Winter 2014

Bordeaux In response to growing demand, we relocated to a brand new, state of the art

warehouse in Bordeaux pg2.

MarPol IFO Adjuster has been modified for January to include a provision for LSF (low

sulphur fuel). pg4.

South America Shipments in Q1from South America are notoriously busy, with exports

of fruit and copper at their highest levels, meaning vessel availability is in demand. pg5.

Business

• New Bordeaux warehouse 2• Talking Italian 3• MarPol Update 4

Spotlight

• Focus on South America 5• Christmas Deadlines 6• Out with the trade 7

Information

• Brent crude oil 9

And Finally...

• See you soon Krystal Day 10

CONTENT

02

JF Hillebrand opened its first 900m2 temperature

controlled warehouse in Bordeaux in 1976 as a

key component in the development of a unique

end-to-end temperature controlled logistics

solution to service exports of French wine around

the World, including to the UK.

In response to growing demand, we added

a second warehouse a few years ago and in

August this year we completed the building of a

brand new, state of the art 3000m2 warehouse,

located in the heart of the Bordeaux wine area at

Blanquefort. The new facility includes extensive

office accommodation, enabling us to now base

our Trucking, Customs and Airfreight Departments

on site, alongside the warehouse management

team.

The new warehouse provides a platform for

consolidation of multi-supplier orders for onward

shipment under controlled temperature, all over

the world. Where required, orders are collected

JF Hillebrand opens new temperature controlled bonded wine warehouse and crossdock platform in Bordeaux

from the Cellar by temperature controlled

vehicle, held in the warehouse, then loaded with

other supplier orders at constant temperature

into a reefer container or truck for safe onward

shipment.

In the last year, the Bordeaux platform has

handled 22,000 such orders, amounting to

over 1.7 million cases.

The warehouse also accommodates longer

term, secure fine wine storage and we are in

the process of installing racking to create 550

pallet locations in this area of the warehouse.

Please contact one of our UK sales team for

more information on how this new warehouse

could support your business.

BUSINESS03 04

Of all the old world wine producing countries,

Italy presents some unique logistical challenges,

given the spread of suppliers across a large and

elongated geography. Add to that the variety

of routing options, by road rail and sea, with

differing transit times and departure frequencies,

also considering the varying quantities required

(from maybe a few cases up to a full load).

It is easy to see how complicated it is to

efficiently manage the importation of Italian

wines to the UK, especially given the increasing

need to optimise working capital and therefore

to ship the most efficient order quantity.

That’s where we can help. JF Hillebrand has the

service option to meet every need and provides

impartial guidance on the optimum routing to

meet the specific order quantity and transit

time requirement. We also now operate two

crossdock and storage platfoms, in Livorno and

now Piacenza. Both these warehouses include

the unique benefit of temperature control.

Piacenza is our latest facility, providing:-

Custom built warehouse tailored to the precise

needs of the wine and spirits industry

• Fully bonded with on-site customs clearance

facility

• 9,000 m² / 97,000 ft² in size, out of which

2,800 m² / 30,000 ft² is temperature controlled

• Fully insured, with 24/7 state of the art security

systems

• Palletisation, slip sheeting, labelling, container

safety and VinLiner services available on request.

On full loads, we provide the option to ship

in container by sea or overland by rail, which

comes at a slight premium, but offers more

frequent departure and a shorter transit time.

Road trailers offer the shortest transit time,

but come with an added premium, so would

normally only be used by exception.

Our groupage service, which provides for regular

weekly departure from all the Italian wine regions,

optimises the use of the various crossdock

platforms to consolidate smaller orders into a

full load, and “milk-round collection on wheels“.

We also provide a trailer groupage express

service for particularly urgent consignments.

So, if you are ordering small quantities of super

Tuscans and stunning Sicilians, through to

popular Prossecos and Pinot Grigios, we have a

solution at a palatable price.

Talking Italian…

Business

IFO380 and LSF December and January application

As previously communicated, International

treaties to reduce marine pollution have been

progressively lowering permitted sulphur

emissions. From 1st January 2015 there

is a legal requirement on shipping vessels

operating in designated Sulphur Emission

Control Areas (SECAs) to emit reduced levels

of sulphur dioxide, from 1% to 0.1%.

