Wednesday, September 14, 2016

Update on the Current Freight and Logistics News Worldwide in Snippets

Half a Dozen Items from Around the Globe
Shipping News Feature
WORLDWIDE – CHINA – Driven by China's expanding e-commerce business, which already has grown to be the largest in the world, air cargo is expected to become a key driver for the continuous growth of aviation in China, with the need for 180 new freighters and 410 aircraft converted to carry freight only. Today, Boeing jets are the mainstay of China's air travel and cargo system with more than 50% of all the commercial jetliners operating in China being Boeing airplanes. Randy Tinseth, vice president of Marketing, Boeing Commercial Airplanes commented:

"As China transitions to a more consumer-based economy, aviation will play a key role in its economic development. The continuing expansion of China's middle class, coupled with new visa policies and a wide range of widebody airplanes with new technologies, capabilities and efficiencies, gives us every reason to expect a very bright future for China's long-haul market.”

Worldwide, Boeing projects investments of $5.9 trillion for 39,620 new commercial airplanes to be delivered during the next 20 years. The complete forecast is available here.

US – RoadOne IntermodaLogistics, the intermodal, distribution, and logistics service company, has announce the acquisition of C & V Trucking of Milford, Connecticut intended to enhance its Southern New England operations and New York, New Jersey port business. C & V, with over 30 new trucks and a new terminal adjacent to route 95 and 91 in Milford, Connecticut, provides a platform to service manufacturers and big box retailers that have established distribution centres in this growing market. This location also offers close proximity to the port of New York/New Jersey. With this acquisition, RoadOne claims it is the only intermodal transportation provider with terminals and drivers in all key markets in the Southern New England region.

With the Federal Motor Carrier Safety Administration (FMCSA) new Electronic Logging Device (ELD) mandate due to take effect 18 December 2017, this strategic location in Milford should also help improve RoadOne's efficiency and capacity and will allow the company to continue to be fully compliant with all Hours of Service regulations. RoadOne has already moved forward with a full implementation plan to install ELD's and driver support systems into every RoadOne vehicle and it says 100% its truck fleet of over 1000 vehicles will be compliant 12 months before the required deadline.

SOUTH AFRICA – Transnet National Ports Authority (TNPA), a division of Transnet SOC Ltd, is taking another step on its journey to digitalise South Africa’s ports operations into ‘SMART People’s Ports’ through a fully integrated e-commerce platform expected to go live in April 2017. The new ‘Order to Cash’ initiative will replace TNPA’s nine year old PortsOnline system which customers previously used for online submission of cargo documentation. The new technology will provide an e-commerce platform with advanced customer relationship management and electronically enabled customer order management on a single in-memory computing platform powered by the more modern, much vaunted SAP HANA.

Customers will be able to interact with TNPA across various channels including TNPA’s call centre and online. The platform also offers self-service functionality for customers, where they can log in, maintain their own profiles, place sales orders, view current credit limits and view and download invoices and statements.

US – American Intermodal Management, based in Scottsdale, Arizona, is partnering with Asset Intelligence to deploy its VeriWise chassis fleet management solution on its fleet of new chassis. The chassis fleet operator chose the Asset Intelligence solution after an evaluation of available asset-tracking systems in the market.

WORLDWIDE – The latest report from VesselsValue has some interesting statistics regarding the global fleet and shows the percentage of ships which are currently above or below their scrap value. The site indicates the market and scrap value for each individual vessel every single day, and therefore issues estimates of the percentage of the global fleet currently at scrap value.

Whilst overall the site states that 16% of the world’s fleet is at or under its demolition value drilling down into the figures it gives an interesting insight into how different vessel types and nationality vary wildly. Almost 30% of Offshore Support Vessels are estimated to be worth less than scrap whilst, unsurprisingly, none of the 574 LNG tankers registered sink to this level.

19% of the world’s container ships world miss the mark and geographically the anomalies continue with just 2% of Japanese owned vessels below scrap price as against Indonesia where 31% of the countries fleet is below par. Click the link above to sign up for up to date reports.

UK – As the controversy over another runway at London's main airport continues, GMB, the union for workers in the aviation and steel industry, has called on the Government to make a decision on Heathrow expansion following the announcement that the construction of a third runway and new terminal buildings will have a massive impact on the UK steel production industry. An estimated 370,000 tonnes of UK steel will be used to expand Heathrow, nearly 10% of the total steel produced in the UK for domestic use in 2015

The union says the expansion will sustain 700 jobs related to the steel industry over 5 years between 2021 and 2026 in addition to the 180,000 jobs and 10,000 apprenticeships that will be created by the project as a whole. Heathrow has said that the new runway and terminal buildings could contribute as much as £211 billion in economic benefits across the UK by 2050.