Editor’s Note – News in Brief from Supply Chain Asia

Over the last 4 years (224 weeks to be exact), we have been churning out weekly news for our community. Our focus was to provide news bits that are meant to inform our members without them having to go through all sources of news media in the industry.

Over the course of doing this, our news sources have also expanded. Inevitably, over time, we have also failed to acknowledge many of these sources.

We would like to acknowledge the various news sources that our information have been derived from, including Cargo Facts Update, Transport Intelligence, eyefortransport, JOC News Wire and IFW – which I also believe many of you are subscribers to as well. There are many other sources of information that we gather our news bits from as well, such as corporate press releases and logistics and supply chain portals and communities.

While we wish we could just gather information and continue to share with the community, we also realized that we are standing on the line of copyright issues and plagiarism. As such, we will revert back to our original purpose of providing short and summarized news bits from now on (see below).

Supply Chain Asia was formed with a social mandate – to create a non intrusive, all-inclusive platforms for networking (connect), to keep the community informed and updated through news, articles, research and information (communicate) and to bring the community members together for business formation and friendship (collaborate).

In the midst of trying to expand our reach, we may have offended some of you (lots of emails) as well as taken information from industry sources without proper acknowledgement. For this, we would like to extend our deepest apologies. We hope to continue our efforts in bringing this community closer together. If you have any feedback that could help us improve ourselves, please feel free to share with us.

For now, we will persevere with our cause in bridging gaps and bringing this community closer together to Connect, Communicate & Collaborate.

Paul Lim
Founder/President
Supply Chain Asia
(Founded on 1 September 2005)

Supply Chain News

Industry News

Logistics is an innovative sector and needs to be leading moves towards climate change, according to Stewart Oades, President of the Freight Transport Association (FTA). The FTA launched its Logistics Carbon Reduction Scheme (LCRS) in January in a bid to benchmark the sector’s collective carbon footprint.

The Global Enabling Trade Report 2010, published by the World Economic Forum has Singapore and Hong Kong SAR in the top 2 positions. Other notable rankings: Germany (13th), United States (19th), China), India (84th) and Russia (114th).

Nearly US$5 billion in global GDP has been lost due to air travel disruption caused by the Icelandic volcano, according to a report launched at the 10th Global Travel & Tourism Summit in Beijing, China.

International airfreight movements could be delayed, and costs will increase, because European and US security regulations are incompatible, says Karl-Heinze Köpfle of Lufthansa Cargo.

NOL Group’s Ron Widdows told an international panel of transport ministers that public sector resources are stretched too thin to support global supply chains. The solution, he said, is public policy that encourages private investment in sorely needed infrastructure improvements.

With Cathay Pacific divesting 40% of its stake in HACTL, the sale is clearing the way for Cathay Pacific Services to complete a new HK$5.5 billion terminal by 2013. This is expected to add to increased competition in cargo handling at Hong Kong International Airport. The sale clears the way for the completion by 2013 of a new HK$5.5 billion (US$705 million) terminal with an annual capacity of 2.6m tons by Cathay Pacific Services, a wholly owned subsidiary of the Hong Kong-based airline.

South Korean regulators have announced nearly $100 million in penalties against 19 airlines for allegedly conspiring on charges for international air cargo transport. South Korea’s Fair Trade Commission imposed the fines against carriers including Lufthansa, Cathay Pacific Airways, Air France, British Airways, Japan Airlines and Singapore Airlines and Qantas.

Armstrong and Associates has just realeased its US and Global Third Party Logistics Market Analysis Report showing that most 3PLs revenue has shrank in 2009 but the first quarter of 2010 has shown massive improvements.

Canada will phase in 100 percent screening of air cargo in 5 years under a new program that will include some US$90 million of funding to improve security for shipping at the country’s airports.

According to Paris-based consultant Alphaliner, the idled container ship fleet shrunk by nearly one million 20-foot equivalent units in the past six months as ocean carriers launched new services to keep pace with rising cargo demand in the summer peak shipping season. The jobless fleet stood at 549,000 teus on May 24, down from a peak of 1.522 million teus at the beginning of December.

Corporate News

Hapag-Lloyd has announce its plan to hike prices on services from Northern Europe and the Mediterranean to Canada, Mexico and the US by US$320 per 20ft container and $400 per 40ft from 1 July.

NYK Line will implement a GRI for trans-Atlantic cargo moving in both directions as of July 1. The rates will increase by $300 per 20-foot-equivalent unit and $500 per FEU and will apply to all dry and refrigerated containers to and from ports in the US and Canada, and all locations in Northern Europe.

Lego is expanding its North American distribution center by nearly 50 percent as the toy maker builds on a strategy to sharply expand its market share in the US. The company plans to add 193,500 square feet to its site at the Alliance Global Logistics Hub in Fort Worth, Texas, that will give it nearly 600,000 square feet at a facility managed by third-party logistics operator Exel.

Dubai is now among top three busiest airports in the world as it achieves double-digit growth with its cargo volumes increasing almost 20%, from 149,169 tons to 178,357 tons on the same period last year.

The Chinese government has launched an initiative to push the country's three major airlines into merging their cargo operations. The South China Morning Post says the initiative affects Air China, China Eastern and China Southern and that a preparation team already has been formed to work out details.

DHL plan to grow its share in the €3 billion outsourced Service Logistics market in Asia Pacific by invest €50 million over the next five years to expand its Technical Services offering, with expansion plans for China, India, Japan and Singapore.

In its attempt to boost margins after $545 million annual loss, Air France-KLM will be freezing its freight capacity despite rising global demand.

Finance, M&As

Lufthansa Cargo and Austrian Airlines has created a joint subsidiary to market the whole freight capacity of both airlines in Austria. With headquarters in Vienna, Austrian Lufthansa Cargo GmbH will also manage freight handling activities in Austria and the expansion of Vienna airport into a hub for Lufthansa Cargo. Lufthansa Cargo will hold 74 percent of the new company; Austrian Airlines will hold 26 percent.

TNT has acquired the e-retail specialist, Kowin, with an intention to expand their e-commerce service proposition. Financial details of the transaction were not disclosed.

Information Technology

Failed ERP and IT projects can be costly failures and warrant unnecessary media attention. SAP last paid an undisclosed sum to former customer Waste Management over a failed ERP implementation.

Robert Walters is now into twitting. You can follow their news at www.twitter.com/RobertWaltersPR.

Green Supply Chain

DHL Asia Pacific division has claimed that is has improved overall CO2 efficiency by 19 per cent year-on-year and for 2009 the company reduced overall CO2 emissions by 13 million kilograms – leading to a AUD$17 million savings in overall energy and fuel costs.

Training & Development

Cisco has announced collaboration with the Multimedia Development Corporation (MDeC) to develop the Cisco Industrial Training Program.

The Singapore Manufacturers’ Federation (SMa) is offering APICS Certified Supply Chain Professional (CSCP) program and would like to extend its special offer of membership rate to Supply Chain Asia readers. To find out more about the program, click here.

Careers & HR

Earl Agron, Vice President of Corporate Security of APL, has been named to an advisory panel of the World Customs Organization (WCO).

DHL Express has appointed Ken Lee as the Managing Director of DHL Express Hong Kong, effective from 1 May 2010.

Mr David Foo has been appointed the new Director of Business Development for DHL Global Forwarding’s chemicals business in the South Asia Pacific region.

Events & Activities

Republic Polytechnic is holding a Green Fashion Retail Logistics on 30th June in Singapore. To register, click here.

Schaefer together with Crown, Loscam, Interoll and CoGri Asia has come together tp host a showcase of Modern Warehouse Expo in Bangkok from 30 June – 1 July 2010. The event will be held at Workpoint Entertain located in Bangpoon, Muang Pathumthani. The exhibition, which has free entry to trade customers, is by invitation only, members of the industry who wish an invitation should email Khun Sunee sunee@ssi-schaefer.co.th for their personal invitation.

Supply Chain Asia will be hosting 2 discussion sessions at the Transport Logistic China 2010 in Shanghai from 8-10 June 2010.

• 18 Jun – Supply Chain Asia Sunset Talk: It’s All About Apple, iPads and Steve Jobs (Click here for more information)
• 16 Jul - Supply Chain Asia Sunset Talk: Going Green or Going Broke
• 20 Aug - Supply Chain Asia Sunset Talk: Christmas Comes Early
• 24-27 August 2010 – Supply Chain Asia Forum 2010 (Click here for more information)
• 17 Sep - Supply Chain Asia Sunset Talk: Niche Supply Chains
• 22 Oct - Supply Chain Asia Sunset Talk: Lean, Green and Clean
• 19 Nov - Supply Chain Asia Sunset Talk: Supply Chain Careers for Life

Supply Chain Articles & Research Papers

Editor’s Blogs – Coming to grips with the many uncertainties of risk (click here to read more)

Read about the Outlook of Japan Logistics Market, contributed by Mr Pelham Higgins, an Executive Committee member of SCA in Japan and working for Macquarie Japan Logistics Fund. Click here to read more.

Supply Chain Asia seeks to compile supply chain related articles and research and make them available to the community. If you are keen to view these articles, click here.

To download our articles - click here.

If you want to publish any of your articles in our portal, kindly email us at admin@supplychainasia.com.

Corporate Endorsers

Editor’s Note – Sign up for Supply Chain Asia Forum before 15 June and enjoy 30% discount

Supply Chain Asia Forum 2010 will features various new programs that we hope will enhance the level of networking and dialogue engagement amongst delegates and speakers. Besides the usual panel discussions, we will be hosting a Senior Executives & CEOs roundtable. In addition there will be 9 technical tracks, a networking pavilion, a special workshop hosted by Dr John Gattorna and 17 corporate exhibitors in the event.

To enjoy the special discount, you must register before 15 June 2010. The fee is SGD495 (for Corporate and Professionals Members) and SGD660 (for non members). After 15 June, the participation fees will revert to SGD795 (for members) and SGD995 (for non members).

Highlights of this year’s Forum:

• Pre-Forum CEO Roundtable on “Improving Supply Chain Productivity in Asia” (By invite only)
• Special Guest of Honor, Mr S Iswaran, Senior Minister of Trade & Industry and Education, Singapore
• 4 macro-topics focusing on Continuous evolutions of SCM in Asia, Changing Sourcing & Manufacturing, Supply Chain Leadership and SCM Sustainability
• 9 technical tracks featuring in-depth discussion on topics such as Global Trade Compliance, Cold Chain Management, Reverse Logistics & After Market, S&OP Management, Supply Chain IT & WMS and Pharmaceutical and Life Sciences SCM Challenges
• A Special Workshop hosted by Dr John Gattorna
• Specially hosted Networking Pavilions featuring collaborative opportunities from India, China & South East Asia
• A Hosted Cocktail Night @ DXO, celebrating Supply Chain Asia 5th Anniversary celebration

Click here to register

Join Supply Chain Asia as a Professional Member

Full time students only need to pay SGD195 and this comes with ONE-YEAR STUDENT MEMBERSHIP)

Other Forum Details:

• List of Speakers
• Sponsors
• Program
• Senior Executive Roundtable
• Supply Chain Asia Cocktail Night (25th Augusthttp://www.supplychainasia.com/forum/cocktail.html
• Register Online
• Forms and Documents for Downloads

Supply Chain News

Asia-Europe airfreight rates return to normal. Although growth in ex-Asia airfreight demand continues strong, even increasing in April, the backlogs that built up during the closure of European air space due to the ash cloud from a volcano in Iceland have finally been cleared. In the weeks following re-opening of the European sky, with cargo backed up from Mumbai all the way across Asia to Seoul, rates reached as much as US$10 per kilo ex-Hong Kong and Shanghai. Now that the backlogs have been cleared, reports indicate rates have fallen to about US$3.50 per kilo – well down from the backlog-driven peak, but much better than a year ago.

Procter & Gamble wants more than 400 of its key suppliers to complete a sustainability report this year on how much power they use and how much waste they generate. Suppliers will fill out a Supplier Environmental Sustainability Scorecard, and they will be graded. Unsatisfactory scores could affect a supplier's rating with P&G. It's an attempt by the $78 billion consumer goods manufacturer to gain better control over its supply chain and achieve its own internal sustainability goals. It's also the latest move by P&G to raise those goals. Last March it increased its 2012 targets for reductions in emissions, energy and water use another 20 percent.

Cargo demand at Bangkok’s International Suvarnabhumi Airport remained bullish, despite the civil and political turmoil in Thailand. Deliveries to and from the airport had continued as normal, although some belly-hold capacity had been lost due to passenger services being cut because of fewer tourists arriving. The fewer passengers had allowed more cargo uplift on some flights, helping compensate for the reduction in frequencies on certain routes.

