By Astrid Duque (Managing Director, DAABON UK) and Sven-Dai Landshöft (Supply Chain Manager, DAABON Europe)
The year 2020, and at least part of 2021, will be
remembered
across the globe for one thing in particular;
COVID-19. The virus has had a devastating
impact on so many people and caused such distress to global
economics, such
that it will be long remembered as one of the worst global
crises most of us
will ever experience.
The impact of the ongoing pandemic has been huge in
Europe,
and we have also been dealing with another game- changing event;
Brexit. This
has been on the agenda for some time and the uncertainty surrounding
the terms
under which UK would leave the European Union (EU) made matters
worse. So, the
deal struck between the EU and UK in late
December came as a relief. However, we are still far away from a
full
understanding of what it means for us all. There is hope that the
logistical
and administrative teething problems being experienced at the
moment
will be followed
by a cordial and straightforward future relationship between the
newly
separated partners.
Until COVID-19 reared its ugly head Brexit was the
major
concern for any import-export
business in Europe, as well as multinational
companies
like us, who export into both regions and have a physical presence
in the EU.
It was seen as an unknown and potentially disruptive force, but
little did we
know that something would come along and push it firmly into second
place. In
the UK and EU, governments imposed strict lockdown measures as
COVID-19 began
to overwhelm hospital beds in March last year. Employees were told
to work from
home unless they were considered to be key workers, providing an
essential
service that they could not provide from home. Later in the year
restrictions
were eased and during periods where lockdowns were fully lifted;
facemasks,
hand sanitisers and other methods were used to augment the
scientifically
backed requirement to social distance and limit the number of people
in social
and work gatherings.
Government measures, such as working from home, the
furlough
scheme*, business grants/loans and rate reductions, were put in
place in the UK
and across the EU. Authorities attempted to mitigate some of the
financial
impact that lockdowns and, later, tier systems would have on both
employers and
employees. Hundreds of billions of British Pounds and Euros were
invested to
provide a certain level of economic protection for citizens during
this unprecedented
period, while providing economic stimulus wherever possible.
In a time when nothing is normal, both offices
(DAABON UK
(DUK) and DAABON Europe (DEU)) have attempted to keep everything as
close as
possible to ‘business as usual’. We’ve worked harder than
ever and found resourceful and
creative virtual ways to ensure that DAABON
has remained visible
and
reliable
throughout. Our
business units in the UK and Europe have continued to
function throughout this time, although we have been working
remotely. We did
not have to furlough anyone; everyone has worked from home and
we have at least
identified some benefits from that. Many of our staff have
children and as
schools were closed for long periods it was important that they
were able to
look after them
and home
school them,
while continuing to work. Communication
has
not been
difficult as we,
like everyone else, have got used to virtual, rather than
face-to-face,
contact. Importantly, all audits for the different certificates
we have, organic
and RSPO, for instance, have been done remotely, so we remain
completely up to
date with the key certification schemes for the European
industry.
We’ve seen a very dynamic approach from our
customers,
particularly the manufacturers who are supplying the retailers.
Somehow, most
of them have kept their retail orders at the same level, or even
increased
them. The organic category has found some good
momentum because people are looking to
eat more healthily. On the other hand, there has been
a significant reduction in trade across the
foodservice industry because the sector has
been effectively shut
down for long periods. Many of the largest
foodservice businesses in the hospitality,
pub and restaurant
sectors are not able to operate, so of course demand for cooking oil
has
plummeted.
The global shipping trade has been severely
affected by
COVID and as new waves of the pandemic further disrupt supply chains
and
economies, there is still concern that there could be a steeper
decline in the
months ahead. At the peak of the crisis, when the contraction of
cargo volumes
brought an additional challenge to structural market imbalance, the
container
shipping industry adapted and emphasised its focus on maintaining
profitability
rather than market share. As a result, freight rates remained at
stable levels
despite the depressed demand. From the perspective of shippers,
these
strategies meant severe space
limitations to transport goods and delays in delivery dates.
Predicting the
pandemic’s longer-term impact as well as the timing and scale of the
industry’s
recovery is fraught with uncertainty.
Because of the changing nature of the virus, the
business
climate is evolving every day, sometimes so dramatically it is
impossible to
predict what will happen even in the short term. The retail sector
continues to
operate as it is an essential service. However, apart from those
operators who
are able to offer takeaway or delivery services, the foodservice
industry is on
hold at the moment. We would expect momentum to build quite quickly
when it is
able to resume and as vaccines are rolled out. There is hope that
the latest
lockdown measures are estimated to be removed in Summer 2021. If
that does
happen, the recovery should begin sometime in the last quarter of
2021.
To quote Manuel Davila, CEO of DAABON Group, “We
are
delighted to reassure our customer base, that the DAABON team in the
UK and
Europe remains 100% committed in assisting the supply chain as it
endeavours to
overcome these difficult times. We have all had to draw upon levels
of
resilience that perhaps we didn’t know we had. We’ll continue to
find
innovative ways to move the business forward¨.
* The furlough scheme: If a company were unable to
operate
or they had no work for staff to do during the pandemic, workers
could be put
“on furlough”, which means they are kept on the payroll and not made
redundant.
