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Archives for March 2012

TT Club Analysis Pinpoints Risk Hot Spots for Freight Forwarders and Logistics Operators

March 14, 2012 by

Speaking at the freight industry forum, TOC Container Supply Chain Asia in Hong Kong today, TT Club’s Director of Global Risk Assessment, Laurence Jones highlighted the key factors that cause disruption throughout the global supply chain and spoke of opportunities for operators to save costs by  tightening  procedures to minimise accidents, breakdowns, delays and other risks.

London and Hong Kong, 14th March 2012

Laurence Jones, TT Club’s Director of Global Risk Assessment

Based on an extensive analysis of TT Club’s claims, valued in excess of $120 million, Jones revealed that nearly 80% of incidents resulting in a claim were avoidable and the vast majority involved some form of human error.  In urging operators to pay heed to the lessons of TT’s analysis, Jones said, “We found that the adoption of proven operational procedures and available safety technology could prevent many of the incidents.  Relatively small investments in training, and maintenance could bring significant commercial benefits through less disruption to operations, lower insurance premiums and more satisfied customers.”

In terms of causal effect the analysis showed that 63% of the total cost (as opposed to the number) of claims were due to operational factors, with maintenance (or lack of it) accounting for a further third; leaving those lacking human intervention, mainly weather related incidents contributing only 4% of the cost.

When it comes to the movement of freight around the world, TT Club’s experience concludes that the prevention of many claims lies in efficient and well constructed processes and the analysis presented by Jones reinforced this belief.  43% of the cost of claims resulting from operational factors was as a consequence of errors or faults in an operator’s systems or processes.

“While straight forward theft accounted for 29% of operational claims, poor processes and systems were the biggest culprit,” Jones demonstrated. “A whole range of substandard practices were in evidence, such as bad stowage and handling; customs fines due to incorrect or late paperwork; poor instruction on management of refrigeration equipment; and wrong release of cargo.  All such claims could have been avoided with tighter procedures.”  (See chart below)

The other major contributor to damage and cost was found to be fire destroying property, equipment and cargo.  Most building damage came from electrical faults; for lifting equipment, a lack of sufficient, regular maintenance checks was the main cause and fire in container cargo was mainly due to poor stowage or mis-declaration of the goods.  Each factor, argued Jones could be mitigated by adequate attention by either operators or shippers.

TT Club’s intention by presenting this analysis is to reduce loss and damage in freight movement by encouraging awareness among freight forwarders and logistics service providers of their ability to reduce inefficiencies of an increasingly complex, and often fragile global supply chain.  Such measures are varied and require a degree of planning, careful management and some financial investment but as customer expectations become ever more stringent the commercial necessity of risk mitigation is obvious. As Laurence Jones concludes, “In analysing the causes of disruption, we seek solutions through the development of good practice for our industry”. TT Club has a wealth of published material to support the reduction of risk.

ENDS

Notes for Editors:

A PDF copy of Laurence Jones’ presentation is available on request from ISIS Communications (contact details below) and will be posted on the TT Club website (www.ttclub.com) in due course.

About the TT Club

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. Established in 1968, the Club’s membership comprises ship operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors. As a mutual insurer, the Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a world-wide office network providing claims management services, and first class risk management and loss prevention advice.

Filed Under: TT Club

Cosco, “K” Line, Yang Ming, Hanjin and Evergreen Line enter into individual cooperation agreements

March 13, 2012 by

March 12, 2012

Cosco, “K” Line, Yang Ming, Hanjin and Evergreen have agreed to initiate individual cooperative arrangements on Asia-Europe trades starting from April 2012 as announced last December.

This cooperation between the four CKYH Lines and Evergreen Line is designed to offer customers best sailing frequency, transit time and service coverage so as to fulfill customers’ needs.

These bilateral arrangements will be implemented in 8 weekly services for Asia – North Europe and 4 for Asia – Mediterranean including direct services for Asia – Adriatic regions calling Rijeka, Koper and Trieste.

Especially, weekly services for Asia – North Europe, which in fact, offer the highest frequency in the market, will also provide very attractive transit times from Asia to major European ports including Rotterdam, Hamburg and Felixstowe (i.e. 26-27 days from Shanghai/Ningbo and 23-24 days from Yantian).

