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Recent GEODIS investments and new certification underlines its growth in the Chinese market

April 19, 2023 by

Certification of regional headquarters in Shanghai coincides with redevelopment of GEODIS’ Center of Excellence in Shenzhen and an award for performance at Zhengzhou Airport.

A global leader in the provision of logistics services, GEODIS has been growing its capabilities in Asia-Pacific recently, and in China particularly.  As an economic powerhouse, the Chinese market is of critical strategic importance to GEODIS and will continue to be a lynchpin of the logistic Group’s expansion in the most important locations globally.

GEODIS’ continued development in China was underlined last month when its Shanghai headquarters were certified officially by the local Government as one of twenty newly recognised ‘Regional Headquarters of a Multinational Company, the only one in the Jing’an district of the city.  This status will afford GEODIS local government assistance in terms of trade facilitation, talent introduction and service support.

In highlighting the advantages that this recognition brings to its customers, Onno Boots, Regional President and CEO, Asia Pacific and Middle East emphasises, “As a result of the good standing GEODIS has in China, our customers’ business continues to benefit from the increased ease of doing business with us there.  A further advantage is GEODIS having Authorised Economic Operator (AEO) status granted by the local Shanghai customs department, which certainly enables us to deliver a further expedited service to our customers, for contract logistics.”

The Group’s commitment to the Chinese market was further proven by the redevelopment of its Center of Excellence (CoE) in Shenzhen. To better support customers in managing their end-to-end supply chains from one centralized location, the Shenzhen facility, part of GEODIS | Supply Chain Optimization (SCO) offering, will provide the required overall visibility. 

Established in 2009 in South China, the GEODIS | SCO Line of Business helps global customers in various sectors such as high-tech, retail and healthcare, with manufacturing locations or hubs in mainland China, to optimize their operational processes, control their supply chain, improve their resiliency, and accelerate decision-making.

The upgrading of the Center of Excellence in Shenzhen is justified in part by the city being a magnet for talent. An immediate goal is to ensure the continued attraction of passionate and diverse groups of supply chain professionals to accommodate customers’ growing demands and achieve GEODIS’ own growth ambitions.  The aim is not just to attract, but also to retain these skilled people by improving the collaborative workspace in which teams can exchange great new ideas that can benefit all customers in the present and future.

To round out the good news, further north in the province of Henan, GEODIS was celebrated by the Zhengzhou Airport Authority with an award for performance excellence in 2022.  The airport was utilized throughout the year to transport significant tonnages via GEODIS’ branded freighter operation there.

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, Global Freight Forwarding, Global Contract Logistics, Distribution & Express, and European Road Network. With a global network spanning nearly 170 countries and more than 49,400 employees, GEODIS is ranked no. 6 in its sector across the world. In 2022, GEODIS generated €13.7 billion in revenue. GEODIS is a company owned by SNCF group. 

Filed Under: GEODIS

GEODIS strengthens its capabilities for air freight temperature-controlled pharmaceutical shipments across Asia Pacific and Middle East

April 13, 2023 by

CEIV certification is an assurance of the quality of transportation for healthcare companies in the region.

Leading global logistics operator GEODIS has announced that it has strengthened its air freight temperature-controlled pharma shipments capabilities in Asia Pacific and Middle East (APAC&ME) with the Center of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification. The certification covers multiple locations in China (PVG), Indonesia (CGK), India (DEL & BOM), South Korea (ICN), Thailand (BKK), United Arab Emirates (DXB) and Singapore (SIN).

This certification supports GEODIS’ strategic goals of establishing Pharma Healthcare as a key organizational vertical and expanding its global network by accrediting sites in numerous countries throughout the APAC region.

According to Onno Boots, Regional President and CEO of GEODIS for APAC and Middle East, “With the CEIV Pharma accreditation, we can ensure our customers of our competence and commitment to handle pharmaceutical temperature-sensitive products with the utmost care and attention. Pharmaceutical businesses need to find logistics solutions that are dependable and effective, and GEODIS is in a perfect position to offer them the best services in the area.”

