SCHINDELLEGI, Switzerland: September 23, 2019. Kuehne + Nagel has launched a ‘Net Zero Carbon’ programme beginning with Less-than-Container-Load (LCL) shipments from 2020.
In addition to the reduction of its own CO2 emissions, the company says it can use big data and new digital platforms to reduce its customers' CO2 footprint.
The company is leveraging nature projects in Myanmar and New Zealand and investments in various nature-based CO2 compensation projects to earn carbon credit offsets.
Detlef Trefzger (pictured), Kuehne + Nagel International CEO commented: “We are all responsible for the environment, for our ecosystem, and above all for the people – in business and private life.
“We as a company and all our colleagues act now with our Net Zero Carbon programme to fight CO2 emissions and offer sustainable and innovative supply chain solutions – hand in hand with our suppliers and customers. We thus support the aim of the Paris agreement to limit global temperature rise to 1.5° Celsius.”
NEWCASTLE, UK: July 10, 2019. E-commerce software provider Kontainers has launched its ‘Essentials’ product for SME forwarders to have their own-branded SaaS (Software as a Service) e-commerce solution.
The Essentials own-branded solution is free to set up and has one transaction charge starting at US$10 per FCL and less for LCL shipments with free upgrades, maintenance and hosting.
“Our mission has always been to empower every logistics provider on the planet and to help future-proof their business,” commented CEO Graham Parker. “Our products are already tried and tested by the largest brands in freight and next year we already have more than one million bookings contracted. We believe this product will move the needle further in freight technology and freight brands will quickly use their new API-driven solutions to plug-in brand-new revenue streams that were never before possible," he added.
A survey of nearly 900 shipper decision-makers by DHL Supply Chain suggests most companies have failed to fully implement an e-commerce strategy despite understanding its importance on customer retention and satisfaction. Some 70 percent of B2C companies and 60 percent of B2B respondents say they are still working towards the full implementation of their strategy, even though 70 percent of respondents rate e-commerce as ‘very important’ or ‘extremely important’ to their business in terms of volume and revenue.
According to Nabil Malouli (pictured), Global e-Commerce Product lead at DHL Supply Chain, the evolving demands of e-commerce means over 50 percent of businesses will be making some type of change to their distribution strategy in the next three to five years.
“To deal with this pressure many companies are opting to partner with a 3PL to augment their in-house resources and capabilities, enabling them to quickly and effectively scale to capitalize on e-commerce opportunities,” he said.
“What companies need in the e-commerce journey depends on where they are coming from – they are all in different places in terms of implementing their e-commerce strategy, which means they will have different strategies and expectations about how to move forward with their supply chains.”
NEW ORLEANS, June 07, 2019. The law firm of Kahn Swick & Foti (KSF) says it has begun an investigation into XPO Logistics to determine whether the company’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
The inquiry is prompted by a report in December 2018 by Spruce Point Capital Management that declared "concrete evidence to suggest dubious tax accounting, under-reporting of bad debts, phantom income through unaccountable M&A earn-out liabilities, and aggressive amortization assumptions: all designed to portray glowing 'Non-GAAP' results" and "financial irregularities [covering] growing financial strain".
KSF says XPO was subsequently sued in a securities class action lawsuit for failing to disclose material information to shareholders, violating federal securities laws, which is ongoing.
The law firm, whose partners include the former Louisiana Attorney General Charles C. Foti, Jr., is focused on securities, antitrust and consumer class actions, along with M&A acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders.
Last month XPO reported Q1 revenue of US$4.12 billion, down from US$4.19 billion for the same period in 2018. Net income was US$43 million, down from US$67 million year-on-year. The company said the results “were adversely impacted by a reduction in business from the company’s largest customer; foreign currency exchange; higher interest expense year-over-year, partially offset by share repurchase activity; and a higher effective tax rate of 27 percent in 2019, compared with 0 percent in 2018”.
VANCOUVER, BC: April 11, 2019. Electra Meccanica Vehicles, a designer and manufacturer of electric vehicles, has chosen Crane Worldwide Logistics to ship its single-passenger SOLO cars from a manufacturing plant in Chongqing, China to Los Angeles and Vancouver.
