Commodity Online Leading container-shipping lines have posted huge losses in 2009 as market contracted for the first time since containerization went global in the 1970s, while capacity grew as new ships, ordered during boom years, came into service.
Maersk, owner of the world’s largest container-shipping line, reported its first annual loss in at least six decades, of US $1,3bn, and said it would be limited to a “modest” profit this year because of inadequate price increases.
South East Asia's largest shipping line Neptune Orient Lines (NOL) reported a net loss of US$139mn in early November for the third quarter of 2009 as conditions across the group's various businesses remained poor. The loss was precipitated by a significant fall in revenue over the quarter - a 34% yearon- year (y-o-y) drop to US$1.56bn. The company's container shipping arm, APL, was the worst performer with revenues falling by 36% y-o-y to US$1.31bn, culminating in an EBIT loss of US$143mn.
Maersk said although the company was able to charge more for shipments, freight rates would not lead to “an acceptable return” this year. The company idled 19 container vessels and scrapped 10 old ships last year. Global container-vessel capacity would increase by 7%-10% this year, while cargo volumes would rise by 3%-5%, Maersk said.
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For NOL, revenues from the group's logistics and terminals divisions fell by 26% and 16% respectively. Q309 cargo container volumes fell by 6% y-o-y to 586,000 forty-foot equivalent units (FEU), while the carrier's average revenue per (FEU) was US$2,219 over the period, down 29% y-o-y. NOL is the fifth largest operator of container vessels according to AXS Alphaliner's rankings of the world's largest container fleets. The company operates a fleet with a container capacity of 547,992TEUs and boasts a market share of 4%. The company operates 139 vessels, of which 45 are owned and 94 are chartered. A major operator on Transpacific and Transatlantic trade lanes, NOL has found itself exposed to the severest fall in trade volumes on these routes in living memory.
Fortune’s Most admired TTL companies Fortune magazine chose seven trucking, transportation and logistics companies and five delivery companies to be part of its World's Most Admired Companies list. C.H. Robinson Worldwide ranked at the top among trucking companies, while UPS was the Most Admired delivery company,
Truckinginfo.com reported.
Behind C.H. Robinson, other trucking companies that ranked included Expeditors International of Washington, J.B. Hunt Transport Services, Ryder System, Landstar System, Con-way and Werner Enterprises. Some of the contenders who did not make the list were Hub Group, Arkansas Best, Alexander & Baldwin, Amerco, Pacer and YRC Worldwide.
Meanwhile, in the delivery category, FedEx, TNT, Deutsche Post and Poste Italiane followed UPS in their rankings.
The rankings were based on survey results that rated the companies in nine key areas: innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment, quality of product/services and global competitiveness.
US-based BDP enters India logistics sector
US logistics major BDP, one of the world’s largest privately owned transport and logistics companies has tied up with Unique Global Logistics Pvt Ltd to set up a new subsidiary company in India-BDP Global Logistics (India) Pvt Ltd.
With its class-leading technology and global customer base, BDP International (BDP) is set to become a major player in India's logistics sector, following the establishment of its new joint venture company, a press release said.
BDP has revenues in excess of US$1.6 billion and a presence in more than 120 countries. BDP has built its reputation working for some of the world's largest corporations including DOW, DuPont, Johnson & Johnson, Marks and Spencer and Revlon.
The new company with BDP as majority partner will be headquartered in Mumbai with a presence in all major cities in India. And as it has done in each of its other markets, BDP promises to provide a real alternative to the one size fits all approach of its larger competitors by offering its revolutionary technology and exceptional customer service.
Richard Bolte, President and CEO of BDP said, "As more of the world's largest manufacturers and retailers establish their operations in India, BDP sees an opportunity to contribute to the growing need for specialized logistics services."
"BDP will target India's expanding chemicals, life-sciences, healthcare, retail, telecom and manufacturing industries. India is a key focus for BDP over the next decade as the nation emerges as a true economic powerhouse."
"As a privately held company, BDP has a unique culture that focuses on providing customized solutions for each customer, in contrast to the one size fits all business models of its larger competitors in freight consolidation and freight forwarding. It is our ability to be large enough to handle any job, while keeping the relationship personal that differentiates BDP from the competition," Bolte said.
One area where BDP is an acknowledged leader is the chemical sector, which accounts for 13 to 14 percent of India's total exports and 8-9% of total imports[1]. BDP has a track record of working with the largest chemical and petrochemical companies in the world, and the company expects to benefit from the sector's growth over the next 10 years.
India-based UGL has an established reputation for providing quality logistics services to some of India's most respected companies. The company has strong expertise in the energy sector including oil and gas.
