With 2% growth in 2006, it has lately been more gainful for the French economy to develop the road transport sector, especially where manufactured products are concerned. With business having increased by 3.2%, road haulage operators transporting goods for other companies are now working at levels comparable to those of 2004. Internationally-speaking, the revival in exports has helped to stabilise the situation for French businesses which, nevertheless, still face fierce competition. In addition to the more favourable economic situation, businesses have benefited from the effects of two exceptional measures, i.e. the reduction of payment times and the reimbursement of VAT on toll fees paid out between 1996 and 2000.

National road transport of perishable food products represents 7% of total goods shipment figures and is currently growing at a rate of 2% to 3% a year, mainly generated by the larger volumes of products being shipped under controlled temperature. The sector is divided up among ninety operators, including five large-scale key companies. This market is highly concentrated due to the number of regional operators subcontracting on behalf of the five leading key groups of road haulage contract givers. Road haulage is by far the main mode of goods shipment. In 2006, a total of 207,300,000 tonnes of freight (food products and animal feeds) was transported by road (for third-party accounts and own accounts) against 6,442,000 tonnes for rail freight and 562,000 tonnes for river freight. Rungis Market recorded the passage of 440,000 road haulage vehicles (all types taken together) in 2006.

Maritime transport is gaining market share in the international trade sector. It provides a cost-effective means of shipping goods, although this benefit is offset by the longer lead times. Goods can be transported on specialised multi-purpose refrigerated ships designed to transport perishable foodstuffs, or on non-specialised vessels, i.e. standard cargo vessels, container carriers, mixed-purpose vessels, barge carriers for combined river and sea transport). Containerisation offers the lowest costs and has a certain number of advantages such as cold chain security, traceability, speed, door-to-door deliveries and services. Technological advances linked to packaging, automation, ship refrigeration systems (products stored under controlled atmosphere and modified atmosphere), and computerised goods tracking have enabled the maritime sector to develop its competitiveness on the fresh produce shipment market and, consequently, lower costs.

In 2005, overall exports of refrigerated freight totalled 270 million tonnes (180 million tonnes of fruit and vegetables and 90 million tonnes of meat) including 80 million tonnes transported in equal parts by reefer ships and reefer container carriers. Volumes transported by container carriers entering and leaving European ports have doubled over the last few years (3.2 bn tonnes of freight per year, 90% of which concerns non-EU countries). The port of Anvers maintains its position as European leader with 3.12 million tonnes (transport of fruit and vegetables) ahead of Rotterdam and Sheerness. The leading French port is Marseille (0.60 million tonnes) ahead of Dunkirk (0.26 million tonnes) and Port-Vendres (0.17 million tonnes). Maritime freight is seeing a constant rise in volumes. Despite the current economic difficulties (rise in petrol prices, etc.), world demand for container transport has risen still further. This development has been underpinned by the expansion of international trade, the on-going shift from cargo shipments to containerised deliveries and the development of transhipments.

Rail transport is not the preferred choice for distances under 100 km but becomes more attractive as distances increase (with an average journey of 450 km). At distances of around a thousand kilometres, which represents the maximum distance for national good transport, its market share (all products taken together) can reach 30%, falling to 10% for consumption products. Transporting goods by rail is most efficient when this involves the exchange of very large product flows between two sites or towns as this makes it possible to optimise train use, in particular concerning whole trains. In fact, the market share for rail shipments always grows in proportion to the size of the exchanged flows. While very low for diffuse flows, it approaches an equivalent level (all products taken together) where very large shipment flows are involved. Rail transport increases its modal share with the increase in the flows of merchandise. Diffuse rail traffic loses out to road traffic due to its terminal runs and sorting costs. This is the case for consumption goods and equipment that generate diluted flows between a large number of sites, with the added drawback of a low-volume share of rail transport. Together with the lowered competitiveness of the rail offer, structural changes in the French economy are driving businesses towards road transport.

Combined transport still provides one of the best solutions by optimising a multimodal transport chain according to traffic flows, geography, and environmental policy. This system tends to maximise transported tonnages by using judiciously located freight exchange platforms. The annual volume of combined transport traffic represented an average of 12.7 bn tonnes/kilometre over the five years of the study (2000-2005). It represents about 12% of total "road + rail" transport for distances of over 500 km. If compared with other modes of rail transport (separate wagons, whole trains), up to 1997, combined transport was the only mode to record a growth in volumes. In 2004, its tonnes/kilometre figure rose another 4.8%, in actual fact due to domestic runs and international routes. Since 2006, the rail freight sector has seen a slight increase in transported volumes (40.9 GT/km) compared to 2005 (40.7 GT/km).

