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

March 31, 2013

Panalpina upgrades to Boeing 747-8F cargo aircraft

Filed under: Logistics,Newsletter — admin @ 11:52 am

Panalpina and Atlas Air have signed a new multi-year aircraft, crew, maintenance and insurance (ACMI) contract for two leading-edge technology Boeing 747-8F. The aircraft will enter service in the first half of 2012 and operate in Panalpina’s unique own controlled air freight network, replacing the two current Boeing 747-400F.

1414861_plane_silhouetteCompared to the 747-400F, the industry’s newest freighter has 16 percent additional cargo volume but is expected to have the lowest carbon dioxide emissions in its class. With the new aircraft, Panalpina is optimally set up to meet industry specific requirements and the increasing demand for large-freighter capacity, especially in the healthcare, hi-tech, automotive and oil and gas industries.

Read More…


March 30, 2013

Philippine School Made From APL Cargo Containers

Filed under: Education,Logistics,Newsletter — admin @ 11:50 am

NOL Group celebrated with the Philippine Christian Foundation (PCF) the inauguration of the container school called “Philippine Technical College.” The campus is built exclusively from APL cargo containers.

1079529_containers_-_hdrNOL Group donated 53 containers to PCF and subsidized the purchase of 26 more. The Group also sponsored a classroom for students and shipped three 40-foot-containers of building materials to Manila to assist in the school’s construction.

The school is run by PCF and offers classes from pre-school through high school as well as offering vocational courses for livelihood skills training. The Foundation’s primary objective is to use education to bring an end to child labour at Smokey Mountain dump site.

Read more…


March 29, 2013

DB Schenker Logistics Offers French Winegrowers Refrigerated Ocean Freight Solution

Filed under: Logistics,Newsletter,Supply Chain Management — admin @ 11:46 am

New service maintains the quality of expensive wine during overseas transportation with special care and monitoring of the cool chain.

1364350_wine_barrelsDB Schenker Logistics has launched a new service for high-quality wine from French producers at the ongoing ProWein trade fair in Düsseldorf. Wine will benefit from an in-house express pick-up service, which will shorten the lead time between wineries and export platforms, and ensure that the valuable and sensitive cargo is less affected by variations in temperature. Whether it’s Bordeaux or Beaujolais, from the Loire or Provence, the wine is protected in special insulated-roof trailers as soon as it is picked up by DB Schenker. At DB Schenker’s heat-insulated freight depots, the wine is then stuffed into 15°C refrigerated ocean freight containers ready for export. The express pick-up service is also be used to export premium wine via air freight.

Read more…


March 28, 2013

Upcoming Event: Strategic Warehouse Operations 2013

Filed under: Education,Events,Newsletter — admin @ 11:43 am

Conference: 17th June 2013
Workshop: 18th June 2013
Venue: JW Marriott, Kuala Lumpur, Malaysia

Gaining Competitive Advantage through Effective Warehouse Operations

Strategic Warehouse Operations-400

Top 10 Reasons to Attend the Strategic Warehouse Operations 2013 Conference

  • KEEP abreast of new changes likely to affect future movement and operations of goods and services
  • MANAGE performance gaps with warehouse management systems (WMS) and discover if it really is that cost effective for your warehouse
  • ASCERTAIN which processes and services would third party logistics (3PL) providers be of most value and how to achieve win win situations for both parties
  • IMPROVE warehouse processes with effective warehouse people management and planning
  • DEPLOY efficient inventory management and control to ensure adequate supply and minimize stock holding inventory resulting in reduced warehousing costs
  • RECOGNIZE the importance of having efficient storage and materials handling equipment & systems to improve productivity; quality and cycle time of warehouse operations
  • GENERATE cost savings by realizing the impact of warehouse operations on the environment
  • DISCUSS and BRAINSTORM on the future changes in warehousing
  • ACHIEVE better control and management of warehouse operations through measurement and auditing techniques & solutions
  • BENCHMARK against best practices and case studies from leading organizations in the industry

Some of the renowned companies who have participated in our events include:

  • Air Asia X
  • CPOC
  • Chevron
  • Shell Iraq Petroleum Development
  • Weatherford Asia Pacific
  • British American Tobacco
  • And many more…!

