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LSCMS Blog

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

August 27, 2013

Singapore plans to double capacity of Changi Airport

Filed under: General,Jobs,Newsletter,Singapore — admin @ 10:50 pm

ChangiSingapore will build a new terminal that will double the capacity of Changi Airport in a bid to retain its edge as a regional aviation hub, Prime Minister Lee Hsien Loong said on Sunday.

Construction work will begin soon and will be completed in 12 to 15 years, Lee announced in his annual policy speech.

“T5 (Terminal 5) sounds like a terminal, but it is actually a whole airport by itself, as big as today’s Changi Airport,” said Lee.

He did not reveal the cost of the new facility, but said it would include a third runway that would double the capacity of Changi, which handled 51.2 million passengers last year.

Changi Airport, named the world’s best by Britain-based consultancy Skytrax this year, currently has three terminals with a total capacity of 66 million passengers a year.

In February it started to demolish its terminal for budget airlines to replace it with a larger facility.

The new facility, Terminal 4, will have the capacity to handle 16 million passengers a year when it opens in 2017.

In his speech late Sunday, Lee said there was growing competition from other major international airports in Southeast Asia.

He noted that Malaysia’s Kuala Lumpur International Airport and Thailand’s Suvarnabhumi Airport are planning to expand.

“The question is do we want to stay this vibrant hub of Southeast Asia, or do we want to let somebody take over our position, our business and our jobs?” Lee said.

Passenger traffic at Changi totalled 51.2 million last year, the first time in the airport’s 31-year history that the number of people passing through crossed 50 million.

As of January 1, 2013, Changi handled more than 6,500 weekly scheduled flights with 110 airlines connecting Singapore to 240 cities in 60 countries.

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Fuel and Security surcharges to be based on chargeable weight

Filed under: General,Newsletter,Resources — admin @ 7:33 pm

A number of airlines have announced that wef 1st October or shortly thereafter, Fuel Surcharge (FSC) and Security Surcharge (ISS) will be based on chargeable instead of actual weight which has been the practice to date.

Singapore Airlines Cargo and Emirates SkyCargo are the first to effect this change with Lufthansa Cargo following suit on 27th October.

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August 20, 2013

What to do in the event of a Marine Cargo Claim

In the last few months a few of our members have approached the Society on what should be done when they find themselves in the unfortunate situation of receiving a shipment that has been damaged. This is a summary of what the consignee of the cargo should do.

• On taking receipt of a container at port it is the haulier’s responsibility to check the external appearance and condition of the container and check that the seal and container numbers match those on the Bill of Lading. Any issues or discrepancies should be recorded on the interchange report and signed by a port representative.

• The consignee of the shipment should also perform the same checks when the container is delivered to their premises or the unstuffing location.

• If there are any issues with the condition of the container i.e. significant external damage that may have caused damage to the contents, the consignee should leave the container sealed and unopened, take photos of the problem(s), and notify the Shipping Line’s local office as soon as possible. Do not accept or unstuff the container unless agreed with the shipping line and the carrier should be asked to confirm any agreement in writing.

Failure to notify carrier’s local office could jeopardise any claim, as the carrier must be given the opportunity to survey the container, prior to discharge or release of the container.

• If the seal number is different to that on the Bill of Lading, consignee should notify the carrier’s local office and the shipper to seek an explanation prior to breaking the seal.

• If the container is delivered without a seal or if the seal is broken, the consignee should suspect loss or damage – Do not discharge! Instead, call the carrier’s local office and ask if they wish to arrange a survey or to give approval to take pictures and discharge. You should ask the carrier to confirm this in writing. This should be done prior to contacting the shipper.

• Likewise if the container number differs to that on the Bill of Lading, the consignee should notify the carrier’s local office and the shipper. Do not open the container!

• On opening the container, if the product is damaged the customer should notify the carrier’s local office and take photos of the product, prior to unstuffing the container. Any claim for damage caused by the customer moving the goods will not be accepted.

Failure to notify carrier’s local office could jeopardise any claim, as the carrier must be given the opportunity to survey the container, prior to discharge or release of the container.

Documents Required When Submitting a Claim

The following documents will be required for each cargo claim for loss or damage.

• Itemised Claim Statement. On your letterhead, detailing the extent of loss and TOTAL VALUE of your claim.