To avoid potential damage during RoRo carrier loading and unloading, the company has partnered with car shipping specialist CFR Rinkens to develop a custom racking system for multiple units that enables 6-7 cars to be shipped in one container.
“We chose Crane Worldwide Logistics because they showed great care and attention to detail for our shipping needs. They understand our specific requirements and the technicalities of shipping a sustainable vehicle,” commented Henry Reisner, Electra Meccanica COO.
“This is an exciting new client for Crane Worldwide Logistics because it required us to think differently and to develop new shipping solutions for a very innovative product,” said Crane vice president of Automotive and Industrial Michael Labadie. “Not only are we able to bring our automotive expertise and creative solutions service to Electra Meccanica, but we are able to assist in bringing a green product to market, which aligns with our 'Crane Cares' initiatives.”
Electra Meccanica is ramping up mass production of its SOLO electric vehicle at its Chongqing manufacturing facility in China for deliveries later this year. The car company says it has over 23,000 pre-orders for the SOLO at a list price of US$15,500, and 41,000-plus pre-orders for a two-seat sports car, which lists at US$50,000.
“We continue to see a significant opportunity for the SOLO not only with individual commuters, but in commercial applications as well,” explained CEO Jerry Kroll. “To that end, we are currently working with 7-Eleven, the world’s largest convenience retailer, to evaluate our vehicles for use in local package delivery applications.”
DUBAI: September 03, 2018. The Investment Corporation of Dubai (ICD), owned by the Dubai government, has restructured its subsidiary Inchcape Shipping Services Holdings Limited (Inchcape) as two separate companies.
The announcement follows the imposition of a US$20 million penalty by the US Department of Justice following allegations Inchcape overcharged the US Navy for marine agency services between 2005 and 2014.
At the end of May Inchcape announced it had reached a settlement with three whistleblowers and the US government “without any finding of fault related to the disagreements that underlie the litigation” that was filed eight years ago.
In 2006 the Dubai government-owned investment entity Istithmar PJSC purchased the 171 year-old Inchcape from UK private equity company Electra Investment Trust.
Commenting on the new restructuring, ICD says ISS Global Forwarding (ISS) will focus on global freight forwarding, contract logistics and oil and gas projects, while Inchcape will continue in its role as a leading marine services company.
ISS is launching with existing operations in 18 countries throughout the Middle East, Africa, Europe, India and Turkey and has plans to extend the network to the Asia/Pacific region, Mainland China and Singapore.
Following the departure of CEO Simon Morse from Inchcape in June this year, the new head of ISS is former DHL CEO for Europe, Middle East & Africa Enver Moretti.
"We are establishing ourselves as a regional powerhouse and our aspiration is to be recognised within the supply chain logistics industry as a customer-centric organisation," Moretti declared.
Mohammed Ibrahim Al Shaibani, CEO and executive director of ICD added: "We are confident in the future global growth opportunities presented by the supply chain logistics industry. We see particular value at this time in the long-term growth opportunities afforded within the emerging markets region where ISS Global Forwarding enjoys a strong presence.”
The ICD was established in 2006 as a sovereign wealth fund for Dubai. Transport-related investments also include Emirates Airlines and dnata.
BAAR, Switzerland: March 05, 2019. Trade tensions are leaving a high percentage of logistics executives concerned even amidst healthy growth in emerging markets.
In Agility’s annual survey of more than 500 supply chain industry professionals, 55.7 percent say a growth rate of five percent for developing economies is “about right.” Emerging markets expanded by 4.7 percent in 2018, and the International Monetary Fund now forecasts 4.5percent expansion for 2019.
At the same time, 47.1 percent of logistics executives surveyed say an emerging markets crisis is “likely” or “highly likely.” Simmering tensions and tariffs could shave 10percent off of U.S.-China trade volumes this year, the survey shows.
The survey is part of the 2019 Agility Emerging Markets Logistics Index, the company’s 10th annual snapshot of industry sentiment and ranking of the world’s 50 leading emerging markets. The Index is a broad gauge of countries’ competitiveness based on their international and domestic logistics strengths and business fundamentals.
“Companies looking for opportunity are finding it in emerging markets, where small and medium-sized enterprises with access to technology and mobile banking are increasingly driving growth,” said Essa Al-Saleh, CEO of Agility Global Integrated Logistics. “At the same time, logistics professionals worry that these markets are vulnerable to ripple effects from big geopolitical setbacks.”
