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ICHCA Announces Record Number of Entries for the TT Club Innovation in Safety Award

January 20, 2022 by

Over 30 organisations from around the world have submitted entries for the 2021 TT Club Innovation in Safety Award.  Covering products and procedures that achieve a demonstrable improvement in cargo handling and transport safety, the submissions range in focus from bulk cargo handling to containerised cargoes; safety reporting and education to environmental monitoring and fire- fighting.   

London, 20 January 2022

Designed to both encourage safety innovation at a time of increased operational demands on the global cargo handling infrastructure, and to celebrate the practical success of such initiatives, this will be the fourth time that the Award has been presented. TT Club, as a prominent freight transport insurer, and the association representing cargo handlers, ICHCA International, have long worked together to identify and promote operational safety in the industry.  They consistently produce safety advice and support innovation to improve safety in cargo operations and logistics.

“With over 50% more submissions than in any previous year, I am thrilled to see a record year for entries to the TT Club Innovation in Safety Award,” said ICHCA CEO, Richard Steele.  “The judges had an abundance of creative, innovative and thought-provoking content to consider.  This level of response emphasises that there are lots of smart, dedicated people who are working throughout the cargo handling world to improve safety and we are proud to be part of that endeavour.”

As the leading specialist insurer of cargo handling risk worldwide, TT is a mutual organisation dedicated to reducing risk and advising on loss prevention through improved safety regimes.  TT Risk Management Director, Peregrine Storrs-Fox comments “We consider our founding of, and continuing support for the Innovation in Safety award as entirely appropriate to the Club’s core mission.  TT remains dedicated to safety through the industry and is proud to have celebrated past winners such as Hapag Lloyd’s Cargo Patrol, as well as terminal automation experts, Kunz and Yardeye for their work with CSX Intermodal Terminals, in addition to all the other worthy entrants, for their innovations, each of which can be seen to improve safety standards significantly in the global transport and logistics industry.”

The Award, open to any individual, team or company that is part of the cargo supply chain, is presented to the entry that has been judged as the best product, idea, solution, process, scheme or other innovation delivering improvement in operational safety.  The Award event, a virtual ceremony to be held on 22nd February, 2022, https://attendee.gotowebinar.com/register/5371375306422039564 will profile a limited number of shortlisted entries, culminating in the Award being made.

Speaking on behalf of the judging panel, Bill Brassington, Chair of the ICHCA Technical Panel, “It was exciting to read all of the excellent submissions covering such a wide variety of safety related innovations.  The quality and quantity of submissions demonstrates the importance of the TT Club Innovation in Safety Award, and it was hard to differentiate their value to the cargo handling world,” he commented.  “Out of this strong field, there were only a few marks between many of the entries. While the Award will inevitably recognise one entry, we will, as previously, publish a digest of all entries to give profile to all of the really valuable innovative work that is being done.  In that context, we would congratulate all for their work and dedication to improving safety in cargo handling.”

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 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

Filed Under: ICHCA, TT Club

GEODIS announces new leadership in Germany

January 20, 2022 by

Antje Lochmann has been appointed the Managing Director of both GEODIS’ Freight Forwarding and Contract Logistics activities in Germany. With this appointment, two of the supply chain operator’s lines of business in the country will benefit from her leadership.

Antje Lochmann

Antje Lochmann (43) has many years of experience in the logistics industry and within the GEODIS organization. She joined GEODIS in 2011 and has held various positions in sales, marketing, key accounts and strategic sales planning. She is also one of the youngest senior managers to be promoted within GEODIS’ leadership program.

Since Antje Lochmann took over the role as the Managing Director of Germany’s Freight Forwarding activities in 2018, she and her team have led the business to continued growth and profitability. Now, she will also manage the Contract Logistics’ line of business in Germany. She will be responsible for 22 locations and around 1,350 employees. Antje Lochmann is a member of the management board of GEODIS’ North, East and Central Europe region andshe is based in Hamburg.

“Our Freight Forwarding and Contract Logistics business units will be gathered under the same leadership in Germany in order to create new synergies and to successfully develop the company in accordance with our regional growth strategy,” said Thomas Kraus, GEODIS’ President & CEO North, East and Central Europe. “I am very delighted that with Antje Lochmann we have an excellent and experienced leader for one of our key markets in the region.”