• Copy Bill of Lading – including a copy of the reverse side showing applicable Standard Trading Conditions (STC’s)

• Shippers Commercial Invoice

• Shippers Packing List

• Copies of all available delivery receipts

• Copy of written claim made against Shipping Line together with their reply

• Certificate of Insurance (if insurance has been purchased for this shipment)

The above guidelines and documentary requirements are by no means meant to be an exhaustive list.

Handling a cargo claim could be a complicated issue.

For more advice on how to proceed, you should contact your underwriter or the Logistics Department within your company as soon as you are aware of a potential claim.

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August 15, 2013

The Asia Era Provides Supply Chain Challenges and Opportunities

Filed under: China,Newsletter — admin @ 10:37 pm

As we are firmly in the Asia Era, many companies are focused on reconfiguring their global supply chains to capitalize on the market opportunities in the rapidly developing Asian economies, and in many cases to also reduce complexity and build resilience to address volatility.

Key drivers of change include: reduced demand in developed markets, overcapacity in container shipping and air cargo sectors, increasing focus on environmental issues and concerns over the uncertainty of oil prices.

Multinational brands are specifically looking to the Asia consumption markets for more volume, revenue and growth – and therefore need to revisit and reconfigure the structure of their supply chain ecosystems in order to better serve these local markets.

However, many challenges have to be overcome in order to enable effective and efficient logistics networks for distribution of consumer products. Throughout the Asia region, various countries are at vastly different levels of maturity and sophistication in their supply chain and logistics capabilities – which are of course especially critical for consumer oriented supply chains.

Acquiring the insights and knowledge of the issues in each market, together with the capabilities to develop appropriate supply chain solutions, will be key enablers of competitive advantage for organisations seeking to capitalise on the groundswell of opportunities in these exciting markets.

The rapid emergence of the Asia Era will require companies to adapt and adjust their business models accordingly – reconfiguring their supply chain ecosystems to focus on the multiple markets throughout the Asia region.

Businesses that successfully address this challenge will become empowered to gain competitive advantage and drive profitable business growth – accessing the knowledge and networks that provide independent and informed Asia supply chain insights will be critical to your success.

Mark Millar provides value for clients with independent, external and informed perspectives on supply chain strategies for China and ASEAN. He has been engaged by clients as Speaker, MC, Moderator or Conference Chairman at more than 300 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)  mark@markmillar.com

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August 14, 2013

The Singapore Surge

Filed under: China,Newsletter,Singapore — admin @ 1:45 pm

Singapore Port and Highway Photo_221779116_oWith both China and India losing ground within the Association of Southeast Asian Nations (ASEAN) this past year, it appears that tiny Singapore is regaining business from U.S. multinationals seeking a stable shipping and sourcing alternative.

China has recently been hard hit by a credit squeeze and a collapse in export growth. Meanwhile, India’s economy has entered a period of economic turbulence, with structurally high inflation as well as large fiscal and current-account deficits. But because Singapore made logistics a priority long ago, it remains on the cutting edge of globalization.

What has been the secret to Singapore’s resiliency? A great seaport and airport are two obvious answers, but its strategic location is key, if not paramount.

Read More >>

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August 12, 2013

Chaining the best value together

Filed under: Logistics,Newsletter,Supply Chain Management — admin @ 11:47 am

network-spheres-1008232-mSupply chain network designs have matured over the last 20 years from a once every two or three years strategic exercise to an operational system based upon optimal production and inventory planning, facility locations and transportation infrastructure – all using a common data base and single mathematical optimisation model.

Traditionally, companies adopt waterfall decision flows, in which strategic decisions are made and then the results from these decisions are used as input to tactical and operational decisions. The issue with this approach is that decision halos can be created. For example, a manufacturing company that makes sourcing decisions without considering production capacity, may unintentionally drive up component inventory or cause shortages resulting in decreased throughput.

To gain an edge in today’s competitive environment, strategic decisions, such as network design, that provide the company’s foundation, should be integrated with a tactical/operational decision support system, i.e., a holistic supply chain optimisation approach. The benefits of a holistic supply chain optimisation approach can be realised through the business applications identified in the supply chain optimisation design process presented here.

Read more >>

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August 10, 2013

Greener on the other side

DHL delivery scam emailGlobal CEO for DHL Supply Chain, BRUCE EDWARDS, shares with SYED SHAH his thoughts on the value of green sustainability for the business and the future of investing in it.