For more details of this event, do email with subject “WLS”

T:+65 6825 9618


March 22, 2013

Positions Vacant – Regular Postings in Our Newsletter

Filed under: Jobs,Logistics — admin @ 12:09 pm

If you are looking for a job, or are just interested in seeing what is available, subscribe to our newsletter to receive regular Logistics Job listings.

You can sign up to the newsletter on our web site at

Positions Vacant – Most Recent Listings from our Newsletter on 20.Mar.2013

Logistics & Supply Chain Director – Chemicals Industry, China: Logistics Executive (Licence No: 07C5191)

Senior BD Manager/Director – Contract Logistics: Logistics Executive (Licence No: 07C5191)

Regional Freight Sales Leader – Singapore: Logistics Executive (Licence No: 07C5191)

Assistant Logistics Manager TPM (Singapore): Logistics Executive (Licence No: 07C5191)

Thailand – Head of Retail Business Development – 3PL Contract Logistics: Logistics Executive (Licence No: 07C5191)

Retail Operations Director – Fast Fashion: Logistics Executive (Licence No: 07C5191)

Projects Senior Manager: Logistics Executive (Licence No: 07C5191)

Commercial Sales Director – Greater China: Logistics Executive (Licence No: 07C5191)


March 14, 2013

Drewry warns of more cancellations, space shortages and volatile rates

Filed under: Economics,General,Logistics,Newsletter — admin @ 7:56 pm

1093355_financial_crisisOver the last few months, shippers are facing uncertainties prompted by the sudden, high number of container service sailing cancellations, which rose to 150 on the transpacific and Asia-Europe trades between October and February, according to Drewry Maritime Research.

It says the sailing cancellations have had demonstrable effects on freight rates and regularity of service provided to shippers.

Drewry analysts said the ocean carrier strategy has boosted average ship utilisation and spot market freight rates have increased seven per cent on the two trade lanes.

Cancelled sailings in February are estimated to have reduced available capacity in the head-haul Asia-west coast North America route by about 100,000 TEU, and services were thereby operating at only 90 per cent strength.

“The capacity reduction increased average eastbound ship utilisation from the 72 per cent it would have reached at full strength to a more respectable 79,” a release said.

“The practice of blanking sailings is not new, particularly around Chinese New Year, only the duration since October has changed. “Although the strategy achieves the same result as the withdrawal of services at the end of the peak season – namely stopping average vessel utilisation from falling to keep freight rates up – the effect on shippers is completely different,” said Matthew Beddow, manager of Container Insight Weekly that produced the report.

“Shippers know where they stand with well managed service withdrawals, whereas sailing cancellations sometimes confront them with unexpected space shortages, roll-overs and shut outs, as vessels quickly fill up.”

Freight rate changes caused by sailing cancellations also appear more volatile for shippers than those achieved through service withdrawals, with any increases being quickly lost once normal service resumes, according to the London consultancy.

Drewry analysts concluded that head-haul freight rates from Asia to Europe and North America will continue to fall in March “unless further capacity management action is taken, or serious cargo growth outside of normal seasonal trends reappears, which is unlikely”.

Although no sailing cancellations have yet been announced for March and April, these are usually peak months for cargo growth, so ocean carriers are probably just be in “watch and wait” mode.

“Uncertain cargo growth to Europe and the US will encourage ocean carriers to continue with short-term vessel capacity planning, which means more sailing cancellations to come. The problem will be exacerbated as service upgrades enforced by newbuild deliveries and cascading gain momentum,” Mr Beddow said.