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its 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 global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.

Filed Under: GEODIS

“K “Line – Posted Message for CDP2021 “A List” Award

January 20, 2022 by

Earning Highest Rating “A” for Six Consecutive Years

On January 19th, CDP2021 “A List” award, hosted by CDP Worldwide-Japan, was held online and Yukikazu Myochin, President & CEO of “K” LINE delivered message as one of “A List” company in the event. The video message is posted on “K” LINE’s YouTube channel.

“K” LINE YouTube channel  https://youtu.be/jn7bIMZ1gJY

“K” LINE corporate website  https://www.kline.co.jp/en/index.html *accessible from banner

“K” LINE was selected as “A List 2021”, the top rating, on climate change from CDP, which is a non-profit global organization (NGO) engaging in activities for realizing sustainable economy, on December 7, 2021. In this year, due to stricter evaluation criteria, the number of recognized “A List” companies have decreased from 280 in the previous year to 200 in this year, of which 55 are Japanese companies.

Filed Under: "K" Line

GEODIS inaugurates a new rail link between France and Italy

January 19, 2022 by

A leading player in multimodal transport, the GEODIS Road Transport Line of Business is expanding its network in Europe with the introduction of a road-rail solution linking the Paris region with northern Italy.

Officially launched on January 18, the line links Noisy-le-Sec in France to Novara in Italy and is intended to offer an alternative to road transport.

On a booked path, GEODIS operates 3 rotations per week (i.e. 6 round trips) and offers a loading capacity of 240 ITUs[1]per week. This represents a saving of up to 75% in greenhouse gas emissions[2].

Daniele Bernardi, Managing Director of the GEODIS Road Transport Line of Business in Italy, said: “We are delighted to be able to offer a road-rail solution to our customers including delivery to or from France, for packaged products as well as liquids or powders; hazardous materials or waste. A single loading unit is used from the sender to the recipient (swap bodies, box containers and tanks). All our container carriers are equipped with GPS beacons to guarantee safety and real-time information.”

Inauguration of the new line on Tuesday 18 January in Novara, Italy
Left: Marc Vollet, Director of Operations and Multimodal for the GEODIS Road Transport Line of Business
Right: Daniele Bernardi, Managing Director of the GEODIS Road Transport Line of Business in Italy

Marc Vollet, Director of Operations and Multimodal for the GEODIS Road Transport Line of Business, added: “As the French leader in multimodal transport, we continue to develop rail-road solutions in Europe. This new France-Italy route provides our customers with additional capacity for cross-border multimodal transport and it emits three times less CO2 than transport by road.”

This project is part of the GEODIS Road Transport Line of Business’ “Green” strategy. It operates more than 100 trains per week on the European network.

[1] ITU: Intermodal Transport Unit.

[2] Milan-Paris Region route, by comparison with a road solution.

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its 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 global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.

Filed Under: GEODIS

GEODIS MyParcel Expands Direct-to-Customer Intercontinental Delivery Service to Canada

January 19, 2022 by

GEODIS today announced it has expanded GEODIS MyParcel, a direct-to-customer intercontinental delivery service, to Canada to allow brands to continue growing their e-Commerce business on a global scale. GEODIS MyParcel was first launched in 2020 to offer a small parcel delivery service from the U.S. to 27 European countries, with the goal of progressively expanding globally as seen with the addition of the Canadian market.

As a byproduct of the COVID-19 pandemic, cross-border e-Commerce activity has grown drastically as consumers have altered buying behaviors by increasingly turning to the online purchase of goods. According to Statista, global retail e-Commerce sales reached $4.3 trillion in 2020 and is expected to jump to $5.4 trillion in 2022. In particular, eMarketer reported the Canadian retail e-Commerce market grew by an astounding 75% in 2020, the second fastest-growing market globally. Canadian e-Commerce sales are predicted to top $500 billion in 2022.

“With no end in sight for current cross-border e-Commerce trends, it is vital brands today implement international shipping into their operations to meet demand and remain competitive,” said Manoj Pankaj, Vice President of Cross-border e-Commerce | B2C Shipping at GEODIS in Americas. “With the expansion of GEODIS MyParcel into Canada, we are enabling our customers to further strengthen their international presence and growth potential by accessing a new, rapidly growing market.”

