Logistics in Context - Term Paper Example

Logistics in Context Humber Region Overview The Humber is a big estuary found in Northern England’s east cost. The Humber region is one of the busiest regions in the UK in terms of trading activities. There are about 47,000 people employed in this region. The region is endowed with several ports, rail and road networks that help ease transport logistics in and out of the region. In 2008, the ports in Humber had managed to handle 20.6% of all imports and 9% of all exports in the country. The seaports in the region handle direct shipping to about 50 countries. The Humber region is also home to about 500 companies that produce food and food related products (Ellis and Crowther, 1990). Ports are a major part of the Humber region. The Seafood industry in the Humber region began as far back as the 18th century when the Grimsby Port was opened. Most of the materials that were imported through this port included iron, timber, wheat, hemp and flax. Coal was the main export material from the port. Even before the port was built, there had been a deep-rooted fishing heritage in the Humber area. Another important port in the Humber region is the Immingham Port which was formally opened in 1913 by King George (Green and Randles, 2006). The port at Hull is another important port that was built in the 12th century for the sole purpose of wool exportation to Belgium and Holland. Products such as wine, iron, wood, wax, pitch and furs were imported through this port. A dock was later built to help decongest the busy port in 1778. Another important port in the Humber region is the Goole Port which was built for the exportation of coal from Leeds to other cities (Ellis and Crowther, 1990). Other important infrastructure in the Humber region includes a Tram way that was built in 1928 to connect Immingham and Grimsby. The First RoRo berth was built in 1966. There is also the Gas jetty that focuses on the imports of butane. The jetty was built in 1985. The opening of the Humber International Terminal in 2000 greatly helped ease transport logistics between Humber and other cities in the UK, Europe and the rest of the world. The Humberside Airport, which was previously a RAF base, was opened in 1974 under the name Kirmington Airport. After its re-development in the early 90s, it became the second busiest heliport in the United Kingdom (Green and Randles, 2006). The Humber region also boasts a vast railway network which has gone a long way to make transport easier in the region. The railway network was first introduced to Grimsby in 1848 and in 1912 in Immingham. Hull’s railway system was introduced in 1885. Goole opened its first railway in 1881. Another important part of the Humber infrastructure is the Humber region is the Humber Bridge which was officially opened in 1981. The bridge was useful for transport as it saved 64% of mileage for users from hull to the South of UK (Stantchev, 2008). The ports, airports, bridges and rail network in the Humber region have a great role to play in the regions logistics. Since this is an extremely busy area, the different options of transport have enhanced how business is done. This has contributed to the national and international success of some of the major industries found in this region, particularly the seafood industry (Ellis and Crowther, 1990). Young’s Seafood, one of the major companies operating in the Grimsby area has greatly benefited, in terms of transport logistics, from the presence of this infrastructure. Globalization and the Region’s Seafood Industry Logistics In order to compete and succeed in a global world, a region has to ensure that its logistics are in order. The Humber region plays a major role in UK’s global trade (Green and Randles, 2006). This is due to its strategic location, and also due to its logistics. The area has several ports all of which handle different types of goods. This eliminates the nuisance of congestion in any one port. The diversity in ports has enabled the region to handle a significant amount of import and export traffic in the UK (Stantchev, 2008). The Humber region has all the requirements for efficient logistics to facilitate trade (Mangan and Christopher, 2005). The infrastructure in the region enjoys excellent reputation, making it one of the most frequented regions for logistic investors. The area has also shown that it has the capacity for redevelopment and even expansion to meet the global market requirements. The application of a planned £100 million worth of storage and warehousing is only one of the evidences that show the growth potential of this region (Stantchev, 2008). Improving storage and warehousing infrastructure will only enhance logistics and this will go a long way in facilitating more global trade. There is also the Immingham Port Bypass that is in the process of being built. Once it is completed, the bypass will ease transport between Grimsby and Immingham (Green and Randles, 2006). Globalization has a major impact on the economy of the Humber region. For instance, it has contributed to an increase in importation and exportation of goods. The region’s strategic location makes access to global markets quite easy. Globalization has also led to facility and service improvement in the region (Green and Randles, 2006). As Humber is a major international trade hub, it has to ensure