• 2015 April 22 18:23

    TOC Asia 2015: Larger vessels coupled with larger carrier alliances affect shipper and 3PLs relationship

    Speaking at yesterday’s TOC container supply chain conference in Singapore, Sundara Sundara, vice president for ocean product at Agility Logistics, told delegates that the twin trends of larger vessels and consolidated carrier alliances had led to a greater need for shippers to employ the services of 3PLs, the event organizer TOC Event said in a press release.

    “There has been a surge of small-to-medium enterprises (SMEs) using 3PLs as a one stop shop to try to keep track of all the changes that are going on in the industry,” he said, referring to the huge volatility in freight rates as well as the intermittent blanking of voyages.

    “At the same time the alliances are looking to fill up the ultra large container vessels (ULCVs) so they are coming to 3PLs to get these volumes. So for the SME, the 3PLs become a point of entry, especially as they don’t have things such as existing credit terms with the carriers,” he added.

    Bjorn Schoon, director of sea freight for Singapore and Malaysia at Kuehne + Nagel, said that evidence of this trend was shown by the increased share of volumes that 3PLs booked with lines compared to the share booked directly with carriers by shippers.

    “Forwarders control 40% of global sea freight volumes – some 68m teu out of a total market of 170m teu, although the top 10 forwarders control just 15m teu, with the remainder controlled by thousands of smaller forwarders who concentrate on specific cargoes or trade lanes.

    “Carriers control the remaining 60% of volumes, but that is down from 95% 30-odds year ago, and we expect to see forwarders gain further market share,” he said.
    One of the chief reasons for this, he claimed, was that in their search for reducing the cost per teu, carriers had been reducing regional sales forces, “which means their proximity to customers has been getting less”.

    In contrast, he said, 3PLs had been hiring more sales people, investing in end-to-end solutions and the IT systems that support global supply chains including, crucially, the ability for shippers to run shipments over different transport modes.

    While he echoed Mr Sundara’s comments with the argument that “carriers are very good at asset management while 3PLs are good at managing customers’ demands”, he added that declining liner performance in terms of schedule reliability continued to cause stress in the container supply chain.

    A Kuehne + Nagel customer survey found that out of six major priorities for global ships – which included customer service, pricing, competence of operations, track and trace, on time delivery and transit times, and information flows – the most important remains on time delivery.

    “Our customers’ KPIs typically state 90% on time deliveries, and in some cases these are as much as 98-99%, while the shipping lines at best offer 80-8% on time deliveries, and we believe that between shippers, 3PLs and carriers there is a real opportunity to have conversation arbour the value of services and what a fair price for them is,” Mr Schoon said.

    Even major shippers that are well-versed in dealing directly with carriers have had to increasingly use freight forwarders to monitor performance and manage ocean container contracts.

    David Panjwani, global logistics manager for Africa and Asia at US-based heavy machinery manufacturer John Deere admitted that its use of its logistics service providers had increased.

    The company ships 110,000 teu per year, as well as 30,000 ro-ro units, and Mr Panjwani said that while John Deere directly books 98% of its ocean freight purchasing with shipping lines the continuing poor performance of liner shipping meant a focus on day-to-day container flows had become more important.

    TOC Asia Exhibition
    Running alongside these two high-level conferences is the TOC Asia Exhibition, a unique platform for the port and terminal community to meet port equipment manufacturers, second tier suppliers and service providers.

    Conference delegates and exhibitors will be free to network with each while discussing the prime issues raised by the event programme and the solutions on offer.

    About TOC Asia
    TOC Asia – the pan-Asia conference for people who own, move and handle containerised cargoes – runs as part of Singapore Maritime Week (SMW), running from 19-24 April 2015. At TOC Asia 2015, economic experts and supply chain stakeholders will analyse the funDamental challenges and opportunities presented by the shifting drivers of regional and global trade.

    TOC Asia comprises two concurrent debating forums – the Container Supply Chain (CSC) Conference and the TECH TOC Conference – supported by a common networking zone where industry peers can swap notes and debate the high level discussion points presented in the conference sessions.

    The Container Supply Chain (CSC) element is an executive-level discussion forum focused on international trade, container shipping, port development and logistics, bringing together shippers, shipping lines, 3PLs, port authorities, terminal operators, government and other key supply chain members.

    This is complemented by TECH TOC, designed to engage operational executives in the practicalities of port and terminal performance, with in-depth debates on facility design, automation, operations, equipment and technology from berth to gate.
    Major stakeholders
    Key supply chain stakeholders and analysts speaking at the CSC forum include: Abdulla Bin Damithan, Commercial Director, DP World, UAE Region; Jaya Moorthi, Director of Supply Chain & Logistics, Hewlett Packard Asia Pacific; Julian Smith, Global Transportation and Logistics Leader, PwC; David Panjwani, Global Logistics Manager, Asia/Africa, John Deere; Stanley Smulders, SVP Asia - Europe & West Africa Trade Management, MOL Liner; Casper Ellerbaek, VP Trade Management, Kuehne + Nagel; Sundara Sundara, VP Ocean Product, Asia Pacific, Agility; Oscar Wang, Assistant General Manager, Shekou Container Terminals; David Alba, President & CEO, Grid Logistics; Richard Martin, Managing Director, IMA Asia; Alan Murphy, COO & Partner, SeaIntel Maritime Analysis; Andy Lane, Partner, CTI Consultancy; Jonathan Beard, Managing Director, ICF GHK; Dr. Stefan Wiech, Partner, HPC Hamburg Port Consulting; Dr. Thomas Vitsounis, Project Leader, Total Port Logistics, NICTA (National ICT Australia); Andrew Zerk, Director, New Dimensionz.

