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Archives for January 2020

Dachser expands its logistics center in Hof

Hof/Kempten, 27 January, 2020 – Logistics provider Dachser is stepping up its contract logistics activities in the Upper Franconia region of Germany and moving into a new warehouse in the town of Hof. The warehouse will provide space for around 39,000 pallets and have 47 docking bays. Construction is expected to be completed by fall 2020. 

The expansion also includes offices and communal areas covering a total area of 900 square meters. “Our new multi-user warehouse next to the existing logistics center will offer space for us to provide contract logistics services for a medium-sized customer from the DIY and gardening sector for example,” says Klaus Neubing, General Manager of the Hof logistics center, about the expansion of business at the location. The contract logistics services that Dachser offers in Hof combine transport solutions and warehousing with comprehensive value-added services such as picking and packaging. Following the expansion, Dachser will employ some 500 people in the town. In addition, around 300 people work regularly for Dachser through the independent transport companies or, for example, as seasonal workers.

Pan-European project developer and logistics specialist Verdion carries oit the construction work, and Dachser will be able to move into the building in fall 2020. “This expansion marks the next important step in our work with one of our major DIY customers in the region,” says Alexander Tonn, Managing Director European Logistics Germany, who is responsible for Dachser’s industrial goods business in Germany. “Together, we’re putting in place a sustainable, growth-oriented logistics concept in Hof.”

From a geographic perspective, Hof’s central location in Europe is perfect for the logistics center, since all the relevant European destinations and economic centers are within easy reach. Dachser’s logistics center in Nuremberg connects the Hof branch to the company’s worldwide air and sea freight network.

30 years in Upper Franconia

Dachser has been operating in Germany’s Upper Franconia region for over 30 years. Today’s logistics center, located on the outskirts of Hof since 2008, offers a 13,800-square-meter transit terminal and 11,800 square meters of warehouse space with 35,000 high-bay pallet spaces. This capacity has made the logistics provider a long-standing warehousing and transport partner in the region for customers from the industrial goods and food sectors.

“Hof is becoming an increasingly important logistics hub, and this expansion marks another step in this growth. Our town is proud to be home to a global company like Dachser. This expansion of the Hof branch means the company will provide a total of around 500 jobs, making it one of our largest local employers,” says Hof’s Mayor Dr. Harald Fichtner. “I’d like to take this opportunity to say thanks for the strong role you play in the community, including your valuable contribution to the Upper Franconia Logistics Agency. I wish the expansion project and the company every success!”

About Dachser:

A family-owned company headquartered in Kempten, Germany, Dachser offers transport logistics, warehousing, and customer-specific services in two business fields: Dachser Air & Sea Logistics and Dachser Road Logistics. The latter consists of two business lines: Dachser European Logistics and Dachser Food Logistics. Comprehensive contract logistics services and industry-specific solutions round out the company’s range. A seamless shipping network—both in Europe and overseas—and fully integrated IT systems ensure intelligent logistics solutions worldwide.

Thanks to some 30,600 employees at 399 locations all over the globe, Dachser generated consolidated net revenue of approximately EUR 5.6 billion in 2018. That same year, the logistics provider handled a total of 83.7 million shipments weighing 41.3 million metric tons. Country organizations represent Dachser in 44 countries.

For more information about Dachser, please visit www.dachser.com

‘Book it Right and Pack it Tight’

Insurance mutuals urge the container shipping industry and participants in the global supply chain it serves to give ever more serious attention to the causes and consequences of ship fires, jointly issuing a guide outlining the responsibilities of all stakeholders in reducing risk.

London, 22nd January, 2020

1st January this year saw mandatory enforcement of the latest version of the IMDG Code, Amendment 39-18.  As the incorrect declaration, packing, handling and stowage of dangerous goods of all types is seen as a primary cause of many container ship fires, insurance mutuals UK P&I and TT Club have once more collaborated in publishing guidelines under the title ‘Book it Right and Pack it Tight’.

The guide published this week and available free of charge*, provides key insights for all actors in the freight supply chain responsible for preparing unitised consignments for carriage by sea. It gives an overview of the practical duties and responsibilities under the IMDG Code for each stakeholder.