Container ship lines may be "shooting themselves in the foot" by restoring vessel capacity faster than cargo volumes rise, a new report by Axis Intermodal UK warns. Although carriers' supply-demand balance is expected to improve this year "there will still be a differential of 3 percent between the increase in the 'effective' fleet and the increase in cargo//volumes by the end of 2010." The SeaAxis report said carrier finances are improving as rates and volumes rise after a year in which is was "a miracle" that no major line went bankrupt. But it warned that bunker and other costs have risen from last year and carriers' balance sheets were badly weakened by last year's losses of about $15 billion for major carriers

The world’s top container lines lost an average of $1,500 per 20-foot equivalent unit of fleet capacity while racking up an estimated $15 billion in operating losses last year, AXS-Alphaliner reported in its weekly newsletter. 18 of the top 23 carriers recorded operating losses totaling $12.9 billion in the industry’s worst year ever. Including carriers that don’t publish results, total losses by the big lines were estimated at $15 billion. AXS-Alphaliner said operating losses, divided by capacity of ships in operation or idle, amounted to $2,400 per TEU for Cosco and $921 for Maersk Line, the world’s largest container line. MISC Berhad had the largest rate of loss at $3,600 per TEU, AXS-Alphaliner reported.

Carriers are poised to bring forward peak season surcharges on the transpacific trade as cargo piles up at ports across China due to a lack of containership capacity. Lines have been squeezing capacity on the transpacific trades in the lead-up to the annual contracting season, which is now almost complete. “Capacity is incredibly tight,” said one liner analyst. “About six months ago, about 12% of the global box fleet was idle. Now it’s 4%. Lines are understood to have negotiated rates of around $2000/feu, almost double those of a year ago.

Ceva Logistics saw first-quarter earnings leap by over 73% year-on-year, thanks to greater revenues and cost cutting. The logistics operator reported revenues of €1.5 billion (US$1.8bn), up 14.3% year-on-year. Earnings before interest, tax, depreciation and amortization (ebitda) and specific items reached €52 million in Q1, compared with €30 million in the same period last year. Ceva’s first-quarter new business wins totaled €484 million, and were in the consumer, retail and technology sectors.

Agility has announced its quarterly results with its CEO making a statement about the present condition of the company and its future. The Group's results for the first quarter of 2010 show an overall fall in revenues of 14.4% to 403m Kuwaiti Dinars (KD) (€1,117m) as compared to the previous quarter, whilst Net Profit was KD 17.5m (€48.5m), down from KD36.9m (€102m) on a year-on-year basis. Tarek Sultan, Agility's Chairman and Chief Executive outlines the development of the company over the past couple of years and discusses its present situation. Mr Sultan tacitly admits that Agility is changing in nature, or as he puts it, "the relative importance of the Global Integrated Logistics (GIL) business has grown in the face of uncertainty around DGS".

Con-way completed a $143.7 million stock offering, raising funds for capital expenditures, including new trucks for its fleets. The trucking and logistics company put 4.3 million shares of its common stock on the market May 12 at $35 a share. The company's cash flow was hurt by the downturn in shipping demand over the past year and by steep less-than-truckload price discounting. After losing $1.9 million in the fourth quarter, Con-way lost $4 million in the first quarter despite a 35 percent increase in revenue from a year ago.

Goodman Group has announced that it has signed a Memorandum of Understanding (MOU) with the Langfang Municipal Government to participate in the development of a business and logistics hub for the greater Beijing-Tianjin area in northern China. Over the next seven years Goodman will work jointly with its affiliates to develop a five square kilometer parcel of land into an environmentally friendly mixed-use business park. This will consist of offices and modern logistics facilities and will be co-located with residential housing and associated amenities to create a sustainable community. Langfang occupies a key position between Beijing and Tianjin and is within the Hebei Province.

TNT has begun a five-day per week B737-300 freighter link from Liege via Warsaw to Moscow in response to a growing demand for pharmaceuticals. According to market research company DSM Group, Russia's pharma industry grew 18 percent to $17 billion in 2009 and is expected to increase a further 11 percent this year due to the size of the population, the government's drug reimbursement program and the increase in drug consumption. In March this year, TNT linked Western Europe with Yekaterinburg, the largest city in the Urals with a population of 1.3 million. TNT's European Road Network also connects Moscow, St Petersburg and Nizhniy Novgorod.

Aerologic, the joint venture cargo airline of DHL Express and Lufthansa Cargo, is expanding operations into the United Arab Emirates on a route between Germany and Hong Kong with a connection in the emirate of Sharjah. Aerologic will operate a 777 freighter four days a week from Leipzig to Hong Kong to Sharjah and returning to Leipzig; once a week from Leipzig to Sharjah to Hong Kong to Sharjah and back to Leipzig; and once a week from Frankfurt to Sharjah to Hong Kong and again to Frankfurt.

APL is installing four 90-meter-high gantry cranes, weighing 1,650 tons, which will dramatically increase cargo-lifting capacity at its marine terminal in Kaoshiung (Taiwan). When it’s completed in July, APL will for the first time in Kaohsiung be able to efficiently handle vessels of 10,000 TEUs (twenty-foot-equivalent units) and greater.

Kerry Logistics has expanded its handling capacity and increased its crane moves to enhance service levels following the delivery of a third gantry crane at its Laem Chabang terminal in Thailand. The gantry crane, which takes the total to three at Kerry Siam Seaport, started operations in April and has increased terminal lifting capacity to 85 moves per hour from 65 moves per hour.

Tideworks Technology has been selected by the SP-SSA International Terminal (SSIT) to implement its container terminal operating system (TOS) at the greenfield terminal being built outside of Ho Chi Minh City, Vietnam. The project represents Tideworks' first deployment of its container terminal solutions in Asia. Operated by a joint venture between Saigon Port, SSA International Holdings-Vietnam and Vinalines, the new terminal is scheduled to open in July 2011.

ModusLink Global Solutions again has been named to the 2010 Supply & Demand Chain Executive 100 for its contributions to its clients’ value chain strategies. This year’s award theme of “Back to Basics and Beyond” focuses on deriving maximum value from supply chain fundamentals. ModusLink was selected for successfully helping clients achieve value chain excellence and prepare for a post-recessionary return to growth.

John Gould, the former Agility CEO for Saudi Arabia, has been appointed Ceva Logistics’ MD for the Middle East. Based in Dubai, he will assume overall responsibility for the growth and operations of Ceva’s contract logistics and freight management businesses in the Middle East. Gould started his logistics career with DHL and has also worked for UPS as division manager for the Middle East and Africa.

DHL has appointed Adrian Shou as Managing Director of DHL Global Forwarding Vietnam. Adrian, who was acting managing director prior to this appointment, will report to Sam Ang, CEO, Southeast Asia, DHL Global Forwarding. Adrian has previously assumed the roles of Director of Air Freight Operations and Director of Value Added Services at DHL Global Forwarding Singapore. He holds a Bachelor’s degree in Economics from the University of London and a Masters degree in Logistics from Nanyang Technological University in Singapore.

GAC has appointed marine sales engineer Yuichi Adachi as Marketing Manager - Shipping for Japan. Yuichi brings to his new role extensive contacts with the country’s ship-owning and building community, having served for the past three years as Local Division Manager of ABB K.K. Japan’s Marine & Crane Division, responsible for marketing and sales of specialized electric propulsion systems. Prior to that, he held a variety of Managerial, Engineering and Marketing & Sales posts for Sojitz Marine and Engineering Corporation in the Japanese maritime sector.

Prison inmates serving time in Singapore are being offered the chance to enrol on a logistics course. The first-of-its-kind Logistics Operations Training Centre will teach prisoners warehousing skills and provide practical experience through on-the-job training. They will also receive help finding a job with a suitable logistics employer before release.

Events & Activities

Republic Polytechnic in Singapore is organizing an industry seminar on Green Fashion Retail Logistics on 30th June 2010, jointly with the Textile and Fashion Federation (TAFF) and supported by SPRING Singapore. The event aims to bring together fashion designers, retailers, retail logistics providers and technology providers together to share best practices, lean approaches to cut cost, technology and green trends. To register, click here.

Transport Logistic China 2010 will be held in Shanghai, China from 8-10 June this year. Presenting 500 industry-leading exhibitors and 13 conferences in 23,000 square meters, it is expected to 15,000 visitors to Shanghai from the chain of logistics and transportation. Supply Chain Asia will be hosting 2 specially arranged sessions during the event.

Other SCA Events

• 18 Jun – Supply Chain Asia Sunset Talk: It’s All About Apple, iPads and Steve Jobs (Click here for more information)
• 16 Jul - Supply Chain Asia Sunset Talk: Going Green or Going Broke
• 20 Aug - Supply Chain Asia Sunset Talk: Christmas Comes Early
• 24-27 August 2010 – Supply Chain Asia Forum 2010 (Click here for more information)
• 17 Sep - Supply Chain Asia Sunset Talk: Niche Supply Chains
• 22 Oct - Supply Chain Asia Sunset Talk: Lean, Green and Clean
• 19 Nov - Supply Chain Asia Sunset Talk: Supply Chain Careers for Life

Supply Chain Articles & Research Papers

• The Logistics of Military Operations in Built-Up Areas OR Logistics in Support of Urban Operations - An article on the political crisis in Bangkok (Thailand) by Mr Chris Catto-Smith, CEO, Freshport. (Click here to read more)
• Your job is not as safe as you think (Click here to read more)
• Getting the job that you want – What do you do when you come in second (Click here to read more)
• The Benefits of Automation in the Distribution Center (Click here to read more)
• Is Automation right for your business? Can it be justified? (Click here to read more)

Supply Chain Asia seeks to compile supply chain related articles and research and make them available to the community. If you are keen to view these articles, click here.

To download our articles - click here.

If you want to publish any of your articles in our portal, kindly email us at admin@supplychainasia.com.

Corporate Endorsers

Editor’s Note – The Need to Manage Supply Chain Disruptions

As supply chain networks increase in complexity – due to outsourcing, globalization and volatility in the trading environment – so too has the risk of disruption. Natural disasters such as the volcanic ash eruptions from Iceland, geopolitical turmoil, cyber security threats, and pandemics threaten the ability of logistics providers, suppliers and customers to maintain a state of business continuity. In today’s tightly integrated and lean supply chain, your customer knows about problems the same time as you do.

Across the world, companies are outsourcing functions – from manufacturing to customer service – to subsidiaries or business partners in geographically remote locations based on financial considerations. The economic downturn of the last few years has accelerated this trend, with corporations becoming global, and increasingly dependant on information technology to cut costs and improve the bottom line. These trends have dispersed activities across the entire value chain – from sourcing and manufacturing to distributing products and providing customer service – across multiple organizations around the world.

This evolution towards an increasingly complex global network organization is having a major impact on the way companies assess supply chain vulnerabilities and develop contingency plans. Logistics service providers around the world have taken advantage of the wave of outsourcing to grow into region-and globe-spanning organizations to better serve their customers.

Yet, the growth comes at a price. Customers are transferring the burden of maintaining business continuity to logistics providers, who are now expected to ensure that the supply chain continues moving smoothly, at competitive prices. Lean supply chains leave little room for disruptions. As such, logistics providers and their customers have worked hard to streamline supply chains by identifying and reducing waste and buffers in their various forms. Yet, there is a downside to this strategy. Lean supply chains are becoming increasingly fragile, are extremely dependant on “exposed” communication networks, and are less able to deal with shocks and disruptions that can have significant, if not catastrophic, impact on the firm.

Additionally, whilst many risks to the supply chain come from external sources, e.g. war, epidemics, natural disasters, and online threats, there is also growing evidence that the structure of the supply chain is itself the source of significant risk. For example, the sudden closure of a major supplier in a tight and lean supply network may prevent downstream businesses from achieving business goals, and may have severe impact on whole industries. The goal for logistic providers and related companies, with no business tolerance for downtime, is to achieve a state of business continuity, where critical systems and communication networks are continuously available, no matter what happens. This means thinking proactively: engineering availability, security and reliability into business processes from the outset in order to accommodate ongoing business continuity requirements.

To minimize such disruptions and their effects, a logistics provider must first understand its exposure to the risk of supply disruption. The challenge is to manage supply risk due to “low probability-high impact” events, not avoid it. It is often difficult and expensive to entirely eliminate the chance of the event occurring. So it is critical to have the infrastructure in place to quickly remediate its impact on organizational performance and possible supply disruption effects.

A good planning process for supply chain continuity begins with asking the right questions. A strong supply chain continuity capability ultimately relies on strong, well chosen and well managed business partnerships with an environment that enables management and staff from all organizations to roll up their sleeves and work together during a crisis. The benefits of a strong continuity program include stronger partnerships overall and a greater potential for business success going forward.

Supply Chain News

In a survey done by IFW, majority of its readers would consider collaborating with a direct competitor to save money and reduce emissions. In the poll, 66% of respondents said they would launch joint projects with rivals, despite the possible conflict that may come with it. In a recent survey by analyst Transport Intelligence (TI), 64% of respondents agreed, while 25% cited efficiency and just 8.7% said having a greener operation was the main factor. The survey also revealed that 43% of respondents had been involved in a collaboration with another company in the past and that 94% would consider collaborating – although they would prefer it not to be with a competitor. If they were to collaborate with a rival, 90% of respondents would only do so if a neutral party – such as a 3PL – managed the relationship with strict confidentiality policies in place.