2020 July 3

18:37 DistriRail adds its rail schedules to the Port of Rotterdam Authority’s Navigate tool
18:07 ClassNK releases amendments to class rules
17:44 Possibilities of digital transformation of military shipbuilding to be discussed at "ARMY-2020" forum
17:05 ECSA welcomes study on social aspects within the maritime transport sector
16:50 Rosmorrechflot warns about Russia’s risk to move from White to Grey list of Paris MoU
16:24 11 major international companies join forces to accelerate the energy transition in transport and logistics
15:48 Hydrographic Company and MRTS sign contract on construction of Utrenny terminal facilities
15:10 CMA CGM announces rates from Asia to Red Sea
14:43 ABP publishes its Annual Review 2020
14:10 Port of Savannah’s Ocean Terminal takes delivery of two mobile harbor cranes
13:12 Alfa Laval wins SEK 130 million offshore order in China
12:26 Throughput of port Azov in 6M’2020 fell by 15% YoY
12:01 ICS launches Guidance for Engine Room Safety
11:47 North-Western Shipping Company merges into Volga-Fleet
11:15 CMA CGM announces FAK rates from Asia to North Europe
10:59 Finnlines announces bunker surcharge for Malmö-Travemünde-Malmö
10:13 Ocean Yield takes delivery of newcastlemax dry bulk newbuilding
10:12 GTT and Zvezda Shipbuilding Complex sign a Technical Assistance and License Agreement for the construction of LNG carriers incorporating membrane tank systems
09:52 Bunker prices changed slightly at the Port of Saint-Petersburg, Russia (graph)
09:34 Baltic Dry Index as of July 2
09:20 MABUX: Bunker market this morning, July 03
09:16 Oil prices start decreasing
09:09 Baleària presents a proposal for the construction and operation of the new passenger terminal in the Port of Valencia

2020 July 2

18:37 CMA CGM announces FAK rates from Asia to the Mediterranean
18:04 ClassNK releases Annual Report on Port State Control
18:04 CMA CGM updates PSS for Reefer Cargo from North Europe, Scandinavia, Poland & Baltic, West Med & Adriatic to the Indian Subcontinent, Middle East Gulf & Red Sea
17:52 Glavgosexpertiza approves expansion of access canal to Sabetta port
17:35 Royal Niestern Sander delivers the hydrographic survey vessel ‘Geo Ranger’ to Geo Plus B.V.
17:21 Oil shipments via CPC Marine Terminal in 6M’20 climbed by 2.2% YoY
17:04 Kongsberg Digital acquires Danish maritime software company COACH Solutions
16:55 Federal government waives the traffic dues for the Kiel Canal until 31.12.2020
16:45 Fincantieri subsidiary INSIS acquired a majority share in Support Logistic Services
16:23 Webinar “Pusher-tugs as a pivot of river transportation chain. Will we have them built?” slated for 8 July 2020
16:04 IPCSA launches the Network of Trusted Networks
15:42 Shipbuilding facility of Neptun CDB in Novaya Ladoga lays down two cruise ships of Project PV20S
15:20 New transshipment terminal soon to become operational at the Port of Gothenburg
15:04 250,000 m2 of rooftop solar panels to be installed in the port of Amsterdam by 2024
14:23 MABUX releases weekly review of global bunker market
14:03 Nippon Paint Marine completes the extensive re-coating of the 1911-built cargo ship
13:29 Cargo traffic within Azov-Don Basin of Russia’s IWWs fell by 5% in 6M’20
13:05 Premiere for Rolls-Royce's first MTU gas engines in new Doeksen ferry
12:44 Bunker prices are slightly up at the Far East ports of Russia (graph)
12:22 Rosmorport announced tender for construction of LNG transshipment facility in Kamchatka
12:00 APM Terminals introduces APIs to transform the next generation of terminal data
11:21 Russian Railways' network loading fell by 4.5% in 6M’ 2020
11:03 ECSA calls on the German Presidency to support a stronger European shipping industry
10:47 Bunker sales at Vladivostok port in 6M’2020 fell by 23% YoY
10:29 Damen Maaskant Shipyards Stellendam delivers trawler Jonge Johannes
10:24 Tallink Grupp makes strategic future investment and purchases ro-pax vessel Sailor
10:02 Oil prices continue rising
09:59 Yang Ming fulfills green promise carbon emission reduced 51% in 2019
09:45 Tallink Grupp adds more departures to Helsinki-Riga and Turku-Tallinn routes for August 2020
09:28 MABUX: Bunker market this morning, July 02
09:23 Inaugural meeting of the international advisory panel on maritime decarbonisation
09:18 Baltic Dry Index as of July 1

2020 July 1

16:18 COVID-19 dampens long-term energy demand and highlights scale of climate emergency
15:52 Konecranes receives order from Louisiana for two portal harbor cranes
14:26 Panama emphasises its support for seafarers' rights
13:43 DNV GL grants type approval for Aquarius UV / EC BWMS
12:36 ICS: Global shipping fleet to sound horns on 8 July to remind governments over need for urgent crew change