Transport communications

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GEODIS completes acquisition of Need It Now Delivers

October 11, 2022 by

GEODIS, a world leader in transport and logistics, today announced it has completed its acquisition of American company Need It Now Delivers following regulatory approvals. The acquisition significantly expands GEODIS’s U.S. presence in the areas of contract logistics and final mile delivery and strengthens its end-to-end freight network domestically and internationally.

Based in Keasbey, New Jersey, Need It Now Delivers operates a major freight network in the United States—with a strong presence in the East—including over 65 company locations and more than 300 interconnected distribution points. Need It Now Delivers features a workforce of more than 2,000 employees and serves over 1,600 customers across a variety of high-growth sectors, including apparel, electronics, home furnishings, automotive products and medical supplies. In addition to omnichannel and final mile capabilities, Need It Now Delivers offers logistics services including white glove home delivery, direct-to-consumer parcel delivery, contract logistics and same day logistics.

“The completion of the Need It Now Delivers acquisition will accelerate our continued growth in the U.S., which has become an essential market for GEODIS, as we remain committed to building a fully integrated network of transport and logistics hubs globally,” said Marie-Christine Lombard, CEO of GEODIS. “This acquisition allows GEODIS to expand our offerings in a consolidating market and solidify our position as one of the world’s top 10 leading logistics providers.”

The acquisition will strengthen GEODIS’s national freight distribution network and final mile delivery, omnichannel and e-Commerce capabilities in the United States alongside its existing contract logistics and freight forwarding lines of business in the country. GEODIS customers will now have access to expanded transportation management and warehousing capabilities in the U.S. while Need It Now Delivers clients will have the opportunity to bolster their global supply chains with new access to GEODIS’s international freight forwarding and contract logistics networks for a comprehensive solution.

“GEODIS acquired Need It Now Delivers due to its proven and dedicated team, expansive national network with a commitment to best-in-class service, and diverse and longstanding customer relationships in high-growth industry verticals,” said Mike Honious, President & CEO of GEODIS in Americas. “I am confident the combination of our two organizations will create a powerful set of end-to-end logistics solutions to best support our customers’ growth.”

With the completion of the Need It Now Delivers acquisition, GEODIS now employs approximately 15,000 teammates in the U.S. (with more than 17,000 employees in the Americas region) and operates over 200 locations totaling 52.9 million square feet of warehousing space domestically. The combined organizations would have generated $3.7 billion for full year 2021 in the U.S.

To learn more about GEODIS, visit www.geodis.com.

GEODIS – www.geodis.com 

GEODIS is a leading global logistics provider acknowledged for its expertise across all aspects of the supply chain. As a growth partner to its clients, GEODIS specializes in five lines of business: Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport. With a global network spanning nearly 170 countries and more than 44,000 employees, GEODIS is ranked no. 7 in its sector across the world. In 2021, GEODIS generated €10.9 billion in revenue.

Filed Under: GEODIS

“K” Line Conduct Emergency Response Exercise

October 11, 2022 by

On October 6th, 2022, “the Emergency Response Exercise” was carried out as a part of training of optimum emergency response prepared for any major maritime accidents. The scenario of the exercise developed that a PCC operated by “K” Line collided with a ferry boat when she was transiting in west coast of Japan. We confirmed a series of emergency response process by setting crisis-management headquarters upon receiving an incident report, establishing communication channel with Ship Owner, Ship Management company and conducting a mock press conference at the end of the exercise.

Online tools were effectively used on the assumption that many concerned members were working remotely in response to the COVID-19 outbreak to enhance our communication by using online tools during an emergency response and then identified the points and tasks to work and improve on.

A mock press conference was held both at the press room and online simultaneously. Many questions were raised by the attendees as media reporters that made the event more realistic and momentous.

“K” Line enhance organization system which covers safety and quality management both world-wide marine transportation businesses and regional businesses. Under the slogan of “Never Leave a Ship Alone,” we aim to build a system to support the safety of our vessels around the world by providing constant support to ships at sea, regardless of time difference, from onshore bases.