The Index ranks 50 countries by factors that make them attractive to logistics providers, freight forwarders, shipping lines, air cargo carriers and distributors. The top 10 are: China, India, United Arab Emirates, Indonesia, Malaysia, Saudi Arabia, Mexico, Qatar, Turkey and Vietnam.
China, India and Indonesia rank highest for domestic logistics; China, India and Mexico are tops for international logistics; and UAE, Malaysia and Qatar have the best business fundamentals.
The strongest clusters of emerging markets are in the Arabian Gulf and Southeast Asia, thanks to business-friendly conditions and core strengths – the Gulf’s energy wealth and Southeast Asian manufacturing power – that draw logistics activity. In the Gulf, UAE (No. 3), Saudi Arabia (6), Qatar (8), Oman (12), Bahrain (16) and Kuwait (18) rank highly. Among ASEAN countries, Indonesia (4), Malaysia (5), Vietnam (10), Thailand (11) and Philippines (20) are strong.
Against a backdrop of trade friction and data showing China’s economy slowing, survey resp
ondents see India as the market with greatest potential over China, their second choice.
Fifty-six percent of those surveyed say a prolonged trade standoff between the U.S. and China could benefit Southeast Asian countries, which offer manufacturing and sourcing alternatives to China.
Brazil, in the midst of a severe economic downturn and political upheaval, tumbles from No. 9 to 15 in the Index, ranking behind smaller Latin economies Mexico (7) and Chile (13). Brazil’s business fundamentals – a priority for new president Jair Bolsonaro – were 39th out of 50 Index countries. Despite the poor performance, executives surveyed see enormous promise: 44.5percent said they were “optimistic” or “strongly optimistic” about Brazil.
China’s $4-$8 trillion Belt & Road Initiative (BRI) infrastructure drive is a bigger plus for China than for the countries in Asia, the Middle East, Africa and Europe where it is investing. Sixty-four percent of executives surveyed see the BRI boosting growth and trade for China; only 41.4percent believe it will help other emerging markets.
E-commerce is fueling logistics opportunities in emerging markets. Sixty-percent of industry executives expect more outsourcing of last-mile delivery by retailers; 47.4percent expecting more e-fulfilment outsourcing.
Trade bureaucracy is the biggest obstacle to small and medium-sized companies trying to do business across borders, survey respondents say. But when it comes to what size companies will grow fastest in emerging markets, SMEs are their top pick over multi-nationals and big regional or local companies.
Brexit could benefit emerging markets. Fifty-nine percent of executives surveyed expect emerging markets to seek trade concessions and new deals from the UK. Seventy-percent think emerging markets will be unaffected by Brexit.
The UAE and Malaysia are tops for business fundamentals. Gulf countries Qatar, Oman and Saudi Arabia also score high. Among the 50 Index countries, it’s hardest to do business in Venezuela, Angola, Myanmar and Libya.
Sixty-five percent of those surveyed see Mexico increasing trade with the U.S. and Canada under a yet-to-be-ratified trade agreement that is to replace NAFTA.
Sub-Saharan Africa is a mixed picture. South Africa (24) is an underperformer. But in rankings of business fundamentals, Ghana and Kenya do relatively well at No. 19 and No. 21. Nigeria, which vies with South Africa to be the region’s largest economy, suffers from poor business conditions, an area where it ranks 44th.
Several countries would surge in the rankings if they could improve business conditions: Brazil, Philippines, Argentina, Bangladesh, Nigeria, and Bolivia. African economies with relatively strong logistics markets and potential – Uganda, Libya, Mozambique, Angola – are severely hamstrung by weak business fundamentals.
“Concerns about emerging markets in 2019 are valid, especially in countries with significant dollar-denominated debt, but as a group these markets are growing at roughly twice the rate of developed economies,” Agility’s Al-Saleh said. “What’s most heartening is that many now appear resilient enough to avoid the sort of contagion we saw spreading among emerging markets in 2013 and 2008.”
HONG KONG: August 30, 2018. Kerry Logistics has reported a 27 percent increase in turnover for the first six months (H1) of 2018 to HK$17.46 billion, as operating profit rose 19 percent to HK$1.2 billion and net profit grew 22 percent to HK$700 million.