Currently, these SECAs (highlighted above)

include:

• The Baltic Sea

• The North sea and English channel

• North America (East and West Coast)

• United States Caribbean Sea (Puerto Rico

and USVI)

Compliance with the new restrictions has a

substantial cost impact for ship operators, given

fuel currently makes up anywhere from 40-

60% of operating costs for carriers, whichever

solution is adopted:-

• Introduce newer vessels with duel fuel tanks

that are able to switch to low sulphur oil when

moving through the SECA region. However

low sulphur fuel is approximately 50% more

expensive than standard fuel.

• Continue to use standard high sulphur fuel

together with abatement technology (known

as scrubbers). The cost for installation is

estimated at around EURO 4 – 7 million per

vessel.

• Convert to Liquefied Natural Gas. This

conversion is estimated to cost around GBP

20 million per vessel.

We ask you to note that our IFO Adjuster has

been modified for January to include a provision

for LSF (low sulphur fuel), having through

ongoing negotiation with our carrier partners,

mitigated the impact of these increased costs

as far as possible.

IFO380 Information: https://www.jfhillebrand.

com/UK/SitePages/IFO380-Update.aspx

Focus on South America with Maxine Hopkins, Sales Executive

“Fail to prepare, prepare to fail, a saying that was

drummed into me at school… With that in

mind, I’m already looking beyond the Christmas

turkey and festive treats and into the New Year.

Shipments in Q1from South America are

notoriously busy, with exports of fruit and copper

at their highest levels, meaning vessel availability

is in demand.

JF Hillebrand places great importance on all

operator partnerships, none more so than with

the global shipping lines with whom we work

to ensure a maximum degree of availability and

continuity of service.

With this in mind, we would advise customers

to plan their South American in good time and

to place orders with us, giving as much notice as

possible. Products do not need to be ready for

JF Hillebrand UK to receive an order. The more

time all parties in country of origin have to plan

a ready date and book vessel space the better.

This initial collaboration helps maximise supply

chain efficiencies. It also allows you to keep

track of our progress with your supplier through

Axis, our on-line visibility tool throughout the life

of the order.”

0605

Spotlight

Dare we say the C word…Christmas…As ever,

lead times need to be considered and planned in

preparation for the festive season.

The final two full weeks leading up to Christmas

are the 8th and the 15th December, so we will be

arranging our last ‘official’ groupage collections from

Europe during the week of the 8th with deliveries

being made in the week of the 15th.

We will do our best to accommodate any

collections required for week commencing 15th,

that need delivery the following week. However,

with Christmas Eve falling on the Wednesday of

week commencing 22nd December, it is advisable

to arrange for all stock required to be planned for

delivery the previous (full) week.

When considering European groupage please take

note that the last available date for guaranteed pre-

Xmas deliveries on European groupage services will

be 12/12, and that normal services will be resumed

w/c 5/1.

Christmas deadlines

07 08

Benevolent golf dayJF Hillebrand and Hillebrand Bulk took part

in this years’ Benevolent Golf day at Brockett

Hall, Hertfordshire in September. The day was

well attended by many of our friends and trade

colleagues all to raise money for our trade

Charity. We are pleased to report that the

raising money part was of great success which

is more than can be said for the respective

scores of the Hillebrand teams! Never mind

chaps, there’s always next year!

WSETWe were delighted and privileged to be invited

to Vintners Hall for the 45th WSET anniversary

dinner in October. As supporters of one of the

WSET awards it is fantastic that the Trust is now

recognised on a truly global scale. We offer

our congratulations to Ian Harris and his team,

here’s to the next 45 years!

Out with the trade

Left to right: Kevin Fry, Justin Miller (JF HIllebrand), Thom Cleary (Wine Society) and Bill Langan

(former JF Hillebrand MD)

WSET anniversary dinner

10

09

Information And Finally...

See you soon...

We would like to wish our lovely colleague Krystal

Day good luck as she starts her maternity leave at

the end of December.

Krystal can rest assured that her customers will be

supported with the same care and attention by

Chris, Justin and Maxine.

We look forward to welcoming you back Krystal but

before then we expect a cuddle with the little one

in the New Year!

Brent Crude Oil Futures $/barrel

In Axis, some dates are currently shown in the so-called Coordination Universal Time (UTC) .

An example of this is the date an order is created in JFH’s operational system.

Changing this to your personal time zone in your preferences will convert any UTC date into a time

corresponding to your time zone. This can make the reading of any date related report easier, as will

be the scheduling of such reports.

Axis Tip - Time Zone Setting

09

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