Airlines are attracted by the transport of perishable food produce due to the rapid growth of this type of goods traffic, itself linked to the revolution in consumption patterns. Generally speaking, global air freight of fresh produce represents 3% of transported volumes (0.3% for Air France). Air transport, with its capacity to ensure an unbroken cold chain, still can't be beaten where fragile products and products with very short use-by dates are concerned. Flows of perishable products into Europe break down as: 30% fruits and vegetables, 20% plants and flowers and 20% meat and fresh seafood combined. These products are shipped in specific containers, referred to as 'envirotainers' at Air France, which allow goods to be shipped at a constant temperature of -20°C to +20°C. Air freight is handled by mixed flights (freight and passengers) and cargo flights. In France, 55% of general freight is shipped in mixed flights (holds with a capacity of 25 to 35 tonnes).

The average value of one kilo of goods transported by plane is €114 for imports and €122 for exports, while it is only €1.15 for imports and €1.90 for exports, all other transport modes combined. This is mainly due to high fuel surcharges which are equivalent to the basic freight tariff. Air freight requires extensive airport infrastructures (logistics platforms handling storage and goods breakdown under controlled temperature for perishable products). ADP is European leader in the freight sector and ranked 7th in the world. About 90% of freight shipments transit via Roissy Charles de Gaulle (CDG). Given the increasing amount of volumes handled, ADP has begun work on reorganising the Paris-Orly freight processing area (10,000 m2 of warehouse space for 80,000 tonnes/year of freight), which is scheduled to open in March 2008.

« Le transport des produits frais s’effectue en flux tendus et nécessite un délai de transport fiable et performant… » Edouard Laverny (directeur du pôle activité « combiné express » de Fret SNCF)

Francis Babé
(Assistant to the Executive Office at FNTR)

« Road transport of perishable products (90 operators including 5 large-scale operators in France, 7% of total goods shipment figures) is currently growing at a rate of 2% to 3% a year and remains a highly concentrated market with a large subcontractor base. Its main difficulties are related to high costs (gas-oil, social contributions, road toll charges, green taxes, etc.) and the order to large-scale retail outlets to lower their prices, which obviously impacts on intermediate prices and, consequently, on shipping costs. The sector is also suffering from structural market changes to which it has to adapt. While the market for ready-to-eat products is in full boom, there is nevertheless a noticeable shift from fresh to frozen products. In addition, the European market drives fiercer competition as the tonne/kilometre cost price for a 'Polish' road haulage operator is well below that of a French operator. The main selling point for French companies is their technical and market expertise, and the strength of their local customer relationships. Conversely, their profitability and margins are more unstable and impact on their investment capacity (replacement of equipment, health and safety regulations, sustainable development, etc.). These companies will have to align their practices with average European cost levels (working conditions, competitiveness, etc.). The road haulage sector is a leader within the EU as everything starts and finishes with a lorry…».

Edouard Laverny
(Director of the "Combiné express" business centre at Fret SNCF)

« Fresh products are shipped to tight flows and require reliable and effective transportation times. Rail freight services meet this delivery time requirement for shipments over distances exceeding 450 km that can be made via direct trains. These trains are of high quality and are given priority treatment. Fret SNCF mainly handles shipments of fresh products on Perpignan-Rungis lines (3 trains/day - 1 standard and 2 combined transport - linking the Perpignan Saint Charles international market with the Rungis MIN), the Paris region and the North of France-Avignon line (2 trains/day - combined transport). Optimal performance is dependent on having access to specialised equipment (isothermal refrigerated boxes and railway cars), ad hoc terminal infrastructures and operational bays, which help to cut handling times. As such, the fact that Fret SNCF contributes to equipping and developing these bays should be a factor in consolidating and developing the company's standing at Rungis Market by boosting competitiveness and handling reliability. Furthermore, in order to extend the scope of its sales offers, Fret SNCF is seeking to develop its position on the express delivery and messaging service market which presents certain similarities to the fresh products market ».

Patrick Riehl
(Sales director of SDV Logistique International - Rungis)

« SDV is a subsidiary of the Bolloré Group, with 500 sales offices across all five continents. Our business is the air and ocean freight of perishable products exported under controlled temperatures. All product volumes for our French suppliers transit via our Rungis platform which counts a fifty-strong workforce. We handled 12,000 tonnes of air freight and 1,500 ocean freight containers during 2007, an increase on our starting-up figures in 1991 when we handled about 800 tonnes/year. We mainly ship to destinations in the French Overseas Departments and Collectivities (DOM TOM), the Middle East and Asia; shipped products are primarily fresh seafood, fruit and vegetables and dairy products. Concerning air freight, we are subject to euro/dollar parity and the fuel tax (equal to the freight tariff), subsequent to the galloping increase in the price of petrol. While some products, such as those with long use-by dates, can be shipped more cheaply by sea, others can only be shipped by air. Air transport will therefore still be indispensable for certain products, destinations and delivery times, although ocean freight will continue to develop due to the excessive taxes imposed on air freight. To further boost our response to customer requests, we plan to double our warehouse capacity at Rungis (6,000 m2) in 2008… ».