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Cma Cgm, Hapag-Lloyd, Maersk, Msc And One To Create Association For Digitization And Standardization
Friday, 14 December 2018 01:07

A.P. Moller – Maersk, CMA CGM, Hapag-Lloyd, MSC and Ocean Network Express have begun discussions to establish a container shipping association with the purpose of promoting digitalization, standardization and interoperability in the industry.



Information technology executives from the five shipping lines are exploring the creation of common IT standards that will be openly available and free of charge for all stakeholders of the wider container shipping industry.



“It’s in the customers’ and all stakeholders’ best interest, if container shipping companies operate with a common set of information technology standards,” said André Simha, chief information officer of MSC and spokesperson of the group. “We are striving for less red tape and better transparency. The timing is right, as emerging technologies create new customer-friendly opportunities. Together, we gain traction in delivering technological breakthroughs and services to our customers compared to working in our own closed silos.”



Even though there are already multiple organizations and associations within the shipping industry, the members of the group identified a need for a neutral and non-profit body for ocean carriers that is driven by delivering benefits for the industry and its stakeholders.



“Digital is key for A.P. Moller – Maersk in delivering on our strategy to become an integrated container logistics company that offers simple, end-to-end services with seamless customer experience,” said Adam Banks, chief technology and information officer of A.P. Moller – Maersk. “A joint set of technical standards will ensure interoperability and enable all parties to concentrate on value-adding differentiation as we move the container shipping industry towards further digitalization. Ultimately this will benefit all parties in our customers’ supply chains.”



The association has no intent of developing or operating any digital platform, but aims to ensure interoperability through standardization. The association will also not discuss any commercial or operational matters.



“CMA CGM is always looking for best practices and standards to support the innovation and digital strategy of the company,” said Rajesh Krishnamurthy, executive vice president of IT and transformations at CMA CGM. “Being a founding member will enable us to work together on setting the standards for digitization of the entire industry.”



All ocean carriers are invited to join the association once it is established.

Hapag-Lloyd welcomes the creation of this association as we firmly believe that the challenges 

of the future can only be tackled with a common approach,” said Martin Gnass, managing director of information technology at Hapag-Lloyd.



The association is scheduled to begin operating from early 2019, subject to regulatory requirements.


“Ocean Network Express sees a wave of innovation technology development in shipping and logistics industry over the recent years which can bring good opportunity to the whole industry for digital transformation,” said Noriaki Yamaga, managing director of corporate and innovation at Ocean Network Express. “But, at the same time, we're a little bit cautious about adopting new technology by individual company since there is no common standard in the market which may be ending up with re-integrating work among all stakeholders in the supply chain. With this mind, we feel it would be necessary to do some discussion and collaboration on the area of new technology and innovation to establish common IT standard and governance for the industry to streamline and digitize shipping process in a modern way. In the end, we believe this style of collaboration can bring value and opportunity to our customers as well as logistics companies, leading shipping and logistics industry to a new ecosystem of digital supply chain.”





GPA on track for 4.3M TEUs
Thursday, 13 December 2018 01:13

Continued strength expected in new year

At the Port of Savannah's Garden City Terminal, 146 rubber-tired gantry cranes work the stacks at the nation's largest single-operator container terminal. The Port of Savannah has moved 4 million twenty-foot equivalent container units in the first 11 months of the calendar year.

SAVANNAH, Ga., Dec. 10, 2018 -The Georgia Ports Authority is on track to reach 4.36 million twenty-foot equivalent container units handled in 2018, its highest volumes ever in a calendar year. The performance would mean an increase of 8 percent (312,385 TEUs) compared to CY2017.


“Cargo expansion related to growth in inland markets, as well as increased demand right here in the U.S. Southeast have shifted the global logistics arena in Savannah’s favor, with more port users choosing to serve their customers via Georgia’s deepwater terminals,” said GPA Executive Director Griff Lynch.


For Calendar Year 2018 through November, the Port of Savannah has handled 4 million twenty-foot equivalent container units, up from 3.72 million over the same period last year. Containers currently booked for December will add approximately 362,000 TEUs to the annual total.


The Georgia Ports Authority achieved 11.4 percent growth in container volumes in November, handling 344,506 TEUs last month, an increase of 35,359. With 151 vessel calls at the container port, Garden City Terminal averaged 1,322 container moves per vessel in November.


It is the 25th consecutive month the GPA has posted positive year-over-year growth.


“Every additional container we move means new business in trucking, rail and warehousing,” said GPA Board Chairman Jimmy Allgood. “The ripple effect of the success at Georgia’s ports means additional jobs and income coming to our neighbors and communities across the state.”


Port officials predict brisk container business at the Port of Savannah moving into 2019. Several vessel calls were rescheduled from the end of November to the beginning of December. Combined with planned December trade, this should result in strong numbers to round out the year. Additionally, many carriers are expected to make above-average cargo exchanges in January ahead of the Chinese New Year celebration, which begins on Feb. 5.


