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LSCMS Blog

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

April 30, 2013

Asian World Summit launches the “Supply Chain & Logistics Excellence” conference

Filed under: Events,Newsletter — admin @ 12:02 pm

With the increasing pressure of unpredictability in the global market, supply chain professionals are challenged with the task to cut costs and continuously improve efficiency while still focusing on growth.

supplychain

According to “The Ninth Annual Global Survey of Supply Chain Progress”; visibility, analytics, and flexibility are the key critical factors for companies to capitalize on growth opportunities. The survey shows that companies who are taking the initiatives to make sense of information via their analytical capabilities and possess the flexibility needed to respond; outperform their rivals in growth and profit. They are also the ones who vigorously manage the risks in supply chain.

Despite facing challenges in transport networks, government policies and hands full with running warehouses, supply chain professionals who are specializing in logistics and warehousing are compelled to deliver elevated competent performance. With many competing in the race to supply the perfect order, only the best in innovation and business processes will win.

Asian World Summit presents Supply Chain & Logistics Excellence conference which will be held on Tuesday, 14th & Wednesday 15th May 2013 at DoubleTree by Hilton Hotel Kuala Lumpur. With the theme, “Profitable management of uncertainty”, the conference aims to unearth the best practices of re-engineering supply chain and logistics designs to stay profitable in varying environment.

The conference will feature speakers from companies with world class supply chain practices namely;

Adam Balarin, Supply Chain Director
Unilever Australia and New Zealand

Tan Suan See, Vice President Global Supply Chain & Logistics
Ansell

Patrick Choy, Director of Supply Chain
DKE Precision Pte Ltd, Singapore

Paramesvaran Ganesan, Senior Manager, Warehouse & Logistics
Elken Sdn Bhd

Beth Gutweiler, Regional Supply Chain Manager Asia Pacific
Halliburton

For more information and request for brochure
julie@asianworldsummit.com or call +603 2333 9350

As a member of The Logistics & Supply Chain Management Society, you will entitle for 10% discount off the original price. Contact us now.

 

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April 26, 2013

FedEx launches flexible delivery service

Filed under: Logistics,Newsletter — admin @ 9:45 pm

by Nivedita Bhattacharjee, reuters.com
April 23rd 2013 8:55 AM

Couriers load packages onto vehicles as other packages move down the belt at the Marina Del Rey, California FedEx station

(Reuters) – FedEx Corp launched a new service to let customers select from a range of options to schedule dates, locations and times of delivery, catching up to rival UPS, which offered its “UPS My Choice” service more than a year ago.

Residential shoppers, who are a growing part of the company’s business thanks to the rise of online purchases, can receive notification of FedEx Express and FedEx Ground packages, and track and manage deliveries without a tracking number or FedEx account.

UPS launched its service in September 2011 to help enhance first-time delivery with consumers getting alerts and details on the specific timeframe for a shipment.

[Read more…]

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April 23, 2013

Virgin pounce on Tiger approved by ACCC

Filed under: General,Logistics,Newsletter — admin @ 11:12 pm

20130423-230957.jpgThe competition watchdog says it will not oppose Virgin Australia’s planned 60 per cent takeover of Tiger.

The Australian Competition and Consumer Commission has concluded that Tiger Airways Australia would be unlikely to remain viable if Virgin’s takeover of it was rejected.

“The ACCC’s view is that this acquisition is unlikely to lead to a substantial lessening of competition in the Australian market for domestic air passenger transport services,” ACCC Chairman Rod Sims noted in a statement.

“Essential to reaching this view was the ACCC’s assessment, made after thorough and extensive testing of the issue, that Tiger Australia would be highly unlikely to remain in the local market if the proposed acquisition didn’t proceed. Absent this conclusion the acquisition raised considerable competition concerns.”

[Read more…]

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April 18, 2013

Amongst Stormy Waters, Intra Asia Trade offers Rays of Sunshine

Filed under: Logistics,Newsletter,Supply Chain Management — admin @ 8:07 am

Whilst demand remains soft and capacity risks are high, container shipping is experiencing stormy waters for ship owners, operators and investors.