A general increase in merger & acquisition activity during the first quarter is a sign of recovery in the global transportation and logistics sector, according to a new PricewaterhouseCoopers report. 34 deals were announced in the first quarter of 2010, which exceeds the total number of deals announced in each of the four quarters last year. M&A activity inevitably generates a certain amount of immediacy, therefore any companies that might be rusty in the area of due diligence (because few - if any - deals were completed during the past two years) may need to dust off their existing processes and ensure they have the right resources in place so they are ready when an M&A opportunity arises.

The Transported Asset Protection Association (TAPA) said 3,800 cargo crimes in Europe, the Middle East and Africa (EMEA) cost manufacturers and logistics service providers €120 million ($151.7 million) last year. TAPA members reported an increase in "theft from facility" and "hijacking" but a drop in the number of thefts from vehicles. Stealing of tobacco, non-electronic and sports goods rose last year compared to 2008 but the association said "there was an encouraging downward trend in other areas, including metal, laptop/PDA’s, mobile phone, pharmaceutical and medical products and computer software."

EH Publishings now owns Supply Chain Management Review, Modern Materials Handling, and Logistics Management. Most of previous staff from Reed is expected to stay on, although the websites are not up yet. The deal apparently does not include Purchasing Magazine, which was not part of the SCM group. If it does not find a buyer, it means the market will not at present have a free "controlled circulation" magazine.

Direct-booking air cargo portals for shippers, such as the one planned by Dutch Shippers’ Council Evo, could become popular in the future, but only once the culture of the sector has changed and e-booking has achieved greater industry penetration. Shippers in the Netherlands are set to start booking significant volumes of air freight direct with carriers later this year, bypassing freight forwarders.

RedPrairie has completed the acquisition of SmartTurn, an on-demand inventory and WMS provider based in San Francisco. The acquisition adds a multi-tenant software-as-a-service (SaaS) WMS to RedPrairie's E²e^TM productivity suite and creates the only software company with a WMS solution for distribution operations of all sizes and levels of complexity. SmartTurn's Inventory and WMS solution, which is running at more than 200 facilities, will be rebranded as RedPrairie's On-Demand WMS and will focus on less complex distribution operations with rapid implementation demands and flexible pricing model requirements.

DP World is investing as much as US$1 billion in the first Indian port capable of handling the world’s largest container ships. The company has spent around $288 million on the first phase of the development of the southern port at Cochin, recently renamed Kochi. It will have an initial capacity of 1 million teu a year. The second phase will add a further 3 million teu of capacity within five years. Importers and exporters currently spend around $150 million a year to ferry goods to and from Sri Lanka, Singapore or Dubai because the new-generation ships are unable to berth in India, said Singh.

Con-way will sell some 4.3 million shares of its stock in a special offering aimed at bringing new cash into the trucking and logistics company for what Con-way said would be “general corporate purposes” and capital spending. Con-way set the price of the offering at $35 a share, a slight discount off the company's average share price earlier this week, which would make the offering worth $150.5 million. Con-way also set an option for underwriters to purchase another 645,000 additional shares, potentially increasing the value of the offer. Investment analysts said they expect the company to use the cash in part to back an upgrade of Con-way’s trucking fleets.

Manhattan Associates has launched Zero Disappointment Retail, a system-enabled approach that allows retailers to deploy advanced supply chain optimisation techniques to present a unified brand across all channels - traditional brick and mortar stores, Internet, catalogue, call centre, television and mobile. Zero Disappointment Retail relies on a set of software components from the Manhattan SCOPE® (Supply Chain Optimisation-Planning through Execution) solutions portfolio. The technology preserves and complements current systems and investments by aggregating inventory, order, pricing, promotion, merchandising and order execution information across all channels.

Kewill has announced it is delivering its forwarding system globally for Damco, one of the world's leading providers of freight forwarders, following the successful completion of the first phase of implementation. Following an extensive program of user acceptance testing by Damco, the Kewill system was deployed to manage air and ocean shipments, including multimodal, between Asia and Europe, providing the required localized documentation at each port. The system will now be rolled out over the next two years to approximately 3,000 users across the Damco forwarding network covering more than 100 countries and over 250 branch offices worldwide. This represents a multi-million dollar investment by Damco in Kewill software and professional services over the next two years.

Malaysia Airlines Cargo (MasKargo) is to lease three additional B747 freighters in response to the recent upturn in demand. Southern Air, will provide the planes along with crew, maintenance and insurance, with an option for two more. MasKargo currently operates four B747-200Fs, two B747-400Fs and one A300-600 freighter, as well as selling the belly-hold capacity of Malaysia Airlines’ passenger network.

TNT and Con-way Freight have announced the expansion of intercontinental connections between the USA and Europe with new service gateways at Los Angeles International Airport and Miami International Airport. The new strategic locations will improve transit times for customers of TNT and Con-way Freight day-definite door-to-door international freight services between Europe and the American Southwest and Southeast. Previously, the global accelerated solution for heavier freight shipments (more than 70 kg or 150 lbs) had been operated only through a gateway at New York’s JFK International Airport.

A consortium of Hanjin Shipping, Hyundai Merchant Marine, Yang Ming Line and United Arab Shipping Company will launch a container service between Asia and Southern Europe, starting at the end of May. The weekly service will operate with eight vessels of around 4,700 20-foot equivalent units capacity, to be contributed equally by the four partners. The port rotation will be Busan, Shanghai, Ningbo, Yantian, Singapore, Colombo, Jeddah, Port Said, Alexandria, Mersin, Koper, Trieste, Rijeka, Venice, Port Said, Singapore, Hong Kong, and back to Busan.

APL has introduced a new website that addresses how the world’s fourth-largest container shipping line is meeting the environmental challenges of world trade. The new site highlights initiatives the carrier is undertaking onboard vessels and at its terminals to reduce air emissions and protect water quality. APL’s new website includes the company’s Environment Policy. The document states the company’s commitment to responsible environmental management across operations worldwide.

Agility has announced that two of its facilities, including a logistics hub facility within its first year of operations, have attained Transported Asset Protection Association (TAPA) certification. The logistics hub facility in Bukit Jelutong, Shah Alam and the Finished Goods Hub for Hi-Tech Operations in the Sungai Way Free Industrial Zone in Petaling Jaya attained a warehouse classification level A.

Neptune Orient Lines has narrowed its first-quarter net loss to $98 million from $245 million a year earlier and said trends point to a return to profitability for 2010. NOL had a net loss of $741 million in 2009, including a $211 million loss in the fourth quarter. The company said it is beginning to see the effect of a gradually improving economy and will be helped by rising rates this year. NOL’s first-quarter revenue jumped 36 percent to $2.1 billion.

Prologis has signed a new lease for 269,000 square feet (25,000sqm) of previously un-leased space during the second quarter to Rakuten Inc., the largest internet shopping mall and related internet service company in Japan. Rakuten will occupy the space at ProLogis Parc Ichikawa I, a distribution facility in Ichikawa City, near Tokyo. The facility will become Rakuten's first distribution hub in the country.

DHL has revealed that its Express division in Asia Pacific has improved overall CO₂ efficiency by 19 per cent year-on-year. Overall, the company reduced CO₂ emissions by 13 million kilograms for FY2009 – representing a 9 per cent reduction of CO₂ emissions and yielding a €10 million savings in overall energy and ground vehicular fuel costs – with its region-wide carbon footprint assessment and abatement program. Within Asia Pacific, India registered one of the best scores for the reduction of CO₂ emissions. DHL Express India saw a reduction of 1.7 million kilograms of CO₂ emissions across close to 150 sites of operations. It reduced its per unit CO₂ emissions by 40 per cent year-on-year in ground transport and registered a 24 per cent reduction per unit CO₂ emissions in its real estate energy consumption.

Transport Logistic China 2010 will be held in Shanghai, China from 8-10 June this year. Presenting 500 industry-leading exhibitors and 13 conferences in 23,000 square meters, it is expected to 15,000 visitors to Shanghai from the chain of logistics and transportation. Supply Chain Asia will be hosting 2 specially arranged sessions during the event.

Events & Activities

Transport Logistic China 2010 will be held in Shanghai, China from 8-10 June this year. Presenting 500 industry-leading exhibitors and 13 conferences in 23,000 square meters, it is expected to 15,000 visitors to Shanghai from the chain of logistics and transportation. Supply Chain Asia will be hosting 2 specially arranged sessions during the event.

• 21 May - Supply Chain Asia Sunset Talk: Networking for Success (Click here for more information)
• 18 Jun – Supply Chain Asia Sunset Talk: The Chains of Life
• 16 Jul - Supply Chain Asia Sunset Talk: Going Green or Going Broke
• 20 Aug - Supply Chain Asia Sunset Talk: Christmas Comes Early
• 24-27 August 2010 – Supply Chain Asia Forum 2010 (Click here for more information)
• 17 Sep - Supply Chain Asia Sunset Talk: Niche Supply Chains
• 22 Oct - Supply Chain Asia Sunset Talk: Lean, Green and Clean
• 19 Nov - Supply Chain Asia Sunset Talk: Supply Chain Careers for Life

Supply Chain Articles & Research

Supply Chain Asia seeks to compile supply chain related articles and research and make them available to the community. If you are keen to view these articles, click here.

To download our articles - click here.

If you are keen to contribute articles to be posted in our website, please email your article to us at admin@supplychainasia.com.

Corporate Endorsers

Editor’s Note – Demystifying the Global Halal market through Supply Chain

On the 6 May 2010, Supply Chain Asia hosted a Halal Supply Chain Dialogue held in Subang, Malaysia. The event, which was graced by YB Dato’ Mukhriz Tun Mahathir, Dy Minister of International Trade and Development in Malaysia, attracted close to 100 industry professionals from various industry sectors, including logistics, procurement, food manufacturing, technology, infrastructure and equipment as well as various Halal certification agencies.

The centre of the discussion focused on the technical aspect of Halal requirements and how these are currently being implemented. While confusion continue exist on the accreditation and certification processes due to the lack of a global standards, it is obvious from the discussion that managing Halal Supply Chain requires an exacting and high standards in terms of cleanliness, segregation, operational and management techniques. In fact, the qualification to achieve a Halal certification would mean that the organization would have met the ISO9001, ISO28000, HACCP, GMP and other major standards that already exist in our industry today.

What’s exciting to hear during the event is the lack of attention being paid in this industry by the supply chain professionals. There are around 1.3 billion Muslims in the world and 1.5 billion halal consumers, which means that one out of every four human beings consumes halal products. Southeast Asia is home to more than 250 million halal consumers. Indonesia, Malaysia, and Singapore have had regulations to control the import of halal-certified products for some number of years. Middle Eastern countries are net importers of processed foods both for the food service and retail markets. Saudi Arabia, United Arab Emirates, and other Middle Eastern countries have been importing food for decades.

The opportunities available to a corporation able to supply halal products are continuously growing. Muslims are starting to blend the best of Western attitudes with their generally Eastern cultures. Additionally, the large addition of Westerners to the faith of Islam is resulting in some changes in the behavior of the Muslim community. Whereas in the past Muslims simply avoided foods that did not meet the dietary standard of halal, today Muslims are making their presence felt socially and politically. Muslims are now requesting food products that meet their dietary needs. They are offering services and cooperating with producers with the foresight and wisdom to cater to the Muslim consumer.

(Click here to read the article on Halal Supply Chain – A Malaysia Perspective)

There is a constant misconception that one needs to be a Muslim to participate in Halal Supply Chain. Contrary to this, it is now obvious that the Halal Supply Chain world needs professionals who have good understanding of the technical and operational requirements in relation to cleanliness, contamination and segregation techniques to explore how they can contribute to the further development in this sector. There is no need to reinvent new techniques and technologies for the Halal Supply Chain applications, as most of these innovations already exist in the current supply chain world. Companies who are able to find a way to introduce these innovations would certainly discover an exciting growth industry here.

• Pictures of Halal Supply Chain event in Malaysia
• Presentations for Downloads
• Halal Supply Chain Article

Supply Chain News

The European Environment Agency has announced that both road and air freight have grown faster than the European Union economy. Road freight grew by 43 percent and Airfreight by 35 percent between the years 1997 and 2007. The European Union identifies that a major factor for the increase in air and road freight was the lack of rail into the old-Soviet bloc countries. For goods to move into those countries road and air took preference. The EU is concerned by this increase in road and air transport, as they are some of Europe's biggest polluters, contributing heavily in climate-warming emissions. While cleaner methods of transport namely rail and water transport declined. The EU has reported that emissions from internal transport now account for around 19 percent of overall emissions in Europe.

Entrepreneurs producing "halal" cosmetics say the global market is booming as more Muslims opt for beauty products that conform to Islamic rules. The concept of halal, which means "permissible" in Arabic, is mainly applied to food. Pork and its by-products, animals not slaughtered according to Koranic procedures and alcohol are all "haram" or forbidden. Nearly a quarter of the world's population are Muslims and the global halal business, estimated by a Malaysian research company to be worth 635 billion dollars a year, has expanded from Islamic countries to Western nations with growing Muslim populations. The halal cosmetics business -- estimated to be worth 560 million dollars globally - is seen by analysts as next in line for growth after the lucrative halal food and Islamic finance sectors.

