Hidden delivery costs can add thousands to stores loading, warns Alex Taylor, Managing Director of Hutton’s, who has added a new section to the company’s website to help customers take account of likely additional charges when they arrange deliveries at particular ports.

“Due to legislation like ISPS and Health and Safety regulations there are an increasing number of restrictions on suppliers being able to deliver direct to vessels, especially to tankers in terminals where most deliveries are made by barge. These barge costs can be very high and add a large ‘hidden’ cost to their stores budgets.

“When placing orders we are concerned that many customers just look at the cost of the stores and do not take into account the additional cost of transport to the vessel. But I have heard of cases where the cost of barge delivery has been as high as $10,000!

“For example, Rotterdam is a major hub for ship stores and is well known for it’s competitive chandlers but many deliveries require the use of a barge and barges in Rotterdam are very expensive and can result in huge bills which are often hidden in the Ship’s Agent’s disbursement account. I want to ensure that Hutton’s customers are aware of these problems so that they can plan accordingly – either to avoid barge transfer or to take account of it.”

Acting to help customers with important information about loading costs at various UK ports, Hutton’s has added a new table to its website which advises customers of any supply restrictions on UK berths. Alex Taylor explains: “We are keen to assist our customers to minimise their supply chain costs.”

Alex points out that UK ports do not always suffer these problems and often allow supplying from a truck, even in oil terminals. He advises: “Many berths at oil terminals in Tees, Milford Haven and Immingham do not require barges which can reduce the overall supply ‘bottom line’.”

To view the new delivery chart table click on the link below:

Supply Logistic Restrictions UK Berths

Hutton’s will be open as required within the festive period, but please provide orders in plenty of time because many of our suppliers will be closed.  Extra delivery charges may apply during this time but you will be informed before delivery.  Below are our plans for opening days and times. 

Hutton’s wishes everyone a Merry Christmas and a Happy and Healthy New Year !

23^rd December –                         As normal

24^th December –                         0800 to 1200

25^th December –                         Closed

26^th December –                         Closed

27^th December –                         Closed

28^th December –                         Closed

29^th December –                         As normal

30^th December –                         As normal

31^st December –                         0800 to 1200

1^st January -                               Closed

2^nd January -                              Closed

3^rd January –                              Closed

4^th January onwards –               As normal

Hutton’s has announced its acquisition today of ship supply company Lars Knutsen & Clode in a move which further enhances Hutton’s position as the UK’s leading ship supplier, with a national network able to supply all British ports.

Established in South Wales more than 100 years ago, Lars Knutsen & Clode (LKC) has a strong history in ship supply. The company’s network boasts 8,000sqft of warehouse facility in Pemrokeshire with full bond, ambient, freezer and chilled facilities and Unitor stock which is superbly placed to supply Pembroke and the Milford oil and gas industry, South Wales and South West UK. In addition its 3,500sqft of warehousing in London with full bond, ambient, freezer and chilled facilities is ideally positioned on the Thames to supply London, Harwich, Dover and South East UK.

With a turnover of £4.5million and a client base which includes James Fisher, Fastnet Ferries, Irish Ferries and Gulf Offshore , LKC is a successful company with 16 staff including Managing Director – David Thompson, descendant of the companies founder, who will remain onboard in a sales development role and be fully involved in incorporating LKC into the Hutton’s business model.

Hutton’s Managing Director Alex Taylor said: “This latest acquisition will further strengthen Hutton’s position in Wales and the South of England, providing Hutton’s with additional bases to supply ships in the local ports. This addition will benefit our customers and further increase our buying power and logistics network.”

This is the fourth acquisition for Hutton’s in the past five years. The company previously purchased Admiral Marine’s Edinburgh office in 2005, Marine & Offshore Medical Supplies (rebranded Hutton’s Medical) in 2005 and Pan Europe in 2009. In addition organic growth has led to the opening of an Aberdeen branch in 2006, with further expansion at this location in 2009.

Alex Taylor added: “Over this five year period Hutton’s turnover has increased from £2.5 million to £7.5 million and, with the addition of LKC’s £4.5 million turnover, we  are set to have an annual turnover of at least £12 million which secures Hutton’s future.”

Hutton’s, the UK’s leading ship supplier, has agreed a partnership with Inov8 Science to become sole UK shipping and offshore distributor of its innovative air disinfection system which helps to prevent the airborne spread of a wide range of viruses and bacteria, including norovirus.

John MacDonald, General Manager of Hutton’s Medical says: “Hutton’s is at the forefront of improving seafarer health and when a product comes along which has such a drastic positive impact we have no hesitation in putting our resources behind it. This device is being used in UK hospitals to help prevent outbreaks of infection and it has the potential to become invaluable aboard ships too. In fact Hutton’s is so impressed by the product that we are installing one in our Head Office to prevent the spread of colds.”

