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Furniture from Norway exported by sea

The furniture manufacturer Ekornes is now carrying furniture by sea instead of by road. This could result in cost savings of NOK ten million.

Twice a week a container ship from Misspelled WordSamskip calls on the  Misspelled Wordthe main plant of Misspelled WordEkornes in Misspelled WordSykkylven, close to Misspelled WordÅlesund Norway. The destination is  Rotterdam, where containers from Misspelled WordEkornes are loaded onto trucks and carried to furniture group's new logistic hub for distribution to continental Europe. The hub is scarcely fifty kilometres from the port.

The change in distribution, which also encompasses fewer smaller hubs in Europe - can provide savings "in the order of" NOK 10 million (EUR 1 = NOK 9) according to Misspelled WordEkornes.

The sea volume represents 10 to 11 fewer trucks per week from the main plant to Europe. The energy and CO2 reduction represents a saving of about 40 %.

- It must be possible use ships for export, was the first thought of Misspelled WordStian Misspelled WordØstrem when he joined Misspelled WordEkornes Group in 2014. A project group analysed all cargo flows to, Misspelled Wordwithing and out from the company.

In 2014 Misspelled WordEkornes had one ship call per week to its plant in addition to cargo sent via the Port of Misspelled WordÅlesund. Most of the cargoes to Europe was sent by truck.

Now, the goal is that 70 percent of the cargo to Misspelled WordContMisspelled Wordin​ental Europe should go by sea, the rest by truck.

Misspelled WordEkornes has, to a large extent, reached this goal, and by now they are busy fine-tuning the distribution, among other things to ensure reliable supplies even if bad weather causes delay. However, the big picture is quite clear - shipping by sea is profitable and works well.

A key target of the reorganization is that customers should get the Misspelled WordEkornes furniture at least as fast as before. With only one call per week this meant at least a week between each time Misspelled WordEkornes delivers in Europe. Now, with two calls per week there is only three to four between each delivery.

The shift to sea is the main reason why Misspelled WordEkornes believes there it is possible to cut transport costs to continental Europe with around NOK 10 million. To reach this goal Misspelled WordEkornes will reduce the number of warehouses in Europe from five to two. The reduction will be completed within the year.

The goal for the next step is to use more direct distribution. Several customers are large enough for a full container loads from the factory instead of the furniture being repacked and resent from the warehouse at Rotterdam.

It is better to stuff the container at the factory to be transported directly from the ship to the shop.

Misspelled WordØstrem says that there is potential extra savings of NOK 2-3 million per year on the raw material and part suppliers if they can be shipped by sea via Rotterdam to the plant in Misspelled WordSykkylven. Each supplier on their own do not have sufficient volumes for sea transport, but with coordination the ships become an appropriate option.

Misspelled WordEkornes is open to sharing their logistic solution with other businesses in the region. The quay at the Misspelled WordEkornes plant is owned and operated by Misspelled WordEkornes and they would like to increase their volumes.

- This is an open invitation. If businesses are worried about using sea transport they can consult us, says Misspelled WordØstrem.

Source: nett.no

The shipping service is offered by Misspelled WordSamskip, who has weekly services from Rotterdam to the West Coast of Norway.

See the service of Misspelled WordSamskip on Misspelled WordShortseaSchedules here:
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