that its entire infrastructure is excellent for logistics purposes. Effects of EU on Humber The European Union is both an economic and political Union that is committed to regional integration within Europe (Aggarwal and Fogarty, 2004). The UK is one of the 27 members of the Union ad must abide by all its regulations and policies. The EU has helped the process of globalization among its member states, by enhancing free movement of people, capital, goods and services. A single market has been developed within EU and this has greatly enhanced international trade. The Humber region, which is a major international trade estuary, is one of the regions in UK that are reaping from EU regulations that are connected to trade (Frost and Hepworth, 2008). EU’s commitment to integration means that member countries are free to do business within the Union. This has resulted in increased trading activities among member countries. Competition has also increased and companies looking to succeed in this extended market are looking for ways to enhance their logistical operations (Aggarwal and Fogarty, 2004). The Humber region, in a bid to keep up with recent developments and to attract more business, has been improving its existing facilities and services. This has greatly enhanced the logistics of the region, making it one of the most popular areas for investors (Frost and Hepworth, 2008). The companies that operate in this area are also reaping from the logistical convenience available in the Humber area. Effects of Globalization on Young’s Seafood, Grimsby, UK Young’s Seafood is located in the busy neighborhood of Grimsby. The company is one of those that supply seafood in the UK and in other countries as well. 40% of all fish consumed in the UK is produced and distributed by this company (Wood, 2006). Young’s Seafood is one of the major players in the EU seafood Industry. Globalization has had a major impact on the operations of the company. Through globalization, the company has been able to access a bigger market not only within Europe, but outside of Europe as well. Role of Humber within Young’s Seafood The Humber area’s infrastructure and logistics has made it possible for the company to export its seafood products in a cost effective way. The Humber provides ready transport services for fish products to other parts of the country and the world (Mangan and Christopher, 2005). Young’s relies on the freight services available in the Humber to distribute its products. The Humber’s storage for fish products is world-class, and this also enhances operations within Young’s since the company does not have to worry about poor storage conditions. Therefore, Young’s Seafood can export its products while they are still fresh to its customers in UK and in other countries. Young’s Seafood is located in a place that can provide any logistical help when the need arises. From the transport options to the storage facilities, the Humber has everything to offer to enhance the company’s logistics (Wood, 2006). For instance, since seafood is a perishable product, the company needs to have ways and means of distributing it as fast as possible. The Humber’s vast options of transport including rail, sea transport and air transport play an important role in ensuring that Young’s distribution within and outside the country is excellent and timely. The ports and docks available in the Humber area also play a major role in the logistics of Young’s Seafood. The company does not have to worry about docking problems after fishing expeditions. This ensures that every other operation that includes preparing the seafood for the market goes on smoothly. Conclusion Globalization is an important aspect of trade in the world today. The Humber region in the UK is one of the busiest trade centers in the UK. It serves both the local and international trade activities. The Humber region, which is home to some of the world’s biggest seafood industries, has a wide range of facilities and services that enhance logistics for the different companies operating in the region. Young’s Seafood has vast international operations, and relies heavily on these facilities to smoothen its own logistical activities. This helps the company to produce quality seafood products which it distributes fast and effectively to its customers in UK, Europe and the rest of the world. References Aggarwal, V.K. and Fogarty, E.A., 2004, EU Trade Strategies: Between Regionalism and Globalism, Hampshire: Palgrave Macmillan Ellis, S. and Crowther, D.R., 1990, Humber Perspectives: A Region through the Ages, Hull: Hull University Press Frost, M. and Hepworth, M., 2008, Benchmarking the Humber Sub-Region in Britain and Europe- A Forward Look. Report Prepared for Humberside Economic Partnership Green, K., and Randles, S., 2006, Industrial Ecology and Spaces of Innovation, London: Edward Elgar Publishing Mangan, J., and Christopher, M., 2005, “Management Development and the Supply Chain Manager of the Future”, International Journal of Logistics Management, Vol. 16, No. 2, pp. 178-191 Stantchev, D., 2008, The Contribution of Logistics in Improving the Competitiveness of the Yorkshire and the Humber Economy in the European Marketplace. Doctoral Thesis, University of Huddersfield. Wood, R., 2006, “The Region’s New Spatial Plan”, Yorkshire & Humber Regional Review, Vol. 16, No. 2, pp. 8-9 Read More