Stuart Edmonston is UK P&I’’s Loss Prevention Director.  “As mutuals, our chief aim is to minimise risk for our Members and the industry we serve,” he says.  “The recent spate of container ship fires with the consequent loss of life, damage to ships and cargo, and trade disruption has been a major concern to ourselves and TT Club.  UK P&I continues to participate in initiatives which focus on the capability to detect, suppress and extinguish fires at sea.  However we share our sister organisation’s desire to tackle the causes of such fires at source.”

TT Club sees its core contribution to seek significant improvements in cargo declaration and packing. “As so often the case, fires and explosions are merely the ‘tip of the iceberg’ of problems, which are inherent throughout the supply chain,” observes Peregrine Storrs-Fox, TT Club’s Risk Management Director.  “There are far too many errors in classification and declaration of commodities to be transported.  These are often amplified by poor decisions and practices relating to packaging, packing, segregation and securing. Such errors severely compromise safety in a variety of ways, but most critically when the goods should be rightly be described as dangerous in a regulated sense and, here, in compliance the IMDG Code.”

Uffe Ernst-Frederiksen, Head of Cargo Management at Maersk Line and Chairman of CINS says of this guide, “I find this publication to be tremendously useful and that if only people would read one book this year that it should be this one.”

Through its ‘Cargo Integrity’ Campaign TT Club has been for some time seeking to enhance awareness of the issues and to urge implementation of more rigorous practices relating to entering cargo into the supply chain. Its support of, and participation in CINS, is one such initiative. CINS is comprised of representative of container shipping lines which together control over 85% of the world’s container slot capacity. 

A recent CINS report, which should be seen as complementary to ‘Book it Right and Pack it Tight’, demonstrates substantial effort by the industry to bring understanding to the complexities involved in the ship stowage processes. It seeks to develop a commonality of approach in order to improve safety. Entitled ‘Safety Considerations for Ship Operators Related to Risk‐Based Stowage of Dangerous Goods on Containerships’**, it underlines the irrefutable fact that proper declaration is a paramount prerequisite.

One of the expert companies involved in the preparation of the CINS Risk Based Stowage report was Exis Technologies, whose input was focused around its detailed knowledge of the IMDG Code Dangerous Goods List and stowage requirements.  In collaboration other industry experts Exis categorised each commodity on the List by UN Number, placing it in the appropriate Risk Zone as defined by the CINS Stowage guidelines.  In order to further encourage the use of these guidelines, Exis has gifted the Hazcheck Risk Zone Data*** online as a free resource to all involved across the container supply chain.

*https://www.ukpandi.com/knowledge-publications/article/book-it-right-and-pack-it-tight-2020-edition-151231/

*https://www.ttclub.com/loss-prevention/publications/risk-management-handbooks/

**http://www.cinsnet.com/wp-content/uploads/2019/11/CINS-DG-Stowage-Considerations-Final.pdf

***https://hazcheck.existec.com/hazcheck-systems/hazcheck-risk-zone-data.aspx

ENDS

About UK P&I

The UK P&I Club is a leading provider of P&I insurance and other services to the international shipping community. Established in 1869 the UK P&I Club insures over 244 million tonnes of owned and chartered shipping through its international offices and claims network. ‘A (Stable)’ rated by Standard & Poor’s with free reserves of $505m, the UK P&I Club is renowned for its specialist skills and expertise which ensure ‘best in class’ underwriting, claims handling and loss prevention services.

The UK P&I Club is managed by Thomas Miller, an independent and international insurance, professional and investment services provider.

www.ukpandi.com

About TT Club

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 vessel 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 worldwide office network providing claims management services, and first class risk management and loss prevention advice.

www.ttclub.com

“K” LINE Awarded CDP’s “A List 2019” on Climate Change : Earning Highest Rating “A” for Four Consecutive Years

“K” LINE is proud to announce that the company was recognized as “A List,” the top rating, on climate change from CDP, which is a non-profit global organization (NGO) engaging in activities for realizing sustainable economy, in “CDP 2019 Japan Report Launch ” held on January 20 in Tokyo. The “A List” is awarded to companies that are evaluated as global leaders in their response to climate change.

