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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

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.

 

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.

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.

To all customers of FREJA Transport & Logistics, regarding increased congestion on European terminals.

We would like to inform you that with increasing congestion on European port terminals and overall dwell times continuing to rise, more terminals are attempting to address long-stay container issues through a variety of measures. These include moving containers to separate storage areas and/or imposing additional one-time or daily charges for laden long-stay boxes.

While we are negotiating charge acceptance with our Shipping Lines, please be aware that if we are forced to accept any charges, we, unfortunately, must charge this back to you as our customer. Because many of the charges are of an emergency nature, they may be issued on short notice.

For further questions please refer to your local FREJA office/representative, where we can inform you of any changes that may occur on your shipment.

Best Regards

FREJA Transport & Logistics

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

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.

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Because of Danish holidays, there will be some changes in departure times from several countries.

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