Pavithran M Kallada, Managing Director of UGL said BDP's globally recognised brand will ensure the JV's success. "UGL understands the needs of local Indian companies, while BDP offers global reach and experience. By joining under BDP's banner, we expect to successfully target the growing number of Indian companies doing business overseas as well as the multinationals coming to India to do business," Pavithran said.
BDP SmartVu Launched in India : BDP also announced the Indian launch of its revolutionary new technology - BDPSmart Vū - a vendor management tool that provides logistics managers with unparalleled visibility of each stage of an international purchase order.
With BDPSmart Vū, importers can globally manage their upstream vendors and suppliers from one central site. The technology provides information on the status of purchase orders, including the critical initial stages. An early warning system ensures inaccurate data on handling, shipment contents, classification or inefficient transport decisions is brought to the customer's attention. This means the customer can fix the issue before it becomes a problem, so deadlines are kept and no revenue is lost.
BDPSmart Vū complements BDP's downstream technology tool, BDPSmart. BDPSmart represents the next generation in supply chain management systems - a real-time track, trace and alert tool that provides global visibility and reporting metrics for all supply chain operators through an easy-access and user-customizable portal.
PSS launches redesigned website PSS Distribution Services, the Northeast’s premier 3PL distribution services provider since 1983, announce the launch of a redesigned website aimed to provide clients with easy access to the variety of services offered.
“At PSS we offer a vast and comprehensive array of 3PL distribution services ranging from warehousing and transportation to value added services such as shrink wrapping and packaging,” reports Gary Borne, President of PSS Distribution Services. “Our new website is user-friendly and allows us to better provide additional details about these services. In addition, we have a comprehensive, yet easy to use “Request a Quote” online form which we anticipate will boost customer response rate.”
Founded in 1983, PSS Distribution Services has evolved into one of the leading third party logistics companies in the Mid-Atlantic region. Some of the services offered include:
- 3PL Warehousing & Fulfillment Warehousing space encompassing over 1 million sq ft.
- 3PL Transportation, including LTL & Truckload Delivery Services and Liftgate Delivery
- Value Added Services, including Shrink Wrapping & Bundling, Packaging and Reverse Logistics.
Aryan Cargo gets Air Operator’s Certificate. Aryan Cargo Express (ACE), India's first (forthcoming) International Cargo Airline, has been awarded the Air Operator's Certificate (AOC) last week. ACE now enjoys the status of a designated cargo carrier and is gearing up for the big launch early this year.
The company intends to be a non-integrated carrier of goods providing airport-to-airport freight transportation services and has been granted bilateral rights of India with Japan, Korea, china, Hongkong, Thailand, UAE, Kenya, Italy, Belgium and UK to operate Scheduled Air Cargo services.
As per Rishiraj Singh Dungarpur, Executive Director, Aryan Cargo Express, "The grant of the AOC places us in a strong position to carve a niche for ourselves, both in the domestic and international market place. Being awarded the Air Operator's Certificate heralds an exciting new phase in our growth."
ACE pioneers in formulating a strategic international route plan with connectivity extending to 150 countries worldwide through a network of online, offline GSSAs and special prorate agreements with other carriers. ACE has created 3 main hubs in Delhi, Sharjah and Bangkok to maximize cargo uplift and extend its global reach. The company initially plans to operate as a scheduled cargo airline within Asia and Europe and eventually expand its operations and services to other parts of the globe by capitalizing on an alliance model.
ACE is due to start operations with it's newly obtained Airbus A310-300F along with the second A310-300F that shall be delivered in mid March 2010. ACE will offer only Express service for cargo like "ACE Lightening" and "ACE Flash" which will provide time definite delivery service of less than 36 hrs within its own network and less than 48 hrs within its extended network. The service will provide faster delivery than any other airline operating in this part of the world. Services will commence along the routes to Japan, Korea, China, Hong Kong, Thailand, Sharjah, Italy, Belgium and London.
The company intends to build a reliable macro level connectivity cargo airline for its customers and act as an air bridge between India and rest of the world, with best human efforts and state of the art IT support to provide safe, wide spread and timely logistics solutions to world business.
Aryan Cargo Express Pvt. Ltd., a subsidiary of Aryan Cargo Express & Logistics Pvt. Ltd, is an Indian international cargo airline with a mission to excel in the domain of air cargo operations. Envisaged and incorporated by Indian visionaries with more than 250 years of collective experience, ACE has started out with an investment figure of over Rs.100 crores. ACE has been granted the NOC (No objection certificate) by the Ministry of Civil Aviation, Govt. of India to commence cargo operations from the country