From among the companies that disclosed their climate change information in response to a questionnaire sent from CDP on behalf of 525 institutional investors with total assets of over 96 trillion US dollars, 179 companies whose measures against climate change such as emissions reduction activities in the reported year were regarded as outstanding were recognized in the A List last year. Japanese companies number 38 among these and only 6 companies were selected for more than four consecutive years.

In our medium-term management plan, we have set ESG (Environment, Society and Governance) initiatives as a key management issue. As for the field of the environment, we are advancing measures in accordance with “K” LINE Environmental Vision 2050 – Securing Blue Seas for Tomorrow -*. In particular, promotion  of a framework “DRIVE GREEN NETWORK” for continually promoting environmental preservation activities while ensuring environmental compliance throughout the entire “K” Line Group bore fruit to gain the 4th  straight year to receive the A List rating.

As an environmental front runner, we will continue to aim for the realization of business – marine transportation being more environmentally low-loaded and highly efficient from which more people throughout the world can benefit.

Representative Director, Senior Managing Executive Officer, Atsuo Asano,
speaking at the debriefing session.

* : Please see the following for details of our “K” LINE Environmental Vision 2050  –  Click here

TT Club Appoints Network Partner in Qingdao, China

International freight and logistics insurer, TT Club has announced the appointment of a new Network Partner, tasked with providing support for those the Club insures around the world, in Qingdao, China. The seventeenth such facility that TT provides globally, this complements the Club’s regional offices in Shanghai and Hong Kong

Hong Kong and London, 20th January, 2020

Fundamental to the mutual insurer’s service is its global reach.  Therefore to have the first Network Partner established in China, to complement the existing Shanghai corporate office, is an important landmark for the Club.

Allowing TT Club Members, its insured, to access a unique network of freight transport experts across the globe, Network Partners provide claims assistance, loss prevention and risk management advice to container lines, freight forwarders and other supply chain operators who arrange their insurance cover through TT Club.

Now in Qingdao, through the appointment of Ever Faith Marine Service Co Ltd., as of 10th January, TT Club has a presence in three key locations.  Qingdao joins TT Club’s management company Thomas Miller’s offices in Shanghai and its Asia-Pacific headquarters in Hong Kong.

In making the announcement, Phillip Emmanuel, TT Club’s Asia Pacific Regional Director said, “TT Club Members large and small both operate and trade in a truly global environment and it is vital that they receive assistance from us wherever their business transactions are made and carried out.  We strive therefore to continually enhance the reach of our service network in order to deliver an unequalled level of claims and loss prevention advice.”

Ivy Yu will lead the Ever Faith team in serving TT Club Members.  Ivy spent four years working at the offices of TT Club managers Thomas Miller in Shanghai and will bring valuable experience of mutual insurance to the new Network Partner.

ENDS

About TT Club 

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 vessel 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 worldwide office network providing claims management services, and first class risk management and loss prevention advice.

www.ttclub.com

SAL adds further to its digitalization strategy and appoints spearhead

Hamburg, 13 January 2020

SAL Heavy Lift is taking further steps to strengthen and develop its digital landscape by creating a new executive function that focusses on Information Technology and Digitalization.

With the dawn of the new year, SAL is taking action to ensure its further growth strategy, by strengthening its efforts towards digitalization. SAL and owners Harren & Partner have appointed Claas Matthies, Managing Director, as the new group Chief Information Officer (CIO). He takes on the leadership of the group’s digital strategy combined with responsibility for Group Accounting and Merger & Acquisition activities.

Claas Matthies

Digitalization of business processes is becoming an ever more competitive parameter and we see great potential in developing our digital landscape even further from today. As a modern and dynamic shipping group, information technology plays a vital role in our further growth and development. I am happy to see Claas taking on this challenge in combination with his other activities within Group accounting and our M&A activities,” states Dr. Martin Harren, CEO, SAL Heavy Lift. 

