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VietnamShipper |
Date: (01-09-2009)
Seafreight
A pretty low "peak"
Liner carriers have spent much of this year cutting costs and trimming services, not to mention bemoaning exceedingly low ocean freight rates, so it\'s a little surprising to see the words "peak season surcharge" popping up these days.
If seasonal demand is creating a slight increase in volume in this catastrophic year, does that really constitute a peak? Lines have reduced millions of slots of capacity worldwide to better bring utilization in line with demand, but that doesn\'t mean things are actually peaking.
The operative question here is: when is a surcharge not really a surcharge at all? What we\'re actually talking about is semantics -- in other words, where does a base rate end and a surcharge begin? …(Read more on Vietnam Shipper Issue No. 59)
Supply Chain Management
Wireless Technology Comes to the Fore in the Supply Chain
To most people, the word “wireless” evokes a simple home router or a public café with an erratic internet connection. Even in the world of supply chain management, awareness is often limited to discrete applications such as barcode scanning and lift-truck operations. In actuality, wireless has broken out of the warehouse and promises to play a major role in the tracking of freight, information and transportation the world over.
Wireless is literally on the move, says Brooks Bentz, a partner with Accenture in Boston. The idea, he says, is to “take conventional technology and make it not only wireless, but mobile.” Already the applications have gone beyond basic freight tracking to include equipment control, traffic management, toll-booth operations and the detection of track defects along rail lines. Bentz has even heard talk of using satellites with wireless connections for air traffic control, instead of ground-based towers. …(Read more on Vietnam Shipper Issue No. 59)
Logistics
Surviving the “perfect storm”
We are going through one of the most testing periods in the history of post-war logistics. Not even the fuel crisis of the 190s, the recession of the early 1980s, the first Gulf war, SARS or 9/11 has matched the intensity and dramatic decline in volumes of world trade, be it air, ocean of surface.
For sure, many companies within the supply chain are struggling – airlines, shipping lines, sales agents, handlers, truckers - have all had to rapidly re-exam their business plans and, in many cases fight for survival.…(Read more on Vietnam Shipper Issue No. 59)
Shipper in focus
Seven hidden costs of sourcing
Right now shippers are facing the increases in cost of their supply chain. All the carriers in Transpacific Stabilization Agreement (TSA) announce the General Rate Increase (GRI) with quantum of US$400 per TEU. The transparence in customs procedures is so unclear that increase in hidden cost and lead time of supply chain is significant. The port shift from Cat Lai, Hochiminh City to Cai Mep, Baria-Vung Tau cost more US$50 – 60 per TEUs to the exporters and importers to truck the cargoes. Moreover, all these cost are at shipper’s account because it is applied by third-party where the shipper have no opportunity to negotiate and is out of the shipper’s control. This emphasizes one lesson that although outsourcing can better choice to free up working capitals, it also bring the hidden costs to shippers. The hidden costs are eroding the cost saving program. As per Procurement Strategy Council’s estimates, the actual saving cost program accounting for hidden cost is only around 4-6% compared to 25% without hidden costs.…(Read more on Vietnam Shipper Issue No. 59)
Airfreight
Seabury Survey Identifies Top Performance
In any economic chill, it is a given that most businesses catch a cold and the weaker ones get a fever. But what are the characteristics of the companies that will quickly shake off their ailments—and what traits are typical of those that will still be aching long after the global economy recovers?
To get answers to those questions, Seabury Cargo Advisory recently conducted a global survey1 among air cargo professionals, most of them from airlines and freight forwarders. The detailed study tracked five key management themes: senior leadership, strategic planning, client focus, process management, and resource management. The aim of the survey was to identify management best practices that truly distinguish high-performing companies from laggards in the air cargo chain. Alongside the survey, in-depth interviews yielded hands-on insights into the five managerial topics. This article concentrates on the results that show the largest differences between high- and low-performing airlines and forwarders. Here are the most interesting findings. .…(Read more on Vietnam Shipper Issue No. 59)
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