Key highlights of the Hudson HK Quarter Two Report for Q2 2010. Expectations have risen sharply over the past year: there are 59 percent who plan to increase hiring this quarter compares with 14 percent in Q2 2009. Leadership development programs are widely seen as the most effective means of grooming local talent for senior positions. Two thirds of respondents across all sectors (67 percent) are willing to make a counter offer e.g. by increasing salary when an employee resigns to join another company in order to retain the employee. Recruitment consultancies are the most widely used method of recruiting new staff, followed by in-house recruiter/direct recruitment channels and employee referrals.

AP Møller-Maesk and its owned subsidiary Orion Ltd have entered into an agreement to sell their interests (a total of 13.7 %) in Sigma Enterprises, which owns an interest in the Yantian International Container Terminal, China, and the related shareholder loans to Crestway International (a subsidiary of COSCO Pacific. The total transaction price will be US$520 million. The transaction is expected to be finalized on or before 31 July 2010.

The International Air Transport Association reported a 28.1% year-over-year increase in international cargo traffic in March. For the first quarter of 2010, international cargo traffic was up 27.8%. According to IATA’s statistics, first-quarter traffic was up 35.9% for Asia Pacific carriers, up 31.6% for North American carriers, but up just 10.3% for European carriers. Latin American and Middle East carriers’ traffic was up 40.3% and 30.0%, respectively.

With the continued increase in demand for airfreight, carriers are beginning to bring parked freighters back into service. Hong Kong-based Cathay Pacific said the last three of five 747-400BCFs it parked in the desert during the recession will return to Hong Kong in June and July but “their return to operations will be gradual, and phased in during the second half of 2010.” Cathay has committed to transfer four 747-400 freighters to its Shanghai-based all-cargo joint venture with Air China, and is reported to have transferred two already, with two more to follow in 2011, so the net impact on its own capacity of the return to service of the five parked units will be relatively small. However, the carrier will be faced with a major capacity increase in 2011, when it is scheduled to take delivery of six of the ten 747-8Fs it has on firm order with BOEING.

AliExpress has integrated UPS shipping technology into its e-commerce platform that enables smaller-quantity orders, instant online transactions and an escrow service to protect buyers and sellers. Founded in Hangzhou, China in 1999, Alibaba.com has 47 million registered users from more than 240 countries. The initial suppliers for AliExpress will be from Mainland China.

US-based ACMI operator Southern Air has begun operating two 777 Freighters in scheduled service for Thai Cargo, the cargo arm of Thai Airways. The two carriers reached a block space agreement last year, under which Southern is flying the freighters on a twice-weekly Bangkok-Frankfurt-Bangkok route and a once-weekly Bangkok-Hong Kong-Amsterdam-Bangkok route. Thai Cargo expects that adding the two 777Fs to its operation will increase revenue by over 30% to almost US$750 million in 2010.

Cochin is a major port on the west coast of India and is gaining prominence as an important gateway for India’s trade. Cochin serves not just the state of Kerala, but also the neighboring states of Karnataka and Tamil Nadu, all of which are witnessing high growth rates in foreign trade. DHL has announced the opening of its new ocean freight terminal in Cochin and the launch of its weekly direct Less than Container Load (LCL) Consol services connecting Cochin, India to Europe, North America and emerging markets via DHL’s multinational gateway in Colombo, Sri Lanka. Cochin is expected to become a major hub of maritime export and import trade. Port authorities expect to handle 600,000 TEUs in the first year and an impressive 3 million TEUs by 2014.

YCH Group has inaugurated its warehouse facility in India's Chennai Special Economic Zone. YCH invested more than US$22 million into the 525,000 square foot distripark. The facility will support manufacturing logistics and consumer fulfillment requirements, fuelled by India's consumption. YCH hopes to tap on the growth potential of the electronics industry in the Chennai Special Economic Zone by locating the facility there. YCH has been in operations in India since end 2006, with established networks across the country to service its customers.

MISC Berhad has reported its profit before tax in the fourth quarter ended March 31 rose 49.3 percent to $85.2 million mainly due to higher profits in LNG and offshore oil support businesses. Fourth quarter revenue of $1.01 billion was 17.3 percent lower than the $1.22 billion in revenue a year earlier. MISC’s full-year profit before tax was $285 million, which excluded $6.4 million loss on the disposal of ships. The group earned a profit before tax of $475 million in the previous fiscal year. Full-year revenue was $4.2 billion, down 12.7 percent from $4.8 billion in the prior fiscal year. MISC operates the world’s 23rd-largest container fleet, according to Alphaliner.

TNT’s net profit nearly doubled in the first quarter on strong gains in expedited shipping demand, but the Dutch express and mail carrier said it remains cautious about what it calls a fragile economic recovery. TNT’s net profit jumped $190 million from $101 million, and the carrier showed and a 54 percent rise in operating profit to $334 million. But TNT officials believe a substantial part of the demand recover is from restocking of diminished inventories rather than from an improvement in underlying demand.

DHL has announced an investment of US$9 million to strengthen its freight forwarding and supply chain operations in Pakistan. The investment will go towards the upgrading of warehouses, fleet, offices, IT systems and employee training and development programs. The 15,000 sq ft office building is located in the main business district (P.E.C.H.S), the new office premises is conveniently located 12km to the airport and 15km to the Karachi port and will house over a hundred employees, with room for further expansion.

Con-way has reported a net loss applicable to common shareholders for the first quarter of 2010 of $4.0 million (8 cents per share). The results compare to a first quarter 2009 net loss to common shareholders of $154.0 million ($3.35 per share). Revenue in the first quarter of 2010 was $1.16 billion, a 20.7 percent increase from last year’s first quarter. Operating income in the 2010 first quarter was $14.4 million compared to an operating loss of $150.3 million in the first quarter a year ago, primarily reflecting the prior-year goodwill-impairment charges.

Linescape has announced the launch of its new AdRoutes subsystem, a user-controlled on-line advertising system for serving ads on the Linescape search engine. AdRoutes gives sponsors unprecedented direct control over their advertising strategy and expenses, allowing them to fine tune the targeting of their advertisements to the precise audience they wish to reach, and to dynamically manage their campaigns themselves. AdRoutes can place ads that are related to the ports or trade lanes searched by users, allowing advertisers to get their message across to customers at the moment they are searching for container transport.

RTG Communications (RTGC) the Hong Kong-based logistics and shipping PR specialist has opened an office in Shanghai to further develop local media opportunities and strengthen its client base in China. Vivian Xu, RTGC’s China Media and Marketing consultant is heading up the office and will liaise with clients and media in Shanghai and eastern China.

Nippon Express has announced that its net profit declined 17.2 percent in fiscal 2009, which ended on March 31, from the previous fiscal year to $136.6 million. Revenue totaled $17.1 billion in fiscal 2009, down 14.2 percent from fiscal 2008. But operating profit rose 12 percent to $408 million. Profit was depleted by extraordinary charges of $146.7 million. For the current fiscal year, Nippon Express expects to generate $17.5 billion in revenue, up 2.3 percent, and to earn $271.7 million in net profit, up 98.9 percent.

Dubai’s long-awaited Al Maktoum International Airport is to open for cargo operations on 27 June, with plans to receive passengers towards the end of March next year, according to Dubai Airports CEO Paul Griffiths. The first phase will see the opening of a single A380-compatible runway and a cargo terminal with a capacity of 250,000 tonnes a year, with room to expand to 600,000 tons a year. There will be a dedicated road link to Jebel Ali port. Al Maktoum International is part of a US$33 billion Dubai World Central development in the Jebel Ali area, home to the region’s largest port.

DHL has announced the appointment of Najeeb-ur Rahman as Country Manager of its DHL Global Forwarding operations in Sri Lanka. The appointment follows DHL’s announcement last year to invest US$8 million in Sri Lanka and its joint venture (JV) agreement with Capitol AEI Pvt. Ltd, its longstanding partner to form DHL Global Forwarding Lanka.

APL Logistics has named Siddharth Adya as Managing Director, APL Logistics South Asia. Previously Director of Business Development for the South Asia region, Adya will relocate from Singapore to Mumbai, India, where he will be responsible for leading logistics activities throughout India, Sri Lanka and Bangladesh.

Events & Activities

21 May - Supply Chain Asia Sunset Talk in Singapore (Click here for more information)

23 Jun (Tawana Bangkok, Thailand – Manufacturing and Logistics Challenges in Thailand. Click here for more information.

24-27 August 2010 – Supply Chain Asia Forum 2010. Click here for more information.

4 Nov – SCM Careers Fairs Malaysia

7 Nov – Supply Chain Asia Carnival: West End Blade and Run Singapore

12 Nov – SCM Careers Fairs Singapore

Supply Chain Articles & Research

Supply Chain Asia seeks to compile supply chain related articles and research and make them available to the community. If you are keen to view these articles, click here.

To download our articles - click here.

If you are keen to contribute articles to be posted in our website, please email your article to us at admin@supplychainasia.com.

Corporate Endorsers

Editor’s Note – Supply Chain Asia Forum 2010 | Register Early to Enjoy Special Rate

Supply Chain Asia Forum 2010 is now open for Registration and we are offering a special rate of SGD495 (applicable to Professional Members of Supply Chain Asia) for those who signed up before 15 June 2010.

Continuing its format of no-holds barred open discussion, this year’s event will commemorate Supply Chain Asia 5th Anniversary since its founding in 2005. Featuring more than 50 speakers and panelists, the event is expected to bring together more than 500 delegates from all over Asia and globally together to network, share and learn from each other.

Highlights of this year’s Forum:

• Pre-Forum Senior Executive/CEO Roundtable on “Improving Supply Chain Productivity in Asia” (By invite only)
• Special Guest of Honor, Mr S Iswaran, Senior Minister of Trade & Industry and Education, Singapore
• 4 macro-topics focusing on Continuous evolutions of SCM in Asia, Changing Sourcing & Manufacturing, Supply Chain Leadership and SCM Sustainability
• 9 technical tracks featuring in-depth discussion on topics such as Global Trade Compliance, Cold Chain Management, Reverse Logistics & After Market, S&OP Management, Supply Chain IT & WMS and Pharmaceutical and Life Sciences SCM Challenges
• A Special Workshop hosted by Dr John Gattorna
• Specially hosted Networking Pavilions featuring collaborative opportunities from India, China & South East Asia
• A Hosted Cocktail Night @ DXO, celebrating Supply Chain Asia 5th Anniversary celebration

Special early pricing (click here to register) will be offered to those who signed up before 15 June 2010:

• Professional Supply Chain Asia Members only need to pay SGD495
• Non-SCA members fees is set at $660 for this early bird promotion (but can opt for the SGD495 fee is you sign up at Professional member for just SGD145 for a ONE-YEAR Professional Membership)
• Full Time students only need to pay SGD195 (which also comes with ONE YEAR STUDENT MEMBERSHIP)

For those who are keen to become Sponsoring Organizations, you can contact us at admin@supplychainasia.com.

• List of Speakers
• Sponsors
• Program
• Senior Executive Roundtable
• Supply Chain Asia Cocktail Night (25th Augusthttp://www.supplychainasia.com/forum/cocktail.html
• Register Online
• Forms and Documents for Downloads

Supply Chain News

The key driver in increasing collaboration in the supply chain is reducing cost, rather than the environmental benefits it brings, according to new research. In a recent survey by analyst Transport Intelligence, 64% of respondents said the main driver for collaboration was cost reduction, while 25% cited efficiency and just 8.7% said having a greener operation was the main factor. The survey also revealed that 43% of respondents had been involved in a collaboration with another company in the past and that 94% would consider collaborating, although they would prefer it not to be with a competitor. If they were to collaborate with a rival, 90% of respondents would only do so if a neutral party – such as a 3PL – managed the relationship with strict confidentiality policies in place.

The volcanic eruption in Iceland caused considerable disruption to passenger and cargo flights. The loss to airlines has been estimated anywhere from 42 million Euros to over a billion. Whatever the final cost, the disruption to the food supply chain has been significant to food retailers across Europe. Much of the fresh produce sold in stores across Europe is brought in from Africa, Asia and Latin America. With cargo flights from those destinations halted, retailers were forced to supply produce from local markets.

Dell, which set the supply chain standard for speed with its build-to-order business model, is advancing a new strategic approach and philosophy that will shift huge numbers of shipments from air to ocean, a fundamental change that, for a leader in logistics, could set a touchstone for distribution in the technology. Dell's diversification from strictly direct-to-consumer sales to include more retailers has led to increased outsourcing and a recent announcement to begin to move from costly air to slower ocean freight. However, the shift in Dell's core supply chain management business model comes with risks – damage, order cancellation, product value decline during shipment – as well as higher inventory carrying costs. Dell's inventory turns — a formula dividing the cost of goods sold by its average quarterly inventory — are its shining star and one that stands to fade with a longer supply chain.