This move aims to contribute to the increased profit growth and strategic development of SAL and Harren & Partner. Alongside this new position comes the appointment of a new Group Chief Financial Officer (CFO), in the form of Mr. Soeren Bibow who joins SAL and Harren & Partner after a more than 20-year long career with leading German corporate banking institutions at which he oversaw shipping and maritime investments.

Soeren Bibow

Dr. Martin Harren goes on to state: “We are extremely pleased to see Soeren joining our management team. His tremendous experience and wide-ranging connections to the international banking world, paired with deep knowledge about Corporate Finance and Controlling, underlines that Soeren will play a key role in developing and executing on our strategic growth targets.” 

Soeren Bibow will take on the responsibility for the areas Financing, Treasury and Controlling and be part of the Group Executive Team.

“I look forward to being part of this highly experienced and motivated team and to take on the future challenges and the great work that lies ahead of us. I relish the task of continuing the successful development of SAL and Harren & Partner,” says Soeren Bibow.

The appointments were effective as of 6th January 2020.

ENDS

About SAL Heavy Lift

SAL Heavy Lift, a member of the Harren & Partner Group, is one of the world’s leading carriers specialized in sea transport of heavy lift and project cargo. The modern fleet of heavy lift vessels offers highly flexible options to customers both within project shipping as well as in offshore projects. With travel speeds of up to 20 knots, up to 3500 square metres of unobstructed main deck space and combined crane capacities ranging from 550 to 2000 tons the fleet belongs to the most advanced in the heavy lift sector.

With the Type 183 fleet, equipped with dynamic position systems and an optional mountable Fly-Jib for greater crane outreach, SAL offers offshore services to multiple sectors. With the Type 171 and 116, SAL holds a fleet of heavy lift vessels with 1A ice class, capable of trading in arctic waters and northern sea route transits. 

As a leading global company in the heavy lift and project cargo segment, SAL meets the highest standards with regard to quality, technical innovation, health, safety and environment. SAL’s latest investments in advanced hydrogen/methanol power generators, takes an industry leading step in applying green technology to its fleet. The global outreach of SAL is ensured via own sales offices and exclusive agents spread across more than 20 countries.

www.sal-heavylift.com  

GEODIS develops time definite Road Freight Service across Southeast Asia

Pioneer of cross-border trucking in the region now offers scheduled departures for consignments along the Singapore-Kuala Lumpur-Bangkok axis, with multi-modal gateway services beyond these hubs. 

Drawing on a wealth of experience running trucking services in the region over the last twenty years, GEODIS Road Network (GRN) Asia Pacific is now established as a time and date specific service. 2020 will see expansion of GRN’s time definite schedule to/from hubs throughout the Southeast Asian landmass.

Trade cooperation within the ASEAN bloc continues to strengthen through free trade agreements and e-commerce activity is set to rise dramatically.  Both trends support the forecast of growth in the regional cross-border road transport market to some USD4.1 billion in revenue by 2023.  This represents an annual growth rate of over 15%*.  

“GEODIS recognises the opportunities this brings to its customers and will continue to develop GRN in support of their business growth,” comments Rene Bach-Larsen, Sub-Regional Managing Director, ASEAN.  “As the region’s road infrastructure continues to improve beyond the Singapore-KL-Bangkok spine, scheduled road transits will become an increasingly attractive option, being faster than sea and cheaper than air. ”GEODIS has identified that this gap in the market is particularly true for 30 to 1000 kilo payload shipments. GRN will benefit shippers of such consignments with a simplified, door-to-door tariff structure.

For customers with this type of freight, GRN offers end-to-end control through the skills of GEODIS teams across the region, providing seamless management of consignments from first to last mile. To add to this level of care GEODIS owned assets, such as containers, air-suspension trailers and dedicated trucks are utilised.  Such control minimises delays at border crossings, heightens security and gives assurance of reliable transit times.

Alan Miu, Regional Director – Customs Brokerage, Truck & Rail, explains the importance of his people’s input in achieving swift cross-border transits, “Our customs control tower solution gives peace of mind to our customers.  A single GEODIS point of contact advises each of our clients before and during transits on customs and other necessary documentation, assisting with electronic lodging of declarations in advance to avoid delays.  This hands-on care also makes customers completely aware of their shipment’s progress through GPS monitoring, contingency planning if necessary and final, ‘signed-for’ delivery.”

