Global Trends in the Transport Industry

1
Global Trends in the Transport Industry
2
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

3
AIR - Moves the perishable and valuableDrives
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

4
Shipping and world trade the container was the
trigger

• 10 million containers
• Replacement value US33 billion
• Containerisation International
• 5 thousand million tonnes over 4.6 million miles
  in 2000.
• 285 growth in 40 yrs
• Fearnleys review

5
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

6
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

7
Ports The hub

• Privatised or Corporatised. Eg PO ports with 21
  container terminals in 15 countries.
• Modernised.
• Part of global network.
• Customer focused.
• Increased competition.

8
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.
  

9
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

10
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.

11
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)

12
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.

13
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

14
Australia 1998 Patricks vs MUA Solidarity won