The International Post Corporation reports that 25% of global customers cited a long delivery time as the top issue related to cross-border e-Commerce. To help navigate this challenge, GEODIS MyParcel guarantees fast, reliable delivery within 4-6 days to meet customer demand. GEODIS MyParcel also features a tax and customs duty calculator displayed at the shopping cart level to provide complete price transparency to customers before the transaction is completed, which can improve overall client satisfaction by eliminating surprise fees upon delivery.

“Ultimately, GEODIS MyParcel is designed to offer the right balance between speed and price at a transparent, total landed cost,” said Pankaj. “As a result of GEODIS’ end-to-end global transportation network, fully integrated digital platform and deep e-Commerce expertise across a team of logistics professionals, GEODIS MyParcel provides domestic e-Commerce brands with a simple way to go global.”

GEODIS plans to continue expanding GEODIS MyParcel into new geographical areas in the future.

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

GEODIS – www.geodis.com   

GEODIS is a top-rated, global supply chain operator recognized for its 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 global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.

Filed Under: GEODIS

Rise in differing cargo theft types driven by conditions at congested US ports

January 18, 2022 by

Third quarter cargo theft data in the US shows storage facilities targeted in 45% of reported cases; up from 20% of recorded cases in the same quarter in 2020.  Fall in hijacking and robbery of vehicles from 67% to just 25% this year coincidental with rise in theft of cargo units in unsecured storage areas. Congestion throughout the supply chain but particularly in and around ports is a significant contributory factor to this diversification of theft types.

London & New Jersey, 18th January 2022

Freight insurance specialists, TT Club and the supply chain services and solutions team at BSI, the business improvement and standards company have highlighted the increased risk of theft from storage facilities seen over the past few months in the United States. The changes in theft patterns from the same quarter last year highlight a trend away from ‘on the move’ targets to those locations where cargo is temporarily stored and delivered.  These locations include traditional warehouses and depots where containers and trailers are being held awaiting collection, many of which are temporary facilities in port areas without adequate security regimes.

As the diagrammatic comparisons below show, the largest rise in the methods and locations for cargo theft was from facilities:  the percentage of the total increasing to 25% in the third quarter this year in contrast with just 7% in 2020.  At the other extreme theft of vehicles fell from a dominant 47% in 2020 to a surprisingly low 15%; in addition, hijackings halved from 20% to 10%.


Please note the more prevalent types of theft for each quarter are indicated by the ‘hotter’ colours in the illustration above

In commenting on some of the more contrasting figures, Mike Yarwood, TT Club’s Managing Director, Loss Prevention said, “The is little doubt that the problems of supply chain disruption that are currently bedevilling the US freight transport system, particularly that of container congestion at ports and inland hubs, is creating increased opportunities for thieves. The static nature of cargo in these circumstances, often stored in temporary and less secure facilities, leads to criminal ingenuity adapting the modus operandi of theft in a typically resourceful way.”

TT is keen to use the insightful data provided by BSI Screen in identifying sifts in cargo theft trends and bring them to the attention of operators in as timely as a fashion as possible. Those concerned with risk management in the supply chain both in the US and throughout the world should be aware of such patterns and hopefully take measures to reduce losses, costs and insurance claims. 

TT is committed to providing resources to help supply chain stakeholders to enact such mitigating measures.  Yarwood explains, “Whatever the location and means of cargo theft such incidents can often be averted through straightforward due diligence, management processes and employee vetting and training.” To this end, TT has a webpage dedicated to advice on improving supply chain security which can be accessed via this link

https://www.ttclub.com/loss-prevention/supply-chain-security/?utm_source=pressrelease&utm_medium=article&utm_campaign=bsi_cargotheft

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

Filed Under: TT Club

Klaus Hilpert joins Combi Lift

January 17, 2022 by

German heavy lift and project logistics expert Combi Lift strengthens its Management Team with Klaus Hilpert joining as Managing Director.

Klaus Hilpert

Combi Lift has significantly expanded its services over the past year, increasing its global footprint even further after founding the Forwarding Solutions Division in October. Klaus Hilpert was appointed as Managing Director and Chairman of the Board of Directors to reinforce the team.