GEODIS in Asia Pacific, and indeed around the globe, understands the need to respond to the fast-moving pace of changing economic circumstances and the consequent demands on the logistics environment.  “We believe that our client centric and employee driven approach provides the foundations of a successful future for GEODIS and our customers by adapting to the transformations in the logistics industry that we are seeing,” comments Onno Boots, Regional President and CEO, Asia Pacific. “Our investment in, and operation of GRN, are prime examples of this philosophy in action. Its development has been led by identifying a gap in the market, it is enabled by good data communication and implemented by our dedicated people.”

As ever with GEODIS solutions, the benefits to customers are paramount.  In GRN, GEODIS sees a product that reduces supply chain costs; enhances a client’s working capital by improving delivery times, which also optimizes assets by minimizing inventories and warehousing capacity.  Ultimately customers are provided with a competitive advantage in order to grow their businesses.

*Source:  ASEAN Cross-border Road Transport Market (2018-2013) Report

GEODIS – www.geodis.com

GEODIS is a top-rated, global supply chain operator recognized for its passion and commitment to helping clients overcome their logistical constraints. GEODIS’ growth-focused offerings (Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport) coupled with the company’s truly global reach thanks to a direct presence in 67 countries, and a global network spanning 120 countries, translates in top business rankings, #1 in France, #4 in Europe and #7 worldwide. In 2018, GEODIS accounted for over 41,000 employees globally and generated €8.2 billion in sales.

2020 New Year Message from the President

“Moving forward with the aim of being customers’ first choice through enhanced Safety, Environment, and Quality”

The New Year Message delivered by Yukikazu Myochin, President & CEO at “K” Line Tokyo Head Office on January 6 is posted below.

Yukikazu Myochin , President & CEO

To everyone throughout the entire “K” Line Group, I extend my very sincerest Happy New Year wishes. We have reached the first year of the 2020 decade. This is also the year during which the company kicks off its new medium-term management plan. As we stand at this new starting line, I would like to take this opportunity to share a few words with you.

Looking back on 2019

Last year, the company celebrated the major milestone of its 100th anniversary while Japan entered the new Reiwa era. Looking back on the global situation, although the US maintained a relatively strong economy, the resurgence of an “our country first” approach impacted multilateral free trade. Besides prolonged trade friction between the US and China, there are also concerns about conflicts arising in non-tariff areas. Other developments such as growing geopolitical tension in the Middle East and the issue of Brexit resulted in 2019 being a year of uncertainty.

In FY2019, the Group strove together as one toward our resolute goal of achieving profit in the black. Efforts and execution were made to tackle three issues raised at the beginning of the fiscal year, namely, recovering the fleet’s cost competitiveness through structural reforms set into motion by former President Murakami at the end of FY2018, improving profitability in our car carrier business, and driving a turnaround of OCEAN NETWORK EXPRESS (ONE). As a result of these efforts, as well as efforts to accumulate profits based on our medium and long-term contracts and reduce operating expenses, we were able to achieve more progress in the first half of the year than originally planned. I am grateful to the unremitting efforts of our officers and employees that made this possible.

A new starting line

Unfortunately, during the three years of our medium-term management plan starting in FY2017, financial indicators fell short of target due to factors including structural reforms in response to unexpectedly poor market conditions and a temporary deterioration in the bottom line caused by the teething problems of ONE’s first year of operation. However, we were able to steadily improve the foundations of our business in preparation for next steps, such as by rebuilding our business portfolio and introducing a business risk management system. We have so far been progressing as planned in the current fiscal year—let’s all work together to ensure that the remaining fourth quarter finishes well and achieve profit in the black for the full year.

In April of this year, the company will launch a new medium-term management plan. Although specific details of the plan are still under discussion, there will be no change in our core philosophy of facing customers head-on and providing high-quality services that meet their needs. We will further refine our strengths and increase competitiveness in our four core business operations of dry bulk, energy transportation, car carrier, and logistics/shortsea-coastal services. Having overcome the teething problems of operation, ONE is now at the stage where it can achieve more synergy through best practices and expect further improvements in meeting the bottom line.