This series of certifications is a reflection of the tremendous investment GEODIS has made in guaranteeing the highest levels of quality and compliance in its Pharma Healthcare capabilities.

“Without a doubt, we are responding to the healthcare industry’s demand for options in the selection of global supply chain partners and we look forward to establishing GEODIS as a key service provider for pharma and healthcare companies, particularly in Asia Pacific and Middle East where we see the key hubs of production and distribution”, adds Boots.

The CEIV Pharma certification for GEODIS further demonstrates its dedication to offering customers supply chain transparency and visibility. GEODIS can provide customers with shipment location and temperature data using GPS data loggers controlled by a control tower, enabling more openness and visibility.

In addition, the capabilities of GEODIS in customs brokerage and contract logistics are of particular interest to the decision-makers in Pharma Healthcare in this region. The best illustration of GEODIS’ capabilities for contract logistics is in Singapore, where GEODIS has GDP, GMP, and ISO13485 in its warehouses. GEODIS is well-positioned to manage the trade compliance needs of the healthcare companies as they expand their operations into new markets.

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 49,400 employees, GEODIS is ranked world no. 6 in its sector. In 2022, GEODIS generated €13.7 billion in revenue. GEODIS is a company owned by SNCF group.

Filed Under: GEODIS

Safety innovators get a further boost

April 12, 2023 by

TT Club and ICHCA are once more partnering with TOC Europe to present the Safety Village at the Conference and Exhibition in Rotterdam (13th to 15th June).  The three organisations are providing a focal point for discussions, presentations and promotion of innovations that have either already led to a safer supply chain, or aim to in the future.

Following the success of both last year’s Safety Village launch at TOC Europe and the Innovation in Safety Awards presented in February TT and ICHCA are continuing with their joint campaign to make the international supply chain a safer working environment for everyone involved in cargo handling, and more secure and sustainable for the cargoes and equipment involved in global trade.

Featuring an enlarged networking area and a stage with presentation facilities, the Safety Village will be the venue for workshops and panel sessions throughout the three days of the TOC Europe event. It will also provide opportunities for companies to showcase their innovative safety devices, processes and products. Dedicated exhibition pods for  past entrants of the safety award will be available within the Village at a discounted rate offered by TOC.  The united aim is to champion safety in the supply chain and to help develop new solutions for managing risks.

Peregrine Storrs-Fox, Risk Management Director at leading international freight transport insurer, TT Club comments. “It has been TT’s consistent mission to increase the levels of safety across the myriad of operational functions that constitute the global supply chain. We are delighted that our campaign has continued to attract substantial interest across the industry, again demonstrating the depth of commitment that exists to enhance safety and the will to employ significant resources to minimise risk. The prominent positioning and extensive facilities of the Safety Village at TOC Europe will help bring together such like-minded companies and individuals to further the visibility of their innovations at this leading industry forum.”

The two organisations’ ongoing efforts have highlighted numerous ground-breaking innovations with multiple applications to improve safety.  Richard Steele is CEO of ICHCA International, the representative body for cargo handling operators across the globe.  He comments, “In the recent past, our efforts together with TT have helped promulgate safety innovations including Hapag Lloyd’s Cargo Patrol that detects suspected mis-declared dangerous goods; terminal automation advances from Kunz and Yardeye in cooperation with CSX Terminals; VIKING Life-Saving’s fire suppressant systems, as well as safety devices developed by PSA International and Cargotec.”

“The awards early this year added to these with APMT’s Vessel Inspection Mobile App; Exis Technologies and Intermodal Telematics BV (IMT) innovative Tank Container Temperature Monitoring.  However there are many, many more innovative ideas are out there and we are committed to giving them the oxygen to grow.  The Safety Village at TOC in June will certainly fill the air with a fervour for safety.”