The maritime benefit’s of Inov8 Science’s Air Disinfection unit include:

• Reduced outbreaks of norovirus on cruise ships
• Improving seafarer health and offshore workers health in enclosed working environments
• Reduced loss of working time due to illness

The system is already in use throughout the world including 14 UK hospitals, Mecca hospital and Government buildings in Bahrain. It has received a Health Protection Agency award in Smart Solutions for Healthcare Associated Infections. Inov8 Science is currently conducting tests specifically aimed at specific pathogens relevant to the shipping industry.

Keith Esdon,Inov8 Science Central Support Manager, explains how the system works: “Operating within enclosed spaces, the unit takes in the surrounding air before combining it with olefin (a natural compound responsible for the scent of plants and flowers) to create hydroxyl radicals (OH).This is a natural process but doesn’t usually take place within a contained environment because the component parts (a required mixture of ozone and plant olefins) are not present. We effectively duplicate the process that goes on outside within our machines.”

He continues: “Hydroxyl radicals take hydrogen from the proteins that make the cell walls of viruses and bacteria. They puncture the cell walls and render the virus mechanisms useless. In effect they change the way viruses work by altering their ability to do what they do. So our machine can effectively destroy the airborne viruses and bacteria in an enclosed environment like a ship.”                                                                                                                 

Inov8 Science says that within approximately one hour the unit can make a room 99.9% free of biological airborne material. The UK’s National Health Service estimates that around 30% of infections are caught via airborne methods of transfer.

The Hutton’s-sponsored yacht crewed by local Hull sailors Ben Williamson, Richard Wharram and Nick Wright came a respectable 36^th out of 110 having qualified for the prestigious Gold Fleet final and completed a total of14 gruelling races.

 Five days of sailing on Italy’s beautiful Lake Garda against the best SB3 yachts in the world saw some excellent sailing.  View a clip of the race here -  SB3 World Championship Race

Hutton’s, the UK’s leading ship supplier, has demonstrated it is weathering the maritime industry recession by recording year end figures which exceeded its target and are 23% up on last year’s figures.

The company reports that its annual sales for 2009-10 were above its £7.2 million target. Sales for the previous year amounted to £5.6 million.

Managing Director Alex Taylor said: “This is an exceptional achievement made possible by the hard work and dedication from all the Hutton’s team. Hutton’s continues to go from strength to strength.”

Key areas contributing to the Hutton’s rise in sales have been the growth in its supply of the offshore and windfarm markets particularly in the ports of Aberdeen, Leith, Great Yarmouth and Tees, and the opening of the new LNG terminal at The Dragon in Milford Haven, where Hutton’s, last year expanded its business by acquiring former Pan Europe Ship Supply Ltd.

Alex Taylor believes the company’s adaptability and willingness to meet customer’s needs is key to its survival: “We know our customers are having to watch their budgets and we are striving to supply goods at the best possible prices without reducing quality. We have seen some reductions in the number of more luxury goods being purchased – like chocolate for example – but overall we are seeing a commitment from ship owners and managers to maintaining a healthy and happy onboard regime for their crews at this time.”

Modern seafarers should keep an eye on their weight as well as the horizon to avoid storing up health problems, advises Hutton’s, the UK’s leading ship supplier which is calling for seafarers to make a conscious effort to switch to a healthier diet.

“Seafarers can easily become overweight if they load up on calories to get through long working shift patterns,” says John MacDonald, General Manager of Hutton’s Medical.
“They just load up with calories to get them through the day but that doesn’t do your body any good at all. The energy is stored as fat and you are setting yourself up for problems later in life,” he explains.

John says its not just ship owners and managers who need to change their attitudes to crew health by purchasing healthier foods, but individual seafarers themselves who can take more responsibility for their own health and diet.

High fat, high calorie, high cholesterol foods may taste nice but are inadvisable on a regular basis warns John: “Fried sausages, fried bacon in a sandwich, it’s lovely I’ll admit, I’ve done it myself – but it doesn’t do you any good in the long run!”

However, it seems the maritime community is beginning to embrace a healthier lifestyle: Hutton’s reports an increase in ships choosing to stock up on healthier foods. “Our chandlery division is supplying increased quantities of healthier and ethical food products,” reports Hutton’s Managing Director Alex Taylor. “A number of ship managers and caterers are really taking welfare seriously and increasing the quantities of fruits and vegetables they order, in addition to reducing the amount of fatty foods onboard.”