“I am very pleased that Klaus is part of our team. With his expertise and proven track record in the project forwarding industry, he will lead the continued expansion of our logistics brand,” explained Dr. Martin Harren, CEO and Owner of the Harren & Partner Group.

Klaus Hilpert, who brings more than four decades of experience as an icon in the project logistics industry, emphasised: “I am excited to joining this ambitious and winning team. The unique spirit and the quality of Combi Lift inspired me to take this wonderful opportunity from the very first conversation.”

About Combi Lift: Combi Lift is a logistics expert for comprehensive transport solutions. The dedicated team consists of more than 30 experienced logisticians, forwarders, naval architects and engineers. Combi Lift focuses on demanding logistics challenges beyond the day-to-day transport business. It’s the one-stop shop for all kinds of heavy lift transport solutions, particularly door-to-door and multimodal concepts – from the factory to the building site. Combi Lift offers its clients seamless logistics solutions, from initial planning and budgetary phases to the final delivery and facility start-up. The German logistics expert provides comprehensive land and sea transport services without any liability gaps; the entire process is handled by Combi Lift. The company is headquartered in Bremen – at the heart of the Harren & Partner Group, which has a fleet of 84 units, 22 offices and 3,200 employees worldwide. This simplifies decision-making processes and ensures that the necessary expertise and vessels are always at hand.

For more information about Combi Lift, go to www.combi-lift.net

Filed Under: Combi Lift

GEODIS awarded contract with American Eagle Outfitters, Inc. to support retailer’s growth in Japan

January 12, 2022 by

American Eagle Outfitters, Inc. (AEO) taps GEODIS for its strategic operations in Japan and omnichannel growth in the market for their leading American Eagle and Aerie brands. This contract comes amidst explosive growth of opportunities on e-Commerce platforms around the world.

GEODIS, a global leading transport and logistics services provider, today announced that AEO has awarded its Japan office the contract to support the retailer’s distribution center. According to economists at the United Nations Conference on Trade and Development (UNCTAD), global e-Commerce growth has seen a dramatic rise across retail sales fueled by COVID-19, with a jump from 16 to 19 percent in 2020. AEO has partnered with GEODIS to support its growth, beginning in Japan, and anticipates eventually expanding the brands to other markets in Asia and other regions in the coming months. 

Chris Cahill, Managing Director, North Asia Sub-Region of GEODIS said: “Retail brands are reaching their customers in unprecedented fashion as they shop for their favorite items anytime and anywhere, and GEODIS is proud to be the appointed logistics provider to deliver AEO products into the hands of customers in the shortest amount of time possible no matter where they reside in Japan.”

The retailer’s ambitious growth as an online brand demonstrates its continued resonance with customers in Japan and the region. Over the years, AEO has maintained a closeness to its Japan customer base, now enhanced by the presence of its distribution center run by GEODIS, which will cut down lengthy delivery times through a centralized distribution model from a single location to ensure customers have the best experience. 

Chauhan Vijay, Senior Vice President – International at AEO said: “This partnership with GEODIS provides AEO the agility, flexibility and reach to bring our leading brands–and our signature American Eagle jeans and Aerie’s comfortable, cozy apparel and intimates–to our customers faster and more efficiently.  GEODIS’ logistical capabilities enable us to further enhance our omnichannel experience and provide the very best for our customers by making it easier to shop our brands. AEO products are now within easy reach, no matter from wherever the customers are shopping in Japan.”

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its 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 global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.

Filed Under: GEODIS

GEODIS opens additional warehouses in the Netherlands to respond to the ongoing e-Commerce boom

January 11, 2022 by

To accommodate the growth of its retail customers, GEODIS has opened a new 17.000 sqm warehouse in Almere and will also add a 9.000 sqm facility in Venlo.

While awaiting the construction of its 130.000 sqm logistics campus at Trade Port Noord planned for the end of 2023, GEODIS is extending its activities to offer additional capacity for its customers. The Group has opened a new site in Almere in November and is preparing the opening of another one in Venlo, due to be operational in the coming weeks. It is planned that both sites will be equipped with latest automation technologies. Among them are autonomous mobile robots from Locus Robotics to support the picking process and reduce the physical demands on employees by eliminating the need to pull pick carts and by decreasing overall travel.