While growing interest on safety and environmental load reduction over the world, we are preparing for any unexpected and unforeseen circumstances through the “Emergency Response Exercise”.

Furthermore, we promote safety in navigation, environmental conservation, and quality enhancement, which are important to fulfill social responsibility while establish a system to monitor and support the safety of our vessels from shore, in addition to maintaining the safety of individual vessels, and strengthen our global functional strategy system of maritime organizations, personnel, and bases.

Filed Under: "K" Line

NEDO Demonstration Project: Demonstration Test Ship for Liquefied CO2 Transportation has broken ground.

October 7, 2022 by

A groundbreaking ceremony for the hull of the demonstration test ship for liquefied CO2 transportation was held today, 7 October 2022 at the Shimonoseki Shipyard of Mitsubishi Shipbuilding Corporation (Shimonoseki, Yamaguchi; hereinafter ‘Mitsubishi Shipbuilding’).

This hull of demonstration test ship will be equipped with the liquefied CO2 tank system which is researched and developed by Engineering Advancement Association of Japan (hereinafter ENAA). After the completion, the demonstration test ship will be engaged in liquefied CO2 transportation for the purpose of “CCUS R&D and Demonstration Related Project / Large-scale CCUS Demonstration in Tomakomai /Demonstration Project on CO2 Transportation / R&D and Demonstration Project for CO2 Marine Transportation” (the demonstration projects) which have been conducted by New Energy and Industrial Technology Development Organization (NEDO) since June 2021.

At the groundbreaking ceremony, Mitsubishi Shipbuilding prayed for safety during the construction period and completion without accidents with the attendance of Sanyu Kisen Kaisha, which was contracted to provide the demonstration vessel for the project.

Nippon Gas Line Co., Ltd. (hereinafter NGL) and Kawasaki Kisen Kaisha, Ltd. (hereinafter “K” Line) also present the ceremony.

ENAA, “K” Line, NGL, and Ochanomizu University will accelerate R&D of the LCO2 transportation technology and contribute to cost reduction of CCUS technology and LCO2 safety, long-distance and large-scale transportation.

Ceremony Photograph :
Kawasaki Kisen Kaisha, Ltd.: Mr. Satoshi Kanamori, Nippon Gas Line Co., Ltd.: Mr. Yasuhiro Muramatsu, Mr. Masafumi Ishizaki, MITSUBISHI HEAVY INDUSTRIES, LTD.: Mr. Koji Mori, Sanyu Kisen Kaisha: Mr. Masanobu Mochizuki.

ENAA has been promoting research and development towards the operation of a demonstration ship equipped with a liquefied carbon dioxide ship tank system, and will continue to be responsible for planning, analysis and supervision of demonstration test.

Image of the demonstration test ship for LCO2 transportation

“K” Line is planning to carry out a risk assessment of the demonstration test ship for the safety evaluation this year and will contribute to the development of an operation manual of the demonstration vessels.

NGL is proceeding with planning for management and operation of the demonstration vessel. In addition, NGL is conducting a case study on an own LPG vessel in preparation for data measurement of CO2 temperature, pressure, flow, etc. on the demonstration vessel.

Ochanomizu University conducts fundamental research on the control of carbon dioxide state (phase change) and provide the information necessary for safe transportation studies.

ENAA, “K” LINE, NGL, and Ochanomizu University will contribute to realizing the carbon neutral society through this demonstration project.

Filed Under: "K" Line

The Cargo Integrity Group of Seven Updates its Container Safety Guidance

October 5, 2022 by

The need for increased integrity in the global supply chain persists. The Cargo Integrity Group has updated its Quick Guide to the CTU Code and once more urges all involved in intermodal container transport to pay heed.

The multi-faceted group of originally five, now seven industry organisations, produced a Quick Guide to the IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) some two years ago.  The Quick Guide is designed to assist those responsible for packing containers and accurately declaring details of their contents to abide by the often-complex regulations contained in the voluminous CTU Code itself.  There is also a useful Checklist of actions required by packers and shippers of containers. 

