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Shipping-Logistics Digest: Are pirates amateurs?

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Commodity Online
Piracy continues to haunt the shipping-maritime services globally with United Nations report showing that Somali pirates collected roughly $150 mn in ransom payments in 2008. Total losses in ransoms, ships, and cargoes as a result of piracy are estimated at around $15 bn. But are pirates amateur thugs?

According to John Payne,misinformed journalists in media reports continue to portray the pirates as amateurish thugs, often trivializing them in articles and making references to the romanticized swashbucklers seen in the movies. But today's pirates are not amateurs. They are professionals out to make big money, and they have no regard for human life unless it can turn a profit through a ransom payment. The pirates are very efficient at attacking in small boats and then capturing large, unprotected high-value ships with equally high-value cargoes. This is detailed in Piracy Today: Fighting Villainy on the High Seas, the book written by John C Payne and published by Sheridan House Inc and quoted in Wall Street Journal (http://online.wsj.com). Payne points out that merchant ships are now technologically advanced requiring smaller number of crews and thus become easy target for attack by a pirates group.

Piracy is also helped by the vagaries of jurisdiction, sometimes confused and tumultuous international diplomatic relations, and divisive international political issues, all which work in its favor, John Payne writes in his book.

Zenith Logistics adds warehousing facility in Vietnam
Zenith Global Logistics continues to expand its home furnishings warehousing and distribution capabilities in Asia by adding humidity-controlled warehousing in Ho Chi Minh City, Vietnam.

“The addition of this warehousing in Vietnam is simply another example of our responsiveness to the requests and business needs of our customers, both domestically and internationally,” said Steve Wolfe, VP of Zenith Global. “Vietnam is an important strategic location for a number of our customers, which mirrors the growing amount of sourcing that’s being done in that country. Our customers also require a humidity-controlled environment to ensure proper moisture levels are maintained for wood products housed at this location, which has a total capacity of 226,000 square feet.”

Zenith Global customers can mix products from this facility and ship in either full, split or less-than-container loads. “When used in conjunction with our split container program and our U.S. domestic distribution network, this warehouse means customers can literally purchase as little as one item and pay a single through-price, FOB Ho Chi Minh City,” Wolfe said.

“In the end, our mission is to put logistics solutions in place that make it simple and efficient for customers to conduct, and often build, their businesses, even in this challenging economy,” he added. “Vietnam is simply an extension of the dozens of ports throughout Asia, the Pacific Rim and Europe, where we offer the same diverse range of container programs. With the innovative solutions provided by Zenith Global, a customer can design and implement logistics solutions specific to their business model. With the capabilities now available in supply chain logistics from IT to on-the-ground execution, any model is possible.”



Zenith Global Logistics is a total supply chain logistics provider specializing exclusively in home furnishings. Warehousing, consolidation and full/split container programs from its Asia locations service markets throughout North America, the Caribbean and Europe. Domestically, Zenith Global owns and operates its own truck fleet as well as more than 4.5 million square feet of warehousing, including facilities in Southern California, Texas, Mississippi, North Carolina and Virginia.

Alion gets US Navy contract for logistics support
The U.S. Navy has contracted Alion Science and Technology to provide the logistics support systems modernization efforts with assessment and logistics services. U.S. company Alion received the contract to assist the Naval Operational Logistics Support Center's logistics support systems upgrade program. Under the $15 million deal, Alion will provide the Naval Operational Logistics Support Center with planning and simulations along with assessment support for the Littoral Combat Ship program among other requirements supporting the Navy and Coast Guard's deployable units.

"Alion will help Naval Operational Logistics Support Center realize a reduction in ownership costs and time efficiencies and help reduce manpower shipboard levels," Greg Bryant, Alion senior vice president, said in a statement."The work conducted under this contract will allow the Navy to take advantage of modeling and simulation products to meet the diverse logistics requirements being imposed on the Navy from all of the services."

Jacobson Cos buys Global Transportation Services
Des Moines-based Jacobson Cos. said Wednesday it bought Global Transportation Services, a Seattle-based company that provides international transportation and logistics services.No price was disclosed. Jacobson provides warehousing, packaging, manufacturing and freight transportation.

Global Transportation, founded in 1985, helps companies move products overseas. It provides air and ocean import/export, project cargo and customs brokerage, among other services.

"In addition to reaching new customers overseas, we will be adding significant capabilities required by our U.S. customers," said Brian Lutt, chief executive of Jacobson, which was founded in 1968.

MCX Silver 05 September 2012 contract was trading at Rs 56922 . What's your view on it?
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