The company said its integrated logistics business increased profit by 25 percent to HK$1.1 billion during the period as a result of “booming intra-Asia trade and e-commerce, while revenue from its freight forwarding activities rose 6.0 percent to HK$235 million.
“Although the world economy experienced growth in 2018 H1, global demand has been flat,” said Kerry Logistics group managing director William Ma. “Nevertheless, the China-US trade dispute has caused manufacturing capacities to shift from Mainland China to other Asian countries, bringing about an increase in shipping volume and production activities in Asia. Southeast Asia, in particular, has enjoyed the fastest growth in the region,” he noted.
The company said rising labour costs in Mainland China, “subpar performance of certain customers in the electronics sector”, and the China-US trade conflict continued to undermine the group’s business.
In July, Kerry Express Thailand signed a partnership with VGI Global Media Public Company (VGI), a subsidiary of the Bangkok Mass Transit System, to become its exclusive express logistics partner. As part of the deal Kerry sold its 17 percent stake in Kerry Express Thailand to VGI.
Commenting on the Trump-initiated trade war with China, Kerry chairman George Yao said the imposition of tariffs was reshaping trade routes and global supply chains: “While the trade volume between the two economies is expected to reduce in the near future, certain markets in Asia are likely to benefit conversely from the increased intra-Asia trade as customers look for alternative supply sources beyond Mainland China and the US.
“Moreover, Asia has been experiencing the fastest trade volume growth for both imports and exports driven by rising domestic consumption and increased investment. We expect our Asian business to continue to grow and contribute to a major part of the Group’s profit in three to five years’ time,” he concluded.
HONG KONG: February 19, 2019. Kerry Logistics Network has formed a joint venture with Asia e-commerce company E-Services Group (ESG) to expand fulfillment services in the Greater China region.
The new Kerry ESG company will combine Kerry Logistics’ global supply chain capabilities with ESG’s technology platform, global marketplace networks and e-commerce expertise to offer e-tailers order fulfillment, inventory and returns to and from multiple logistics centres through one platform.
“With Kerry ESG we are creating a unique platform with total solutions from upstream marketing to downstream logistics that will capitalise on the booming international marketplace model to facilitate the exports for our international brand customers,” declared Kerry Logistics Group managing director William Ma.
Alan Lim, founder and CEO of ESG added: “Winning at e-commerce means getting every piece of the puzzle right, and fast, reliable fulfillment is a critical component of success. This partnership gives etailers access to an extensive distribution network to support e-commerce fulfillment in every market and with every online channel.”
Founded in the UK in 2002 and now headquartered in Hong Kong, ESG is an international end-to-end e-commerce partner to global marketplaces including Rakuten, JD.id, and Cdiscount.
TOKYO: August 01, 2018. Yusen Logistics has acquired 20 percent of Shanghai NYK-ANJI Logistics – the new name of a joint venture set up in 2004 by NYK and ANJI Automotive Logistics called NYKANJI Car Transportation.
Over the past decade NYKANJI has operated land transportation for finished cars in China for the Shanghai Automotive Industry Corporation, to which ANJI belongs, and a number of other automobile manufacturers.
Shareholding in the renamed company is now ANJI (51 percent), NYK (29 percent) and Yusen Logistics (20 percent). NYK and Yusen say the new collaboration is designed to expand their business in auto parts and finished car logistics.
NYK operates the world's largest car carrier fleet; Yusen Logistics is a global ocean/air freight forwarding and contract logistics network; and ANJI has a strong presence in the warehouse and transportation business for China’s automotive industry.
The three companies plan to offer an integrated automotive logistics service that covers overseas parts procurement, finished car transportation, and the transportation of aftermarket parts.
NYK recently released a medium-term plan called ‘Staying Ahead 2022 with Digitalization and Green’ with a focus on strengthening its logistics, car carrier and auto-logistics businesses. Yusen is expected to support NYK with an integrated automotive logistics service, while ANJI specialises in rail transport between China and Europe and warehousing and transport services in China.
Last month NYK Auto Logistics India (NALI) signed an agreement with Adani Logistics (ALL) to form a joint venture that specializes in the transportation of finished vehicles using automobile freight trains.