The Group believes that awareness of the CTU Code is pivotal to achieving safe and secure transport and has followed up the Quick Guide’s publication with provision of its full text in Arabic, Chinese, English, French, Russian, Spanish and Italian.  An update has now been made available, taking account of feedback, and is downloadable for free HERE

FIATA Director General Stéphane Graber commented, “Providing individuals responsible for packing containers, and in some cases for preparing documentation and declarations, with easier access to all-important safety guidelines in their own language, is key in order to make available practical cutting edge knowledge of packing. Such information goes beyond maritime operations, reflecting  the complexities of intermodal transport in modern day supply chains, and is key to keeping cargo logistics running efficiently.”

Failure to follow the CTU Code advice puts the people who keep the supply chain moving at risk, leading to incidents and accidents that are still all too common. The Group believes that such tragedies in the supply chain are to be avoided – most vividly demonstrated by the too frequent occurrence of container ship fires – higher standards of cargo integrity.

“We are providing clearer guidance through our revised Quick Guide and Checklist to help those responsible for packing cargo transport units, and in particular intermodal containers, to understand the standards expected in international trade,” stated James Hookham, Director of Global Shippers Forum.  “The revised editions recognise the endorsement of all the partner organisations now active in the Cargo Integrity Group and their joint commitment to dissemination of this advice to their respective memberships and wider networks,” he concluded.

Filed Under: ICHCA, TT Club

Attention to Impending Dutch Customs System Changes Urgently Required

October 4, 2022 by

Customs solution provider C4T is urging traders to and from the Netherlands to be alert to changes in declaration procedures due to take effect on 4th October. With the changeover from the existing AGS system to the highly automated DMS, Dutch authorities seek to accommodate importers and exporters, maintaining the country’s role as a primary EU gateway.

The Netherlands is among the first EU Member States to introduce a real-time declaration process to replace periodic reporting in line with the legal requirements of the Union Customs Code (UCC) to be completed across the EU by 2025.  The Netherlands was also one of the first countries with which C4T connected for the purposes of automatic declaration filing.

In anticipation of the imposition of a uniform data model for all EU states, C4T has built its own centralised, collaborative system, CAS on the same model of customs codes. Accordingly CAS is compatible with not only the new Dutch DMS (Douane-aangiften Management System) but with all the new automated customs clearance systems being developed in each EU state.

“The EU’s Union Customs Code came into effect in 2016 and is intended to result in a fully automated customs union by 2025,” outlines C4T’s Product Marketing Manager Sam Blakeman. “Each state will retain its own customs control and declaration system, but existing electronic procedures are having to be replaced in order for a more harmonised, and hopefully frictionless, freight transport environment to be achieved across the EU.”

The Dutch government has always been committed to as simplified a customs regime as possible in order to encourage the logistics industry to develop further in its ports’ hinterlands.  Consequently it is leading the way in developing DMS with a phased introduction of various elements which started in October last year.  A second phase was completed earlier this year and the final step comes in October.

“Our CAS system is integrated with Portbase which facilitates the CVB message and automates the pre-notification and presentation notification processes — each vital in ensuring the free-flow of import cargo through Dutch customs from October 4th onwards,” explains Blakeman.Further elements of DMS will be brought into play through 2023 with the completion of full implementation scheduled for June.

Pieter Haesaert is Founder and President of C4T.  He is enthusiastic about the procedural changes to the customs union and what C4T can offer.  “True frictionless trade within the EU’s twenty-seven states is a tall order.  The current UCC initiative will go a long way to achieving it.  Apart from the willingness to invest and to commit to systems change by governments, we need a heightening of importer/exporter awareness and an effective ‘one-stop’ platform to help them on their way. At C4T we intend to help with both the last two imperatives.”

Established in 2008, Haesaert built the CAS platform from the ground up, employing the more flexible IT technologies available over the last ten years such as real-time data processing and native cloud solutions.  He describes the resulting software represented by CAS as a “Late-comer to the party.” He continues, “Of course, the advantage is that it is easier for us to incorporate the data model on which the UCC initiative is built than it is for customs software providers with legacy systems that arrived earlier. So, we’ll be inviting many more involved in EU trade to the dance and aiming to lead them to customs harmony.”