March 13, 2013

Hapag-Lloyd and Hamburg SUD merger could benefit NOL

Filed under: Economics,General,Newsletter,Singapore — admin @ 11:21 am

Hapag-Lloyd-ShipThe chairman and majority owner of Kuehne & Nagel (57.6 per cent) Klaus-Michael Kuehne, who is also the biggest shareholder in Hapag-Lloyd (28 per cent), hopes to involve Singapore NOL if Hapag-Lloyd-Hamburg Sud merger plans go ahead.

Singapore’s Neptune Orient Lines (NOL), with its container shipping arm of APL, is the most desirable partner, he said. NOL originally expressed an interest in purchasing Hapag-Lloyd in 2008, before withdrawing as market conditions deteriorated.

Said Mr Kuehne: “My dream would be to add another shipping company from the Far East to Hapag-Lloyd and Hamburg Sud. I think NOL is very suitable.”

The logistics entrepreneur, with a personal wealth of US$5.9 billion by 2007 (Forbes magazine), revealed that he will push for an initial public offering within two or three years, even if that derails merger talks between the two German carriers, reports London’s Containerisation International.

It is believed that Hamburg Sud’s owners August Oetker and his family are against any joint venture or to go public, and the report warned that continued disagreement may be a deal breaker.

“That could happen, but I do not wish it to,” Mr Kuhne told Die Welt. “I favour a partnership with Oetker, not a takeover by Oetker.”

A merged Hapag-Lloyd/Hamburg Sud would become the fourth largest container shipping line globally.


March 12, 2013

Singapore trumps Hong Kong as shipping hub

Filed under: Newsletter,Singapore — admin @ 8:37 am

Singapore is the “place to be if you are in shipping today”, Anglo-Eastern CEO Peter Cremers told an annual luncheon of shipping journalists at the Royal Hong Kong Yacht Club yesterday.

Mr Cremers, whose Hong Kong ship management company has 20,000 seafarers afloat or on leave and manages 250 ships out of Hong Kong alone, said Singapore has a more focused policy to attract shipping interests, owners brokers and ship managers like himself.

“And when some of them come, more of them come. It starts a momentum, and then even more want to come. Singapore has been very successful in building a cluster,” he said.

“They are always asking what do you need, what they can do for you. Hong Kong is more like a platform. You come here, do well, or you don’t do well. There is no special interest on the part of the government,” he said.

Anglo Eastern chief operating officer Marcel Liets interjected: “Singapore is run like a company. If they want something, they go after it. It’s not like that in Hong Kong.”

But Mr Cremers conceded that costs have gone up in Singapore in the last two years, so there is no thought of moving much more there today.

“But it is odd,” he said “In Hong Kong there are no taxes and in Singapore there are tax incentives. But in a funny way, it works for them,” he said.


Best Practices in Logistics Outsourcing

Filed under: China,Education,Newsletter,Supply Chain Management — admin @ 8:34 am

Logistics is probably the most prevalent and tangible (physical) of outsourced supply chain services. Services encompassing transportation, warehousing and related goods handling activities are typically outsourced to a third party logistics service provider (3PL or LSP). In delivering the outsourced logistics solution, the provider will typically manage warehouse operations in multiple locations, operate a fleet of trucks for transportation of goods and provide freight forwarding services for international movement of cargoes by sea and air.

Businesses recognise that one single logistics service provider can very rarely meet all their supply chain needs on a global basis, despite many 3PL’s proclaiming to be everything to everyone, everywhere. Hence organisations tend to select multiple service providers typically on a best-of-breed basis – seeking out the leading practitioners based on specific geographies, type of product (eg high value electronics, perishables) services required (eg inbound to manufacturing, retail distribution, reverse logistics) and transportation mode (air cargo, ocean freight, road transport).

Having appointed their preferred outsourcing partners, companies are then faced with the challenge of managing several 3PL’s and freight forwarders to form one efficient supply chain and making sure they work together effectively to integrate the efficient movement of parts and components to production facilities and distribution of finished products to customers.

