Low and sustainable growth is the way forward for air cargo, claims UK logistics director

Speaking to Air Cargo week this Monday, Matthew Marriott, commercial director of Hellmann Worldwide logistics UK, stated that leaders in the world cargo industry must recognise that the state of the economy may be here to stay.

According to Mariott, rather than looking for quick wins and short-lived peaks in demand, the industry should be “accepting low growth, and consolidating the internal business structure that makes boom-and-bust economics less likely” in order to regain market confidence.

Marriott pointed to manufacturers and exporters taking advantage of currency fluctuations as partly responsible for the “sudden dips and false dawns” in the economy since 2008. He commented: “On the face of it, this all sounds fine […] but, within a struggling or depressed sector, this approach can hinder recovery”.

The logistics director’s comments come at a time when other industry experts are claiming that sea freight is becoming a stronger competitor to air freight as a means of transporting goods worldwide.

Market analysis company Analytiqa reported today that demand for sea freight has risen since International Economic Indicators suggested that the world economy bottomed out in the third quarter of last year. 

While air cargo demand has not reflected this recovery to the same extent, volumes were still up by 2% in February compared to the previous year. Moderate growth for the sector is forecast across the course of the year but IATA has warned that improvements cannot be taken for granted.

Sources: Air Cargo Week, Analytiqa

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Analytiqa publish findings about expanding African logistics market

Aimed at professionals in the supply chain industry, Analytiqa's new report into African Logistics explores the opportunities for 3PLs  and freight forwarders looking to expand their networks into the continent.

The report provides detailed profiles of emerging market trends in eight countries, drawn from both North and Sub-Saharan Africa. The profiles include data on market size, growth rates and outsourcing rates per country, as well as forecasts for 2016. 

Analytiqa state they have composed the report in response to demand from industry professionals seeking unbiased, reliable and comprehensive data about the state of logistics markets on the continent. They have commented on the expanding African middle class, which is growing at a rate fast than that of India, as an indication of the business potential of the area.

Source: Analytiqa
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DHL reveal service improvement and expansion plans for Americas- Asia Pacific and intra-Asian networks

In a bid to decrease transit times and capture increased trade across the pacific, DHL announced plans this morning to improve their connections between Japan and the US, to increase the frequency of their US- Australia connections, and to introduce new links between Taipei, South Korea and Japan.

 

Image c/o DHL 

The proposed enhancements will be launched by the end of April 2013 and will result in a new next-day delivery service from Japan to the US, and a two-day delivery capability for US, Canadian and Latin American customers shipping to Tokyo.

New connections to Australia from the US will be routed via Japan, with the aim of improving both US- Australia connections, and building capacity for increased trade between Australia and North Asia.

Jerry Hsu, CEO, DHL Express Asia Pacific, said: "The integration and strategic scheduling of additional highly efficient freighter aircraft into our network will directly benefit a large number of markets across three continents. Trade between Asia and the US is predicted to grow 10% per annum up to 20201. We are improving service and adding capacity between Asia and the US to support the continued two-way growth we see on the world's biggest trade lane. By providing more capacity and connections, DHL is helping customers capitalize on this potential."

Source: DHL

UPS launches appeal against EC ban on TNT takeover

UPS have announced their intention to appeal the European Commission’s decision to block their €5.2 billion merger with Dutch competitor TNT Express.

Image c/o UPS

 

The appeal does not indicate the US courier company’s intention to renew or reconsider its offer. Rather, UPS are seeking to clarify the circumstances surrounding the veto of the merger so as to ensure possibilities for future expansion.

UPS Spokesperson Peggy Gardener said: "We are challenging the decision in order to ensure a more accurate assessment of the EU competitive landscape and that no precedent is established by the EC that would limit international growth opportunities."   

UPS abandoned their bid to take over TNT in January 2013 when it became apparent that the EC intended to prohibit the merger on the grounds that it would restrict competition in the EU and may result in price increases. Gardner described the EC’s decision as “factually and legally erroneous”.