Representatives of both TT and ICHCA will be at the Safety Village for the duration of TOC Europe, and they would encourage innovators in the safety sphere to embrace the opportunities it affords.  There will be a variety of options from five-minute speaking slots to more detailed workshops.  To register interest please contact riskmanagement@ttclub.com

About ICHCA International

Established in 1952, ICHCA International is an independent, not-for-profit organisation dedicated to improving the safety, productivity and efficiency of cargo handling and movement worldwide. ICHCA’s privileged NGO status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies, while its Technical Panel provides best practice advice and develops publications on a wide range of practical cargo handling issues.

Operating through a series of national and regional chapters, including ICHCA Australia, ICHCA Japan and plus Correspondence and Working Groups, ICHCA provides a focal point for informing, educating, lobbying and networking to improve knowledge and best practice across the cargo handling chain.

www.ichca.com

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: ICHCA, TT Club

New appointment to the GEODIS executive committee

April 5, 2023 by

GEODIS, a world leader in transport and logistics, is pleased to announce the appointment of Camille Porgès as EVP Governance, Risks and Compliance. She will join the Group’s executive committee, which is chaired by Marie-Christine Lombard, Chief Executive Officer of GEODIS.

Camille Porgès, EVP Governance, Risks and Compliance, Geodis

Camille Porgès began her career in 2004 as a lawyer specializing in mergers and acquisitions at Clifford Chance LLP. In 2010, she joined satellite operator Eutelsat as senior legal counsel, with responsibility for the company’s mergers and acquisitions. She was promoted to the position of group compliance and privacy director in 2017. In 2019, she joined the ATOS group as head of ethics and compliance and was appointed chief compliance officer in April 2022.

She has extensive experience in compliance, covering a broad range of areas from anti-corruption to data protection, human rights and economic sanctions, both in terms of prevention and investigation.

Camille graduated from the ESCP business school and holds a postgraduate degree in business law from Paris II Panthéon Assas University. She was admitted to the Paris bar in 2004. 

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 49,400 employees, GEODIS is ranked world no. 6 in its sector. In 2022, GEODIS generated €13.7 billion in revenue. GEODIS is a member of the SNCF group.

Filed Under: GEODIS

GEODIS honored by Arkema China at its Annual Carrier Conference

April 4, 2023 by

Partnerships underscore the collaboration between industry and supply chain provider as trade flows stabilize

GEODIS, a global leading transport and logistics services provider, has been named “Strategic Carrier of Arkema China” in recognition of its concerted efforts to reinforce Arkema’s supply chain strategy in the region in 2022. This marks the third consecutive year in which GEODIS has been honored at the Arkema China Annual Carrier Conference, having also received the same award in 2021, as well as the “Core Carrier of Arkema China” award in the 2020. 

Didier LEBLANC – Regional President Acrylic Monomers Asia presenting the award to Sally ZHOU, GEODIS head of sales and marketing of (Central) China and Elva CHEN, GEODIS regional key account manager for the Arkema account in APAC & ME

While much of the last three year period has ushered in a slew of challenges for the maritime industry, the successful partnership has tapped into GEODIS’ extensive network of transport suppliers and comprehensive auditing strategies to ensure the seamless processing of Arkema’s general cargo across shipping lanes, custom clearances as well as both pre- and on-carriage procedures. This, in spite of port congestions and limited container capacities stemming from unparalleled surges in global economic activity.

The Annual Conference also set in motion promising roadmaps to continue the partnership’s ongoing momentum in 2023. Successfully implemented plans included the smooth integration of electronic data interchanges (EDI) into Arkema’s transportation management system to reinforce real-time tracking tools, on top of advancing operational agility through private charter and priority loading services.  All of which will further support Arkema’s growing presence in the region.

“We are delighted to continue our strong collaboration with Arkema and look forward to playing a key role in the next chapter of their growth,” said Onno Boots, GEODIS’ Regional President and CEO, Asia Pacific and Middle East.  “Innovation and a collaborative spirit have and will continue to form the center of all our projects. This award serves as a testament of our commitment to supporting our partners’ growth with resilient and nimble services that can withstand all the changes in a rapidly evolving supply chain ecosystem.”

GEODIS’ continued partnership with Arkema is a prime example of the organisation’s growing strength in China, assisting companies as their business normalise into pre-2019 levels while trade flows between countries continue to strengthen. 