Huttons reveals that:
• Sales of alcoholic beverages and tobacco reduced by 50% over the past three years
• Fresh salad, fruit and vegetable orders increased by 10% over the past two years
• Some customers are now specifying free-range or low-fat foods
• The company has also noticed an increase in orders for the provision of fitness equipment onboard vessels.

Alex Taylor concludes: “There’s so much choice available now and a much greater awareness of the need to manage health for long-term benefit that we expect this market to continue to grow.”

Today’s ship suppliers are raising their game to meet the needs of more discerning clients, says the UK’s leading ship supplier Hutton’s.
Hutton’s has noticed a recent step up in the expectations of clients who are increasingly requesting top notch supplies to meet higher onboard standards, notes Alex Taylor, Hutton’s Managing Director.

He says this call for quality is particularly loud in the burgeoning offshore industry – a sector which he believes has made a conscious decision to improve quality and safety standards over the years. “Many of the standards in the global offshore industry are driven by the high standards in the North Sea,” observes Alex.

Vessels often have to entertain clients onboard and want to ensure standards are maintained appropriately. “Good food on board can make all the difference,” says Alex. “You need to look after your guests. Engineers and Scientists might be on a ship which operationally does everything perfectly but if the chef served up the same dish every night then they are going to complain.”

“It’s not uncommon for some oil rig operators to order lobsters and fillet steaks as standard eating products,” says Alex although he acknowledges that budgets are becoming tighter in the current climate.

However, the ship supply sector is coming under increased pressure to meet these needs while keeping costs down too. Alex notes that this increase in expectations of high quality produce is also being coupled with a squeeze on margins as operators look to save costs in today’s economic climate without cutting standards on board. “Whatever we supply we still have to keep costs competitive,” he says.

Late payment is too commonplace and adversely impacts on ship suppliers who are the “bottom of the payment chain”, according to Hutton’s Managing Director Alex Taylor.

“People say the sector is being used as a banker and that’s right,” says Mr Taylor who has experience of clients stretching the limits when delaying bill payment. “You have the shipowner who potentially uses a ship manager as a bank, who then potentially uses an agent as a bank, who potentially uses the chandler as a bank,” he outlines, “but the problem is that the owner, the manager and the agent all understand the industry and accept this.

“In the meantime you have us and other chandlers who traditionally have always understood the way the industry operates but this late payment approach stops with us. It can go no further than the chandler because we’re at the bottom of the maritime chain. We are the ones that are affected and we end up bank rolling everyone higher up the chain to us.”

Mr Taylor explains: “We ship chandlers can’t drag our feet over payment because our suppliers are not in the maritime industry and they are simply not going to let it happen. It’s just not acceptable in the real world – you’ve got to pay on time and that’s it, people don’t accept anything less.”

He says that the current economic climate is exacerbating this cashflow problem. “I think that’s because as the market has got more competitive people aren’t making the money that they used to do,” he says. “It comes down to the old adage that the money is better in my bank account than in other people’s.

“As a chandler we are at the bottom of the maritime pile and we are the last person to get paid. But our suppliers have strict 30-day payment terms and if you don’t pay within 30 days your account is stopped and they won’t trade with you again unless you keep in payment terms, but in this industry the managers and the owners seem to think it is acceptable and it’s not.”

Emphasising the point, Mr Taylor reveals: “We have customers who we are supplying who owe us money going back six months and this is unreasonable. You sit down with someone and you agree on a price and in that agreement you agree on payment terms. That price that has been agreed upon, that price is correct for paying within those terms. If someone wants to say they’re going to pay in 120 days then that’s fine and people can factor it into the prices and if a supplier doesn’t want to accept those terms they won’t do it and the customer can find someone who will. To agree to pay in 60 days and then stretch it out for months and months is underhand.”

Alex Taylor’s views chime with those of the International Shipsuppliers and Services Association (ISSA). President Jens Olsen has gone on record saying: “Late payment is a growing concern for ship chandlers in the world’s ports.”

Pointing out that late payment “remains a principal cause of concern on behalf of our members” Mr Olsen said: “We are working as an association to help our members.”

As the new diving season gets underway, Hutton’s is advising its customers in the offshore and diving industry to ensure their onboard first aid equipment complies with the latest legislation.

New regulations introduced in 2009 by the Diving Medical Advisory Committee, (DMAC) make a number of changes, the most significant of which is the addition of a defibrillator as a required item of first aid equipment. The new rules also recommend that medical equipment be held at the site of an offshore diving operation.

Hutton’s Medical has in stock new first aid kits which are compliant with the regulations. Copies of the new regulation are also available from Hutton’s Medical.