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.

Find us, check the Breakbulk Europe exhibitor list!

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

Click here for more information

The tragic development in Ukraine will affect the transport business

Many foreign trucks are operated by drivers from third countries including drivers from Ukraine.

After the Ukrainian government has convened all personnel of the reserve aged 18 to 60 years to join the military services immediately, we see that many drivers return home to Ukraine.

We expect this to have an influence on the operation in a market already lacking capacity.

We hope for your understanding of this situation which is outside FREJA’s control. We encourage you to stay in close contact with your usual contact person in FREJA regarding the development.

In July 2020, the EU passed the so-called 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 comes 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 salary- 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. Unfortunately, the cost development is attached with great uncertainties. Because of this, FREJA will roll out the consequences of the mobility package partially and closely follow the effects of the EU mobility development.

The conditions, we currently know, are changes in salary and tax relations after the 2^nd of February, 2022. This means that FREJA will charge extra EU Mobility Package fees from the 7^th of February, 2022.

We apologize for the late announcement, but we hope you understand that these regulations of labor costs are happening across all of the EU, and the changes are out of FREJA’s control.

When we enter the next phase of the EU Mobility Package, which goes into effect on the 21^st of February, 2022, a significant increase in costs will be that drivers and trucks have to return to their home country with an interval of 8 weeks. FREJA will continually reevaluate the development of the cost level when we have more experience with the changes connected to the EU mobility package. Due to this, we reserve the right to adjust the EU Mobility Package fees.

For more information please contact your daily FREJA representative.

See graphical overview - click here

Cost increase on road freight due to the EU Mobility Package and tax regulations in Poland, Romania and Bulgaria

First of all, it is very positive that there is a common approach in the EU to improve conditions for drivers such as increasing salaries and a generally improvement of living standards for drivers.

The next step of the EU Mobility Package will become effective on the 2nd of February 2022 and will lead to large changes.

The changes are quite comprehensive, especially salary regulations to match the collective agreement in the country in which the driver is transiting or staying, new cabotage rules and the fact that the vehicle and driver every 8 weeks must return to the country where the vehicle is registered. Furthermore, the driver must be given the option to return home every 4 weeks and last but not least there is a demand for documentation requirements of salaries as well as manual registration in a central database in the EU until a new digital unit will replace the manual process by the 20th of August 2025.

Below we have listed the most important changes which affect the costs upon implementation of the EU Mobility Package for Road Freight:

• Harmonization of salary depending on in which country driver is driving or staying
• The driver can ask to return to his home country every 4 weeks
• The driver and the vehicle must return to his home country every 8 weeks
• Every 2 weeks, the driver must take rest outside the vehicle
• Manual registration in the central EU system called IMI
• Changes of the tax systems in Poland, Rumania and Bulgaria

Improved conditions for drivers, taxes and increased administration are the main factors which affect the freight rate structure for the immediate future. Regretfully, the cost development is of large uncertainty and will with very short notice have a large impact on the price structure.

All the above will increase the pressure on capacity and further increase the costs for our customers. We will come back with further information very soon.

Click here to get an overview of the regulations of the road transport

See also FREJA's newsletter from September 2021

The transport of BESTSELLER's clothes becomes more climate-friendly when FREJA and BESTSELLER will use biodiesel trucks on freight in the Nordic countries and several European countries. It contributes to a significant CO2e reduction and is a step towards more climate-friendly transport.

A reduction of more than 500 tonnes of CO2 per year. That is how much the climate will gain when BESTSELLER and FREJA rearrange their transport across several European countries. In the future, a large part of the total transport, when customers shop online at BESTSELLER, will be with trucks running on biodiesel.

Biodiesel is better for the climate than conventional diesel fuel, and together with the significant CO2 reduction, it is one of several steps that BESTSELLER has taken towards more climate-friendly transport:

"At BESTSELLER, we work to reduce our total CO2 emissions. While transport is not the area that poses the biggest problem for us, it is an area where we invest and improve. That is why we are happy to join forces with FREJA and, with this more climate-friendly transport, take another step in the right direction”, says Anders Frost Nygård, who is responsible for BESTSELLER's online deliveries.