TNT’s stock plummeted after the withdrawal of UPS bid in January but has shown signs of recovery since then. For its part, the Dutch company is implementing a recently announced updated strategy and profit improvement plan.

Sources: Reuters, Bloomberg, TNT

TNT Express announce divestment from China and Brazil following vetoed UPS merger

TNT Express unveiled its updated strategy and profit improvement plan on 25th March. The failed merger with UPS following an EC veto saw falls in the Dutch courier company’s share price and companies had been awaiting its renewed strategy as a standalone company.

Image c/o TNT Express

 

The new plan entails divestment from China and Brazil and a focus on the company’s European network. In addition, 4,000 jobs will be lost by 2015 in a bid to create a leaner management structure, saving €220 million in operational costs.

While TNT have a very strong European network and hold 17% of the internal European Express Market, Martin Bakker of ABN Amro has stated that, “in China they are just a drop in the ocean, they lack the size and position to defend themselves…It’s better for them to say goodbye to China.”

TNT state that “the sales process for domestic China is well underway and the outcome should be known imminently”. Preparations for the sale of Brazil Domestic are also under way.

Interim CEO Bernard Bot commented: “our business faces difficult market conditions and strategic challenges but we have a unique competitive proposition: an unrivalled European network, worldwide connections, an integrated range of service and recognised dedication to our customers.”

Source: TNT

DHL Express Panama receives grade A security certification

The DHL Express hub in Panama recently became the 200^th facility in the world to get ‘A’-security-verified by TAPA (Transported Asset Protection Association).

Image c/o DHL

Since 1997 TAPA’s leading security professionals from the high value and risk product sector worked on streamlining security guidelines which address handling processes and procedures as well as warehousing and transportation standards. 

“Currently, every one of our major global Hubs ad Gateways are all TAPA ‘A’ certified. In addition to our Panama Hub, we recently achieve certification of our new North Asia Hub at Pudong International Airport in Shanghai, China", announced Adrian Whelan, Senior Vice President an Head of Global Customs at Security at DHL Express at a recent press conference.

20 DHL Express facilities in the USA, Canada, Brazil, Mexico and other Americas countries have been TAPA-certified since 2010.

“The TAPA FSR is considered the benchmark security standard that is recognized around the globe. DHL’s multiple FSR certifications, across a variety of markets, highlight their strong global commitment to supply chain security”, said David Wit, Chair at TAPA Americas.

Source: DHL

DHL offers 2,160 apprenticeships in 2013

Deutsche Post DHL is giving away 2,160 apprenticeships to young people across Germany this year. 

Image c/o DHL

The global logistics and courier company has announced that all apprentice positions will be offered across 22 vocational fields and 17 specialties, providing young professionals with the opportunity to expand their skill set.

Angela Titzrath, Board Member for Personnel at Deutsche Post DHL justified the decision as follows: 

"Our most important resource for the future is qualified young people. This is why we invest in vocational training and, in doing so, set an example for the promotion and professional advancement of young people."

Getting into a Deutsche Post DHL division

As one of the largest international courier services providers, Deutsche Post DHL will offer most of the apprenticeships in its mail division. 

• More than 600 applicants will be given the chance to apply for a placement in DHL's freight forwarding, engineering, administration, real estate and warehouse logistics departments. 
• An additional 160 youngsters will be allowed to participate in a work-study programme, combining university studies with work experience.

Any formal and practical training will be carried out in a location close to the applicants residence.

Further information about the programmes, eligibility criteria and salaries can be found on DHL.com/Career.

Source: DHL

UPS and STATS LLC launch data driven performance index for NCAA Basketball

Today, UPS, one of the world’s leading international courier companies, announced that it had teamed up with STATS LLC in an effort to expand its Team Performance Index (TPI) used to measure NCAA men’s and women’s basketball.