About Customs4trade (C4T)

C4T has a unique team of customs experts and best-of-breed technology engineers and has developed CAS, a one-of-a-kind software solution for customs and trade compliance. Managed Customs Services have been added to this product offering, helping companies make the most of their software investment.

CAS is a collaborative hub, built on the Microsoft Azure platform and delivered as a service (SaaS). It is designed to manage regional and worldwide customs and trade compliance quickly and accurately, within one single platform. CAS provides customers with continual updates and feature enhancements, including the incorporation of any changes to legislation and compliance regulation—along with Azure’s signature accessibility, scalability, and security.

Forward-thinking companies are turning to C4T to help them navigate customs and trade with native-cloud software and managed services for their organisation’s highest strategic benefit.  

For more information or to contact the company, please visit www.customs4trade.com.    

Filed Under: Customs4trade (C4T)

GEODIS Unifies its Brand in Poland

October 4, 2022 by

PEKAES in Poland is to be re-branded GEODIS after a successful integration following its acquisition early last year. The unified visual identity will bring clarity for customers in Poland and worldwide.

The company’s new identity is effective from October 3. From now, PEKAES provides all its services under the one GEODIS brand.

Commenting, Marie-Christine Lombard, Chief Executive Officer of GEODIS said, “A unified brand in every region in which we do business is crucial in reassuring customers of a truly integrated service of a reliable and consistent standard wherever in the world they are trading. Our priority is to help our customers grow their businesses by providing simple, efficient, and effective solutions. I am impressed with the enthusiasm with which employees are committed to strengthening the GEODIS brand in the Polish market.”

The Group offers, uniformly under the GEODIS brand, services from full truckload and groupage road transport to contract logistics, rail, sea & air freight forwarding.

GEODIS sees the rebranding as a natural step in the process of affirming its presence in the market and its ability to provide comprehensive end-to-end supply chain management across all the regions in which it operates. The dynamic growth of GEODIS in Poland, Europe’s fourth largest logistics market, is an important element of the Group’s ‘Ambition 2023’ forward plan.

GEODIS in Poland employs more than 1,400 employees across 32 sites and has seven warehouse facilities with a total storage area over 160,000 sqm.

GEODIS – www.geodis.com 

GEODIS is a leading global logistics provider acknowledged for its expertise across all aspects of the supply chain. As a growth partner to its clients, GEODIS specializes in five lines of business: Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport. With a global network spanning nearly 170 countries and more than 44,000 employees, GEODIS is ranked no. 7 in its sector across the world. In 2021, GEODIS generated €10.9 billion in revenue.

Filed Under: GEODIS

The new one-stop shop for the offshore wind industry : SAL Renewables becomes Atheleon

September 26, 2022 by

SAL Renewables acquired both the jack-up vessels Wind Lift I and Thor in 2021 and 2022 and completed a number of projects in and around the waters of northern Europe. Today, the dedicated offshore unit for service, maintenance and installation is taking a new step on its journey: The company is changing its name to Atheleon effective 26 September 2022 in response to the growing importance of wind energy. The Atheleon team is already busy working on an ambitious newbuilding project for the US offshore wind market.

Heiko Felderhoff, Managing Director of the Harren Group and Atheleon, explains: “We see that the time is right to continue our successful journey in the offshore sector under a strong, new and independent name – Atheleon. SAL Heavy Lift holds a leading strategic position within project shipping, and we want to ensure that our customers understand the difference in our service offerings. We realised the brands were too closely associated. Atheleon will continue to represent an epiphany of quality and technical know-how.”

Atheleon is thereby the new go-to market brand for dedicated offshore assignments, especially the renewables sector. Felderhoff: “Atheleon has an exceptional portfolio for its customers: We have a single point of contact for all installation and maintenance services, employ a team of more than 50 engineers and also own all the necessary assets. In addition, we have decades of experience in the offshore industry.”

