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

June 20, 2013

Record Turnout for “Women in Logistics” Event

Filed under: China,General,Newsletter — admin @ 1:02 pm

The Supply Chain and Logistics Professionals (SCLP) forum held its latest networking function on Thursday 30 May, with the specific Topic of “Women in Logistics” – kindly sponsored by Oriental Logistics and Logistics Executive.

Mark Millar, managing partner of M Power Associates, hosted the function held at Insiders bar in Hong Kong. The Women in Logistics themed event attracted the biggest turnout this year, reflecting the SCLP group’s growing momentum among local professionals working in supply chain and logistics. More than 80 guests gathered as Mark introduced SCLP’s first guest speaker, Ms Vicky Koo, Convenor and Founder of Women in Logistics and Transport (WiLAT) Hong Kong. Recently launched in affiliation with the Chartered Institute of Logistics and Transport (CILT Hong Kong), Vicky explained how WiLAT provides a platform to encourage and support women working in management in the logistics industry.


Vicky also discussed the challenges and opportunities for women in the transportation and logistics sectors and referenced a recent WiLAT survey that found only a minority of females at management or executive level. Lively discussion followed the talk, with Vicky concluding that WiLAT’s aim is to provide a support network and mentoring opportunities to nurture women in the industry.

Lucky Draw prizes included a Voucher from Glow with Ceri Silk, won by Helen Li from Hutchison Port Holdings, and three bottles of Wine donated by Global Wine Cellar, which were won by Monica Charvet, Danny Lee and Candice Koo.

Following the prize draw, the assembled industry professionals continued networking and broadening their industry connections, whilst enjoying the complimentary drinks and snacks.



Exciting Market Potential Still Exists

Filed under: General,Newsletter — admin @ 8:34 am

The Organisation for Economic Co-Operation and Development estimates that, globally, the size of the middle class (defined by the Economist Intelligence Unit as those who can afford to spend money on non-essential items) will increase from 1.8 billion people in 2010 to 4.9 billion by 2030. Asia will deliver 85 per cent of this growth, with spending by the region’s middle class expected to account for almost two-thirds of middle class spending globally.

At the same time, urbanisation is accelerating—China is forecast to create more than 200 new cities with a population greater than 1 million people by 2025. Projections also predict that in the next decade some 500 million people in Asia will have access to electricity in their homes for the first time, which will drive exponential increases in demand for a whole range of consumer household products.

Demand for fast-moving consumer goods (FMCG) is also forecast to rise, with PwC reporting that spending on soaps and cleaners in China and India should continue to grow at over 15 per cent per annum. But as MNCs rush to capitalise on this consumer market potential, they may discover that the most attractive markets are also likely to have challenging logistics environments.

There are huge opportunities in Asia as the middle classes grow exponentially, demand for consumer products increases, and spending on non-essential goods grows, including throughout the region’s second- and third-tier cities.

But on top of Asia’s geographic, economic, and political complexity, there are significant supply chain challenges resulting from developing regulatory environments, inadequate infrastructure, and talent shortages.

However, with informed insights and the right business partners together providing deeper understanding about the region, businesses can benefit from both production and consumption opportunities in Asia – and ensure that they are in a position to capitalise on that growth during what is becoming known as The Asia Era.

Mark Industry thought leader Mark Millar has been engaged by clients as Speaker, MC, Moderator or Conference Chairman at more than 275 events in 20 countries and is recognised 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)


Maersk, MSC and CMA CGM plan east-west operational alliance for 2014

Filed under: Economics,Logistics,Newsletter,Supply Chain Management — admin @ 8:23 am

Maersk Line, the Mediterranean Shipping Company (MSC) and CMA CGM, the first, second and third largest container lines in the world, have agreed to establish a long-term operational alliance on east-west trades within a year. This is a move that has industry pundits speculating as to what this will mean to for shippers and many are expecting rate hikes and tariff increases to be the result.

Under their projected P3 Network, ships will be run from a joint operating centre, but each carrier will continue to have competitive sales, marketing and customer departments, according to the joint statement.

“Declining volume growth and over-capacity in recent years have underlined the need to improve operations and efficiency. This has prompted the creation of alliances such as G6 and CKYH. Using the P3 Network the lines expect to improve efficiency through better utilisation of capacity,” said the statement.

The carriers say operations remain subject to regulatory approval, adding that realisation of the P3 Network is also dependent on carriers agreeing to a definitive contract with final signing expected in the fourth quarter.

The P3 Network is expected to have a capacity of 2.6 million TEU provided by 255 ships on 29 loops on Asia-Europe, transpacific and transatlantic trade lanes. The network is expected to reduce disruptions caused by cancelled sailings.

“The P3 Network will provide customers with more stable, frequent and flexible services,” said the joint statement. Under the scheme, each carrier will offer more weekly sailings in their combined network and more ports of call than they could individually, offering eight weekly sailings between Asia and Northern Europe.