The majority of the fleet operated in these total twelve loops will be ranging from 8,000TEU to 13,000TEU size

Asia – North Europe Service

NE1 : Shanghai – Ningbo – Hong Kong – Nansha – Hamburg – Rotterdam – Felixstowe – Singapore – Nansha – Shanghai

NE2 : Xiamen – Kaohsiung – Yantian – Singapore – Rotterdam – Hamburg – Felixstowe – Antwerp – Singapore – Hong Kong – Xiamen

NE3 : Xingang – Dalian – Qingdao – Ningbo – Singapore – Rotterdam – Felixstowe – Hamburg – Antwerp – Yantian – Hong Kong – Xingang

NE4 : Ningbo – Shanghai – Hong Kong – Singapore – Rotterdam – Hamburg – Antwerp – Singapore – Yantian – Kaohsiung – Ningbo

NE6 : Xingang – Kwangyang – Pusan – Shanghai – Yantian – Singapore – Algeciras – Hamburg – Rotterdam – Le Havre – Algeciras – Singapore – Hong Kong – Xingang

CEM : Shanghai – Ningbo – Yantian – Felixstowe – Hamburg – Rotterdam – Hong Kong – Shanghai

CES : Kaohsiung – Ningbo – Shanghai – Taipei – Hong Kong – Yantian – Tanjung Pelepas – Colombo – Piraeus – Rotterdam – Hamburg – Thamesport – Piraeus – Jeddah – Colombo – Tanjung Pelepas – Kaohsiung

CES2 : Qingdao – Shanghai – Ningbo – Xiamen – Yantian – Tanjung Pelepas – Port Kelang – Hamburg – Rotterdam – Antwerp – Tanjung Pelepas – Qingdao

Asia – Mediterranean Service

MD1 : Qingdao – Shanghai – Ningbo – Yantian – Hong Kong – Shekou – Singapore – Piraeus – La Spezia – Genoa – Barcelona – Valencia – Piraeus – Singapore – Hong Kong – Qingdao

MD2 : Ningbo – Shanghai – Xiamen – Kaohsiung – Hong Kong – Yantian – Singapore – Port Said – Ashdod – Genoa – Barcelona – Fos – Port Said – Singapore – Hong Kong – Ningbo

MD3 : Pusan – Shanghai – Ningbo – Hong Kong – Yantian – Singapore – Port Said – Napoli – La Spezia – Livorno – Port Said – Singapore – Ho Chi Minh – Hong Kong – Yantian – Ningbo

UAM : Tokyo – Osaka – Pusan – Qingdao – Shanghai – Ningbo – Kaohsiung – Hong Kong – Yantian – Tanjung Pelepas – Colombo – Ashdod – Alexandria – Taranto – Koper -Rijeka – Trieste – Taranto – Colombo – Tanjung Pelepas – Kaohsiung – Hong Kong – Yantian – Shanghai – Ningbo

Filed Under: "K" Line

Menlo Worldwide Asia Pacific Granted Secure Trade Partnership (STP) by Singapore Customs

March 13, 2012 by

3PL Meets Strict Program Guidelines for Supply Chain Security Measures and Practices

SAN MATEO, Calif., and SINGAPORE — March 12, 2012 — Menlo Worldwide Asia Pacific Pte Ltd., the global logistics subsidiary of Con-way Inc. (NYSE: CNW), today announced it has achieved Secure Trade Partnership (STP) from Singapore Customs. A voluntary program, STP is consistent with the World Customs Organization (WCO) SAFE Framework of Standards and serves to secure and facilitate global trade. Menlo is one of only 75 companies that have been certified under the STP program since the program’s inception in 2007.

Menlo initiated the STP process in April 2011 and subsequently underwent several series of facility audits and procedural validations performed by Singapore Customs. To achieve STP endorsement, Menlo was required to have security management systems in place, conduct risk assessments of their business operations and implement security measures in eight key areas: premises and access controls, personnel, business partners, cargo, conveyance, information and IT, incident management and investigations, and crisis management and incident recovery.

“STP indicates to our customers and to the government of Singapore that we take the adoption and implementation of security measures seriously and are committed to adhering to security best practices across the entire supply chain,” said Desmond Chan, managing director, South Asia, Menlo Worldwide Logistics. “Our security and operations teams in Singapore worked diligently over many months to reach this important milestone and I thank them for their dedication and commitment. This is a well-deserved accomplishment and one in which we are prepared to lend our ongoing support long into the future.”

