Uber for Trucking: A New Era in the Freight Movement and Logistics Market

The arrival of Uber for trucking or mobile-based freight brokering is ushering in a new era in the North American trucking and freight logistics market. Currently, inefficiency plagues the freight movement and logistics market, with approximately 20 billion empty miles travelled per year in the trucking industry. Mobile-based freight brokering can enable drivers and fleets to mitigate these inefficiencies in their trucking operations. In addition to reducing the empty miles travelled, mobile-based freight brokering technology can help lower operating costs, improve fuel efficiency, boost asset utilization and enhance resource productivity.

New analysis from Frost & Sullivan, Uber for Trucks: Executive Analysis of the North American Mobile-Based Freight Brokerage Market, finds that 16 percent of third-party logistics will be enabled through mobile platforms by 2025.

APL Logistics Opens New Vietnam Facility

APL Logistics announced the opening of its latest consolidation center in Ho Chi Minh City, Vietnam. It is the largest single-roof container freight station (CFS) within the company’s South East Asia CFS network. The facility will add further scale to the company’s consolidation and value-added services network for customers with growing global and regional sourcing needs.

The CFS is strategically located near major sea and airports around Ho Chi Minh City. It includes over 500,000 square feet of bonded / CFS warehouse space, 80,000 square feet of secured parking space easily accommodating 200 forty-foot trucks, and 170 loading and receiving bays, translating to approximately 170 trucks at one time. Besides being scale-efficient, transport time to international sea and airports will be equal or better than existing facilities around the city. The facility is also compliant with international standards for security and safety with environmentally-friendly features.

Air Freight Slowdown Continues - Several Regions in Decline

The International Air Transport Association (IATA) released data for global air freight markets showing a slowdown in growth for air cargo demand in June. Air freight volumes measured in freight tonne kilometers (FTK) rose just 1.2% compared to a year ago. This is consistent with falling trade activity and weaker than expected global growth.

Regional performance varied widely. Asia-Pacific, North American and Latin American carriers reported year-on-year declines (-0.3%, -3.3%, and -1.6% respectively) while European carriers reported that markets were flat. This was offset by the strong performance of Middle Eastern (+15.3%) and African (+6.7%) carriers to keep growth in positive territory. 

The general trend of a weaker 2015 compared to 2014 can be seen in the half-year data. Air freight markets expanded by 5.8% in 2014; however year-to-date growth for 2015 stands at 3.5%.

Qatar Airways Cargo Launches Express Airfreight Service Door-to-Door

Qatar Airways Cargo will launch an express airfreight service for door-to-door and time-critical shipments. The new QR On-Board Courier service will be rolled out across the cargo carrier’s global network on 1 August 2015, enabling customers to book time-definite airfreight delivery solutions.

QR On-Board Courier will provide bespoke transportation services, which meet customers’ specific requirements, with dedicated couriers accompanying each shipment from collection to delivery direct to the recipient, the carrier said.

The Qatar Airways Cargo team will provide a comprehensive booking service for customers from flight reservations to entry requirements and customs regulations anywhere in the world. The maximum level of security will also be provided for customers’ courier shipments. and customers will be able to track the real-time progress of their shipment at any time by using the online tracking system and customers will be able to track the real-time progress of their shipment at any time by using the online tracking system.

Indonesia Leans on Singapore for Maritime Sector Investment

Indonesia Leans on Singapore for Maritime Sector Investment. The Indonesian government is angling for greater investment in the country’s maritime sector from Singapore, its biggest source of FDI, as President Joko Widodo prepares to visit the city-state next week.

“There’s a lot of [interest] in the maritime industry from Singapore, especially in Batam, Bintan and Karimun [islands],” Azhar Lubis, the deputy chairman of Indonesia’s Investment Coordinating Board (BKPM), said after a bilateral meeting in Jakarta on Thursday.

He noted that 60 percent to 70 percent of Singapore’s investment in Indonesia went to those islands, about an hour’s boat ride from Singapore, and that the Indonesian government wanted to see more investment in other regions of the country.

“We invited them to invest outside Java, in Makassar and Manado,” he said.