GEODIS currently has a 16.000 sqm retail warehouse in Almere, which means the capacity there has doubled. “This expansion is needed since the pandemic has caused a significant overperformance of many of our current customers and to host our new customers” says Mark van den Assem, Managing Director of GEODIS in the Benelux. ING reports that retail in the Netherlands has grown by 6% in 2020 and another 1.5% in 2021. “Especially companies with an omnichannel approach are expected to increase their business even more,” points out van den Assem. “In order to provide these multi-channel retailers with a long-term logistics solution at the highest possible service level and efficiency, additional warehousing space was needed.”

“We can see the rising demand for e-logistics not only in the Netherlands but throughout Europe and are eager to support our customers in not only achieving their targets but also to be their growth partner” says Thomas Kraus, President & CEO of GEODIS North, East and Central Europe. “The expansion of the warehouse space in the Netherlands combined with our expertise in e-logistics, marks another important milestone towards our growth ambitions.”

The two buildings have a BREEAM ‘Good’ certification. BREEAM is a world-known sustainability assessment method for buildings [1], which underlines GEODIS’ dedication towards sustainable logistics.

GEODIS has now almost 220.000 sqm of warehouses in the Netherlands, including Venlo, Amsterdam, Almere & Rotterdam.

GEODIS – www.geodis.com 

GEODIS is a top-rated, global supply chain operator recognized for its 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 global network spanning nearly 170 countries, is reflected by its top business rankings: no. 1 in France and no. 7 worldwide. In 2020, GEODIS employed over 41,000 people globally and generated €8.4 billion in revenue.

[1] Building Research Establishment Environmental Assessment Method (BREEAM) is the world’s leading sustainability assessment method for masterplanning projects, infrastructure and buildings. It recognizes and reflects the value in higher performing assets across the built environment lifecycle, from new construction to in-use and refurbishment.

Filed Under: GEODIS

2022 New Year Message from the President

January 4, 2022 by

“Boldly and deliberately entering a new phase in a year we will take a stride toward the future”

The New Year Message delivered by Yukikazu Myochin, President & CEO at “K” LINE

Yukikazu Myochin, President & CEO at “K” LINE

To everyone throughout the entire “K” LINE Group, I extend my very sincerest Happy New Year wishes.

The environment surrounding “K” LINE

The global economy is generally continuing to recover from the impact of COVID-19. Although the future spread of COVID-19 and timing of the end of pandemic remain uncertain, the progress of vaccinations and the economic stimulus measures such as financial support from national governments will contribute to continuing to maintain the trend of recovery, and I expect there will be a further shift from recovery supported by policy effects to autonomous recovery in the global economy from 2022. Meanwhile, causes for concern include a resurgence in the spread of COVID-19 due to the emergence of variant strains and changes in trade structure resulting from geopolitical factors such as the conflict between the United States and China. As we enter the era of living with COVID-19, we must carefully monitor the effects on the real economy.

Looking back on 2021

Looking back on the performance of “K” LINE, we achieved the highest earnings on record in the first half of fiscal 2021. The contribution of Ocean Network Express (ONE), an equity-method affiliate, was significant, but the company’s own business also improved significantly. Recoveries in dry bulk and product logistics segments other than containerships, such as car carrier and the logistics business, with performance significantly affected due to the decline in transportation demand caused by the spread of COVID-19 are also driving improvements this fiscal year. Last fiscal year, we decided on a policy to optimize our fleet by reducing approximately 50 uneconomic and aged vessels mainly made up of dry bulk and car carriers. Of these, the car carriers were completed in the first half of the current fiscal year, and optimization of the dry bulk fleet is being brought forward to within the current fiscal year, which is expected to have the effect of further improving revenue from next fiscal year.

The energy resources transportation business struggled due to the continued slump in offshore support vessel business but continued to contribute to stable revenue based on medium to long-term charter contracts such as those for LNG tankers, vessels carrying coal for power generation, VLCCs and LPG vessels. In light of the future economy of the European offshore support vessel business, we have recently decided to restructure by withdrawing from the business.