Benelux and the Nordic region

FREJA and BESTSELLER sent the first trucks with biodiesel on the roads in November last year, where the transport of online purchases between Poland and the Benelux countries was included. The successful introduction is now expanding as all transports in the Nordic region will also take place with biodiesel trucks.

“Our partnership with BESTSELLER is unique, and this project has become a reality because they are willing to invest in sustainable fuel. We want to develop together with our customers and test new types of sustainable alternatives to diesel, but we cannot do it alone, which is why the collaboration with BESTSELLER is valuable to us”, says FREJA's Chairman of the Board Poland and Regional Director South Denmark, Torben Mortensen.

FREJA's trucks will run on HVO (Hydrotreated Vegetable Oil), which is produced from waste products such as used cooking oil. HVO can provide up to a 90% reduction of CO2e compared to conventional B7 diesel. HVO biodiesel is, therefore, considered to be climate neutral in the combustion phase, and even though the emissions from the processing of the biodegradable products into fuel cannot be completely reduced, they are, nevertheless, limited.

“There is no doubt that the future transport will be better and have less impact on the climate and environment. In collaboration with BESTSELLER, we have chosen to use our trucks. This makes it possible for us to gather knowledge about consumption, service intervals, etc., and thus be able to develop the product”, explains Torben Mortensen.

More initiatives on the way

In total, transport accounts for eight percent of BESTSELLER's total CO2 emissions, and by collaborating with FREJA and other companies, BESTSELLER has already cut off part of the emissions in the company's value chain.

The Danish fashion company is working on reducing its emissions considerably, and in the coming years, they will work intensely to become climate neutral. Therefore, BESTSELLER will also continue to introduce and invest in new and better solutions:

"Right now, we are looking at all the areas where we can choose better solutions, and we are well underway. But we still have a long way to go to succeed. We, and other companies, are limited by technology, which must be developed for this to be a success. However, we will do what we can, and we will continuously initiate smaller and larger solutions, which, all together and individually, can contribute positively”, concludes Anders Frost Nygård from BESTSELLER.

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Facts - Biodiesel

HVO Diesel is categorized as second-generation biodiesel, as it is made from waste products from vegetable cooking oils. Through a chemical process with hydrogen, it is transformed into a product that has the same qualities as ordinary diesel oil. HVO Diesel can be used directly in new diesel engines without compromising engine performance or affecting service intervals, and it can be combined with regular diesel in any mixing ratio, making it the only real sustainable alternative to today's trucks in international traffic.

In connection with the Chinese New Year, which takes place from January 31 to February 6, 2022, we bring some useful information for our customers.

Most factories close one week before and up to 1-3 weeks after the Chinese New Year, as it is common for Chinese people to travel home to their families.

If you are importing from China, please note the following:

• Check the delivery times of the factories to make sure that most orders are shipped well in advance of the Chinese New Year.
• Make a plan with your freight forwarder as the period affects the schedules and the available capacity.
• Check the opening hours of your factory and when they can deliver again after the holiday period has ended.

Impact on freight rates

During this period, you might experience a significant price increase. From December, shipping prices usually increase due to the rising demand. Furthermore, because of the ongoing pandemic and COVID-19 mutations, the logistics supply is expected to be low due to restrictions worldwide. E.g., we still experience ports closing down without any notice from day to day, which influences the flow and the price.

Shipping tips for the Chinese New Year

1. Make a delivery plan in advance with suppliers and freight forwarders.
2. Try to avoid orders at short notice.
3. Book your transports well in advance – preferably 2-3 weeks before departure for sea freight.
4. Terminals and warehouses are congested in the weeks before the Chinese New Year, so make sure to check the sailing plans if you have LCL movements.
5. Air freight and rail transport are alternatives for urgent deliveries. However, flights must be scheduled a few weeks in advance.
6. Check everything again and get the schedule confirmed with everyone involved in the pre-holiday period.

If you have any questions about this, please feel free to contact your local FREJAN.