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Global Trends in the Transport Industry. Global Trends in the Transport Industry. Capital wants transport - cheaper, faster and barrier free to support the building of their commercial success The rights of sovereign (self governing) countries and their peoples are being under-mined
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Global Trends in the Transport Industry • Capital wants transport - cheaper, faster and barrier free to support the building of their commercial success • The rights of sovereign (self governing) countries and their peoples are being under-mined • Private ownership rules • The stock market is king • Unions are being challenged
AIR - Moves the perishable and valuable;Drives the worlds largest industry - Tourism International air growth (1991 – 2001) • Both 7% growth per yr av. • 17.6 million tonnes of freight • 532.3 million passengers IATA statistics • Employs 2 million workers
Shipping and world trade – the container was the trigger • 10 million containers • Replacement value US$33 billion Containerisation International • 5 thousand million tonnes over 4.6 million miles in 2000. • 285% growth in 40 yrs Fearnley’s review
The Truck – the modern mover • Vital to the logistic chain • The highway warehouse • Ease of door to door • Quick and efficient • Flexible • Unit or partial loading • State resourced • Overcrowded highways • Abuser of labour
Rail – struggling in the new market Period 1970/97. CEE (Central and Eastern Europe) • 39% drop in freight • Passengers 45% drop EU (European Union) • Freight 16% drop • Passengers 30% gain. Jeremy Drew Railways and their suppliers • UK (United Kingdom) • Freight 2000 to 2002. 2.7% growth • Passenger 1991 to 2002. 28% growth. Transport Dept. UK
Ports – The hub • Privatised or Corporatised. Eg P&O ports with 21 container terminals in 15 countries. • Modernised. • Part of global network. • Customer focused. • Increased competition.
Logistics – Time related positioning of resources.UK Institute of Logistics and Transport • The science of ensuring the right product reaches the right place in the right quantity at the right time to satisfy customer demand. Tibbett and Britten Group. • The process of managing all activities required to strategically move raw materials, parts and finished goods from vendors, between enterprise facilities, and to customers. From a presentation by Stuart Howard ITF Assistant General Secretary.
Logistics – Supply chain management. 2001 report by KPMG to the International Road-transport Union (IRU) • In the EU (European Union) supply chain management demands have resulted in a 207% increase in transport needs between 1970/97 • Onsite transport has been converted into external transport • Smaller order quantities but increased order frequencies • Shift from make-to-stock to make-to-order • Country based concepts into regional, pan-european or global scope. • “Cross Docking” when the flow of goods from different sources are merged at a distribution centre before final delivery
Logistics – random facts • 1/3 of the trade (cross border) is within companies. • Global corporations have developed global supply lines. Globalised production) • Logistic requirements demand lower costs. • Many of the ‘logistic’ work is not traditional union coverage. (Vertical integration – one stop shop) • Companies merge to form more powerful entities. • Powerful lobby groups. The West Coast Waterfront Commission. The European Shippers Council. • Note. Federal Express delivered 250,000 Harry Potter books to homes in the USA on one day.
Logistics – the players • Forwarders and trucking companies (Transplace) • Shipping companies (Maersk, Evergreen) • Integrators (UPS, FedEx) • Postal Services (Deutsch Poste, TNT) • Rail operators (Schenker, ABX) • New and growing companies. (Menlo)
What Challenges are there for the Unions? • Nothing has happened in a vacuum • Need to identify the ‘drivers’ of change • Need to understand the new logic of the logistics industry. (Have to put the jigsaw together for labour). • Need for unions to confront the introduction of ‘Globalising’ policies in their respective economies and regions • Need to determine how to confront international ownership and global control.
What are we currently doing? • International lobbying • Increasing activity on a cross sectional approach • Building networks • Exploring International Framework Agreements • Expanding organisational and educational efforts