Industry executives are increasingly concerned about a range of challenges facing the ocean freight sector, including weak cargo growth, too much new capacity coming into the market and increasing environmental issues. Container ships parked-up and temporarily out of service have reduced total capacity by around 700,000 TEU, but idled tonnage needs to reach at least 2 million TEU before any equilibrium will return to the current supply demand imbalance.

Amongst all the storm clouds, the Intra Asia trade offers some rays of sunshine. For containerised ocean freight, intra-regional trade accounts for 41% of global trade, of which the Intra-Asia regional flows represent 79% – trade which is valued at 2.9 trillion dollars.

Intra-Asia container traffic has already overtaken Trans-Pacific volumes and the combined container volumes on Intra-Asia and Asia-Middle East are together forecast to grow to six times current levels by 2030.
With healthy growth in recent years, Intra-Asia container volumes grew to 26 million TEU’s in 2012 and are projected to keep growing by average 7% per annum to reach 33 million TEU containers in 2015.

All this in an environment with distinctly different geographic characteristics than North America or Western Europe, where contiguous land mass lends itself to long-haul road and rail cargo transport linkages. A significant proportion of the intra-Asia trade has no option but to travel on the water – for example the Philippines, Indonesia and Japan are island nations, inaccessible by land routes from other countries. Even when countries do have land connections available, the combination of infrastructure limitations and cross border inefficiencies often make water-borne transportation a much more efficient and cost effective option.
The average cargo journey length within Asia is much smaller than other major trades – for example Intra Asia container distances are typically 500-1,000 nautical miles, one tenth of the typical distance on the Asia-Europe trades. Hence, the intra-Asia trade is served predominantly by mid-size container vessels – typically ranging from 1,200 – 3,500 TEU capacity – and is very fragmented with many small and medium-sized ports with length and depth restrictions, numerous shipping lines, hundreds of local players providing barging services and thousands of freight forwarders.

The healthy growth in trade and commerce is fuelled by robust and rising consumer and industrial demand throughout Asia – most notably in China, India and the ASEAN nations in South East Asia. India-China trade is projected to grow to $100 billion by 2015 – a 50% increase over current trade levels, whilst predications are for ASEAN to become a ten trillion dollar economy by 2030. We truly are in the Asia Era!

Mark Industry thought leader Mark Millar has been engaged by clients as Speaker, MC, Moderator or Conference Chairman at more than 260 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) mark@markmillar.com

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April 16, 2013

China cities being probed for fake trade figures

Filed under: China,Economics,Logistics,Newsletter — admin @ 1:27 pm

Suspicion that Chinese cities are faking trade figures has prompted an official investigation when statistics made it appear that Hong Kong was the mainland’s third largest trading partner, reports China Securities Journal.

Also surprised were IHS Global Insight analysts Ren Xianfang and Alistair Thorton, who noted the dramatic 93 per cent surge in mainland’s exports to Hong Kong, reported the Wall Street Journal.

The figures did not make sense to them because China’s trade with its two largest trading partners fell 6.5 per cent to the US and 14 per cent to the EU, said the IHS Global Insight analysts.

What officials suspect is that goods are moved from mainland cities to Hong Kong as exports and returned as imports, falsely doubling trade value, though sources say this may not be happening and other factors may account for the anomaly.

The Securities Journal’s “administration” source said that the “abnormal” increase caught attention of authorities and led to an ongoing investigation. “But it is too early to judge that China is faking its trade figures.” said the report.

A person close to the Ministry of Commerce said trade between mainland and Hong Kong has never been so high according to past statistics, said the Securities Journal report.

Another source from a “trade authority” suspects the root of the surge may be political pressure from provinces on their cities that are ordered to achieve a predetermined growth figure, and forcing municipal leaders to sign letters of commitment to do so as happened in the past.

