT.
USTC was founded in Fredericia, Denmark, in 1876. Today, the family-owned group consists of well-known companies like Bunker Holding, SDK FREJA, Uni-Tankers, Selected Car Group and Unit IT covering approximately 130 offices and occupying around 3,500 employees combined worldwide. USTC has been headquartered in Middelfart since 1981.

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.