November was also a busy month for trade in autos and heavy machinery. The GPA handled 59,297 units of Roll-on/Roll-off cargo last month, an increase of 12,135 units, or 25.7 percent. Colonel’s Island Terminal at the Port of Brunswick led the growth, adding nearly 12,000 vehicles to its total from November 2017.


“With the largest terminals in the nation for both container and Ro/Ro cargo, the ports of Savannah and Brunswick have a greater capacity to grow along with our customers,” Lynch said. “The result is superior reliability as port users build up their businesses to satisfy increasing demand across the Eastern U.S.”

Đặng Thị Kim Tuyến ( Jenny)GPA Sales Representative, Vietnam.WILHELMSEN SUNNYTRANS CO.,LTD.R.1608-09, MapleTree Business CenterNo. 1060, Nguyen Van Linh StreetTan Phong Ward, District 7Ho Chi Minh City, VietnamTel: (84-28) 36207518    MB: + 84 909599078 Fax: (84-28) 36207519Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Georgia announces new inland terminal location
Wednesday, 12 December 2018 01:30

Northeast Georgia Inland Port to serve fast-growing Gainesville region

Gov. Nathan Deal speaks during the announcement for the Georgia Ports Authority's new inland terminal, Monday, Dec. 3, 2018, in Gainesville, Ga. Cargo moved via the Northeast Georgia Inland Port near Gainesville will reduce Atlanta truck traffic by shifting containers to rail. Set to open in 2021, the new inland port will be operated by the Georgia Ports Authority and served by Norfolk Southern.

GAINESVILLE, Ga., Dec. 3, 2018 – Gov. Nathan Deal, along with representatives of the Georgia Ports Authority, the Greater Hall Chamber and Norfolk Southern Railroad announced plans Monday to make Hall County the site of the GPA’s next inland port.

“The Northeast Georgia Inland Port will be situated in the heart of the manufacturing and logistics corridor along Interstate 85, an important region for the production of heavy equipment, food and forest products,” Deal said. “Besides serving these existing port customers, it will also act as an economic development tool, drawing new investment from business and industry to Hall and its surrounding counties.”

Handling both import and export containers at the Gainesville terminal, Norfolk Southern will provide service on a direct rail route to and from the Port of Savannah's Garden City Terminal.

“Savannah is a rapidly growing gateway for global commerce, and Hall County and the surrounding region in Northeast Georgia are key areas of expansion in the state. Manufacturers and distributors around the globe continue to set their sights on this region for development,” said Norfolk Southern’s Jeff Heller, Vice President Intermodal & Automotive. “Georgia Ports Authority’s inland port at Gainesville, combined with Norfolk Southern’s rail service, will provide crucial links in the supply chains of local industries, consumers, and the rest of the world, and serve as a catalyst for new opportunities for industrial development. Norfolk Southern is pleased to partner with the GPA on this important project.”

Port officials say improved access to rail will increase logistics options and overall efficiency, while reducing congestion on Georgia highways. Presently, containers moving by truck travel a 600-mile roundtrip to and from the Port of Savannah. When the new rail yard opens, drivers will be able to make shorter trips from area manufacturers and distribution facilities to the Northeast Georgia site.

“Our new Gainesville location is part of our Network Georgia initiative, which provides new and existing port customers with additional logistics options,” said GPA Executive Director Griff Lynch. “The new rail hub will allow importers and exporters to move loaded containers to the coast with greater efficiency, and provide a ready source of empty containers for Georgia exports.”

GPA Board Chairman Jimmy Allgood said the new choice in cargo handling will transform the local rail market, helping port customers optimize their supply chains.

“Our inland terminals are bringing our ports and producers closer together, providing new economic opportunities,” Allgood said. “That’s good news for Georgians, who will benefit from increased employment options as more companies expand or locate here. Georgia Ports already support more than 440,000 jobs across every corner of the state.”

Located in the Gateway Industrial Centre on GA 365, the new 104-acre terminal will provide logistics solutions for customers across Northeast Georgia. The facility’s services will draw from the 1.5-million population in Hall, Gwinnett and surrounding counties.

“The business world is getting closer to Northeast Georgia.  The new inland port terminal will shorten the supply chain for many manufacturers, processors and distributors in the region,” said Tim Evans, vice president of economic development for the Greater Hall Chamber of Commerce. “Accessing the container port by rail can save time and money, because rail deliveries to and from the Port of Savannah can shorten truck delivery times from approximately seven hours to less than 30 minutes. Direct access to the Port of Savannah, the fastest growing container port in the U.S., is an innovation in logistics infrastructure that provides many of our existing businesses a competitive advantage.”

In conjunction with GPA’s inland terminal announcement, Auto Metal Direct, a worldwide distributor of auto body panels and trim for classic cars and trucks, announced its intent to open a new 318,000 square-foot distribution and fulfillment center. Construction will soon begin on the new home for AMD in the Gateway Industrial Centre. Upon completion, the $15 million development will bring 40 jobs to Hall County.