The many challenges involved in managing multiple logistics service providers has resulted in the ‘4PL’ model – fourth party logistics – whereby the company appoints a ‘fourth party’ to manage all the other third party service providers. Not dissimilar to outsourcing your logistics management department, the 4PL could either be a non-asset based management consulting firm or could in-fact be one of the 3PL logistics service providers involved in the supply chain execution.

Either way is fraught with challenges due to resistance amongst the various parties to openly share information with the other supply chain partners – information which is needed by the 4PL in order to effectively manage the supply chain. This is one of the primary reasons that collaborative supply chain management – whilst wonderful in theory – can be so difficult to achieve in practice – due to the inherent reluctance of organisations to openly share their data and information with other supply chain participants, many of whom are, or are perceived to be, competitors.

This is a practical reminder that there are two distinct dictionary definitions of collaboration: (a) to work with others for mutual benefit; and (b) to willingly assist the enemy!

Logistics outsourcing requires a collaborative management approach to successfully appointing and managing third party partners for the provision of logistics and other services. In such scenarios, success is all about multiple entities coming together for the purpose of successfully executing supply chain ecosystems on behalf of customers. We can expect further collaborative outsourcing developments in global supply chain ecosystems.


Mark This post is the monthly contribution by industry thought leader Mark Millar. Mark has been engaged by clients as Speaker, MC, Moderator or Conference Chairman at more than 250 events in 20 countries and is recognized by the Global Institute of Logistics as “One of the most Progressive People in World Logistics”; Mark serves on the Advisory Board of the Logistics and Supply Chain Management Society (LSCMS) –


How to make valued vehicle buys in high costs Singapore

Filed under: Economics,Newsletter — admin @ 8:24 am

The rising cost of the Certificate of Entitlement (COE) in Singapore for the procurement of trucks can affect operation costs significantly, so how can firms make value-for-money purchases?

The current COE cost for trucks in Singapore is approximately two times that of the original vehicle cost. Despite the COE prices, companies will need to “purchase the necessary equipment to get the job done”, Mark Gabel (pictured), general manager of Volvo Group Singapore, said.

So how can procurement teams manage such costs in their spend and make value-for-money purchases?

Gabel suggested three key components to make sure purchases are worth the money and is suited to drive profitability.

Firstly, companies will need to be sure that the vehicles purchased are specifically suited for their daily operations.

“There is a risk that the supplier might just push what he has in his inventory. A professional company would evaluate your specific operational needs and adjust the specifications in a way that meets your requirements,” he told ProcurementAsia.

Ng Teck Yong, managing director of Chye Joo Construction, agreed, saying his company picks trucks with specifications suited to its construction operational needs, such as providing good traction and delivering payload in tough conditions while reducing fuel costs.

“We (will) choose a truck supplier that takes the initiative to understand our business well and provide a suitable product that is highly productive in the long-term to contribute substantial cost savings,” he said.

Companies will also need to compare the specification and the pricing in managing vehicle and service agreement costs. A slightly more expensive vehicle, with specifications that match its price, could help save more money in the long run.

Furthermore, pushing for long-term service agreements could get suppliers to offer a fixed repair rate, reducing large unexpected costs in the future. Ng’s firm, for example, mitigates the rising business cost by getting suppliers to commit on the uptime of vehicles.

He said the company had signed a long-term service agreement with supplier Volvo Trucks to “ensure maximum uptime of the vehicle at a calculated cost from the start, hence no surprises on maintenance costs going forward”.

The third and final aspect companies should consider is the fuel economy of the trucks they purchase.

“There are companies in Singapore who consume up to 1 million litres of diesel a month in their combined fleet of trucks and excavators. Every litre which can be saved will be savings of up to SG$20,000 per month per vehicle,” Gabel said.