A weak global warehouse market slashed revenue and funds from operations in the first quarter for ProLogis. The industrial real estate developer lost $91 million in the quarter. Revenue fell 40 percent from $432.8 million a year earlier to $260 million in the first quarter ended March 31. Funds from operations plummeted from $242.3 million a year ago to just $7.1 million in the first quarter of 2010. The net loss of $91 million compares with a net profit in first quarter 2009 of $178.7 million. ProLogis took a first-quarter charge of $53.6 million related to “capital markets activity and settlement of fund-related derivatives.”

According to Transite Technology, the majority of companies spend 20% more than they need to on their transportation costs. For manufacturing companies, transportation is one area that's ripe for improvement. While transportation is one of a manufacturer's biggest expenses, along with payroll and raw materials, poor decision-making is inflating their transportation costs by about 20%. And with the sophisticated technology that is available, there's no excuse for not doing real-time accurate comparisons between carrier rates. In order to trim inbound transportation costs, there's no reason why manufacturers shouldn't ask vendors to separate shipping costs on their invoices. The manufacturer can then establish which carriers charge what rates, and then insist that vendors use a particular carrier. The manufacturer could also negotiate rates with the carrier, and pay the carrier directly.

Overcapacity in the airfreight sector will be limited in future by a lack of available capital, according to senior cargo industry executives. Carsten Spohr, CEO of Lufthansa Cargo, said freighter operators needed to remain disciplined in order to avoid a repeat of the overcapacity last year, but predicted there would be less competition from “cowboy” start-up operations.

Maersk Line formally announced it will begin a pilot test of imposing a $10-per-container fee on US export containers that do not arrive at their load ports starting on May 1. The fee applies only to specific exempt commodities, such as wastepaper and scrap products, shipped via the ports of Los Angeles and Oakland for export to Asia on the carrier’s TP-8 service. The carrier said it is testing a no-show fee on exempt commodities, which typically ship in large lots, because they have an historical pattern of higher percentages of no-show bookings, which can range upwards of 30-40 percent on any given week.

The Chinese government and some analysts are hoping that new real estate investment trusts (REITs) will help cool property speculation. The idea is that REITs will provide speculators an alternative to directly investing in property. Real Estate Investment Trusts (REITs) could be launched in the mainland by the second half with the first offerings limited to domestic investors and traded on the interbank market - unlike other typically listed REITs in markets such as Australia and Singapore.

Italian researchers have developed a logistics model that could allow old equipment from refrigerators to mobile phones to be recycled more efficiently under product take-back regulations. They outline their approach in the International Journal of Logistics Systems and Management. Product take-back legislation, such as the Waste Electrical and Electronic Equipment (WEEE) regulations, shifts the responsibility of disposal of goods from consumers to the manufacturers. The ultimate aim is to allow materials to be recycled and reused rather than sent to landfill. However, management approaches tend to focus on specific WEEE categories, specific people and organizations involved, and the system is not optimized as a whole.

Air and sea gateways in Shanghai have being hit by major delays, inflated trucking costs and congestion due to the opening of Expo 2010. Customs clearances and declarations were being carried out “very strictly” in Shanghai, with some shipments being detained for 24 hours longer than normal. And the delays are likely to get worse, with China’s customs authorities expected to be understaffed for a few days around Labour Day on 1 May, predicted forwarders. The delays and disruptions to cargo movements at Shanghai would cause a knock-on effect for Hong Kong and other Chinese gateways.

TAPA Asia has now approved that TAPA 'C' can be a certifiable standard following requests from the Singapore Airport Police Division and other organizations. This was another move by Law Enforcement to use TAPA standards as a baseline in their search for compliance and self-policing. It illustrates the benefits of TAPA across the security spectrum and not just the customer security requirements. The move demonstrates the added value and benefits of the TAPA certification program.

APL has partnered with the Singapore Maritime Academy (SMA) and the Maritime and Port Authority of Singapore (MPA) to raise awareness of environmental issues in the maritime sector. The Maritime Environmental Awareness multimedia e-learning project is the first of its kind in Singapore. Its chief aim is to ensure employees of maritime-sector organizations are more aware of environmental trends and challenges, as well as the commitment of their institutions to adopting sound practices. The project received funding from the MPA’s Maritime Innovation and Technology (MINT) Fund, which supports the development and test-bedding of technology in the maritime sector.

UPS has opened major new airfreight hubs in China and the US. The 89,000sq metre Shenzhen Asia Pacific Hub, located at Shenzhen Baoan International Airport in the Pearl River Delta, replaces the facility at Clark in the Philippines, and includes an express customs handling unit, sorting facilities, cargo handling and cargo build-up areas and ramp handling. In the US, the company has also now completed the four-year expansion of its Worldport Hub at Louisville, adding some 110,000sq metres to its footprint.

DHL has launched a new advertising concept across 21 countries in 16 languages with more than 1,500 ads in over 250 publications worldwide. Driven by the company’s goal of ‘Becoming the logistics company for the world’, the global campaign is designed to address the decision-makers in today’s business world. The multi-tiered, multi-channel concept includes TV ads for international broadcast, advertisements in leading media in both Germany and around the world, as well as product campaigns in both print and digital format.

Oracle will be hosting a webcast on the Demand Driven Supply Chain, featuring The Economist Intelligence Unit on 12 May from 10am to 8pm. The event will feature Mr Sudhir Vadaketh, Associate Director with Economist Intelligence Unit takes a look at the holistic approach to building demand-driven supply chain operations. The webcast also features interviews with the following organizations about their demand driven supply chain operations. Attend the webcast and receive a free whitepaper on The Demand Driven Supply Chain by the Economist Intelligence Unit. Click here to register.

Menlo Worldwide Logistics has announced that Peter Baumann and Edwin Chan have assumed new roles within the company’s South Asia organization. Baumann is now director of regional sales and solutions, while Chan has been named senior director of business development and strategy.

Events & Activities

Oracle Webcast - The Demand Driven Supply Chain – featuring The Economist Intelligence Unit

Oracle will be hosting a webcast on 12 May from 10am to 8pm. The event will feature Mr Sudhir Vadaketh, Associate Director with Economist Intelligence Unit takes a look at the holistic approach to building demand-driven supply chain operations. The webcast also features interviews with the following organizations about their demand driven supply chain operations. Attend the webcast and receive a free whitepaper on The Demand Driven Supply Chain by the Economist Intelligence Unit. Click here to register.

Other SCA Events

• 6 May (Holiday Villas, Subang, Malaysia) - Halal Supply Chains: The Specialized Supply Chain Challenge. Click here for more information
• 23 Jun (Tawana Bangkok, Thailand – Manufacturing and Logistics Challenges in Thailand. Click here for more information.
• 24-27 August 2010 – Supply Chain Asia Forum 2010. Click here for more information.
• 4 Nov – SCM Careers Fairs Malaysia
• 7 Nov – Supply Chain Asia Carnival: West End Blade and Run Singapore
• 12 Nov – SCM Careers Fairs Singapore

Careers @ SC Asia

Jobs Available in various 3PLs, Manufacturers and Retail in the areas of General Managers, Logistics Operations and Supply Chain Management. Click here to view these opportunities.

Corporate Endorsers

Editor’s Note – Outsourcing on the rise but trouble may lie ahead

Outsourcing becoming a necessary evil for business sector recovery and public sector spending reform.

The impact of the economic recession has been to increase the appetite for more outsourcing, up 20% from last year, but not necessarily offshoring, to the dismay of offshore supplier organizations, according to Op2i’s Outsourcing 2010 survey report released today.

Whilst interest in outsourcing has increased, focus has yet again shifted to cost reduction, with suppliers pressured to deliver more for less – the U turn from strategic to tactical outsourcing has the potential to push the outsourcing industry back a decade, if the industry does not heed the warnings.

There’s been a shift in the perception of the main driver for outsourcing, away from productivity and efficiency (from 40% to 34%) towards cost cutting (from 46% to 58%).

Both improved performance and quality appear to have dropped from 20% and 13% to 13% and 5% respectively. With a race to deliver services at the lowest cost, performance and quality appear to have been sacrificed. This may well have a detrimental effect in the longer run, as the market picks up and customers seek to differentiate based on quality and performance.

Whereas organizations were happy to invest upfront in transition and transformation activities with payback within 3 to 5 years, customers now expect payback within 18 months, and ideally don’t want to invest / spend any money upfront. The public sector seems hell bent on following a similar course.

With the success rate of outsourcing somewhere in the range 40-60%, (failing programs being the result of poor decision or program governance) we are likely to see the failure rate rise as more organizations extend this cost focus to decision and program governance.

The best approach to reducing the risks from outsourcing remains the development of a partnership relationship between customer and supplier (at 72%). Strong contracts (at 11%) follow, but significantly dwarfed by the partnership approach.

Op2i research suggests the key to successful cost focused outsourcing programs is a rigorous approach to decision and program governance across the organization. Successful outsourcing is dependent on having an inclusive decision process that involves all stakeholders in both the decision and ongoing governance, and one which documents and links contractual and performance obligations to the original drivers for outsourcing. Op2i sees this as a critical measure for successful public sector expenditure reform through outsourcing.

The research was conducted by Op2i amongst global outsourcing users, suppliers and advisors. Click here to download the Op2i Outsourcing Survey Report 2010.

Supply Chain News

Latest job market report from Robert Walters has shown that there are more opportunities for marketing and communications professionals whilst demand for sales and business development professionals remained high. Contract opportunities have increased in organizations due to changing business conditions. There is a continuing demand for “green collar” engineering professionals as companies take steps to reduce their energy consumption and carbon footprint. Employers are currently actively looking for experienced ERP specialists and project managers with salaries ranging between S$100,000 to S$150,000 per annum

Shippers are unlikely to receive compensation from airlines and indirect air carriers for delays related to the recent airspace closures, according to insurance specialist TT Club. The organization said: “Under the international air carriage conventions, the transport or logistics operator who assumes liability as a contractual air carrier – typically under a house air waybill – may well be able to argue successfully that it is not liable for loss or damage caused by this delay, provided that it can show that it took all measures that could reasonably be required – or that it was impossible to take such measures.

According to Datamonitor, pharmaceutical sales in Asia Pacific amounted to USD$124.3 billion in 2009 representing 19.3 per cent of global sales. Sales are projected to grow steadily at a compound annual growth rate (CAGR) that exceeds 4.2 per cent from 2009 to 2014, reaching USD$153 billion. From 2005 to 2009, the China market grew the fastest with a CAGR of 21.1 per cent and is projected to grow rapidly at a CAGR of 9.7 per cent from 2009 to 2014. DHL saw a record number of movements of healthcare products in 2009 in Asia. Compared to 2008, shipment of finished pharmaceuticals, vaccines, medical equipment and devices and clinical trials facilitated by the DHL Life Sciences & Healthcare Global Customer Solutions grew overall by seven per cent, a steady growth despite the economic downturn.

Reed Business Information (RBI) has announced it was closing the last 23 of its remain US trade publications, which included some of the most recognized magazine names in the industry such as Supply Chain Management Review, Modern Materials Handling, Logistics Management, Purchasing and Material Handling Product News. The closing of Purchasing is especially interesting, as it effectively leaves the US market without a purchasing/procurement focused trade publication of any sort, with the exception of the Institute for Supply Management’s Inside Supply Management, sent to members of the professional association and other paid subscribers. Most of the Reed supply chain related publications were what is known as “controlled subscription” magazines, in which hard copy subscriptions are free to subscribers who meet certain criteria, with the magazine depending solely on advertising and even revenues.

Mapletree Logistics Trust (MLT) has reported its 1Q10 DPU of 1.50 cents, some 1.4% higher than 4Q09 DPU of 1.48 cents (adjusted for one-off item) and +2%yoy. The higher DPU was helped by higher NPI and lower borrowing costs. In the key markets of Singapore, Hong Kong and Japan, NPI improved 2-7% QoQ helped by new acquisitions and lower property expenses. Its Malaysia portfolio reported a slight fall in occupancy (~3%pts), but management expects to find a replacement tenant soon. MLT also plans to Built-to-Suit opportunities in the Asia Pacific region.

Odyssey Logistics & Technology has acquired International Forwarders Inc (IFI), an independently-owned export freight forwarder and customs house broker based in Charleston, South Carolina. The acquisition will enable Odyssey to strengthen its customs broker and duty drawback capabilities as well as expand its export forwarding business. Odyssey has provided freight forwarding services its wholly owned affiliate, Odyssey International LLC (OI) located in Danbury, Connecticut.

A new study by Northeastern University and Emerson College sponsored by Penske Logistics says many 3PLs have increased their sustainability programs despite the global recession. According to authors Robert and Kristin Lieb, “a corporate desire to do the right thing” was cited by most of the CEOs interviewed as the most important reason to commit to sustainability. Customer pressure was ranked second. Sustainability programs produced positive results said 28 of the 35 CEOs surveyed, including reduced operating expenses, positive impacts on company employees and substantial savings in fuel costs.