“UPS is thrilled to extend our association with STATS to include the new Team Performance Indexes for men’s women’s college basketball. Logistics are not only the foundation of our business, but they’re also the foundation for success on the court or on any playing field, and we’re proud to have developed a system that successfully quantifies which teams are best at the preparation, planning and precision that lead to success”, said Ron Rogowski, vice president at UPS global sponsorships and events.

The UPS TPI will comprise the following six correlated key statistical components:

• Offensive Measure – effective field goal percentage
• Defensive Measure – effective field goal against
• Rebounding – rebounding percentage amongst all rebounds in a game
• Ball handling – assists/game, steals/game etc.
• Overall miscues measure – turnovers/game, fouls/game etc.
• And the success measure – winning percentage.

Moreover, the courier’s new index will be updated on a regular basis with leaders of each division announced each week.

“STATS is excited to expand the UPS Team Performance Index into college basketball. The application of the Index to basketball highlights the efficiency and overall teamwork required to succeed in the sport. The Team Performance Index is designed to identify well-balanced teams that do multiple things well, similar to how UPS excels in logistics. The formula shows new insights and tells a unique story about the teams and the college basketball season”, explained John Sasman, vice president of commercial products at STATS.

With the help of a proprietary algorithm an index value will be put in place for each component with an average of 100 and a value of 200 as the maximum.

STATS is the world’s largest sports technology, data and content company.

Source: UPS

DHL secures £100m contract with Panasonic

DHL Supply Chain has scored a £100m contract with the British technology company, Panasonic. The global courier and supply chain company will be responsible for the management of all warehousing and transport activities.

"This is a significant solution that has been constructed in a very short timescale. Throughout, we have taken a truly collaborative approach to the project, working in partnership with Panasonic and adding value by exploiting our flexibility, global reach and focus on commercial innovation", said Paul Richardson, Managing Director of Specialist Services at DHL Supply Chain.

Increased transparency and new technology for Panasonic

Two of Panasonic's key goals are higher levels and decreased costs. Beyond that, the UK-based technology giant also aims at improving its service quality with the help of DHL. In order to optimise levels of transparency among Panasonic's transport networks, the current facilities will be turned into a technology campus. This will feature a plug and play IT solution as well as a Transport Control Tower.

"As our business evolves, it was necessary to bring in an innovative logistics specialist who understands the emerging needs of the technology sector. Our business needs the flexibility to adapt to the demands of current and new markets, addressing rapid product life cycles whilst consistently improving on our customer's experiences", explained Nigel Cowmeadow, Chief Supply Chain Officer at Panasonic Europe.

What's in it for DHL?

By utilising its global reach and industry knowledge to help with the optimisation of Panasonic's logistics operations, DHL hopes to replicate and expand its activities across all of Panasonic's European supply chain businesses.

Source: DHL

AA Cargo boosts New York's freight forwarding network

AA Cargo, the freight division of American Airlines, is planning on expanding its international flight schedule form New York City. The freight forwarder recently announced that there will be a new Boeing 777-300ER flying goods from JFK to London Heathrow Airport this year.

Image c/o azfreight.com

"JFK is not only the international gateway to Europe, but it also is the hub that connects Asia to South America and the West Coast to Europe and Latin America. Our network through New York allows us to move perishable daily from the Deep South to Japan and also hightech shipments from Asia to Brazil", said Cristina Castro of AA Cargo. 

The company currently moves over 450,000kg of air freight through its depot at JFK Airport where it also runs a 135,000-square-foot warehousing facility. Rich Burkhardt, manager of AA Cargo operations at JFK, considers the facility's ambient room to be a huge asset when handling temperature-sensitive goods.

"Expedite TC Passive supports ambient temperature control using cool rooms, expedited handling processes and high-visibility monitoring to ensure cargo is handling within desired temperature ranges."

This storage feature will also be available to future customers of AA cargo, i.e. to store goods before they are being sent out on the freight forwarder's new flight connection.

Source: Air Cargo Week