Maersk Line will contribute 1.1 million TEU or 42 per cent of total capacity, and will continue to offer its Daily Maersk on request. MSC will contribute 900,000 TEU or 34 per cent while CMA CGM will contribute 600,000 TEU or 24 per cent.


June 10, 2013

LogisSYM 2013 to address impact of 3D printing on Supply Chain industry

At the end of 2012, we were asked to give our outlook as to what 2013 would look like. Collaboration and more advanced methodologies of this such as Combined Distribution Networks or Horizontal Integration would be further developed. Oversupply and fuel prices would be a challenge for carriers. We have just seen a recent casualty of this with STX Pan Ocean going into receivership. We also indicated that in the area of technology and concepts to watch, we will see more interesting developments in 3D printing.

The prediction was that the application and market viability of 3D printing will be much faster than that of RFID and this future game changer will make some headway in 2013. Based on the recent buzz created by Singapore start-up Pirate 3D to raise US$100,000 in the first ten minutes after it made it’s debut on crowd funding website Kickstarter, it looks like this prediction had some merit.

The application and use of 3D printing technology is far reaching. The National University Hospital in Singapore also announced last week the purchase of a 3-D printer which helps them hold an exact model of a patient’s face in their hands to aid in the reconstructive and implant surgery.

At the rapid pace of development, 3D printing has the potential to change conventional Supply Chain models as we know it.

Local Manufacturing – More things will be made closer to their final destination. This will have definite impact on the logistics industry, and will change the way business try and schedule their operations.

Customisability – It will be easier, faster, and more efficient for companies to provide made-to-order products to their end users. A significant beneficiary will be Reverse Logistics pipelines.

Distribution of raw materials – There will need to be a dramatic shift in the way raw materials are distributed since these printers will require raw materials in order to produce the final product.

New replacement parts model – Business will be able to provide replacement parts as required instead of trying to predict the need and manufacture the stock well in advance (as they do today) and hold inventories in remote stocking locations.

Blurred boundaries within businesses – A closer integration of the various departments of an organization will be mandatory. A silo manufacturing department will no longer allow for a competitive business model as the technology transverse different parts of the business.

3D printing will definitely make the supply chain more complex and more difficult to manage but will inversely present us with larger opportunities for optimization and integration.

The companies that succeed through this transition will be the ones that adapt early and leverage the tools they need in order to manage this even more complex Supply Chain. There will need to be even tighter integration with all aspects of Supply Chain from S&OP to Project Management to collaboration amongst suppliers and customers.

Better visibility of the supply chain will be mandatory in order to understand how it is changing. But even more important will be the ability to analyse options and make proactive decisions based on the real data available at the time.

It is an exciting development for our industry and at LogiSYM2013, this development will be discussed at length, not only with thought leaders and academics but also with technology providers in this space. For more information or to register, please send us an email at


STX Pan Ocean files for court receivership

Filed under: Economics,General,Newsletter — admin @ 2:50 pm

STX Pan Ocean, South Korea’s biggest commodities shipping line, filed for court receivership after a drop in rates left it unable to pay off its debt. STX Pan Ocean’s largest creditor Korea Development Bank’s unexpected decision not to buy the company led to the filing, the carrier said in an e-mailed statement in Seoul, where it filed for receivership. The company also faced a “liquidity crisis” as it could not raise enough funds because of the slump in bulk-shipping markets, it said.

Shares of the shipping line, now halted for trading, have fallen 46 percent in Seoul this year as parent STX Group tries to sell stakes in businesses including Pan Ocean, as rates continue to drop. The Baltic Dry Index, a measure of commodity shipping costs, has plunged more than 90 percent since touching a record high in 2008, and any delay in recovery could hurt more companies.

The Net Debt of STX totaled 5.37 trillion won ($4.8 billion) at the end of last year, according to Jang S.J., a company spokesman. Pan Ocean had $2.2 billion-equivalent of bonds and loans outstanding, according to data compiled by Bloomberg and the company has been unprofitable in the past four years as commodity-shipping rates sank.
This is the third time the company has faced issues of such magnitude and according to a source inside their Singapore office, they are optimistic that STX will be able to recover – as they have done in the past.

Industry pundits are watching developments closely and it is expected to be at least three to four weeks before the future path forward for the shipping line is to be decided and communicated internally, to the industry and to customers.


June 1, 2013

Logistics Insight Asia – May/June 2013

Filed under: General,Newsletter — admin @ 9:29 am

LIA Cover.inddSee the May/June issue of Logistics Insight Asia.

Features in this issue include:

ASIA’S BRIGHT AND CLOUDY FUTURE  talks about how to build eff ective Pan-Asian supply chains with cloud based services with four billion consumers, sixteen million shops within a single cloud.

REACHING OUT THROUGH THE CLOUD shares TIBCO?S wide array of solutions permeate through various industries including that of logistics, serving some of the biggest names in the business.

COLLABORATING FOR SUCCESS  key industry personnel share their thoughts with SYED SHAH on trends in the supply chain and logistics management industry within the cloud.