3PLs
Shippers Survey Sees Transportation Pricing Shifts
According to the most recent Supply Chain Indicator survey from the investment firm, Bear Stearns, truckload pricing acceleration is likely to reverse. In fourth-quarter 2005, the public TL carriers reported modest acceleration in year-over-year net yield growth, after three consecutive quarters of year-over-year yield growth deceleration. Bear Stearns believes strong peak season volumes into tighter capacity, partly driven by hurricane relief efforts in the Gulf, temporarily re-accelerated TL pricing. For 2006, shippers' expectations for increased TL capacity availability have risen materially. The percentage of shippers expecting “somewhat more” TL capacity rose to 32 percent in fourth-quarter 2005 from 15 percent in third-quarter 2005 and just 7 percent in fourth-quarter 2004. Conversely, about 30 percent believe that over the next 12 months, TL capacity will be tighter than now, versus 70 percent recorded a year ago.
As for the recently announced UPS and FedEx price increases, they will have a noticeable impact. Shippers' expectations to pay UPS and FedEx list rate increases rose strongly from third-quarter 2005's nadir as a result of UPS and FedEx's high-end 2006 list rate hikes, announced after our third-quarter survey. But expectations for higher list rate compliance and increases modestly decelerated from the more pertinent year-over-year comparisons. Shippers expect to pay 1.1 percent and 1.5 percent average higher rates for UPS and FedEx, respectively, in the next 12 months versus 1.2 percent and 1.6 percent when asked a year ago.
The on-going problem with rail capacity constraints now seem to be a problem limited to terminals and cars. Asked where they thought the greatest capacity constraints existed on the rail network, 33 percent of shippers cited terminal capacity, while 32 percent pointed to freight car availability. We see these as areas that the rails can improve over the next 12-18 months.
http://www.bearstearns.com/
Johnson & Johnson Awards European Distribution Contract to TNT Logistics
US Healthcare Corporation Johnson & Johnson has awarded a five-year contract to operate a new European Distribution Center (EDC) to TNT Benelux & Multi Country Logistics.
The distribution center will be located in the Belgian town of Courcelles near to Charleroi, and will go live in the 3rd Quarter of 2006. The EDC is predicted to create between 120 - 160 new jobs by 2008.
Johnson & Johnson is investing 33 million Euros in this 19,000m2 state of the art facility. The aim in the longer term is to have this new EDC as the hub at the centre of a reduced and streamlined European distribution network. Patrick Rainforth, Executive Director of Distribution for Johnson & Johnson said "The distribution expertise and infrastructure within the Walloon region combined with its central location, and the opportunity to work with the regional Government and TNT Logistics were the key factors in influencing this important investment decision. We expect this EDC to play a future key role in supporting the growth of our business, and in extending our service to patients and doctors across Europe".
Today the European distribution network supported by Johnson & Johnson is extensive because it has developed as the Corporation has gone through successful rapid growth and acquisition. This has resulted in some duplication of effort within the supply chain. The new DC in Courcelles will enable Johnson & Johnson to begin the process of aligning its distribution services across its many companies in Europe to fit the patient needs of the future. The Courcelles DC will be operated by TNT, and will be the flagship site serving a smaller number of other Johnson & Johnson European warehouses.
Another TNT Logistics customer, Airbus, recently assigned its central spare parts warehouse management to TNT Logistics Central & Eastern Europe (CEE). The international aircraft manufacturer's spare parts warehouse is in Hamburg-Fuhlsbüttel, Germany. The contract is for managing the 18,000- square meter warehouse. Spare parts and tools are dispatched from the site to Airbus customers around the world.
TNT Logistics employees will have to follow exceptionally stringent safety procedures, which demand that each individual step be fully documented, but also meet the requirements of an Aircraft on Ground capability, the highest priority level for spare parts distribution. This requirement involves releasing the necessary spare parts from the warehouse and preparing them for dispatch in less than two hours as part of a round-the-clock service.
Johnson & Johnson: http://www.tntlogistics.com/
Airbus: http://www.tntlogistics.com/
PWC Logistics Enters Joint Venture to Provide Automotive Logistics
PWC Logistics and Al-Ghaith Holding PJSC have signed a joint venture agreement to provide automotive logistics services in the Middle East region. The newly formed company, Automotive Logistics Middle East (ALME), will be headquartered in the Jebel Ali Free Zone, in Dubai, UAE and managed by PWC Logistics. The Company will provide a one-stop-shop for all motor vehicles that arrive in the UAE each year.
ALME will focus on providing automobile pre-delivery, inspection and aftermarket logistics services to vehicle manufacturers, original equipment agents and used vehicle dealers throughout the region. ALME is also planning to offer logistics solutions tailored to meet the requirements of motor vehicle exhibitions and events. ALME is Dubai's first third-party logistics solution provider to offer these types of services to the automotive industry. Operations will begin using a sheltered storage and workshop facility that has a capacity of over 500 vehicles.
http://www.pwclogistics.com/
Kuehne + Nagel Expands Road Transport Activities
The acquisition of E.M Trans allows Kuehne + Nagel to expand its overland activities in the Baltic region.
With retroactive effect to January 1, 2006, Kuehne + Nagel has acquired the Estonian forwarding company E.M.Trans and its subsidiaries. The acquisition enables Kuehne + Nagel to expand its overland activities in the Baltic region. E.M. Trans, which has its headquarters in Tallinn, specialises in road transport and in 2004 reported a €10.0 million turnover. The Company has approximately 40 employees, and operates subsidiaries in Vilnius in Lithuania, Riga in Latvia and Helsinki in Finland.