In another study done by Datamonitor, airfreight could lose out to rival transport modes as logistics service providers look for more sustainable, efficient ways of doing business. The study projects that the global logistics and express market will be worth $4 trillion by 2013, up from its current $3.5 trillion. Despite the recession of the last two years, logistics and express spend as a proportion of global GDP is forecast to equal its 2008 peak of 9.3 percent in three years. Datamonitor believes sustainability and cost-effectiveness will be two of the main drivers of the industry’s development to 2013. This will result in a modal shift with airfreight losing ground to rail, road and sea.

Kimberly-Clark has appointed APL Logistics to manage the transportation and distribution of its products throughout Indonesia. The three-year contract was awarded following a competitive tender that included a field of local and international competitors. APL Logistics will manage transportation from Kimberly-Clark’s distribution centre in Jakarta to more than 70 locations in 11 cities across the country. Products will be delivered to retail outlets and Kimberly-Clark’s network of distributors for professional services such as hotels and restaurants.

Container traffic at Chinese ports reached an all time high in the first quarter of the year, driven by a strong rebound in the nation's foreign trade. Total throughput surged 22.1 percent to 31.87 million 20-foot equivalent units from 25.48 million TEUs in the first three months of 2009, according to Paris-based analyst Alphaliner. Traffic is also significantly higher than the 29.02 million TEUs handled in the first quarter of 2008, the year when container volume peaked. All major ports increased their first quarter container traffic, driven by a strong recovery in March following the lunar New Year holiday in February, Alphaliner said.

Hapag-Lloyd will implement a general rate increase (GRI) for cargo moving on its services from the Indian Subcontinent and Southeast Asia to New Zealand. Effective May 1, the planned increase will be $300 per 20-foot equivalent unit. In related news, Evergreen Line will seek a new GRI on the westbound trades from the Indian Subcontinent to Europe and the Mediterranean. Rates for all cargo on Evergreen, including reefer, will increase by $225 per 20-foot container, $450 per 40-foot container and $550 per 40-foot high cube container, also effective May 1. This is the fourth GRI that the Taiwan-based carrier has announced this year on the same route. It applied increases of $400 per TEU, $800 per FEU and $800 per 40-foot high cube container, as of April 1.

Cisco and the People's Committee of Da Nang in Vietnam has announced the next stage in their collaboration to explore how Cisco Technologies can transform Da Nang City into an economically viable community over a networked environment. The MoU originally signed in 2007 identified opportunities where Cisco technology and expertise could optimize Da Nang as the leading government administration in Vietnam using information and communication technologies.

Trustwave has launched a new multi-lingual portal that integrates all customer compliance and security solutions into a single dashboard, reducing the cost and complexity of managing technologies deployed across an environment. Trustwave's Managed Security Portal provides clients with a unified view of their security posture, integrating all of Trustwave's services, including compliance, managed security and product support. Data from these services is consolidated within the portal to provide customers with a snapshot of their security posture. Searches and reports include information across all of these technologies, throughout a customer's entire infrastructure.

Ceva has unveiled plans to increase its ocean freight volumes by 15% this year as it continues attempts to re-balance its modal split. The logistics firm said it hoped to increase its ocean volumes by around 82,500teu to reach 633,000teu, with 4% of the extra traffic accounted for by market growth. Chief operating officer Bruno Sidler explained it would achieve its target by offering 4PL services and increasing staffing levels, although he would also consider making an acquisition to boost market share if the right firm was on offer.

DHL is taking measures to boost airfreight capacity in its freight forwarding division to cater to increasing airfreight demand from Asia. The company has enlarged its Airfreight Network that spans Africa, Asia Pacific, Europe, Middle East and the Americas by adding additional consolidation services into Middle East and Africa and increasing the number of gateways. Additional measures have also been taken to enhance block space and part charter agreements with commercial passenger and pure cargo carriers. Asia is expected to lead the global airfreight recovery as the majority of the airfreight takes place or originates in the region. China, in particular, will be a key factor for growth.

Kuehne + Nagel has reported a 7.3% increase in first quarter turnover, with net earnings up 2.3%. Q1 turnover was CHF 4.6 billion (Q1 2009: CHF 4.3bn), with EBITDA remaining almost stable at CHF 228 (Q1 2008: CHF 230m) and net earnings rising to CHF 131 million (Q1 2009: CHF 128m). The global seafreight business experienced a turnaround in the first quarter, with increased demand leading to an estimated market growth of 12%. The situation improved more clearly in the international airfreight business. While Q1 2009 was marked by a double-digit slump in tonnage, the first quarter of 2010 saw a 31% increase in tonnage. Across all regions, the Group benefited from increased investments in sales, airfreight products and capacity-induced shifts from sea- to airfreight.

APL has appointed Gene Seroka as its new President in the Americas. Seroka, a 21-year-veteran of the company, replaces John Bowe who is leaving in June. Until recently the Regional Vice President for the Middle East, Seroka will relocate to the company’s regional headquarters in Phoenix, Arizona. APL has also named David Frentzel as its Vice President of Contract Logistics. Frentzel, a 25-year veteran of international logistics management, will be responsible for the company’s warehousing, deconsolidation and distribution.

Events & Activities

Supply Chain Asia (Sydney) Presents: Free Green Supply Chain Seminar. The time for proactive action on Greening Supply Chain has arrived. Climate Change driven expectations from consumers, community groups/NGOs, regulations from Governments and your own CSR obligations, demand that we manage the Supply Chain risks proactively and innovate on this new frontier. Global Supply Chain group, with international credentials, has developed a Corporate Seminar on Greening Supply Chain that highlights new strategies, methods and tools to enable you and your managers to understand and develop readiness for this new paradigm. This Free Seminar runs on 27th April 5.30pm-7pm at MLC Centre (47th Floor) Sydney, followed by networking. For more info pls. contact m.dharan@globalscgroup.com

Other SCA Events

• 6 May (Holiday Villas, Subang, Malaysia) - Halal Supply Chains: The Specialized Supply Chain Challenge. Click here for more information
• 20 May (Tawana Bangkok, Thailand – Manufacturing and Logistics Challenges in Thailand. Click here for more information.
• 24-27 August 2010 – Supply Chain Asia Forum 2010. Click here for more information.
• 4 Nov – SCM Careers Fairs Malaysia
• 7 Nov – Supply Chain Asia Carnival: West End Blade and Run Singapore
• 12 Nov – SCM Careers Fairs Singapore

Careers @ SC Asia

Jobs Available in various 3PLs, Manufacturers and Retail in the areas of General Managers, Logistics Operations and Supply Chain Management. Click here to view these opportunities.

Corporate Endorsers

Editor’s Note – Are Your Ready for the Economic Recovery: Free Seminar in Australia, China and Singapore

As businesses recover from the recent global economic downturn, the first place many will look is their supply chain. And why not? The globalization of business has demonstrated that close collaboration among all supply chain partners is essential to success.

During this recovery period, we see significant opportunities for Asian manufacturers and retailers in this environment of uncertainty. While the slowdown has impacted every organization around the world, we, in this region, have been fortunate that we have continued to grow, albeit a slower rate. In order to attain sustainable success, positively impact the bottom line and gain market share, Asian companies must shift from a transactional supply chain to one that strategically aligns their supply chains across sales, marketing and operations to lift their service levels to customers and exceed their financial objectives.

Supply Chain Asia, together with JDA, is organizing free seminars (on a first-come-first-served basis) at various cities in Asia. Click on the following to sign up if you are interested to attend:

Shanghai, China – 20 April 2010 (afternoon)

Melbourne, Australia – 20 April 2010 (breakfast)

Sydney, Australia – 22 April 2010 (breakfast)

Singapore – 23 April 2010 (breakfast)

Supply Chain News

Consumers are buying again and business inventories are creeping back up but retailers say they don’t plan to abandon the lean inventory practices they adopted during the recession. Companies have learned to operate more efficiently and will be careful about restocking inventories, three retail supply chain executives said during a panel discussion hosted by the Council of Supply Chain Management Professionals’ New Jersey Roundtable.

Airfreight experts at the recent Air Cargo Management Group (ACMG) annual workshop have offered various views on the speed of recovery for the industry. After declines of more than 20 per cent in the global freight business, some said the 2007 peaks could be restored as soon as the end of this year. But a Boeing executive warned the recent market surge might be a one-time inventory bump, not a sustained recovery. ACMG managing director Bob Dahl then acknowledged the increases may not be sustained, but said the data so far are positive.

Hundreds of flights were cancelled across northwest Europe last week because of a cloud of volcanic ash spreading from a sub-glacial eruption in Iceland. Airports across most of Scandinavia are also affected, along with parts of western Russia, with weather experts warning that the cloud is set to spread across other parts of northern Europe. The aviation cancellations follow a number of past incidents where aircraft have reported major damage from ash. Volcanic ash, which consists of pulverised rock and glass, can jam aircraft machinery if an aircraft flies through it, shutting down engines and damaging electronic systems.

More airlines are likely to follow the lead of Japan Airlines (JAL) in getting rid of freighters in favor of using bellyhold capacity for cargo, according to the latest IFW poll. Last week, an overwhelming majority – 69% – of 193 voters said they believed other airlines would axe their freighter fleets. Industry pundits felt the move would lead to a tightening of capacity, which would exacerbate this year’s peak season capacity shortage and push up rates out of Asia.

The global logistics and express market is expected to be worth US$4 trillion by 2013, up from its current value of $3.5 trillion, according to analyst Datamonitor. Using its Global Logistics and Express Analyser, Datamonitor predicted that following the severe slump last year, logistics and express spend as a proportion of global GDP would regain its 2008 peak of 9.3% in 2013. However, it warned, there were trends that would make it harder to uncover opportunities for growth. It said demand would continue to shift to the emerging markets of Latin America, Russia, India, China and the Middle East, with North America and Europe expected to lose 2.2% and 1.5% shares respectively of the global market by 2013. Asia Pacific was expected to gain nearly 1.5%. Datamonitor said sustainability and cost-effectiveness would be two of the main drivers of the industry’s development into 2013, resulting in a modal shift: air freight losing ground to rail, road and sea.

Global spare/service parts logistics revenue for 3PLs has grown to $35 billion for the Automotive, Industrial and Technology vertical industries according to a new report just released by Armstrong & Associates, Inc. Technology generates the largest SPL revenue at $14.4 billion and Automotive is second at $12.5 billion. The report breaks down revenues by major countries and regions. The report includes detailed information on six major 3PLs. The global supply chain capable 3PLs covered are Cat Logistics, CEVA, DHL, Kuehne + Nagel, DB Schenker and UPS. To download a free copy of the report from Armstrong & Associates, please click here.

Heightened security measures to be put into place in Shanghai for the six-month duration of Expo 2010 are likely to prove a headache for air freight exports out of the city, according to leading forwarders. The new rules came into immediate effect and apply to all cargo passing through Shanghai’s Pudong International Airport during the massive world fair running from 1 May until 31 October. However, there remained some confusion about the regulations, and how they will be applied. One forwarder said there would be an additional 24-hour hold period applied to all shipments, which he said was likely to have “a bad knock-on effect”.

Newly launched transpacific carrier The Containership Company (TCC) has shelved plans to enter the Asia-Europe trade in the short-term, because of concerns about market overcapacity and the recovery of the European economy. TCC’s Great Dragon service, which is described as “no-frills” will sail between just two ports – Taicang in China and Los Angeles – using five vessels of between 2,700teu and 3,000teu. Transit time is 14 days, with arrival in Los Angeles on Monday morning.

JHCI Holdings, parent of the Jacobson Companies, has acquired Seattle-based Global Transportation Services. Last month, Jacobson Companies launched its new International Logistics Services (ILS) group, which leverages the company's 3PL expertise in the US to extend its reach overseas. Founded in 1985, Global Transportation Services delivers customized solutions for moving products and information, drawing on an extensive global network that encompasses Asia, North America, South America, Europe and the Middle East.

A new payments system promises to save costs and cut transaction times significantly for the freight and logistics industry. The system uses a combination of Travelex’s international payments platform GlobalPay with Hi-Tech Freight Solutions’s Cyberfreight service to create an electronic interface allowing businesses to upload, execute and reconcile payments back to Cyberfreight at the click of a button.

Indonesia’s main gateway port of Tanjung Priok, near Jakarta, was the scene of a riot last week with local residents, police and city security officers in pitched battles that left three dead and dozens seriously injured. The trouble started when security officers arrived to remove squatters from the area. Protestors, armed with petrol bombs and machetes, believed the officers were trying to remove the tomb of an Arab cleric who aided the spread of Islam in Java in the 18th century. Port offices were looted and the area, owned by state port operator Pelindo II, was left looking “like a war zone”, according to local reports.

Two years after leaving the US domestic package market, DHL says it is growing again in the United States as rising international trade spurs a global recovery. That business includes not just international express, but air and ocean freight forwarding and contract logistics, Appel said, and employs 35,000 people.

UPS said revenue across its supply chain and express business had been “stronger than expected” in the first three months of the year. International package revenue was up 18% on a year earlier, while its supply chain and freight division posted growth of 14%. International daily volumes “grew significantly”, with exports up more than 9% and non-US domestic up 24%. US domestic business saw its first year-on-year volume growth in more than two years, although the expansion was less than 1%.

