PML Seafrigo positive on the future despite challenging market conditions

It is a year since Seafrigo purchased UK perishables forwarder PML and the firm’s director, Mike Parr, has said the merger of the two companies is progressing well despite the current challenges faced by the perishables industry.

Parr said the two companies are “delighted with the harmonious transition of PML into Seafrigo’s operations”, which he explained is a testament to the shared ethos of the two businesses.

“As the combined businesses look to the future, PML Seafrigo has a clear advantage over its competitors,” said Parr. “The extensive infrastructure and ability to deliver a truly global operation married with the focus on being asset-heavy and therefore reducing any reliance on third parties provides a clear point of difference and enables a tight control on costs – a factor especially relevant during these turbulent times.”

Recognising this confidence in future prospects, PML Seafrigo is now looking to build a new purpose-built facility at Heathrow and at other locations around the UK.

“Watch this space for more details of these significant developments,” said Parr.

He said that the air cargo perishable market is currently experiencing a boom in demand, fuelled by the Red Sea shipping crisis that has extended supply chain lead times as vessels sail around Africa to avoid attacks in the Red Sea. These delays have a clear impact on time-sensitive cargo such as perishables.

However, he added that the market is not without its challenges, in particular rising costs.

“Logistics operators have been forced to seek out alternatives to the transfer of goods by ocean and the natural solution is of course airfreight,” said Parr.

“However, this method of transport is not without its own set of challenges. One of the biggest obstacles to address for anyone working in airfreight logistics is the unprecedented increase in costs. 

“The hike in the price of fuel, the inflated charges made by handlers and the actual charge for aircraft carriage per consignment have all led to a surge in the overall cost of airfreight service.

“In addition, we have been relentlessly battered by the aftermath of Brexit and the chaos associated with customs delays at border control posts.

“At the heart of all these problems there continues to be a fundamental failure for the government to understand the issues that the industry is facing, as evidenced by the regular U-turns and changes in deadlines in relation to the rollout of new regulations.”

Parr added that customer requirements for sustainable supply chain operations can also be challenging to achieve for perishable supply chains in particular.

“Whilst we are actively looking into initiatives which will provide a more ‘planet friendly’ approach to our business, we are acutely aware of the need for guaranteed reliability to safeguard any food consignment.

“To date, many of the solutions that we have reviewed do not represent a viable ROI, especially if the lifespan of the new equipment required to achieve a greener service does not offer a sufficiently long lifespan.”