The acquisition marks another step for Kuehne + Nagel in its effort to establish a Europe-wide overland network. Integrating E.M. Trans into the Group's structure will enable the Company to optimise processes and take advantage of additional cross-selling potential. Within the scope of the agreement, all E.M. Trans operations and employees will be integrated into the respective Kuehne + Nagel national companies. Both parties have agreed not to disclose the purchase price.
http://www.kn-portal.com/
Ryder Wins Business with Nestlé in Chile
Ryder System, has been awarded a distribution and transportation management contract with Nestlé Chile, a subsidiary of Nestlé, the food and beverage company. Under the multi-year contract, Ryder will manage two shared-user distribution centers in Maipu and Quilicura, Chile. The combined area of the distribution centers is 37,161 m2 with 25,000 pallet positions. Using a turn-key solution, Ryder will manage the outbound transportation of 60 to 80 vehicle loads per day from the distribution centers to approximately 600 customer locations throughout Chile including supermarkets, distributors and wholesalers.
Ryder will use a warehouse management system and hand-held radio frequency equipment, to optimise Nestlé's inventory levels, improve order accuracy and efficiency, while providing consistent levels of customer service. Ryder will also be responsible for the management of regional operations facilities in Antofagasta, Concepcion and Temuco, Chile. Ryder has worked with Nestlé in Argentina since 2003.
http://phx.corporate-ir.net/
UPS Trade Direct Expands Shipping Options to Europe
With Trade Direct, UPS customers in the US and Canada will be able to ship goods faster and more efficiently to Europe
UPS has completed the rollout of its UPS Trade Direct Air and Ocean services to facilitate export shipments from the US and Canada to Europe. UPS Trade Direct services streamline the supply chains by making it easier to move goods through customs that are destined for multiple locations but transported in one shipment. Trade Direct eliminates the need for client distribution centres in the receiving country for breaking apart freight shipments, minimizing handling and carrying costs.
UPS' latest expansion follows the implementation of the service in 2004 along other major routes. The service was first launched outbound from Europe to the US in January 2005, as well as inbound from Asia to Europe in June 2005. With Trade Direct, UPS customers in the US and Canada will be able to ship goods faster and more efficiently to Europe; the service offers a single point of contact and one shipping invoice.
http://pressroom.ups.com/
UTi Worldwide to Expand Contract Logistics in India
UTi Worldwide is considering the expansion of its service portfolio by entering into contract logistics and value-added warehousing for its customers in India, it has been reported. The Company's Indian subsidiary is planning on investing in the warehousing segment as part of its effort to provide end-to-end solutions for its customers. Global contract logistics is reportedly the biggest revenue generator for the Group worldwide and so the expansion of these services in India is seen as a natural progression.
UTi is preparing to introduce its contract logistics model to many of the Company's global and local clients in the automotive, pharmaceutical, hi-tech and fashion industries in India. UTi's distribution centres will help to reengineer supply chain management and will provide storing, packing and distribution services for clients. The required investment in the Company's warehouses in India varies from warehouse to warehouse and UTi may enter into long term back-to-back leasing arrangements with warehouse owners after signing up with clients.
http://www.go2uti.com/
KWE/HKG Acquires ISO14001 Certification
Kintetsu World Express's Hong Kong division has received ISO14001 certification for its imported and exported airfreight and domestic freight handling, distribution processing services, etc.
This certification makes KWE the first airfreight forwarder in Hong Kong to have acquired both ISO9001 and ISO14001 certifications. In the future KWE Hong Kong will continue to expand its environmental preservation and anti-pollution activities to further contribute to the global society. This acquisition of ISO14001 certification by KWE Hong Kong brings the total number of facilities in the KWE group with that certification to 10 (Japan: 3, Philippines: 2, Malaysia: 1).
http://www.kwe.com/
Swiss WorldCargo and Lufthansa Cargo Charter Sign International Marketing and Sales Agreement
Swiss WorldCargo and Lufthansa Cargo Charter signed a marketing and sales cooperation agreement on enabling Swiss WorldCargo to also sell charter capacity all over the world. Lufthansa Cargo Charter now also relies on the sales force of Swiss WorldCargo.
With the demand for quality, effectiveness and specialised needs constantly rising among international cargo customers, Swiss WorldCargo and Lufthansa Cargo Charter decided to collaborate. The new agreement, which was signed on March 30, 2006 by Oliver Evans, Chief Cargo Officer, Swiss WorldCargo and Christian Fink, Managing Director Lufthansa Cargo Charter Agency, states that all Swiss WorldCargo sales offices worldwide will now be able to offer charter flights via Lufthansa Cargo Charter. Lufthansa Cargo Charter contributes their product portfolio of Charter Services to the service portfolio of the Swiss cargo carrier. They can now market ad hoc charter flights for every need as well as frequent flights to ill-served regional markets.
With Swiss WorldCargo Lufthansa Cargo Charter has added another experienced sales organization to its representation portfolio. Besides their own sales forces with offices in Kelsterbach, Chicago and Hong Kong so far Lufthansa Cargo was Lufthansa Cargo Charters only marketing partner. As from yesterday Swiss WorldCargo will do sales for the renowned charter agency as well. This fits perfectly into Lufthansa Cargo Charters strategy of permanently extending its customer base and to offer tailor-made solutions to meet individual customer requirements.
http://hugin.info/
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