Employers facing difficulties were able to access support through
the UK
Coronavirus Job Retention Scheme to continue paying 80 per cent of
staff wages.
The year 2020, and at least part of 2021, will be remembered across the globe for one thing in particular; COVID-19. The virus has had a devastating impact on so many people and caused such distress to global economics, such that it will be long remembered as one of the worst global crises most of us will ever experience.
The impact of the ongoing pandemic has been huge in
Europe,
and we have also been dealing with another game- changing event;
Brexit. This
has been on the agenda for some time and the uncertainty surrounding
the terms
under which UK would leave the European Union (EU) made matters
worse. So, the
deal struck between the EU and UK in late
December came as a relief. However, we are still far away from a
full
understanding of what it means for us all. There is hope that the
logistical
and administrative teething problems being experienced at the
moment
will be followed
by a cordial and straightforward future relationship between the
newly
separated partners.
Until COVID-19 reared its ugly head Brexit was the
major
concern for any import-export
business in Europe, as well as multinational
companies
like us, who export into both regions and have a physical presence
in the EU.
It was seen as an unknown and potentially disruptive force, but
little did we
know that something would come along and push it firmly into second
place. In
the UK and EU, governments imposed strict lockdown measures as
COVID-19 began
to overwhelm hospital beds in March last year. Employees were told
to work from
home unless they were considered to be key workers, providing an
essential
service that they could not provide from home. Later in the year
restrictions
were eased and during periods where lockdowns were fully lifted;
facemasks,
hand sanitisers and other methods were used to augment the
scientifically
backed requirement to social distance and limit the number of people
in social
and work gatherings.
Government measures, such as working from home, the
furlough
scheme*, business grants/loans and rate reductions, were put in
place in the UK
and across the EU. Authorities attempted to mitigate some of the
financial
impact that lockdowns and, later, tier systems would have on both
employers and
employees. Hundreds of billions of British Pounds and Euros were
invested to
provide a certain level of economic protection for citizens during
this unprecedented
period, while providing economic stimulus wherever possible.
In a time when nothing is normal, both offices (DAABON UK (DUK) and DAABON Europe (DEU)) have attempted to keep everything as close as possible to ‘business as usual’. We’ve worked harder than ever and found resourceful and creative virtual ways to ensure that DAABON has remained visible and reliable throughout. Our business units in the UK and Europe have continued to function throughout this time, although we have been working remotely. We did not have to furlough anyone; everyone has worked from home and we have at least identified some benefits from that. Many of our staff have children and as schools were closed for long periods it was important that they were able to look after them and home school them, while continuing to work. Communication has not been difficult as we, like everyone else, have got used to virtual, rather than face-to-face, contact. Importantly, all audits for the different certificates we have, organic and RSPO, for instance, have been done remotely, so we remain completely up to date with the key certification schemes for the European industry.
We’ve seen a very dynamic approach from our
customers,
particularly the manufacturers who are supplying the retailers.
Somehow, most
of them have kept their retail orders at the same level, or even
increased
them. The organic category has found some good
momentum because people are looking to
eat more healthily. On the other hand, there has been
a significant reduction in trade across the
foodservice industry because the sector has
been effectively shut
down for long periods. Many of the largest
foodservice businesses in the hospitality,
pub and restaurant
sectors are not able to operate, so of course demand for cooking oil
has
plummeted.
The global shipping trade has been severely
affected by
COVID and as new waves of the pandemic further disrupt supply chains
and
economies, there is still concern that there could be a steeper
decline in the
months ahead. At the peak of the crisis, when the contraction of
cargo volumes
brought an additional challenge to structural market imbalance, the
container
shipping industry adapted and emphasised its focus on maintaining
profitability
rather than market share. As a result, freight rates remained at
stable levels
despite the depressed demand. From the perspective of shippers,
these
strategies meant severe space
limitations to transport goods and delays in delivery dates.
Predicting the
pandemic’s longer-term impact as well as the timing and scale of the
industry’s
recovery is fraught with uncertainty.
Because of the changing nature of the virus, the
business
climate is evolving every day, sometimes so dramatically it is
impossible to
predict what will happen even in the short term. The retail sector
continues to
operate as it is an essential service. However, apart from those
operators who
are able to offer takeaway or delivery services, the foodservice
industry is on
hold at the moment. We would expect momentum to build quite quickly
when it is
able to resume and as vaccines are rolled out. There is hope that
the latest
lockdown measures are estimated to be removed in Summer 2021. If
that does
happen, the recovery should begin sometime in the last quarter of
2021.
To quote Manuel Davila, CEO of DAABON Group, “We
are
delighted to reassure our customer base, that the DAABON team in the
UK and
Europe remains 100% committed in assisting the supply chain as it
endeavours to
overcome these difficult times. We have all had to draw upon levels
of
resilience that perhaps we didn’t know we had. We’ll continue to
find
innovative ways to move the business forward¨.
* The furlough scheme: If a company were unable to
operate
or they had no work for staff to do during the pandemic, workers
could be put
“on furlough”, which means they are kept on the payroll and not made
redundant.
Employers facing difficulties were able to access support through
the UK
Coronavirus Job Retention Scheme to continue paying 80 per cent of
staff wages.