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 49,400 employees, GEODIS is ranked no. 6 in its sector across the world. In 2022, GEODIS generated €13.7 billion in revenue. GEODIS is a company owned by SNCF group. 

Filed Under: GEODIS

Global inflationary trends influence patterns of cargo crime

March 30, 2023 by

The latest Annual Cargo Theft Report for 2022 from partners TT Club, TAPA EMEA and BSI SCREEN Intelligence shows an overall decline in global incidents over the previous year but with increasing emphasis on basic goods, food and beverages, fuel and auto parts linked to the inflationary effect on the value of such items.  Theft of high value electronics remains constant.

As in the past the united trend analysis and experience of the three organisations, international freight insurer TT Club, the Transported Asset Protection Association’s Europe, Middle East & Africa region (TAPA EMEA), and BSI, the business improvement and standards consultants, supply concerted insight to the changing dynamics of cargo theft around the world.  The 2022 Cargo Theft Report reflects this strength of observational data and comprehensive incident reporting.

The salient conclusions of this year’s report are:

  • Consistent level of theft from facilities
  • Increase in container and trailer theft
  • Global reduction in hijackings
  • Easing of international losses from unsecured parking and from areas adjacent to port facilities
  • Inflationary trends effect black market demand for more basic goods
  • Food and beverages, auto parts and fuel all increasingly targeted
  • High-end electronics remain a frequent target

The over-arching trend is for criminals to adapt to inflation and lessened port congestion and evolve more fraudulent methods of targeting specific goods.  “Our report explores these themes in more detail by way of case studies that look at how social unrest in Latin America, particularly Chile, Peru and Brazil, has provided a weakness exploited by thieves,” points out Mike Yarwood, MD Loss Prevention at TT.  “Also, how in South Asia crime involving fraudulent practices, like fictitious pickups to target cargo, are manifest.”

Of the increases in various types of commodities stolen, as illustrated above, TAPA EMEA identified a significant year-on-year rise in the number of fuel thefts recorded in the region, one of the most prominent trends recorded. “This is clearly driven by the impact of the war in Ukraine on global oil prices and the cost-of-living crisis affecting consumers in many countries. We gathered intelligence on fuel losses in 28 countries across EMEA, but mostly in Germany and the United Kingdom, which accounted for 72%.  Higher value fuel crimes also signalled the involvement of bigger organised crime groups, notably thefts from fuel depots,” said Thorsten Neumann, President & CEO of TAPA EMEA.

Consistent with past publications, advice on steps that can be taken to mitigate the risk of theft are offered in the report.  “In particular, we are keen to give guidance on how operators can combat the practice of fictious pick-ups and the threat of insider influence in cargo crime,” said David Fairnie, BSI’s Principal Consultant on Supply Chain Security.  “Our guidelines are extensive and they can help to reduce risk and enhance the overall security and resilience of the supply chain. However, it’s important to recognize that there is no one-size-fits-all approach.  Each organization must develop a tailored risk management plan based on its specific risks and circumstances.”

The 2022 Cargo Theft Report is available for download free of charge

https://www.ttclub.com/news-and-resources/publications/tt-bsi-cargo-theft-reports/bsi-tt-club-and-tapa-emea-cargo-theft-report-2022/?utm_source=Press&utm_medium=Press-release&utm_campaign=cargo-theft-22

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 1100 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

About BSI

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain.

To learn more, please visit www.bsigroup.com/supplychain

About TAPA EMEA

TAPA EMEA was formed in 2000 to tackle the multi-billion euro problem of cargo thefts from supply chains. Today, it boasts over 900 member companies in the Europe, Middle East & Africa (EMEA) region, including many of the world’s biggest manufacturers and logistics service providers as well as leading SME freight forwarding and transport operators, insurers, law enforcement agencies, security service providers, and other stakeholders.

TAPA EMEA is working to minimise cargo losses and increase supply chain resilience by helping its member companies top understand and manage risks. TAPA EMEA achieves this through the development and application of its global supply chain Security Standards, collating and sharing of cargo crime incident intelligence, training, networking and through its support of, and collaboration with law enforcement agencies, governmental and regulatory bodies.