As international trade was depressed last year, some cities took “unusual” measures to meet their targets, said the source, including taking advantage of customs supervised areas.

The source said local governments has told shippers to take cargo to customs-supervised in Hong Kong and then return it to the mainland, agreeing to pay the extra cost of transport.

If the outward movement can bring US$4 million in trade value, the trip to Hong Kong can generate $8 million by going out as an export and returning as an import. Thus, cities have scored $1.6 billion statistical trade value in only 40 days.

Hong Kong-mainland bilateral trade value soared 71.2 per cent in March to $109.88 billion – 11.3 per cent of the mainland’s total. Trade value via bonded zones also soared 130 per cent to $114.6 billion.

China Customs March figures show exports increased 10 per cent year on year to US$182.19 billion while imports grew 14.1 per cent to $183.07 billion, producing a $880 million surplus in imports over exports.

In the first quarter, China posted a trade value of $974.67 billion, up 13.4 per cent year on year. Exports increased 18.4 per cent to $508.87 billion. Imports went up 8.4 per cent to $465.8 billion. The trade surplus grew to $43.07 billion from $210 million in the first quarter of 2012.

A source close to the Ministry of Commerce however stressed that the “abnormal” growth is still to be investigated and no determination has been made on how these statistics came about.

The same thing happened in 2006 and 2007 and the Ministry of Commerce and China Customs found out that shippers played tricks to raise their trade value to get higher government quotas.

The source went on to conclude that authorities are discussing ways to prevent such situations, considering regulations to exclude value of goods from customs supervised areas from trade statistics

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April 8, 2013

UPS appeals EU rejection of $6.7 billion TNT Express bid

Filed under: Economics,Logistics,Newsletter — admin @ 9:58 pm

20130408-235711.jpgNEW YORK (Reuters) – United Parcel Services Inc (UPS.N) has appealed the European Union regulator’s decision to block its 5.16 billion euro ($6.7 billion) bid for Dutch competitor TNT Express NV (TNTE.AS), a UPS spokeswoman told Reuters on Sunday.

U.S.-based UPS, the world’s No. 1 package delivery company, dropped its bid to buy the Dutch firm on January 14, on the expectation of an EU veto of the merger.

At that time, UPS and TNT Express said the European Commission, the EU’s executive body, had told the two firms it was working on a decision to prohibit the proposed acquisition, leaving them no choice but to abandon it.

Read more…

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April 1, 2013

NZ dairy giant Fonterra to come to China’s rescue with baby formula

Fonterra New Zealand, the world’s biggest dairy exporter, is coming to China’s rescue in June or July with highly sought imported baby formula, which has driven couriers to risk jail smuggling it into the mainland from Hong Kong.

Hong Kong has threatened carriers with jail if found with more than two tins after traders bought out local stores of imported baby formula, outraging families unable to find what they needed.

Fonterra, New Zealand’s biggest company, contributing seven per cent of national GDP, already manufactures milk powder for other companies to sell in China, but has stayed out of the branded retail market after it was rocked by a melamine tainting scandal in 2008, which killed six children.

Fonterra had held a stake in Chinese dairy company Sanlu, which collapsed after it was implicated, and Fonterra was criticised for not blowing the whistle sooner and more loudly than it did, said Reuters.

While most popular brand names are sold on the mainland, being brewed under licence locally, they can be faked and adulterated to bulk out the weight or substituted with local milk powder using imported tins.

The scandal created demand for bone fide brand name imports as consumption increased 12-fold with working mothers abandoning breastfeeding in a rapidly expanding work force.

Fonterra CEO Theo Spierings said he planned to start selling in June or July in smaller cities first before marketing in Beijing, Shanghai and Guangzhou.

China imported a total of NZ$2.4 billion (US$2 billion) of whole and skim milk powder from overseas last year, 85 per cent of which came from New Zealand, according to Statistics New Zealand.

Fonterra is owned by 10,500 farmers and controls one-third of the world’s dairy exports.

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