Atheleon is a unique fictional name inspired by history: the Greek goddess of wisdom Athena and the mythological giant, Leon, who is said to have fought Hercules. “We thought it suited our offshore entity which, while still small in a global context, holds a certain strength in its own right. We utilise the great know-how we have in-house to operate successfully in this sector and see great prospects for Atheleon looking forward,” Heiko Felderhoff continues.

Atheleon will market the offshore jack-up installation vessels Wind Lift I and Thor, together with special vessels such as the Mexican Giant and the VB-10,000. The close cooperation with Wind Multiplikator GmbH and OWS Offshore Wind Solutions GmbH will also continue, unaffected by the name change.

Atheleon also sees immense potential in the US market. “We are working with our partners ONP Management and Renewable Resources Int’l to bring an offshore wind installation concept to the US market,” explains Heiko Felderhoff. “The so-called Feederdock concept will be Jones Act compliant and is a dedicated solution to the rising US offshore transport and installation market.” Feederdock is designed to support the installation of foundation weights of up to 2,800 t and future wind turbine generations with an anticipated capacity of 25 MW and more. It comes with a variety of innovative technical features and follows a strict green design philosophy. Atheleon defined vessel specifications with a crane capacity of 3,000 t and a crane hook height of up to 182 m above deck as key performance criteria. According to Felderhoff: “We are confident that we will be able to bring the ship to market in 2026.”

Harren Group CEO Dr Martin Harren underlines the importance of the renewable energy sector for the entire Group: “Wind energy has become an increasingly important cornerstone of our business in recent years. We are determined to make our contribution to the global energy transition. It’s impossible to overemphasise the importance of the wind market for our Group. Atheleon is the next logical and consistent step to further expanding our commitment in this segment. We offer the renewable energy market a comprehensive range of installation and maintenance services while meeting the highest standards and expectations of these customers.”

About Atheleon: Atheleon is an independent operating offshore company within the Harren Group. The company specialises in offshore maintenance and support services targeted towards the offshore wind sector. Through its access to specialised, diverse and advanced offshore vessels with dynamic positioning and/or jack-up capabilities, Atheleon offers a wide range of expert, cost-efficient services – including vessel time chartering, specialised engineering solutions and complex project management services. Atheleon meets the highest standards with regard to quality, technical innovation, health, safety and environment. Atheleon’s strong global outreach is guaranteed through the large network of Harren Group sales offices and exclusive agents across more than 20 countries. Atheleon has a green perspective and is committed to building a greener tomorrow through its services and technical innovations. For more information about Atheleon, go to www.atheleon.de

Filed Under: Harren & Partner, SAL Heavy Lift

Virginie Delcroix joins the Executive Committee of GEODIS

September 22, 2022 by

Virginie Delcroix has joined GEODIS as Executive Vice President, Sustainable Development, reporting to Marie-Christine Lombard, Chief Executive Officer. This appointment confirms Madame Lombard’s determination to place CSR performance at the heart of the Group’s strategy.

Since 2017, Virginie Delcroix had been Vice President Sustainable Development, with responsibility for CSR and product safety & regulatory affairs at the Arkema group, where she was a member of the management committee. 

Having graduated from the Ecole des Mines de Nancy, Virginie’s career has been spent in industry. In particular, she was technical director and innovation director at Novacel (1999-2011), before taking charge of R&D in South Europe for Bostik, a company in the Arkema group (2011-2017).

At GEODIS, she will be responsible for carrying on the dynamic social commitment of the Group, which, along with its partners and employees, is committed to providing its customers with ever more sustainable solutions. Her priority issues will be decarbonization, the preservation of resources and the protection of the environment, as well as the safety and well-being of the Group’s employees.

Virginie Delcroix’s arrival raises to five the number of female members of the GEODIS Executive Committee.

GEODIS – www.geodis.com 

GEODIS is a leading global logistics provider acknowledged for its expertise across all aspects of the supply chain. As a growth partner to its clients, GEODIS specializes in five lines of business: Supply Chain Optimization, Freight Forwarding, Contract Logistics, Distribution & Express, and Road Transport. With a global network spanning nearly 170 countries and more than 44,000 employees, GEODIS is ranked no. 7 in its sector across the world. In 2021, GEODIS generated €10.9 billion in revenue.

