Trading times have become more difficult since – given the international geopolitical situation and consequent rising costs and economic uncertainty – but in the first nine months of 2021 the Port of Shoreham achieved record throughput, with a “notable increase” in timber volumes accounting for a significant part of the rise in tonnage handled.
And while trading conditions may have become more challenging recently, the port has continued with its ambitious development programme, including the official launch of Shoreham Port Haulage. A new business area for the port; the team manages a fleet of HGV vehicles transporting customers’ goods across the UK.
Shoreham head of customer relations and logistics, Samantha Woskett said its increase in throughput in Q1 through Q3 2021 was driven, in particular, by high demand in the building sector.
“Throughout the Covid-19 pandemic, the industry experienced increased demand across UK and global markets,” she said. “With Shoreham Port’s main cargoes being linked to construction, we handled record volumes over the quayside, in storage and distributed out via HGVs.”
In terms of timber handling, the health of the building sector has been reflected especially in a rise in carcassing volumes.
“We handle a wide range of timber products, from OSB to finished joinery products, both treated and untreated,” said Ms Woskett. “We’ve been developing new business with timber customers starting to use Shoreham, while retaining business with all of our key accounts. We’ve also seen an increase in exported woodchip through our terminals, but the significant change has been the growth in timber carcassing materials.”
While throughput increased, she added, the port has had to adapt to changing timber trade flow patterns.
“Over the last two-and-a-half years, seasonal peaks and troughs in timber volumes have all but disappeared,” she said. “Instead we’ve seen sustained high demand periods for importing cargoes, then experienced unforeseen significant drop-off in trade. These inconsistencies in volume over the quayside have been challenging for port operations and customers to navigate.”
More recently, the war in Ukraine has also impacted operations.
“Sanctions on Russian-owned vessels and cargoes from Russia initially reduced the number of ships available to transport timber from the Baltics,” said Ms Woskett. “Log prices also increased due to reduced availability and rises in freight fuel costs have also had an impact on customer purchasing. At the same time, while most of the timber coming through the port is from Scandinavia and the Baltic states, we have also seen an increase in cargoes from mainland Europe.”
Among its key attractions for the timber trade, maintains the port, are its “ideal positioning for short-sea shipping and distribution to key markets across the UK”.
“It allows us to handle cargoes from countries across Europe, Scandinavia and the Baltics, including Latvia, Sweden, Finland, Spain and other mainland European states, as well as Scotland, Ireland and Wales,” said Ms Woskett. “We also operate a 24/7 ships agency service to meet ship owner and crew requirements and deliver quick turnaround times.
“Another unique feature of the port is our Track-A-Pack stock control system. This uses latest bar code and radio frequency technology, allowing customers to view real-time information about their stock. It records movements of stock and tracks packs from the moment they reach us.”
Despite recent market turbulence, the Port of Shoreham has also continued to develop quayside and storage facilities, recently undertaking a review of infrastructure. This has led to removal of under-utilised undercover storage space, making more room for open quay storage.
“The first phase of the project commenced late 2021, with the demolition of one of our end-of-life sheds, and the second phase, involving demolition of further brick sheds, will complete in September,” said Ms Woskett. “By removing these under-utilised sheds, we are maximising open quay storage within our cargo handling footprint. Customers will also benefit from overall improved efficiency on the terminal.”
Last year, the port also created a lorry park on previously unused land, with capacity for at least 25 trailer units. This, it maintains, will also be an asset to its burgeoning HGV operation, the launch of which it describes as another key strategic move.
“Having our own fleet of Shoreham Port HGVs enables us to not only enhance our service to existing customers, but also gives us the opportunity to connect with new clients, offering nationwide distribution of a range of cargoes,” said Ms Woskett. “We’re now expanding our fleet of 44-tonne artics – with increased capacity available – and we’ve achieved bronze level haulier accreditation under the FORS Fleet Operator Registration Scheme.”
With logistical skills in high demand across the UK, the port reports that recruitment is highly competitive, but it has continued to grow its workforce to handle increased throughput. Post Brexit it also introduced its own customs clearing facility.
“Close to 100% of Shoreham customers now use the clearance service for cargoes, importing and exporting via Shoreham and through other ports,” said Ms Woskett. “The port also now operates via a temporary storage model status. This enables goods to be discharged and stored uncleared at the border, on the port’s terminals, for up to 90 days, then, after full declaration to British Customs and customs clearance achieved, goods can exit port terminals for free circulation into the UK.”
The port has also continued to invest in improving its sustainability performance and has achieved certification for the eighth time under the European Sea Ports Organisation EcoPorts scheme, a co-operative initiative developed to reduce ports’ environmental impacts.
“We now release an annual sustainability report documenting our environmental performance progress and goals,” said Ms Woskett. “These include plans to host a pioneering green hydrogen production plant. Working with partners H2Green, Ricardo and Local Fuels we are co-ordinating the project to develop a site for the facility, greatly increase our renewable energy generation and look at servicing the needs for a decarbonised transport network in the region.”
The Port of Shoreham’s financial strength and resilience is also underpinned by the success of its commercial property operations.
“We are a significant commercial centre, and home to over 170 tenants,” said Ms Woskett. “We’ve focused on growing the local economy by building the versatile commercial premises needed to attract SMEs and bring jobs to the area – and as a Trust Port our continued success is linked to how we engage with and play a role in the local community.”
The port’s comments on the market outlook are tempered with realism, but positive nonetheless.
“Our timber handling operation is dictated by current fluctuating world markets, but our team will continue to navigate the challenges alongside our customers,” said Ms Woskett. “At the same time we’re continuing to generate new business, including gaining new export cargoes, offering return loads for timber ships to maintain sustainable supply chains.”