Due to performance improvements in the containership business and within the company’s own four business divisions, we have been able to set a course for recovery during the current fiscal year by rationalizing the fleet, restructuring unprofitable business and working to address the Company’s negative legacy.

Policy and issues for 2022 (Revision of the management plan)

The Company is entering into new phase with the improvement of performance. Under the current management plan, we planned to have capital of 400 billion yen by fiscal 2030, but thus reached 469.6 billion yen as of September 30, 2021, and the equity ratio was restored to 40%. As a result of implementing several structural reforms in the past, we were able to considerably repair damaged equity, and by implementing the remaining fleet rationalization and restructuring of unprofitable businesses in the current fiscal year, we must continue to move forward with focus on growth by restoring the competitiveness of the company’s own business. In the future creation project launched last July, we have been proceeding with consideration aimed at enhancement of corporate value. In the new business plan, we need to determine where to inject management resources to further strengthen “K” Line, and how the company will provide added value to reduce environmental impact and improve transportation quality, such as environmentally friendly vessels.

Pursuing the strengthening of existing business and growth strategy at the same time is not easy, but I would like to maintain the continued expansion of our financial base and securing stable revenue and proceed with new initiatives while assessing risks that can be balanced with returns. By positively viewing this situation as an opportunity, I would like to draw up a new management plan incorporating growth strategy and disciplined investment, and work with everyone to come up with ways to make further strides forward for enhancing coporate value

Needless to say, safe and secure services of high quality are the core of “K” LINE’s services. Even while faced with the COVID-19 pandemic, I would like all officers and employees to work as marine transportation professionals to ensure we continue to be chosen by customers by thoroughly implementing the strengths of “K” LINE serving an important part of the supply chain.

Environmental action

Sustainability initiatives and particularly environmental action need to be perceived as growth opportunities and further focused upon. Many customers are already aiming to reduce greenhouse gas emissions throughout the entire life cycle of products and are also considering rebuilding the value chain. In order to realize greenhouse gas reductions not only in the manufacturing process, but also in the transportation process for materials, parts and finished goods, we must offer optimal solutions with higher added value to customers. Changes in energy structure aimed at the realization of carbon neutrality also provide medium- to long-term opportunities. As demand for the transportation of materials required for the development of renewable energy such as offshore support for offshore wind energy generation, for the transportation of new forms of energy such as hydrogen, ammonia, and for the transportation of liquefied CO2 are expected to expand, the provision of services for supply chain creation and transportation present us with substantial growth opportunities.

In November last year, we partially revised the “K” LINE Environmental Vision 2050, our long-term policy on environmental measures, replacing the goal of halving emissions by 2050, which was the same as the goal of IMO, with the new goal of the “Taking on the Challenge of Achieving Net-Zero GHG emissions” by 2050. As specific measures, we have already decided to build eight new LNG-fueled car carriers in addition to one that has already been completed, and also order one LNG-fueled capesize bulk carrier and one LPG-fueled LPG carrier. We also aim to introduce zero-emission vessels as early as possible by the end of the second half of the 2020s. The GHG Reduction Strategy Committee will further accelerate projects for both next-generation alternative fuels and safe environmental support technology.

As digitalization accelerates and values change, “K” LINE will proceed to not only improve the efficiency of land operations, but also implement initiatives to reduce the workload of seaborne employees and support safe operations. We will utilize digital technology such as the development of the recently announced engine plant operational support system utilizing AI and lookout and ship handling support system, in addition to the improvement of vessel data analysis technology leveraging AI technology in order to refine the Company’s core values of safety, environment and quality, and promote digital transformation (DX).

Finally, everyone in the “K” LINE Group has worked to balance everyday operations with measures to prevent infection as we have been forced to endure a variety of restrictions and limitations on our lives not only in Japan, but also overseas. Seaborne employees have also engaged in safe operation based on the strong resolve not to stop vessels for even a day despite the great difficulties faced when embarking and disembarking. Again, I would like to extend my deepest gratitude.

I wish all of you and your families good health and prosperity as we celebrate the New Year and pray that all our ships will navigate safely throughout 2022 and it is a year of new progress for the members of the entire “K” LINE Group.

Filed Under: "K" Line
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