“Hundreds of containers each year are received by AMD, so the services provided by the Georgia Ports Authority are essential for the maintenance and growth of our business,” said AMD President Mark Headrick.  “The proximity of the new inland port will be a real plus in many areas, and was an influencing factor in the eventual location of our building.  Quicker service, lower cost and ease of movement should all be realized in our new location.”

“The Georgia Ports Authority continues to be a fantastic economic development partner and an incredible catalyst for growth in our state. Not only have the ports positioned us as a global leader in terms of logistics infrastructure, but they have been a critical piece of the puzzle in terms of locating new projects and existing industry expansions across the state,” said Georgia Department of Economic Development Commissioner Pat Wilson. “The expansion of AMD is a testament to their efforts and will further bolster the strength of the workforce in this community. Congratulations to all of the partners involved - this new Northeast Georgia Inland Port will create exciting opportunities for this community and region.”

The Northeast Georgia Inland Port is the second Network Georgia-related announcement this year. The GPA held a grand opening for the Appalachian Regional Port Aug. 22 just north of Chatsworth, Ga., on a 42-acre site in Murray County. The Hall County inland terminal is scheduled to be complete in 2021. At full build-out, it will have the capacity to handle up to 150,000 containers per year.

Đặng Thị Kim Tuyến ( Jenny)GPA Sales Representative, Vietnam.WILHELMSEN SUNNYTRANS CO.,LTD.R.1608-09, MapleTree Business CenterNo. 1060, Nguyen Van Linh StreetTan Phong Ward, District 7Ho Chi Minh City, VietnamTel: (84-28) 36207518    MB: + 84 909599078 Fax: (84-28) 36207519Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Hapag-Lloyd says consolidation no longer the name of game for container shipping
Monday, 10 December 2018 02:26

Hapag-Lloyd says that size is no longer the name of the game in container shipping with consolidation becoming less attractive in the sector as it sets out its strategy to 2023.

The world's fifth largest container line has itself been a part of the wave of consolidation seen in container shipping in recent years taking over United Arab Shipping Co (UASC) and is now twice the size it was in 2014 in terms of capacity.

“Size is not the name of the game anymore, but customer orientation. It is obvious that customers expect more reliable supply chains, so our industry needs to change and invest more. At the same time, we know that people are prepared to pay for value,” said Rolf Habben Jansen, ceo of Hapag-Lloyd.

The company said that consolidation was now less attractive to the leading players due to decreasing incremental benefits of economy of scale. The result is the German company believes the industry is at a turning point and will put its focus on improving its quality of service to customers to a level it claims will be “unrivalled”.


“Going forward, delivering value to get the most attractive cargo on board is at the heart of our new Strategy 2023. To be number one for quality is the ultimate promise to our customers and a strong differentiator from our competitors,” Habben-Jansen said.

Cost savings are a major part of Hapag Lloyd's strategy with it aiming for a run-rate of $350m to 400m and a EBITDA margin of around 12%. Cost initiatives will focus on network optimisation, terminal partnering and further improvements in procurement and container steering. At the same time it is looking to improve reliability and service quality

There will be more investments in digitalisation and among these is aim to increase online business via its web channel to 15% by 2023.

Vietnam’s logistics costs equal to 17% of GDP
Friday, 07 December 2018 02:44

The average logistics costs of Vietnam are equivalent to some 16-17% of the nation's gross domestic product (GDP), according to the Vietnam Logistics Association (VLA).

Nguyen Tuong, senior consultant to the VLA, told the Saigon Times on the sidelines of the association’s annual conference, held in HCMC on November 17, that the issue of logistics costs is one of the main topics of the first VLA White Paper ever released.

He cited the finding of the VLA in August this year that high-value manufacturing sectors, such as automobiles, electronic components, steel and iron, have logistics costs that amount to less than 5% of their total costs.

Meanwhile, the figure for the sectors of consumer goods, ecommerce, supermarkets, garments and agricultural products ranges from 10% to 20%.

Among logistics costs, transport costs make up the highest proportion, at 60%-80%, followed by costs for loading and unloading and customs clearance procedures.

He concluded that Vietnam’s logistics costs accounted for 14.5%-19.2% of GDP last year. The current figure ranges from 16% to 17% on average.

“Logistics costs in Vietnam are higher than those of developed countries. For example, Singapore is at 8.5% and Thailand, at 15%,” he said.

The logistics sector last year registered growth of 12-14% from a year earlier, while its contributions to the 2017 GDP reached some 4-5%, according to the white paper.

The ratio of outsourcing, which refers to the practice of hiring other companies to conduct logistics, amounted to roughly 60-70%.

The VLA ranked Vietnam 39th out of 160 economies, putting it in second place among Southeast Asian countries on the logistics performance index.

The 2018 edition of the VLA White Paper is based on survey statistics from 156 firms across the country. The paper is expected to be published every two years.

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