As an STP-certified company, Menlo brings increased visibility and greater efficiency into its supply chain. Additionally, the company benefits from:

  • An enhanced reputation as a low-risk company
  • Reduced inspection or expedited clearance into and/or out of Singapore
  • Designated account managers
  • Trade facilitation benefits such as bank guarantee reduction
  • Automatic recognition as a known consignor (KC) under the Regulated Air Cargo Agent Regime (RCAR)

“Having worked closely with the Menlo team in South Asia over the past six months, I’ve seen firsthand the importance they place on supply chain security  as evidenced from the strong support from the highest levels of management,” said Jeffrey Ho, account manager, Singapore Customs. “I congratulate Menlo Worldwide for this excellent achievement and look forward to continued collaboration with Menlo as a trusted partner of Singapore Customs.”

Five Menlo facilities in Singapore are now STP-validated: 30 Boon Lay Way; 6 Pioneer Walk #02-06WH Goldin Logistics Hub; 22A Benoi Road; 10 Penjuru Road; and 46 Penjuru Lane, C&P Hub 1, Block 1 CLS-Warehouse A #04-01.

Follow the Con-way companies on Twitter: http://twitter.com/ConwayInc

Menlo Worldwide Logistics images are available at

www.con-way.com/en/about_con_way/newsroom

About Menlo Worldwide Logistics
Menlo Worldwide Logistics, LLC, is a US$1.6 billion global provider of logistics, transportation management and supply chain services with operations in five continents, including North America. As a third-party logistics provider, San Mateo, Calif.-based Menlo Worldwide Logistics’ services range from dedicated contract logistics to warehouse and distribution management, transportation management, supply chain reengineering and other value-added services including packaging, kitting, order fulfillment and light assembly through a strategic network of multi-client and dedicated facilities. With more than 17 million square feet of dedicated warehouse space in North America, the Asia Pacific, Europe and Latin America, and industry-leading technologies, Menlo Worldwide Logistics creates effective, integrated solutions for the transportation and distribution needs of leading businesses around the world.

Menlo Worldwide Logistics, LLC, is a subsidiary of Con-way Inc. (NYSE: CNW), a $5.3 billion diversified freight transportation and logistics company. For more information, please visit us on the Web at www.con-way.com.

Filed Under: Menlo Logistics

Menlo Worldwide Logistics Announces New Leadership for North Asia

March 13, 2012 by

Thomas Pan is promoted to Managing Director; Leong Choong Cheng named Deputy Managing Director, strengthening Menlo’s China team

(Shanghai, 06 March 2012)  Thomas Pan has been promoted to Managing Director, North Asia, for Menlo Worldwide Logistics (China) and Leong Choong Cheng has simultaneously been appointed Deputy Managing Director, said Global Chief Operating Officer Gary Kowalski, who made the announcement in Shanghai today.

“The appointments of Thomas and Leong strengthen the Menlo team as we continue to invest in people and processes in China,” said Kowalski. Menlo began expanding in China in 2007, in response to demand from overseas clients with businesses in China that wanted Menlo’s proven services and support in this market. “We are continuing to build our investment in China, which is a strategic component for the global Menlo enterprise.”

The China operations of the US$1.6 billion international logistics company have made significant progress over the past year, according to VP-International John Beckett, to whom both Pan and Leong will report.  Menlo China has introduced LEAN practices and streamlined operations during the last 12 months, positioning the company as the pre-eminent provider in China for supply chain services including transportation management, warehousing and consulting services.  And the company’s progress has been received favorably in the market: “Our China revenue increased 23% in 2011, the new prospect pipeline grew 70% last year, and the new business revenue increased four-fold,” Beckett said.

The momentum has continued into 2012, with additional growth in new prospects and business wins, as well as key new appointments in security and operations further boosting Menlo China’s capabilities. Yin Ping Wang was appointed Regional Security Manager for North Asia/Greater China, and Lucia Fu was named Senior Operations Manager, North Asia.  “We are delighted to have both of these industry professionals on board,” said Thomas Pan. “Our rapid growth in China has caused us to take a more proactive stance with security risk management.  Y.P. Wang will identify risk and minimize loss for the North Asia operation through front-end security risk management programs, supporting the leadership, management and our business objectives. Lucia, meanwhile, will advance our growth through service, LEAN and operations excellence. Lucia and Y.P. strengthen an already very capable team,” said Pan.

“We will continue to invest in Menlo China – in people, in processes, and in resources that will enable the business to grow smoothly and provide superior value for our customers,” said COO Kowalski.  “China remains of key strategic importance to Menlo and our long-term global growth plans.”

Filed Under: Menlo Logistics