Bruce Edwards was appointed CEO for DHL Supply Chain and a corporate board member of Deutsche Post AG in March 2008. He is responsible for the global contract logistics operations across the global DHL business and the corporate information solutions business unit which includes the Williams Lea brand, with revenues of more than US$18 billion. Previously he held the role of CEO of DHL Exel Supply Chain from March 2007 and before that, he was the chief operating officer of DHL Exel Supply Chain for the Americas and Asia Pacific regions.

Q: How is going green going to affect the cost savings and profits for customers?

Initially people did not know how to evaluate opportunities to put in a more sustainable operation or approach and get it in place. In the early days, businesses tended not to look at it in a broader spectrum in terms of justifying making those kinds of investments and that has come a long way in the last few years.

Any company is usually subjected to a lot of pressures and there are investors that demand such an approach, like for instance there is a wide array of public institutions whether it is a state government, district, region or country or even an organisation as large as the EU that is really driving initiatives to make sure companies are starting to progress in sustainable operations. Then I think there is also a generational approach where the younger generation of people are seeking to becoming an employee of a company that is committed to being environmentally friendly and in the pursuit of the ‘go green’ approach. The thing is that in the past there are a lot of businesses that have underestimated this ‘generational’ approach and continue to make the mistake of not doing so but we at DHL certainly are aware of it and are addressing it as we move along with our aspirations.

Read more >>

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August 8, 2013

Mastering the Skills Required for Today’s “New Basics” of Supply Chain Management

Filed under: Logistics,Newsletter,Supply Chain Management — admin @ 3:00 pm

We talk glibly about change in supply chain management – continuous change, managing change, coping with change, even leading change.

For all too many of us, those are only words. Truth is, though, that change in our universe is real, fundamental, and visceral.

As definitions of supply chains change, always extending and expanding, far behind are the days when our world was all about quoting rates, tendering loads, and pick/pack/on-time-shipment performance.

Some may see these new opportunities for sleepless nights as “soft” skills – not quite as important as the “hard” quantifiable execution tasks we traditionally have focused on.

We have more news. The soft stuff is surprisingly hard to execute, and it just may be the key to consistent and sustainable performance on the hard stuff.

Read this article at Supply Chain 247 to learn more about soft skills in:

  • Leadership
  • Leading diversity in the workforce
  • Going green
  • Understanding financial performance
  • Managing relationships
  • The importance of strategy and planning

Read more >>

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August 4, 2013

Ti report confirms there is still room for local players in Supply Chain

Filed under: Economics,Logistics,Newsletter — admin @ 12:08 pm

Transport Intelligence (Ti) latest study on the contract logistics market, Global Contract Logistics 2013, indicates that once again DHL Supply Chain is the dominant market player, controlling eight percent of the overall market with revenues of US$17.2 billion in 2012. Ceva comes in at a distant second place with revenues of US$5.18 billion.

The report did however also identify that there is significant fragmentation in the sector with the top ten players only holding a combined market share of 22 percent. In a sector worth US$211.6 billion in 2012, the high level of market fragmentation is not only striking, but a clear indication of the scope for consolidation through mergers and acquisitions.

According to the report, although the global economic downturn has resulted in a decline in manufacturing, the instability has provided opportunities for acquisition activity. For example, Russian Railways’ US$1.06 billion acquisition of Gefco in 2012 exemplified that opportunities exist for companies looking to enter the market.

The report also found that, due to economic weakness in Western Europe, Asia Pacific will become the largest contract logistics market by 2016. While DHL Supply Chain is the third largest provider in the region, interestingly no other global players feature in the region’s top ten; with regional providers dominating. Although DHL Supply Chain was able to force its way into the market through acquisition, global providers meet considerable entry barriers, in particular in China and Japan. Therefore, while these barriers remain, companies are looking to create national joint ventures and develop distribution centres as well as cross-border services in Southeast Asia from which they can service the larger markets and benefit from the growing intra-Asian trade.

Cathy Roberson, the report’s author, commented, “Despite a slowdown in market growth over the past two years, there are certainly opportunities for companies to develop market share, if they adopt the right strategy. For some providers, that will mean enhancing their service levels for certain vertical sectors and for others it will mean following a carefully crafted acquisition strategy in new geographies. However, with the global economy in the balance, it is now more important than ever to get the strategy right.”

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