Agility has joined that rare breed of forwarding and logistics groups that saw profits grow in 2009 – although a legal dispute with the US government still casts a cloud over prospects for this year. The Kuwait-based firm recorded a net profit of KD156.4 million (US$542m) in 2009, up 11% on a year earlier. Agility’s operating profit rose by 5% year-on-year to KD168.8 million in 2009, despite revenue falling 7.1% to KD1.8 billion, which the company said was mainly because of declining freight volumes handled by its integrated logistics business.

Panalpina last week chartered the only extant Antonov AN-225 freighter aircraft to move two laser welding machines with a combined weight of about 150 metric tons. The heavy lift cargo was loaded in Hamburg and discharged in Shijiazhuang, China. The urgently needed machines could not be transported by a Boeing freighter, and ocean transport would have taken too long. The aircraft, operated by Ruslan International, is the largest commercially used transport plane in the world. It is powered by six engines. The plane is about 85 meters long and 18 meters high with a wingspread of 88.4 meters and a cargo hold of 1,220 cubic meters. Loading the machines required a purpose-built ramp and a 160-ton crane and took many hours. The aircraft stopped in Minsk and Novosibirsk before reaching Shijiazhuang in the Northern Chinese province of Hebei on April 10.

FedEx has launched two freighter services linking Hong Kong with the US and Europe in response to rising demand for express shipments from southern China. The Hong Kong-US service will fly non-stop to the FedEx hub in Memphis, Tennessee, using two B777 long-range freighters, which the company claimed offered a two-hour improvement in cut-off time for international priority and international economy shipments from Hong Kong.

Keppel Logistics (Foshan) is on course to complete its new distribution centre in Foshan, Guangdong Province, China. Named as Nan Hai Distribution Centre, this facility will provide some 40,000 sqm of space when completed in the 3rd quarter of 2010. When the Distribution Centre becomes operational, Keppel Logistics (Foshan) will have a total of 100,000 sq m of warehouse space in Foshan City.

Kong and Allan (Shanghai) Consulting has announced that the company has selected Brad Drake to serve as Managing Director China. Drake, has served since May 2009 as a Senior Project Leader at Kong and Allan Consulting. Prior to his current responsibilities, he spent over 10 years at Anheuser-Busch developing numerous supply chain solutions. He was involved in sales forecasting for over $14 billion dollars in sales, and led capital expenditure deferment projects for Anheuser-Busch China of $30 million USD.

DHL has announced the appointment of Shuichi Kawamura as President of DHL Supply Chain Ltd in Japan effective 1 April 2010. Kawamura will lead the company’s business operations in Japan, driving forth its growth strategy. Prior to his latest appointment, he headed the Technology Business Group 1, Fujitsu SPL Business Group, and the Transport Business Group as Vice President.

Events & Activities

Sunset Talks @ Supply Chain Asia. From this month onwards, Supply Chain Asia will be holding regular Sunset Talks in Singapore on the 3rd Friday of the month. We hope that this informal networking session will allow us to bring more members together through open discussions as well as food and drinks. The first Sunset Talk will be held at Boulevard RestroBar located in the former Traffic Police Headquarters of Singapore, now called the Red Dot Design Museum. More details of the event will be put up next week.

COLD CHAIN SUMMIT will be hosted by Chartered Institute of Transport and Logistics Singapore (CILT) in Singapore from 22-23 April 2010 at the Fullerton Hotel. The summit will look at the issues and challenges involved in cold chain logistics for the food and health/pharmaceutical industries and will feature over 20 speakers who represent the regulators and the key players in Cold Chain logistics. The Summit hopes to promote collaboration among the players in the industry and collectively look at seizing market opportunities in both Singapore and in the Asia-Pacific. For more details, please click here.

Other SCA Events:

• 6 May (Holiday Villas, Subang, Malaysia) - Halal Supply Chains: The Specialized Supply Chain Challenge. Click here for more information
• 20 May (Tawana Bangkok, Thailand – Manufacturing and Logistics Challenges in Thailand. Click here for more information.
• 24-27 August 2010 – Supply Chain Asia Forum 2010. Click here for more information.
• 4 Nov – SCM Careers Fairs Malaysia
• 7 Nov – Supply Chain Asia Carnival: West End Blade and Run Singapore
• 12 Nov – SCM Careers Fairs Singapore

Careers @ SC Asia

Jobs Available in various 3PLs, Manufacturers and Retail in the areas of General Managers, Logistics Operations and Supply Chain Management. Click here to view these opportunities.

Corporate Endorsers

Editor’s Note – Supply Chain Challenges in Vietnam

Vietnam has seen rapid economic growth with the adoption of economic reforms since its ascension into WTO. Transportation and logistics have played a key role in the development, but challenges such as reforming its regulatory environment and legal framework, and improving infrastructure for the transportation and logistics sector remain vital to further growth.

Vietnam’s economy is forecast to grow by around 8 percent annually for the next decade. To cope with expansion, however, Vietnam must address major challenges, including the improvement of infrastructure and systems for transportation and logistics. The relative inefficiency of the air and ocean transportation system, as well as landside infrastructure such as warehouses and distribution facilities, is impeding the growth of efficient logistics practices in the country.

The July/August issue of Supply Chain Asia Magazine will include an extended focus on developing Vietnam and its supply chain and logistics challenges. Produced in partnership with the Vietnam Supply Chain Community, the Supply Chain Asia Vietnam Focus will set the standard for original, objective coverage and analysis of the supply chain and logistics sector in the Vietnam.

Among other areas, the Supply Chain Asia Vietnam Focus will examine:

• Government policy on infrastructure development
• Export potential of key industries
• Container shipping and port development
• Air cargo and airport development
• Cross-border supply links with China
• Challenges and opportunities in the Vietnam supply chain and logistics market

If you are interested in exploring advertisement opportunities or contributing articles, you can contact the Publications team at magazine@supplychainasia.com.

Supply Chain News

Governments must avoid “derailing” economic revival through protectionist policies, warned the World Trade Organisation (WTO). The WTO has predicted that world trade is set to rebound by growing 9.5% this year. Exports from developed economies are expected to increase by 7.5% in volume terms over the course of the year, while shipments from the rest of the world should grow by around 11%, as the recession and sharpest decline in trade in more than 70 years fade. However, trade growth can be jeopardized if trade-restricting measures are implemented by governments, said the WTO.

The meeting of the ASEAN heads in Hanoi has resulted in a concerted call to focus on the development of vital road, sea and air links to be built more quickly to speed economic recovery and boost the region's competitiveness. Infrastructure development will help develop the region's 'connectivity' and reinforce the bloc's position 'as a hub of the East Asian region for transport, information technology, tourism, energy and logistics.' Analysts say the physical and telecommunication links will complement Asean's efforts to tear down trade barriers and help its goal of establishing by 2015 a single market and manufacturing base of about 600 million people.

TNT has announced at its AGM that it is taking steps to separate its Mail business from its Express division. Management stated that in order to explore the best structure in which a continued success for the Mail business could be achieved, an "internal legal and financial carve-out" would be realized. The Chief Executive, Peter Bakker, has made it clear that the focus for TNT's future growth lies in its express parcels business. The move has fuelled speculation that the remaining Express business will become vulnerable to an acquisition by either UPS or FedEx. Such a move would propel one or other of the US-based parcels operators into a market leadership position in Europe, at least in some ground segments.

Cache Logistics, a real estate investment trust (REIT), plans to raise up to US$334 million in what will be Singapore's biggest IPO so far this year. Cache, managed by ARA Asset Management and logistics firm CWT Ltd, is offering 474.2 million units at S$0.84 to S$0.88 a share, according to a draft prospectus filed with the Monetary Authority of Singapore. The offer may be increased to 531 million units, or 84% of the REIT's capitalization. Cache's portfolio currently comprises six logistics properties in Singapore valued at S$730 million (US$522.9 million), but the trust intends to diversify geographically by buying warehouses and distribution centres in other parts of Asia.

Converge Inc has agreed to be acquired by New York-based commercial electronics parts supplier Arrow Electronics Inc. for an undisclosed amount. Based in Peabody, Converge is a parts supplier, and also provides ‘reverse logistics services,’ handling the returns of parts for electronics suppliers and manufacturers around the world. The company reported 425 employees as of late November 2009 and stated at the time that it was planning to grow; however in a press release associated with the Arrow purchase, the company said it has 350 employees.

Qatar Investment Authority, the state-owned investment fund of the nation of Qatar, is offering to pump $1 billion into financially troubled CMA CGM to help bail out the world’s third-largest container ship operator, according to published reports. The Qatar Investment Authority is offering the investment in the form of loan guarantees to CMA CGM, which is carrying a heavy debt burden even as operating results in its liner business improve, according to the French business publication La Lettre de l’Expansion. CMA CGM has some $5 billion in debts following the worst downturn in container shipping history and a series of steep losses from hedging deals on oil prices.

The International Air Cargo Association (TIACA) says a new US Department of Transportation (DoT) rule on how lithium batteries are carried on aircraft cannot be implemented in 75 days and will have a negative impact on the air cargo industry and its customers. The proposed change by the DoT’s Pipeline and Hazardous Material Safety Administration (PHMSA) will require lithium batteries to be stowed in a crew-accessible location except if they are shipped in an FAA-approved container or a Class C cargo compartment. Only batteries with a lithium content of less than 0.3 grams or 3.7 watt-hours would be exempt and these would be subject to stowage restrictions in the aircraft hold. A better approach, according to TIACA, is for the PHMSA to adopt and strictly enforce ICAO’s Technical Instructions.

China’s Chongqing Airport is to expand its second runway by 400 meters to facilitate a new airfreight logistics facility for computer giant Hewlett-Packard (HP). By the end of July, construction of a new cargo terminal and distribution facilities for the US shipper will be completed. By 2012, the Chongqing municipal authority hopes to have also extended the runway to 3,600 meters to cater for the freighters used by HP, which intends to produce computers in the province for export. Last year, Chongqing Airport handled 186,000 tonnes of cargo.

All Nippon Airways is to merge its cargo operation, ANA & JP Express Co (AJV) into another subsidiary, Air Japan Co (AJX) with effect from July 1. ANA’s restructure follows its acquisition of the AJV shares held by Japan Post Service, Nippon Express and Mitsui OSK Lines. It had already owned 51.7 percent of AJV. The carrier said there would be minimal impact from the merger, which was aimed at streamlining the company and developing a more flexible operating structure.

Ex-Asia airfreight demand continues strong. Hactl, which handles the majority of the cargo at Hong Kong’s Chek Lap Kok Airport) reported its February handle up 34.7% y-o-y to 180,000 tons, with strong growth in export, import, and transshipment cargo. More importantly, Hactl’s handle for January and February combined (which eliminates the effect of the timing of the Lunar New Year holiday) was up 42.1% to 393,000 tons, with exports and imports both growing over 47%.

Danske Bank's proprietary European Freight Forwarding Index continues to improve and reached an all-time high in March. High levels of confidence have meant that the current index is actually overshooting the leading index, underscoring that the freight market has come out of the winter slump strongly and that Q2 is off to a good start. The index for the current situation reached a level of 75, which is above the previous peak of 73 in October 2009 (Danske Bank started the index in January 2009). The index for the expected situation (leading the current situation by two months) continues to improve and reached a level of 77 (up from 72 in February).

Evergreen Line, which has been very cautious about adding vessel capacity to its container fleet during the last few years, has confirmed that it will start negotiating orders with shipyards soon to build as many as 100 new container ships. A US spokesperson for the company confirmed media reports from Japan of comments by Evergreen Group Chairman Chang Yung-Fa that it will select the shipyards and start negotiating ship specifications, construction volumes, delivery dates, ship prices, and payment terms in May.

CEVA Logistics has announced its domestic road transport services division in China, CEVA Ground, has achieved the Transported Asset Protection Association (TAPA) TSR-2008 validation. TAPA is a unique forum that unites global manufacturers, including logistics providers and freight carriers with the common aim of reducing losses from international supply chains.

MOL said it had completed the concept for the third ship in its series of next-generation vessels, which it said would be technically feasible in the near future. The latest concept is for an environment-friendly, large-scale iron ore carrier called the ISHIN-III that will play a key role in the Japanese carrier's future dry bulk fleet. MOL already operates the very large iron ore carrier Brasil Maru, one of the world’s largest iron ore carriers, which have an improved level of environmental performance.

Manhattan Associates has donated 50 user licenses of its warehouse management systems (WMS) software for use in the Logistics Information Technology Solutions Laboratory in the Coggin College of Business at the University of North Florida (UNF). Fewer than half a dozen universities in the nation have such similar software programs.