Filed Under: GEODIS

Winners of the Young Logistics Professional Award announced at the FIATA World Congress, Busan

September 21, 2022 by

Busan/London, 16 September 2022- FIATA, the International Federation of Freight Forwarders Associations and TT Club, international freight transport insurer, are very pleased to reveal this year’s global winner of the Young Logistics Professionals Award (YLP) at the 59th, and 2022 FIATA World Congress in Busan, Republic of Korea.

FIATA and TT Club are delighted to announce that Karina Perez Perez, the regional winner of Region Americas, representing the Canadian International Freight Forwarders Association, CIFFA, has been awarded the title of Young Logistics Professional of 2022.    “TT Club is inordinately proud of sponsoring this award since it was established as the Young Freight Forwarder of the Year over twenty years ago.  Its importance as an inspiration to our budding professionals is even more relevant today as the global logistics industry faces ever growing and varied challenges.  So fitting therefore, that the winner, who I heartily congratulate, Karina Perez Perez submitted a dissertation detailing her work in assessing the tools the industry is developing to enhance operator’s performance in the crucial area of sustainability. TT believes that the logistics sector’s ability to attract vital new talent to its ranks is greatly improved by a stronger commitment to environmental issues that are so concerning to those younger generations around the world,” said Michael Yarwood, TT Club’s Managing Director, Loss Prevention.

FIATA and TT Club extend their congratulations to the three other dedicated, ambitious and very impressive young professionals who made it to the final stage of the competition: Regional Asia Pacific Winner,  Avishkar Srivastava, Federation of Freight Forwarders’ Associations in India (FFFAI), India;  Region Africa and Middle East Ruvimbo Gukwe, Shipping and Forwarders Agents Association of Zimbabwe (SFAAZ), Zimbabwe; Region Europe Winner Maximilian Drüschler, Bundesverband Spedition und Logistik (DSLV), Germany (Region Europe Winner).  All finalists showed exceptional skill and motivation during the competition, which all resulted in high quality work. These young professionals stand as an example, and are a true source of inspiration for the industry.  

FIATA President, Ivan Petrov shared “This competition is extremely valuable to our field because young people are the future of the industry. They will be the ones to shape the image of the logistics industry, its importance, its worth, its power and the opportunities that come with it. Attracting and promoting young people in the freight forwarding industry is one of the top priorities on FIATA’s agenda, and we are honoured to meet young logistics professionals, who we can also learn from, while likewise providing them with important tools and guidance for their careers. FIATA acts as the bridge between successful and recognised freight forwarders and young promising talents.”

The industry faces increasing difficulty to find talented, and motivated candidates, with workforce issues being amongst the top obstacles for logistics companies. The goal of this Award competition is to motivate, inspire and search for high calibre, quality young professionals to be a leading light for others to be inspired by, and to show that excellence brings the career potential of these young people to another level. Candidates can grow their network, develop new skills, learn more about the sector and what it entails, and gain exposure within the global freight forwarding community. FIATA and TT Club strongly encourage young logistics professionals, with the essential support of their FIATA national association, to join this exciting venture.

Additionally, the Congress this year saw the first ever full-day programme for young logisticians, with a dedicated programme allowing young professionals to hear from experts, educators and mentors in the logistics sector. This was an important endeavour for FIATA, who continually strives to shine a light on the next generation and attract a young audience to the freight forwarding community.

About FIATA

FIATA International Federation of Freight Forwarders Associations is a nongovernmental, membership-based organization representing freight forwarders in some 150 countries. FIATA’s membership is composed of 113 Associations Members and more than 5,500 Individual Members, overall representing an industry of 40,000 freight forwarding and logistics firms worldwide. Based in Geneva, FIATA is ‘the global voice of freight logistics’. https://fiata.org/

About TT Club
TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1,100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more. www.ttclub.com

Filed Under: TT Club

Container shipping market turns a corner … in lockstep?

September 15, 2022 by

Global container shipping turned a corner in the second quarter of 2022 according to the findings of the latest Quarterly Review of the market produced by MDS Transmodal and Global Shippers Forum.