As we stand at this new starting line, it is critical that we keep our antennas up and remain alert and prepare to respond flexibly to any changes. Market fluctuations are inevitable in the shipping business. From a medium to long-term perspective, we can see that the automotive industry is entering a once-in-a-century period of transformation, and that the energy industry is also moving toward low carbon and decarbonized alternatives. I believe that constantly reviewing conventional methods of doing things to see through to the heart of the matter, enhancing individual strengths, and then acting based on these insights, will lead to certain progress.

Being a first-choice company

Engaging in business that allows us to clearly see each of our customers face-to-face will be main business in our efforts to further strengthen the company’s four core operations of dry bulk, energy transportation, car carrier and logistics/shortsea-coastal business. Our customers are leading companies in infrastructure and pillars of industry at home and abroad. Our ability to grasp these customers’ needs and respond by providing unique value and services will be a key theme in our efforts to continue being our customers’ first choice.

The pillars supporting this theme are Safety, Environment, and Quality. These are our company’s strengths, cultivated over 100 years of history, and their importance will further increase in the future as sustainability becomes increasingly emphasized across society. By promoting research and development of various leading technologies and introducing and utilizing AI and IoT in our business to meet customers’ needs, we will further enhance our strengths of Safety, Environment, and Quality in both tangible and intangible applications.

Safety is at the root of our Group’s business as a comprehensive logistics company grown from shipping. I believe it is our mission to achieve a vision of “reliable and excellent services” by making continuous efforts in increasing safety – the foundation of society’s trust – while maintaining a top-class operational safety worldwide using advance technologies. The K-IMS platform we developed jointly with Kawasaki Heavy Industries is an integrated ship operation and performance management system that can collect, monitor, and analyze up to 2,000 items of operational data every 30 minutes. The platform, which has already been installed in 170 of our ships, will be utilized in selecting optimal routes, preventing serious accidents, and predicting failures.

Another theme that we must address head-on is environmental conservation, especially since we are a company that utilizes nature for its business. Compliance with the tightened regulation on emissions of sulfur oxides (SOx) that began this year is significant change to our industries. As a shipping company entrusted with our customers’ valuable cargo, we meticulously prepared each member of at-sea and on-land personnel under the slogan of “Never stop the ship”. An even greater challenge lies ahead in reducing greenhouse gases (GHG). As stated in the company’s Environmental Vision 2050, we announced the construction of an LNG-powered car carrier at the end of last year. We also announced our participation in an LNG fuel supply business in Singapore with Shell in addition to the launch of a joint venture in the Chubu Region. However, we cannot reach IMO’s 2030 targets by simply switching diesel oil to LNG fuel; on top of that, we must continue to study new technologies as “LNG + (plus)”, such as the self-flying energy kites announced last year that utilize wind power. Furthermore, in order to reach our 2050 goals, we will accelerate research in alternative fuels such as ammonia, and methanation fuels in addition to hydrogen, participated in demonstration of shipping liquefied hydrogen through HySTRA (*) in last November.

Regarding our efforts toward advanced business management, we are establishing risk measures and investment guidelines for each business division based on our actual data on shipping market conditions and shipbuilding prices from over the past decade. Going forward, we will make investments that correspond to our customer strategy based on a quantitative understanding of risk levels and commensurate return.

According to the Chinese Zodiac, 2020 is the year of the Metal Rat (Kanoe Ne), which is said to indicate a state of transformation into a new form while inheriting previous methods. Now that we have taken a step of profitability, I hope that all of the officers and employees of the Group will move steadily forward as one and strive to further refine the three pillars of Safety, Environment, and Quality, and improve our customers’ trust, which will build a stable profit base and make a fresh start for the next 100 years.

In closing, I wish all of you, the members of the entire “K” Line Group and your families, good health and prosperity as we celebrate the New Year and pray that all our ships will navigate safely throughout 2020.

Yukikazu Myochin , President & CEO

(*) HySTRA: CO₂-free Hydrogen Energy Supply-chain Technology Research Association – http://www.hystra.or.jp/en/