Import Tariff Increase Puts Pressure on Alcohol Drinkers

Import Tariff Increase Puts Pressure on Alcohol Drinkers. Liquor, beer, and wine drinkers will have to pay more than double the price for imported drinks in coming months after the government raised import tariffs.

Brandy, whiskey, vodka and other imported liquors will now be subject to a 150 percent import tariff. Drinks that have alcohol content of less than 46 percent are currently subjected to a Rp 125,000 import tariff per liter.

Other alcoholic beverages of less than 15 percent alcohol volume in a tw0-liter units will be subjected to a 90 percent import tariff. Currently they are subjected to a Rp 55,000 import tariff per liter. Malt beers are subjected to a Rp 14,000 import tariff per liter.

13 Indonesian carriers risk losing licences

Indonesia’s Ministry of Transport has given thirteen of the country’s carriers until the end of July to improve their financial positions, or risk losing of their Air Operator Certificates, according to a report in the Jakarta Post. The 13 carriers affected include: Indonesia AirAsia, Batik Air (part of the Lion Group), Cardigair, Transwisata Air, EastIndo, Survai Udara Penas, Air Pacific (Indonesia), Jhonlin Air Transport, Asialink Cargo Express, Ersa Eastern Aviation, Tri-M.G. Intra Asia Airlines, Nusantara Buena Air, and Manunggal Air.

Tri MG Airlines is one of the only three independent cargo carriers operating in Indonesia. The airline operates daily flights Singapore – Jakarta – Balikpapan five times a week carrying 15.5 tonnes of cargo per-flight. Tri M-G has a fleet of 11 freighters.

Singapore still best port in the world

In a new review of 15 leading maritime cities, Singapore has retained its No.1 position followed by Hamburg, Oslo, Hong Kong and Shanghai.

Norwegian consulting company Menon canvassed a group of experts for their views based on five criteria: shipping centers, maritime finance and law, ports and logistics services, maritime technology and attractiveness and competitiveness.

Noting its "business friendly policies" and strategic location, the Menon report acknowledges Singapore "has gained a position in the global economy few would have predicted 40 years ago".

MAERSK LINE boosts Triple-E fleet with order for 11 even bigger containerships

With the twentieth and final delivery of its Triple-E series of 18,270 teu ultra-large container vessels (ULCVs) due to take place this month, Maersk Line yesterday announced the next phase of its fleet expansion with an order for what will become the largest ships in its fleet.

A public signing ceremony at the DSME shipyard in South Korea yesterday saw Maersk Line chief executive Soren Skou place a new order for 11 Triple-E next generation 19,630 teu vessels for delivery in 2017 and 2018.

The ships represent a capacity increase of 1,360 teu on the original Triple-Es, or 7.4%, while in terms of physical dimensions – with a length of 400 metres, beam of 58.6 metres and a draught of 16.5 metres – they are virtually identical to the first generation, which just goes to show how container vessel design has changed in terms of squeezing out more slots from current dimensions since the Triple-E was first conceived.

Forwarders more upbeat about airfreight than seafreight

The Stifel Logistics Confidence Index for May indicated some improvements from April’s decline. In particular, the six-month outlook appears bright as airfreight gained 2.8 points to 63.4 and sea freight increased 2.1 points to 62.9.

Overall, the total index increased 1.1 points to 57.4. Even though this is down 0.6 points from one year ago, it is still 6.7 points higher than May 2013.

Airfreight continues to lead the optimism for both the six-month outlook as well as for the present. Sea freight however, remains troublesome for the present and while some ports have settled labour issues, other issues such as the rise of the mega-vessel and larger shipping alliances are straining port operations. Congestion is a big problem for many ports and perhaps airfreight is currently benefiting from this misfortune of ports.

Indonesia's logistics industry to grow at 15.2%

Frost & Sullivan is expecting the transportation & logistics market to grow with expected CAGR 15.2 per cent in 2015. Gopal R, global vice president, transportation and logistics practice at Frost & Sullivan said that the industry is set to record strong double digit growth over the forecast period due to the continuous growth of the Indonesian economy driven by resilient domestic demand.