Covid lockdowns in China, suppressing supply of manufactured goods and demand for raw materials, and plummeting sentiment in consuming countries, due to rising interest rates and energy prices, contributed to a fall in average earnings per container carried for the first time since 2020. (Graph 4.1)*

Chart, line chart Description automatically generated
Graph 4.1

While total container carryings were up on Q1, this volume remained below the level recorded in the same period a year ago (Graph 1.2). This was despite traffic that had switched to other modes or to bulk shipping earlier in the year returning to the more traditional containerised mode.

Graph 1.2 Index of conatiner carryings Description automatically generated
Graph 1.2

The reliability and consistency of port calls showed a small improvement in Q2, but this was seemingly made by intermediate port calls being missed altogether. The capacity lost to ‘skipped’ ports remains high (Graph 7.2).

Chart, line chart Description automatically generated
Graph 7.2

A reshaping of container shipping service patterns seems to be underway with a further increase in Q2 of the number of services connecting no more than two regions, together with a reduction in those linking more than two regions (Graph 2.2). In practical terms this means long, multi-port ‘loop’ schedules are being replaced by ‘shuttle’ services with transhipments required at hub ports in order for containers to reach their ultimate destinations.

Chart, line chart Description automatically generated
Graph 2.2

Mike Garratt, Chairman of MDS Transmodal commented, “In the last quarter we have seen global network capacity grow marginally but underlying demand stay flat. Spot freight rates are now falling steadily and it will be interesting to see as a consequence the share of the minor bulks trade that returns to the major lines. The direct connectivity and reliability of making port calls offered to shippers continues to deteriorate.

In welcoming the Quarterly report James Hookham, Director of GSF, said, “This is the first time the GSF/MDS Transmodal Quarterly Review is showing a significant change in the direction of travel. This is just one set of data points, but shippers are telling us the world economy, international trade and the global shipping market have entered a new phase, with different factors at work compared to the past two years.”

Over the coming months, GSF and MDS Transmodal will continue monitoring whether the opportunistic gains made by shipping lines since 2020 are consolidated into a strategic shift in rates and service patterns imposed on shippers, or whether different carriers will respond instinctively and distinctively to the changing conditions.

James Hookham continued, “This change in market dynamics could provide a context for the use of freedoms granted to shipping lines under anti-trust immunity and Block Exemption legislation to re-engineer an industry-wide shift in capacity deployment, service patterns, port call frequency and market share concentration. Recent experience has shown this is not a market where regulators can ‘legislate and forget’ hoping expected behaviours are observed.

The number of parameters needed to monitor the market are many and complex and GSF and MDS Transmodal invite competition regulators around the world to ‘watch this space’ with us over the coming months”.

*Note:  The Graph numbering refers to that employed in the Quarterly Review the full text of which is available on request as detailed below.

  1. The Container Shipping Market Quarterly Review is produced every three months and reports, interprets and comments on trends and developments in the container shipping market as experienced and understood by shippers – the importers and exporting businesses that own the cargo carried on container ships. Shippers are the customers of the container shipping industry.
  1. The Quarterly Review collates and reports outputs from MDS Transmodal’s established and respected Container Business Model and other tools that are relied upon by governments and international agencies around the world. Working with GSF, MDST has generated eight new indicators showing how the market is performing in terms that are relevant and applicable to shippers as users and customers of these services.
  1. MDS Transmodal (MDST, www.mdst.co.uk) is a UK firm of transport economists which specialises in maritime and all other modes of freight transport. MDST works with senior management in the public and private sectors to provide strategic advice based on quantitative analysis, modelling and sectoral expertise.
  1. Global Shippers Forum (www.globalshippersforum.com) is the global business organisation speaking up for exporters and importers as cargo owners in international supply chains and trade procedures. Its members are national and regional shippers’ associations representing hundreds of manufacturing, wholesaling, and retailing businesses in over 20 countries across five continents. GSF works for safe, competitively efficient, and environmentally sustainable global trade and logistics.
Filed Under: Global Shippers Forum
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