A lot of complaints have come from the transport sector in recent years. There is now a ray of light though: the fuel prices have gone down. According to Johan Chrétien, manager of transport company Rejo Fresh, they can definitely be grateful for that. "It was sometimes hard to pass on the high fuel prices. Now there is some more breathing space. When you compare the highest prices of last year and now, the difference is at least 15 to 20%. So it's good that the price level is somewhat normalizing again.
Not below the Euro anymore
"Compared to the prices before the crisis, it's still expensive," he thinks. We saw a peak in 2008, but in the years before that, the prices were still below a Euro. Now they don't go below it anymore." There is a reason for the lower fuel prices, he says. "We are still in a crisis. Supposing the economy starts flourishing again, then the fuel price will also go up again. There will be more work and more transport. Now it's rather quiet everywhere. Cheap fuel isn't very useful if the truck is standing still."
Growers become managers
Looking back on 2014, he sees a further consolidation with growers. "We're moving toward a scenario where 20% of producers will supply 80% of products. The evolution in Belgium is that more and more greenhouse horticulture companies are exceeding 5 hectares, with smaller companies disappearing or being taken over. An important characteristic of larger companies is that they become managers within their company, focusing on their core business. That's an advantage for us. They tend to outsource other activities, like transport. As a large cultivation company, you have enough to do already, and so I explain to clients that they can hand the entire logistical problem to us. We can take on the entire process: from collecting their vegetables to supplying empty containers, and anything in between. We'll do this, if required, 24/7. Offering a complete package provides added value, and we want to further expand that this year."
Competition Eastern Europe
Johan is optimistic about the past year. "Our revenue has stayed the same. That's a particularly good thing for a transport company. Some things do remain a challenge. Competition from Eastern Europe is increasing, for instance. In Belgium and the Netherlands, there is a wage gap with Eastern Europe. Drivers are paid a lot less there. The problem is getting bigger. Initially, the Eastern European drivers were a threat to long distances, but now we're also seeing more of them on short distances. Eastern European drivers now also offer added value on transports requiring more actions. We are now seeing them where we didn't see them before."
For more information:
Johan Chrétien
Rejo Fresh
Oostnieuwkerksesteenweg 101
8800 Roeselare
Tel.: +32(0)51/25.44.72
Fax: +32(0)51/25.44.73
www.rejofresh.be