Gopal R is expecting strong private consumption growth, higher trade growth, lower external financing cost & oil price and infrastructure development to continue drive logistics industry growth in 2015. However, he said that rising labour wages will force businesses, including transportation & logistics to incur lower profit margin. He also said that the limitations to invest optimally in logistics infrastructure such as ports, airports and roads will hamper freight movement.

Next Generation Of Automated Container Handling Inaugurated In Surabaya, IndonesiaLamong Bay Terminal

On the morning of Friday, May 22nd, the Lamong Bay Terminal in Surabaya, East Java, Indonesia, was inaugurated by the President of Indonesia and a group of distinguished officials. It was an historic moment for Indonesia, an important milestone in the country’s transport development program that is improving the movement of goods through its vast waterways. Lamong Bay Terminal’s automated container handling system was provided by Konecranes.

The newly inaugurated Lamong Bay Terminal is the jewel in the crown of Indonesian state-owned terminal operator PT Pelabuhan Indonesia III (Persero), “Pelindo III”. Its automated container handling system, provided by Konecranes, consists of 20 Automated Stacking Cranes (ASCs), Remote Operating Stations (ROSs), and associated container yard infrastructure. Konecranes also provided 10 Ship-to-Shore (STS) cranes and 5 straddle carriers. Hand-over of the automated container blocks is proceeding smoothly. Konecranes is providing expert engineering support on-site.

Alitalia to end deal with Air France-KLM in 2017

Italy's Alitalia announced it will not renew its partnership and joint venture agreements with Air France-KLM when the deal expires in 2017.

The partnership, writes Radiocor press agency, concerns the passenger services of the airlines between France, Italy and the Netherlands, along with marketing, the sale and distribution of Alitalia's cargo belly services operated by Air France-KLM. The deals date back to 2009 and 2010.

Qatar Airways starts A350 service to Changi, Singapore

Qatar Airways became the first airline to operate the world’s newest aircraft to Singapore and the Asia Pacific region on Monday with the inaugural A350 XWB service arriving at Singapore's Changi Airport.

Qatar Airways, as the global launch customer for the A350 XWB, became the first airline to operate the world’s newest aircraft to Singapore and the Asia-Pacific region on Monday, with the inaugural A350 XWB service arriving in Singapore Changi Airport.

Vietnam's Logistics Sector Faces Serious Labour Shortages

Thousands of logistics entrepreneurs are struggling with a serious shortage of employees since a rapid increase of services demands, says the Viet Nam Logistics Institute (VNLI) in an article by the VietNamNet Bridge.

There are roughly around 300,000 entrepreneurs involved in logistics services in Vietnam, providing jobs for nearly 1.5 million employees of whom 40 per cent are from Ho Chi Minh City. According to VNLI, these employees could only meet 40 per cent of the sector's demand, so the country will face a serious shortage of workers in the next three years.

Alibaba Invests in Chinese Logistics Company YTO Express

Alibaba has made a strategic investment in Chinese logistics company YTO Express to help both businesses improve logistics efficiency for their customers.

Alibaba Group takes a minority stake in Shanghai YTO Express (Logistics). Both companies will cooperate in developing optimal logistics solutions for China in order to raise operational efficiency in the industry.

YTO Express is one of 14 logistics partners that work closely with Cainiao, the logistics affiliate of Alibaba Group. Cainiao and YTO Express will work together to enhance the industry’s logistics management capabilities and international and rural delivery services. This will in turn raise the bar on service quality and user experience for merchants, consumers and logistics companies.

Boeing, TUI Group Finalize Order for 787-9 Dreamliner

Boeing (NYSE: BA) and TUI Group, one of the world's largest integrated leisure travel companies, have finalized an order for one 787-9 Dreamliner with an option for one further 787-9. The order is valued at $257 millionat current list prices. TUI Group also announced that it will substitute two unfilled orders for 787-8s for two 787-9s.

The European leisure group will operate a fleet of 13 787-8s from this summer and with today's announcement will add three 787-9s to its fleet within the next three years.

APL Logistics Opens New Container Freight Station in Jakarta

APL Logistics announced the opening of a new container freight station (CFS) at the Tungya Collins Terminal in Cakung, North Jakarta.

The new CFS extends APL Logistics’ footprint in Indonesia where it offers export consolidation and warehousing services. It also complements APL Logistics’ existing facilities across Asia as a sourcing hub for both international and domestic distribution.