NOL Group has announced the appointment of two Singapore business executives with deep international management experience to its Board of Directors. The two new board members are Tan Puay Chiang, the former Chairman of ExxonMobil (China) Investment Co; and Jeanette Wong, Group Executive responsible for the Institutional Banking Group at DBS Bank. Their appointments will be effective 15 April, a day after the retirement of four current Directors at NOL’s 2010 Annual General Meeting. The retiring Directors are James Connal Scotland Rankin, Robert Holland, Jr., Tan Pheng Hock and Boon Swan Foo.

HighJump Software has appointed Russell Fleischer as Chief Executive Officer. Fleischer will also serve on HighJump's board of directors. He replaces Timothy Campbell, who joined HighJump as CEO in June of 2008. Fleischer was most recently CEO of Healthvision Software.

Maersk has announced that it will provide free ocean freight for 147 containers (3,525 metric tons) of rice donated by the Government of Thailand to Haiti through the World Food Program. The rice will be split and shipped across four sailings, from Laem Chabang, Thailand to Caucedo, Dominican Republic, before being trucked into Haiti. The first shipment set sail on 15 March 2010, on Maersk Line vessel 'Maersk Kendal', and is expected to arrive six weeks later towards the end of April. In addition to the shipment of rice donated by the Government of Thailand, Maersk Line has shipped 100 containers of aid to Haiti from Venice, Italy. Maersk Line also donated dry containers and reefers on site in Port au Prince and Caucedo for storage purposes.

Events & Activities

Sunset Talks @ Supply Chain Asia

From this month onwards, Supply Chain Asia will be holding regular Sunset Talks in Singapore on the 3rd Friday of the month. We hope that this informal networking session will allow us to bring more members together through open discussions as well as food and drinks. The first Sunset Talk will be held at Boulevard RestroBar located in the former Traffic Police Headquarters of Singapore, now called the Red Dot Design Museum. More details of the event will be put up next week.

Other SCA Events:

• 6 May (Holiday Villas, Subang, Malaysia) - Halal Supply Chains: The Specialized Supply Chain Challenge. Click here for more information
• 20 May (Tawana Bangkok, Thailand – Manufacturing and Logistics Challenges in Thailand. Click here for more information.
• 24-27 August 2010 – Supply Chain Asia Forum 2010. Click here for more information.
• 4 Nov – SCM Careers Fairs Malaysia
• 7 Nov – Supply Chain Asia Carnival: West End Blade and Run Singapore
• 12 Nov – SCM Careers Fairs Singapore

Careers @ SC Asia

Jobs Available in various 3PLs, Manufacturers and Retail in the areas of General Managers, Logistics Operations and Supply Chain Management. Click here to view these opportunities.

Corporate Endorsers

Editor’s Note – Cold Chain Challenges in Asia

Currently, an estimated 10% of all medicinal products supplied globally are termed "cold chain" products, i.e., those requiring the control of storage and distribution temperatures to between +2 ºC and +8 °C. Whilst this is a small portion of what is produced and supplied, it is important to note that amongst these cold-chain materials, are the most expensive pharmaceuticals currently available and the vaccines used for the prevention of critical diseases. The challenges facing this sector are two-fold; security of supply and cost effectiveness.

While companies continue to drive to reduce costs and maintain profitability is inevitable, they will still need to focus on those activities which directly impact product quality and divert investment to these areas in order to reduce waste, and hence, cost. It is important to note that storage and transportation are key stages in the life cycle of a pharmaceutical product and, as such, they have a direct impact on the quality of the medicines received by patients.

One of the key challenges in emerging markets is a dysfunctional supply chain that is highly fragmented in the retail section. In a fragmented retail segment, companies struggles to achieve economies of scale on both the retail and supply sides. With the projected growth in these key emerging markets, even given the current financial crisis, there are great opportunities for both local and foreign investors. Unfortunately, a lack of cold chain facilities is hampering expansion into these markets, especially in second and third tier cities. Even in first tier cities, such as Shanghai, Ho Chi Minh City, and Mumbai, multinationals struggle to find the right cold chain partners and facilities. Foreign investors currently view the lack of an established cold chain as one of the major barriers to market entry.

Cold chains are expensive to operate and in many cases a coordinated effort is missing. Local companies that try to establish their own facilities often lack capital and expertise. It is critical to include all key stakeholders in the process and effective cold chain consortiums will include logistics providers, cold chain equipment suppliers, multinational and local companies within their membership.

From 22-23 April 2010, the Chartered Institute of Logistics and Transport (Singapore) will be hosting the COLD CHAIN SUMMIT in Singapore. Supply Chain Asia readers and members will accorded the same privilege of CILT members to sign up for the event at SGD1,000 per delegate (normal price – SGD1,200). This fee includes access to to the full conference and its related activities.

Click here for more information.

Supply Chain News

World trade is expected to grow by 9.5% this year, with growth in developed economies of 7.5% and growth in emerging economies of 11%, according to the World Trade Organisation (WTO). The WTO said the increase in trade would help recover some, but not all, the ground lost in 2008 when global trade contracted by 12.2% - the largest decline since World War Two.

What a difference a year makes for electronics buyers: In March this year, 49% of buyers said business was improving and demand for their companies' end equipment was growing, according to Purchasing's monthly survey of business conditions. In March 2009, only 11% said business was improving. With business improving, buyers are increasing their purchase orders. A hefty 65% said they would increase their purchase orders (POs) over the next 90 days. The last time that many buyers said they would increase POs was in July 2006.

The concept of "cap and trade" as a cornerstone of a United States climate change policy appears to be losing steam, according to a New York Times report. Cap and trade is a form of emissions trading used to control pollution by offering economic incentives in order to achieve reductions in emissions pollutants. Cap and trade would put limits on emissions from motor vehicles, coal-fired plants, and factories. The Times report makes note of how opponents of cap and trade maintain it will be costly, adding that it is not even mentioned in President Barack Obama's current budget. David Miller, vice president of global policy and economic sustainability at Con-way, said that if cap and trade were to ever become law, freight transportation companies would have no chance at all to get the fuel and gasoline taxes needed to support critical infrastructure.

Singapore is ninth most expensive city in the world for logistics space based on the latest Global Industrial Report released by Colliers International. The ranking is based on 20,000 sq ft and above. In terms of rent for landed warehouses or 100,000 sq ft or more, Singapore’s ranking worldwide remains constant at 12 across the 139 cities surveyed. Top 5 cities of the most expensive warehouse rents are Tokyo, London, Oslo, Hong Kong & Geneva. Rental rates in Singapore averages USD1.03 compared to USD1.51 in Hong Kong.

Mapletree Investments has acquired an industrial property IXINAL Monzen-Nakacho Building in Tokyo from Itochu Corp, Japan. The property is a five-storey light industrial building that is home to a corporate headquarters, information systems development and operations cum data centre. Mapletree did not disclose the amount it paid for the building. It has a net floor area of 6,852 square metres and sits on a land measuring 2,788 square metres in size.

India-based Aqua Logistics has made further steps into the China market by entering into an agreement to purchase three Hong Kong-based companies — CIT, TAG and AGI Logistics. The deal, made through its wholly owned subsidiary Aqua Logistics Hong Kong, will see Aqua buy 60% of the companies for around $7m and additional stakes at set periods over the following five years.

Nearly 17 percent more medium and large companies were securely managing millions of tons of discarded computer hardware in 2009, according to a new study from Converge and Osterman Research. The study finds that nearly 84 percent of respondents have controls in place to properly handle end-of-life IT assets. The report, “2010 Converge ITAD Trends Report,” finds that virtually all U.S. companies are aware of the need for IT asset disposition (ITAD), but strategies for dealing with asset disposal vary widely among companies.

Investors seeking high yields were active buyers of real-estate stocks during the first quarter, sending share prices higher despite the industry's weak economic fundamentals. The Dow Jones Equity All REIT Index posted a total return of 11% as of Tuesday's close, just one day before the official end of the first quarter. That performance is poised to be the strongest first quarter since 2006 and outpaced returns for the overall stock market. The total return for Standard & Poor's 500-stock index was up 5.2% as of Tuesday, while the Dow Jones Industrial Average was up 4.6%.

Wal-Mart is preparing to launch e-commerce operations in China and Japan as part of a global effort to increase its online presence, the Financial Times reports. The retailer already has 282 stores in China and 371 Seiyu stores in Japan but has no direct online sales in those countries. t is now setting up systems for adapting its new centralized dot-com technology platform, under development during the past two years, to work in the two countries.

TNT has announced an aggressive expansion strategy in the service logistics market, particularly for the hi-tech sector. The service logistics market is valued at €2.3 billion in Asia Pacific and around €410 million in Southeast Asia alone. On 31 March, TNT also announced that it has become the Lead Partner of the Reverse Logistics Solutions Lab, a joint collaboration between leading faculty members of Singapore Management University and Supply Chain Asia.

Emirates has confirmed it could delay its relocation to Dubai’s new Al Maktoum International Airport by up to 10 years. A report in IFW stated that the carrier was now looking to move to the new facility between 2022 and 2030, instead of between 2018 and 2020 as originally planned.

Cargo airline ABX Air announced a new agreement with DHL aimed at maintaining the carrier’s main source of revenue and clearing away uncertainty about ABX’s financial future. ABX will operate 767 freighter aircraft for the US portion of DHL’s international service under a fixed-price contract and ABX parent Air Transport Services Group said the company also will lease 13 767 all-cargo planes to DHL, a major boost to the airline’s efforts to move more deeply into international aircraft leasing operations. Financial terms of the deal were not disclosed.

Malaysia’s Port Klang has cancelled its plan to reduce its free storage period for containers from five days to three. The new rule was due to come into force on 31 March but a three-month trial using the shorter storage period revealed that the industry was still not ready for the reduction. Alvin Chua, acting president of Selangor Freight Forwarders and Logistics Association (SFFLA), said the supply chain operating procedures were not effective enough to make the new ruling viable with some 15% of containers still exceeding the three-day window during a trial conducted over the first quarter.

TNT and Con-way Freight have announced a new export service as an expansion of their existing relationship. The intercontinental accelerated service will feature a day-definite, road/air/road USA-to-Europe solution for heavier freight shipments. The new offering will complement the intercontinental import service the two companies launched as part of their commercial alliance back in April 2009.

Ceva Logistics Thailand is planning to expand its presence in ocean freight and retail as the company focuses on growth opportunities in 2010. The firm said it viewed double-digit growth as a realistic target over the next three years and aims to grow by focusing on the sectors where it does not currently have a strong foothold. The expansion into ocean freight in Thailand mirrors Ceva’s global strategy. It is also looking to expand its multi-modal and door-to-door concepts, and in the consumer and retail sector.

APL Logistics has commenced operations at a new container freight station (CFS) facility at Port Qasim, Karachi. The centre utilizes a capacity of 35,000 square feet and can be expanded to up to 60,000 square feet in line with business demands. It will provide APL Logistics with a platform to increase the speed and scope of its services to customers across Pakistan.

Kerry Logistics is set to complete its first phase of its new logistics centre in Danang in Central Vietnam. The facility will provide some 9,000 sq m of space when completed in the second half of 2010. The new facility will add to Kerry Logistics’ 62,500 sq m facility in Ho Chi Minh City and a 10,300 sq m facility in Hanoi providing complete coverage in North, Central and South Vietnam.

Events & Activities

Modern Logistical Warehouse Expo Thailand June 2-3 2010. SSI Schaffer, together with its partners such as Crown, Loscam and Interoll, will be coming together to showcase a live action of a comprehensive range of storage systems and equipment in an exhibition to be held in Bangkok Thailand from 2-3 June 2010. The exhibition, which has free entry to trade customers, is by invitation only, members of the industry who wish an invitation should email Khun Sunee at sunee@ssi-schaefer.co.th for their personal invitation. Click here to download the brochure of the event.

Supply Chain Asia (Sydney) Presents: Free Green Supply Chain Seminar. The time for proactive action on Greening Supply Chain has arrived. Climate Change driven expectations from consumers, community groups/NGOs, regulations from Governments and your own CSR obligations, demand that we manage the Supply Chain risks proactively and innovate on this new frontier. Global Supply Chain group, with international credentials, has developed a Corporate Seminar on Greening Supply Chain that highlights new strategies, methods and tools to enable you and your managers to understand and develop readiness for this new paradigm. This Free Seminar runs on 27th April 5.30pm-7pm at MLC Centre (47th Floor) Sydney, followed by networking. For more info pls, contact m.dharan@globalscgroup.com

Other SCA Activities

• 6 May (Holiday Villas, Subang, Malaysia) - Halal Supply Chains: The Specialized Supply Chain Challenge. Click here for more information
• 20 May (Tawana Bangkok, Thailand – Manufacturing and Logistics Challenges in Thailand. Click here for more information.
• 24-27 August 2010 – Supply Chain Asia Forum 2010. Click here for more information.
• 4 Nov – SCM Careers Fairs Malaysia
• 7 Nov – Supply Chain Asia Carnival: West End Blade and Run Singapore
• 12 Nov – SCM Careers Fairs Singapore

Careers @ SC Asia

Jobs Available in various 3PLs, Manufacturers and Retail in the areas of General Managers, Logistics Operations and Supply Chain Management. Click here to view these opportunities.

Corporate Endorsers