NALI currently provides an integrated transport service for finished cars in India, including inland transport by trailers and PDI (pre-delivery inspection), enabling end-to-end delivery from auto assembly to ports and final-mile retail. ALL, a subsidiary of India’s Adani Group, supports port operations in India and operates automobile freight trains.
KUWAIT CITY: October 24, 2018. The Carbon Trust, an independent expert in sustainable strategies and technologies, has validated the methodology and processes that Agility uses to generate carbon footprint reports for logistics customers.
The validation allows Agility to demonstrate that its carbon reporting methodology and processes comply with the organization’s reporting guidance for transparency and accuracy.
This was achieved by developing a methodology to ensure the accurate monitoring, quantifying and reporting of CO2 emissions data from the movement of a customer's shipment. The methodology was audited extensively and approved by the Carbon Trust, and it has now been incorporated into Agility's carbon reporting processes.
The Kuwait-based company has been providing free carbon footprint reports to customers since 2009, enabling them to track and reduce the amount of CO2 emissions created in their supply chains. Now Agility’s customers can use the free CO2 reports to offset emissions resulting from the transportation of their shipments.
This information is also available to small and medium-sized logistics customers (SMEs) using ‘Shipa Freight’, the online freight service powered by Agility. Shipa Freight customers will get free CO2 emissions estimates for their shipments when they receive quotes and invoices.
Frank Clary, Agility’s vice president of Corporate Social Responsibility commented: “Agility and others in the logistics industry are determined to address the challenge of climate change. The Carbon reporting that is validated by an internationally recognized expert such as the Carbon Trust is a key part of this. Armed with accurate information, our customers can understand their carbon footprint and take steps to create cleaner, and in some cases zero-emission supply chains by offsetting reported CO2 emissions.”
Clary said that for the first time SMEs could also make use of carbon-estimating technology to scrutinize their supply chains and choose shipment options that reduce their emissions. “Shipa Freight, our online freight platform, provides SME customers with this information even at the quote stage. That helps them make informed, accurate decisions for their business and the environment.”
Hugh Jones, Carbon Trust managing director added: “Companies are starting to pay a lot of attention to the carbon emissions in their supply chains, especially in areas with the highest impacts such as logistics. By taking a best practice approach to emissions measurement, Agility is able to meet this demand by supplying its customers with accurate, credible data which they can rely on to understand, manage and offset carbon emissions."
EcoVadis, an independent organization that evaluates and rates corporate sustainability programs, recently ranked Agility in the top four percent in environmental performance in its industry.
BASEL: July 17, 2018. Panalpina has agreed to acquire a majority stake in Johannesburg-based specialist Skyservices to add to its expanding perishables network. Terms of the deal have not been disclosed.
The move follows last month’s purchase of Buenos Aires perishables forwarder Newport Cargo. With this latest addition the company says it will be able to provide end-to-end solutions for perishables from South Africa to Europe, the Middle East, Far East and the US.
“The acquisition of Skyservices allows us to rapidly become a major player in South Africa’s perishables market. The majority of the company’s export volumes go to London, Amsterdam and Frankfurt, where we have a strong perishables expertise and can therefore offer end-to-end solutions to customers,” explained Panalpina CEO Stefan Karlen. “Our non-perishables cargo into South Africa will continue to be handled by our agent Bidvest Panalpina,” he added.
Perishables account for 40 percent of South Africa’s airfreight exports. Top commodities are fresh cut flowers, subtropical and deciduous fruit, specialist vegetables, berries, meat and fish. Skyservices' main markets are the UK, the Netherlands, Germany, the UAE and US.
The company opened for business in 2000 and operates a 2,000 square metre warehouse inside O.R. Tambo International Airport, Johannesburg and a purpose-built 1,700 square metre warehouse just outside Cape Town International Airport.
Panalpina has reported a gross profit rise of 11 percent to CHF744.4 million for the first six months of 2018. EBIT and consolidated profit rose 30 percent and 21 percent to reach CHF54.7 million and CHF36.1 million respectively.
“Half way through 2018 we can say that Panalpina is on track. Ocean Freight broke even again in the second quarter as a result of strict cost control and recovering volumes from April to June. Sustained margins in both Air and Ocean Freight and the reliable performance in Logistics led to sound half-year results,” said Karlen.
