Integrated logistics company, A.P. Moller – Maersk, inaugurated a specialised cross dock warehouse in Rotterdam on its Maasvlakte II terminal earlier this year. It is expected to accelerate the flow of cargo significantly from arrival on a vessel to the point of sale – especially in the Benelux, German and French hinterland.
After discharging containers from an arriving vessel, the products can be unpacked, transloaded to conventional trucks and dispatched to their final destination within hours. Maersk welcomed Starbucks as the first customer in the warehouse which features a total space of 23,000 square metres, 120 docks as well as interim storage space.
The launch of the specialised cross dock warehouse right next to where the containers are being discharged from Maersk’s vessels showcases the company’s capability to control and manage its customers’ supply chains at every step from factory to consumer. It also bolsters resilience, flexibility and visibility to supply chains in times of increased disruption and geopolitical risks.
“In our new cross dock we are speeding up a part of the supply chain where others are losing days in some cases,” said Maersk Managing Director – North Europe Continent Area, Ole Trumpfheller.
“With our priority flow offering, it will be a question of hours to get cargo from a vessel on the road and to its final destination. The new warehouse will allow an unmatched delivery of cargo. The interim storage space adds flexibility to customers’ supply chains, for instance in case of peaks when their storage facilities are at full capacity.”
The cross dock facility is located on the Maersk owned terminal Maasvlakte II, in the heart of the Port of Rotterdam. The terminal and cross dock have a direct internal road connection. Another direct road leads to the significantly enlarged STAR depot for an immediate return of emptied containers to the depot, which should reduce D&D costs. The cross dock site also offers a fully bonded customs environment plus a dedicated area for value added services. For customers with temperature sensitive cargo like fresh produce, pharmaceuticals, meat, fish and other frozen food, a large cold store warehouse is under construction on the same site at Maasvlakte II. It will have 40,000 square metres of space with several temperature zones and is scheduled to start operations from the end of this year.
“We are creating an interconnected eco system on Maasvlakte with excellent connectivity to road, rail and barge,” said Trumpfheller. “Here, all the individual elements and value adding services of logistics and supply chains fit in nicely together into a comprehensive offering which simplifies logistics for our customers. It is a great example how the integrator strategy of Maersk is brought to life.”
Maersk has set itself ambitious goals for decarbonising logistics on land, ocean and in the air with a net-zero target in 2040. Therefore, all new assets from vessels to warehouses are made for very low greenhouse gas emissions. The cross dock is built according to the BREEAM Excellent sustainability standard and will benefit from the cold store warehouse next to it. By re-using the left-over heat from the cold store in the cross dock, Maersk will save annually more than 200,000 Kilo-Watt-hours in electricity.
Netherlands economy in review
The Organisation for Economic Co-operation and Development, headquartered in Paris, France, is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate economic progress and world trade
According to an economic outlook published in May, OECD Chief Economist, Clare Lombardelli, said that despite modest growth and geopolitical risks, cautious optimism has begun to take hold in the global economy.
Disappointing growth, she said, underscores the case for strengthening global trade and productivity.
“Trade and industrial policies should aim for resilient global value chains through diversification without undermining the benefits of open trade.
“At the same time, accelerating decarbonisation requires bold policy measures, such as investing in green and digital infrastructure, enhancing carbon pricing, and promoting technology transfer.
“The developments in Artificial Intelligence (AI) provide a welcome and much needed opportunity to raise productivity. Ensuring the benefits materialise and are broadly shared requires investments in education and training and strong and internationally consistent competition policy.”
With specific reference to the Netherlands, growth, the OECD reported, is projected to improve from 0.7 per cent in 2024 to 1.3 per cent in 2025, supported by private consumption as purchasing power increases. Annual headline inflation is set to fall from 2.8 per cent in 2024 to 2.3 per cent in 2025. Core inflation will slow to 2.3 per cent in 2025, as some upside pressures from a tight labour market persist. Wages will rise by 5.2 per cent in 2024 before slowing to 3.8 per cent in 2025. Unemployment is expected to increase marginally from 3.7 per cent in 2024 to 4.0 per cent by the end of 2025.
“The fiscal stance is projected to be broadly neutral over the projection period,” said the OECD. “Following underinvestment in budgeted funds in 2023, government expenditure on debt interest, climate policy, social and health care and defence is set to increase. While prudent fiscal policy is still required, the government should continue to tackle structural challenges, focusing on investment in the green transition and reducing labour shortages.”
The economy is also reported to show moderate signs of improvement.
“After three quarters of contraction, output picked up by 0.3 per cent in the fourth quarter of 2023,” said the OECD. “Following a gradual decline, headline inflation has picked up slightly in the first quarter of 2024, reaching 3.1 per cent in March. Core inflation remains persistent at 3.1 per cent in March as a tight labour market continues to exert upward pressure. Collective labour agreement wage rates rose by 6.5 per cent in March compared to a year earlier and vacancies per unemployed person remain well above pre-pandemic levels. Consumer confidence improved in early 2024, but business sentiment remains subdued amidst persisting labour shortages. The number of bankruptcies has been rising since May 2022, but is only slowly catching up with its pre-pandemic level.”
The Dutch economy, according to the OECD, is sensitive to global trade developments and depressed global trade growth has weighed on exports and output. It added the trade balance has been affected particularly by reduced demand from key EU trading partners.
It is expected, though, that the economy will return to moderate growth.
“Gross Domestic Product (GDP) is set to grow by 0.7 per cent in 2024 and 1.3 per cent in 2025,” said the OECD.
“Private consumption will be a key driver, boosted by rising real incomes. Annual headline inflation is set to slow to 2.8 per cent in 2024 and 2.3 per cent in 2025 helped by lower energy prices and core inflation slowing to 2.3 per cent in 2025 as businesses have now passed on higher energy costs.
“Wage growth is projected to moderate from 5.2 per cent in 2024 to 3.8 per cent in 2025 and unemployment is expected to increase from 3.7 per cent in 2024 to 3.9 per cent in 2025, as the rate of bankruptcies continues to normalise. Investment will recover only slowly supported by gradually declining interest rates. External demand is expected to slowly improve as economic growth in key EU trading partners recovers. The outlook is surrounded by significant risks.
“Heightened geopolitical tensions could hit external demand and weigh on export growth. A tighter labour market than in the rest of the European Union could increase domestic inflationary pressures as euro area policy rates are lowered, weighing on purchasing power and household consumption. On the upside, higher income households could also support growth by spending a greater share of their excess savings.”
To tackle a tight labour market, policy efforts will likely be needed.
“The Netherlands is in a comfortable fiscal position, but spending pressures are looming in the medium term from an ageing population and investment needs for advancing the green transition,” said the OECD.
“To increase the share of renewables in the energy mix, the government should support green technology, particularly at early stages of development, and lower the administrative burden for firms in accessing funds.
“The incoming government should also address long-standing structural challenges, focusing on easing labour market pressures. Simplifying the tax system and removing distortions towards certain types of investment and labour supply could strengthen government revenues and ease tensions in the labour market.
“Moving to a system with fewer allowances and tax credits could offer greater transparency for the net benefits from an additional hour worked and thereby increase working hours. Continuing to align tax rates and social security contributions between contract types for workers doing similar jobs could ease the transition into regular employment and thereby increase productivity through better upskilling opportunities.”