The Council of Supply Chain Management Professionals (CSCMP) paints a grim picture of the state of US logistics sector in its latest 'State of Logistics' report, sub-titled 'Surviving the Slump'. The council views the problems in the US economy as having a serious effect on the country's logistics market. Overall logistics costs have continued to rise, it says, pushing past the 10% of GDP barrier. However, states the report, one of the major causes of that is higher inventory costs. Levels of stock, particularly in retail locations, have risen as consumer demand has fallen, it says. Interestingly, the CSCP suggests that as supply chains have become longer, the more difficult it has been to react quickly to falling demand.

TNT Express has announced the launch of its range of freight services for time-sensitive heavy shipments in south-east Asia. Available in a selection of three bespoke services − Express Freight, Economy Freight and Freight Plus – it will offer customers a door-to-door, day-definite delivery service based on specified transit times schedules, fast-tracked customs clearance and full track-and-trace visibility. The move is part of TNT's €100m investment over the next five years to build a leadership position in the region.

As China becomes increasingly expensive as an outsourced manufacturing location, Vietnam has become a popular alternative. Foreign direct investment has leapt over the past year from $4.4bn in the first five months 2007 to $15.3bn in the same period this year. However Vietnam is suffering from more financial instability than China, with inflation running at 25% and the Vietnam Dong depreciating significantly. The logistics infrastructure is also less developed than in China. Like its larger northern neighbour the economy is heavily dependent on goods flowing through container ports and airports. However the development of this sector remains poor. Not only is its macro-economic environment difficult in the short-term but it is having big problems in delivering the logistics infrastructure which is a prerequisite for realising its economic potential.

China’s state-owned logistics service provider Sinotrans Group and China Yangtze Transportation Group are talking about a merger and related reorganization. The merger, if it proceeds, would create the second largest shipping logistics firm by assets in China after Cosco Group. Sinotrans is trying to group its container shipping businesses under its flagship Sinotrans Container Lines. Yangtze Transportation Group, one of China’s largest river-shipping operators, had a fleet of about 2,800 vessels and net assets of RMB41.2 billion at the end of 2007. The company, also known as China Changjiang National Shipping, has 19 units located along the Yangtze River as well as two China-listed units, Chang Jiang Shipping Group Phoenix and Nanjing Tanker.

Gati has announced that it will have its Nagpur hub ready by next year. The Central Distribution Centre at Nagpur, when opened, would connect several cities and towns, forming a hub-and-spoke mechanism for the company.  Taken up as part of the $100-million expansion, the hub would help the company cut costs and bring down time-to-delivery by connecting at least 19 Express Distribution Centres being set up across the country.