For more information go to www.tapaemea.org

Filed Under: TT Club

“K” Line : Start of Operations of New General Dry Warehouse in Bangkok

March 30, 2023 by

Kawasaki Kisen Kaisha, Ltd. (“K” LINE) is pleased to announce that its Thailand-based group company K LINE CONTAINER SERVICE (THAILAND) LTD. (KCST) will commence the operation of a new warehouse in the Bang Na district of Bangkok on April 1st.

The new warehouse is situated in a prime location 30 km from Bangkok’s city center, the largest consumption area in Thailand. It is designed to handle e-commerce products, and instead of dispatching products on a per-pallet or per-case basis as before, is able to dispatch products on a per-item basis more swiftly. Multi-level racks that take advantage of the 15 meter-high ceiling have been installed for this purpose. With the installation of a 15 meter-wide canopy that can store a large variety of products in small quantities, the warehouse has been fully equipped with an all-weather cargo entrance and exit. Additionally, KCST has obtained four ISO certifications (ISO 9001, ISO 14001, ISO 45001 and ISO 28000) at its existing warehouses and plans to obtain those same certifications for the new warehouse within the year.

Overview of the New Warehouse

Name: K LINE CONTAINER SERVICE (THAILAND) LTD.

Address: No. 191/1 Moo 9 T. Bangchaloang A.Bangplee, Samutprakarn 10540.

Service Launch Date: April 1st, 2023

Main Business Activities: General cargo storage, distribution processing, packaging, etc.

Total Floor Area: 10,638 m2

Exterior View of the New Warehouse

“K” LINE has been operating regular warehouses and freezing and refrigerating warehouses with close ties to the community in Thailand for over three decades. We have provided logistics services by situating each warehouse in a prime location, such as on the outskirts of Bangkok, within an industrial zone with a high concentration of Japanese companies, at Suvarnabhumi Airport and near Laem Chabang, one of Thailand’s major ports.

In addition, BANGKOK COLD STORAGE SERVICE, LTD. (BCS), another Group company located on the same premises, is in the process of constructing a new freezing and refrigerating warehouse which is due to open this summer (expected in August 2023).

In its management plan, “K” LINE has positioned the logistics business as a major business contributing to stable revenue. Going forward, “K” LINE will continue to provide high-quality logistics services and solutions to meet increasingly diverse customer needs and growing demand, with a focus on Southeast Asia, which will continue to show remarkable economic growth.

Overview of Warehouses in Thailand

KCST General Dry WarehouseAreaLand Area
(m2)		Total Floor Area (m2)
Warehouse No. 1Outskirts of Bangkok (Bang Na district)28,8178,900
Warehouse No. 3Amata City, inside Chonburi Industrial Estate49,76721,907
Warehouse No. 4 (attached to a 6,000 TEU container depot)Laem Chabang area92,00016,600
Warehouse No. 5 (new warehouse to commence operations in April 2023)Outskirts of Bangkok (Bang Na district)19,31710,638
Regular Warehouse Total189,90158,045
BCS Freezing and Refrigerating Warehouses
　AreaLand Area
(m2)		Total Floor Area (m2)
Warehouse No. 1Outskirts of Bangkok (Bang Na district)6,7444,300
Warehouse No. 2Outskirts of Bangkok (Bang Na district)12,3316,300
Warehouse No. 3 (new warehouse to commence operations in summer 2023)Outskirts of Bangkok (Bang Na district)17,7417,000
Freezing and Refrigerating Warehouse Total36,81617,600

Reference Link

Announced May 9, 2022: Medium-term Management Plan

https://www.kline.co.jp/en/ir/management/strategy.html

Related Press Release

Announced November 17, 2021: “K” LINE Group Companies Establish New Cold and Dry Warehouses in Thailand

https://www.kline.co.jp/en/news/logistics/logistics4947569946710464310/main/0/link/211117EN.pdf

Filed Under: "K" Line

“K” Line : Completion of Acquisition of Shares in Atlas Corp. by a Consortium Including an Equity Method Affiliate

March 29, 2023 by

Please be advised that “K” Line Tokyo Head Office issued the following press releases today.

