Blog for updates and happenings in logistics in the Asia-Pacific region

August 31, 2012

Wayporting and slow steaming lose popularity as rates come under pressure

Filed under: Newsletter — admin @ 8:01 am

Germany’s DVB Bank says increasing deployment of new mega ships is adding so much capacity that rates are coming under great pressure and means of concealing this by enlarging loops, wayporting and slow steaming are wearing thin.

“Given the limitations of capacity discipline measures in the face of incoming supply, freight rates on the Far East-Europe route are expected to be under huge pressure again, thereby dampening profitability,” said the report from the Frankfurt bank’s research and planning unit.

Rates have been robust since the increases levied at the beginning of this year, but growing capacity risks wiping out these gains, it said.

The bank report said carriers, having deployed an extra 348,000 TEU on the Asia-Europe route, an increase of 8.9 per cent, are running out of options after six months.

The report said weekly capacity rose 3.6 per cent as carriers used slow-steaming and wayporting to stretch capacity, as well as cushioning the effect of more tonnage afloat by adding up to three ships per loop on top of the usual eight that was common four years ago.

The DVB Bank report said there was no further benefit from such measures and even wayporting, adding to transit times through transshipments, had run its course in absorbing the extra tonnage flooding the market.

“Taking into account the poor economic outlook, trade volumes are expected to remain subdued,” said the report.”


August 29, 2012

3D printing and its Impact on the Global Manufacturing Industry

Filed under: Newsletter — admin @ 8:06 am

Chris Saynor the CEO of eyefortransport comments on a new white paper written by John Manners-Bell the CEO of Transport Intelligence and Ken Lyon the CEO of Virtual Partners.

According to the White Paper authors; ‘3D Printing’, or ‘additive manufacturing’ as it is also known, has the potential to become the biggest single disruptive phenomenon to impact global industry since assembly lines were introduced in early twentieth century America

I largely agree with their statement, and indeed would highlight the impact on Spare/Service-Parts Logistics as being the most pivotal when it comes to the impact on LSPs and how this technology could revolutionize a company’s own internal spare parts management structure.

John and Ken write:

The Service Parts Logistics sector would be one of the first to be affected. At present billions are spent on holding stock to supply products as diverse as cars to x-ray machines. In some cases huge amount of redundancy is built into supply chains to enable parts to be dispatched in a very short timescale to get machines up and running again as fast as possible. It doesn’t take much imagination to understand the benefits for a service parts engineer of being able to download a part design from an online library, 3D Print it and then fit it within a very short time window. This would make global and national parts warehouses as well as forward stock locations unnecessary to fulfilling customer needs.

The Service Parts Logistics industry will be either transformed or decimated by 3D manufacturing – or perhaps both! With small 3D Printing machines available, operations in remote locations – or even in an engineer’s van – will only need electronic libraries of designs available to them on a local computer. They can then call up the design of the spare part required and immediately print it. Obsolete parts could simply be scanned in 3D, fixed in the computer’s memory and the new part printed. The implications for inventory are clear.

For me I think the authors hit the nail on the head with regard to the chance for LSP’s to become early adopters…imagine the 3PL that offers to decimate the spare parts warehousing and inventory costs for its clients, by using 3D printing instead – purchasing the 3D equipment, managing the process and delivering the spare part. Another interesting area for Spare Parts 3D printing is remote facilities such as mines, ships, oil-rigs, space stations (less chance of LSPs being involved here though) where it is a lengthy and expensive place to get parts to.

You can read the full White-Paper at


Creating Value Through Reverse Logistics Optimization

Filed under: Newsletter — admin @ 7:51 am

At the World Mail & Express Asia Pacific conference, Cycleon presented its vision on reverse logistics and its development in the Asian region. Following the establishment of the Singapore office only a few months ago, Onno Boots, the company director for Cycleon in Asia Pacific based in Singapore, presented his views.

In a session on Developing Capabilities, Boots spoke about the importance of creating value through reverse logistics optimization.

From the sessions it became clear that there is an emerging demand for reverse logistics services in Asia Pacific both driven by significant growth in E-commerce and after-market services.

Read more…


August 23, 2012

Zeppelins set to make a come back?

Filed under: Newsletter — admin @ 8:13 am

California-based Airship Ventures aims to launch its Zeppelin up Alaska’s Inside Passage to Anchorage by June 2013 once it acquires joint venture partnerships.

The company founded in 2007 bases its Zeppelin NT (new technology) in an airship hangar in Moffett Field, San Francisco operated by NASA. Its work fits with NASA’s ongoing initiative for “green aviation” as an aircraft that uses less greenhouse gases than a cargo jet, said NASA director of Ames Research Centre Pete Worden.

“Airships appear to us to be an industry about to take off,” he added, cited a report from West Perth-based MICEBTN magazine on the company, which seeks potential sponsors of cruise ship providers.

It has already launched its 246-foot airship Eureka on flights over Long Beach for up to 12 passengers and through sponsorship it is keen to support companies which operate in hard to reach areas such as mining, petroleum and for disaster emergency services.

As a non-intrusive platform it can also serve documentary makers observing wildlife, one of the possible joint venture partners


August 8, 2012

DHL Starts City Logistics Project In China

Filed under: Newsletter — admin @ 8:09 am

DHL Customer Solutions & Innovation, DHL’s cross-divisional unit providing a single customer interface and developing innovative industry-tailored solutions for the market, will now undertake a comprehensive City Logistics Master Plan Research for Chengdu, China’s fourth largest city with a population of more than 14 million residents.

The strategic cooperation in the field of city logistics between DHL and Chengdu focuses on the analysis of the supply chain of fast-moving consumer goods from various sectors such as super markets, wholesale markets and franchised stores.

One of the main solutions of DHL’s general city logistics concept approach is the implementation of urban freight centers that significantly decrease freight traffic, increase the quality of air, improve efficiency, reliability, service quality and offer a better control of the logistic processes by a higher visibility of the supply chain.

Read more…