Maersk Completing Order of 10 Container Megaships

Maersk Line, the world’s biggest container-shipping operator by capacity, is completing an order of 10 container megaships from Korea’s Daewoo Shipbuilding & Marine Engineering Co. worth more than $1.5 billion, two people directly involved with the matter said.

It will be the first time since 2011 that Maersk Line, a unit of the Danish shipping and oil conglomerate A.P. Moller-Maersk A/S, returns to the market for ships of this size. Back then, it placed an order with DSME for 20 so-called Triple-E ships, which carry in excess of 18,000 containers each. The last two vessels from that order will be delivered to Maersk by July.

CMA-CGM takes India logistics stake

The CMA CGM Group, one of the world's leading global containers shipping companies, is pleased to announce that it has taken a strategic stake in the 25-years old company LCL Logistix, one of India's logistics leaders, via the Group's subsidiary specialized in freight forwarding and logistics solutions.

CMA CGM LOG reinforces its position in India and will leverage LCL Logistix's Indian network as well as its presence in Canada, in the United States and in East Africa to accelerate its development. Thanks to this strategic stake, CMA CGM LOG expands both its product offering and its geographic coverage, including in emerging countries where logistics solutions demand is high

More cargo red ink for Air France KLM

The Air France KLM Group reported cargo revenue of €625 million for Q1 ending March 31, 2015 – a drop of 7.5 percent over the same period last year. As a result, the business segment saw its operating result worsen from minus €34 million to minus €63 million compared to Q1 2014.

 

The company said freighter capacity was reduced 9.6 percent during the quarter in response to what it described as "weak global trade and structural air cargo industry overcapacity". Despite an increase of 1.2 percent in belly space, revenue per tonne-kilometer fell 11.3 percent overall compared to the same period last year.

Hamburg Süd expects “higher result” in 2015

Hamburg Süd reports a "modest 2.3 percent" increase in volume to 3.375 million TEU in 2014. The ocean carrier says it achieved a "positive, albeit less than satisfactory result" from liner services despite difficult market conditions.

Capital expenditure was €348 million last year, 23 percent lower than 2013, and mainly comprised deposits and final payments for 10 ships of between 4,800 and 9,600 TEU. Another three 'Cap San' newbuilds (right) are scheduled for delivery in 2015.

QATAR AIRWAYS set to expand its USA NETWORK with the addition of three new routes

Qatar Airways announces the next phase of its USA route development with the introduction of three new passenger routes to Los Angeles, Boston and Atlanta. With these new destinations, Qatar Airways will offer daily nonstop services to all 10 of the largest metropolitan areas of the United States.

Effective 1st January, 2016, Qatar Airways will commence daily flights to Los Angeles, California, the second largest city in the United States, with the airline’s flagship Boeing 777 aircraft, which features a two-class cabin with 42 Business Class fully lie-flat seats in a 2-2-2 configuration.

McDonald's Commits To Zero Deforestation Throughout Its Supply Chain

Burger giant McDonald’s announced plans to eliminate deforestation from its global supply chains. The announcement goes well beyond the deforestation-free palm oil commitments other fast food companies have made. By aiming to eradicate deforestation from all commodities, McDonald’s is initially focusing on the sourcing of deforestation-free beef, fiber-based packaging, coffee, poultry and palm oil.

The world’s largest fast food chain pledges not to contribute to deforestation in areas most critical to reducing carbon in the atmosphere, known as high carbon value and high carbon stock forests. These are areas of high environmental value, including high biodiversity, as well as high value to their communities, that are often in danger of being cleared to make way for plantations.

FedEx to Buy TNT Express for US$4.8B

US courier delivery giant FedEx has highlighted its intentions to expand globally with the purchase of Dutch-based rival TNT Express.

Both companies have jointly announced that they have reached a conditional agreement on a recommended all-cash offer for all issued and outstanding ordinary shares, Including shares Represented by American Depositary Receipts of TNT Express for a cash offer price of 8:00 euros per share cum dividend except for the TNT Express final 2014 dividend of 0:08 euros in a transaction valuing TNT Express at in implied equity value of about 4.4 billion euros or US$4.8 billion.