Completion of Acquisition of Shares in Atlas Corp. by a Consortium Including an Equity Method Affiliate

This press release can be viewed on the following website both in English and Japanese. 

https://www.kline.co.jp/en/

Filed Under: "K" Line

“K” Line : Notice Regarding Completion of Cancellation of Treasury Stock

March 29, 2023 by

Please be advised that “K” Line Tokyo Head Office issued the following press releases today.

Notice Regarding Completion of Cancellation of Treasury Stock

This press release can be viewed on the following website both in English and Japanese. 

https://www.kline.co.jp/en/

Filed Under: "K" Line

Shippers Brace for Market Bounce

March 29, 2023 by

Containerised cargo volumes moved in the deep-sea container shipping market fell a further 2.5% during the final quarter of 2022, marking the traditionally busiest period of the year as the ‘peak season without a peak’.

Volumes have fallen steadily in the early weeks of 2023 and world trade continues to stumble as economies grapple with persistent inflation and high energy prices, suppressing consumer demand for goods across nearly all economic sectors.

Commenting on the publication of the latest GSF/MDS Transmodal Container Shipping Market Review, James Hookham, Secretary General of Global Shippers Forum said:

“This has stopped being just a supply chain or a shipping issue and shippers and carriers are firmly in the hands of global economic forces which are themselves responding to structural weaknesses in economies and to geopolitical tensions”.

“Predicting volumes and inventory requirements for the remainder of the year is a leap into the unknown for many shippers, as few but the most experienced will have encountered so varied a mix of influencing factors”.

With interest rates still high and Central Banks hinting they could go higher still, the inflationary effects of the Covid crisis and the crunch on consumer spending is lingering into the second quarter this year.

On the demand side, many carriers and service providers are anticipating a recovery in demand in the second half of the year, but this is more in hope than expectation – there are few economic signals to support such optimism.

The arrival of new shipping capacity, an apparent questioning of the benefits of shipping alliances and an inevitable reduction in utilisation of vessel space, is also changing the shape of the supply side of the equation in container shipping.

Shippers have undoubtedly benefitted from the dramatic fall in spot rates over the past nine months, with costs on many routes back to pre-Covid levels. But weak demand for their core products will be of more concern to shippers than the cost of their shipment. Whilst wary of the speed at which demand could recover – as seen in 2020 – many shippers are bracing for a bounce in rates that may not arrive for some time.

Shippers have also been enjoying have seen a sharp improvement in port call predictability with the number of scheduled calls actually made by vessels significantly improved over Q3 2022. This is the first time since in the reviews started in 2020 that the Service Quality Indicators have all been positive, albeit from a low base.

James Hookham concluded:

“This time it’s certainly different! How shipping lines respond to weak demand, manage existing surplus capacity, deploy new vessels and maintain port schedules, all in a year when every existing ship is being assessed for its overall fuel efficiency, will remain a key focus for our monitoring of the market. The dollar value of rates may look the same as 2019, but the market conditions are utterly different and even less predictable”.

Mike Garratt, Chairman of MDS Transmodal commented:

“Demand clearly fell while shipping line capacity grew marginally, improving shippers’ negotiating positions. Performance generally improved as rates fell and the return of more multi-regional services improved connectivity between markets. However, mean revenues per TEU remained high relative to costs as a consequence of the contract rates agreed the previous year, which is reflected in published liner company results for 2022. Several consortia continued to enjoy market shares of above 30%”

Notes to Editors

  • Mike Garratt, Chairman of MDS Transmodal, is available for interview. Please contact +44 (0) 1244 348301
  • Media Contact:  The Container Shipping Market Quarterly Review for Quarter 2 2022 is available in PDF format on request from Maria Udy, Portcare International. maria@portcare.com +44 (0) 7979 868539.
  • 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.
  • 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.
  • 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.

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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