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FReightWeek Magazine

 

PRESS RELEASE

March 26, 2014: Panalpina's specialized division for large-scale projects is one of the fastest growing areas of its business. Known as Panprojects, the division experienced 20% year-on-year turnover growth in 2013 and now has over 400 dedicated staff. One of its latest and largest projects involved work on an offshore oil platform section for energy giant BP in Azerbaijan.

The ceiling transport and logistics cost for a single industrial project is expected to cross the $1 billion mark in the near future, such is the growth of this increasingly important aspect of business. Large projects are huge transport endeavours that require expert planning, monitoring and compliance – three areas where Panalpina's Panprojects division has developed best-in-class capabilities and where the company is experiencing growing success.

Panprojects was established in 2002 to directly address the logistics needs of the world's most ambitious industrial projects. The service creates tailor-made, end-to-end transport networks for each project.

Chris Kent, global head of Panprojects, attributes the division's growth to its vast experience and flexible approach to these large jobs that mean it can tailor its workforce and global set-up to suit specific projects.

"We've spent years developing the people and processes that improve efficiency on major projects," he says. "Our people around the world have the local expertise and the global support to establish new routes and continually develop better ways of working on a single project. Their health and safety, together with that of our subcontractors, is a top priority for us and they work in a framework that demonstrates full compliance with legal and regulatory requirements."

Panprojects can be working on up to 40 projects around the world at a time. The majority of its work is conducted in the Middle East, Australia, Latin America and the U.S. The oil & gas industry in each territory is a major user of Panprojects, along with the mining industries of Latin America and Australia and global power and utility providers.

Many of the world's largest industrial projects are located in landlocked, isolated areas, which often require upgrade work to ensure that local road and rail links can carry regular and oversized loads safely. Panprojects conducts detailed route and site surveys along the entire supply chain, being sure to account for limitations imposed by seasonal, climate and even political changes. Moving unusual and oversized loads generally requires authorization and customs clearance at several stages of a journey.

BP platform in Azerbaijan

One of Panalpina's recent major projects is in Azerbaijan where after many shipments of components the topside unit of an off-shore oil platform recently set sail for final assembly in the Caspian Sea. The platform was deployed for the Azeri-Chirag-Deepwater Gunashli field, which is operated by BP.

Panprojects started its work on the West Chirag platform in late 2012. Since then it has handled more than 2000 international and local transports. Specialized equipment, machinery and components continue to be transported by road, air and sea in a constant flow to the site.

The BP project involves lots of critical fast-track moves that demand a flexible approach. Goods come in in all shapes and sizes, and from all over the world, including the UK, the Netherlands, Italy, the U.S. and a number of countries in Asia.

"The importance of on-time delivery at large projects cannot be stressed enough," says Kent. "Delays at multi-million dollar projects mean excessive and avoidable cost. Monitoring is therefore crucial to give shippers transparency but also to maintain a high quality service. We also analyze our own performance to identify potential shortfalls and continually improve our operations."

The West Chirag platform project is handled by Panalpina under its framework agreement with BP, which was agreed in January 2012. This partnership aims to develop the oil & gas industry's most efficient and cost effective supply chain for large-scale projects.

PRESS RELEASE

March 27, 2014 – FedEx Freight, a subsidiary of FedEx Corp., will open a new container freight station in its Chicago Summit, Ill., facility to consolidate and sort freight bound for Puerto Rico, effective March 31.

Shipments to Puerto Rico moving from Chicago Summit will travel five days a week, with updated transit standards reflected in transit maps on fedex.com. The service will benefit any customers shipping to Puerto Rico from North America, including in Canada and Mexico. Customers will continue to receive a single invoice for their less-than-truckload (LTL) and full-container-load (FCL) Puerto Rico shipments through the new Chicago location and the existing Jacksonville, Fla., gateway service center.

"The container freight station in Chicago Summit is a key location in our network to better serve the needs of our customers," said Grant Crawford, vice president of International, FedEx Freight. "This more centralized location will help improve transits and rates for many Puerto Rico shipments."

The new Chicago container freight station is part of a network of more than 360 FedEx Freight service centers across North America. Freight bound for Puerto Rico was previously processed at the FedEx Freight facility in Newark, N.J.

About FedEx Freight

With corporate offices in Memphis, Tenn., the FedEx Freight Segment includes FedEx Freight, a leading U.S. provider of LTL freight services; FedEx Freight Canada, an LTL operating company serving most points in Canada; and FedEx Custom Critical, North America's largest time-specific, critical shipment carrier. FedEx Freight also serves Mexico, Puerto Rico and the U.S. Virgin Islands. For more information, visit fedex.com.

PRESS RELEASE

March 25, 2014: Parcelforce Worldwide,Royal Mail Group's express parcels business, today announced the launch of a new interactive service to improve customer control over the delivery of parcels.

The new interactive service means parcel senders can enable their customers to arrange, at the beginning of the day through text, for a parcel to be delivered on another day or to a different address, including to a neighbour or one of 10,500 Post Office branches. This provides a more convenient delivery experience for customers, giving them greater control to ensure they receive their parcel as quickly as possible.

The new service builds on SMS and email delivery notification service enhancements launched by Parcelforce Worldwide last year. This provides account business customers with the option of sending a notification on the day of despatch, on the day of delivery and a pre-delivery notification between 30 and 90 minutes before arrival.

Unlike other providers, the pre-delivery notification is triggered by the delivery driver, rather than using route planner software. This ensures that the actual delivery is based on local driver experience, rather than a centrally generated time window.
Committed to meeting the changing needs of customers

Parcelforce Worldwide provides parcel services to the business-to-business, business-to-consumer and consumer-to-consumer market segments.Parcelforce Worldwide is committed to developing services to meet the changing demands of businesses, online retailers and their customers.

The new service has been introduced as Parcelforce Worldwide is expanding its network aspart of Royal Mail Group's strategy to grow its parcels businesses in the UK and overseas.

In the past year, Parcelforce Worldwide has opened a new purpose-built parcels processing centre in Chorley, Lancashire. This is in addition to Parcelforce Worldwide's existing national and international hubs in Coventry. It has also introduced 12 new or expanded depots in the past year.

Gary Simpson Managing Director Parcelforce Worldwide said: "We are pleased to be launching our new SMS and email interactive service to increase customer control over the delivery of a parcel. Parcelforce Worldwide is committed to developing services to ensure we meet the changing demands of businesses, online retailers and their customers.

"We are investing to grow our business, enabling us to handle more parcels while ensuring we continue to provide a very high level of service to all Parcelforce Worldwide customers."

 

PRESS RELEASE

April 02, 2014: Agility, a leading global logistics provider, has been awarded the contract to provide logistics services at the prestigious Defence & Security Equipment International (DSEI) events in 2015 and 2017 in London.

DSEI is one of the world's leading defence and security supply chain exhibitions. In 2013, DSEI attracted 1,489 exhibitors from more than 50 countries. Clarion Defence and Security Events awarded Agility the contract to provide international freight and on-site handling services at the event. Agility was also the official freight contractor at the DSEI events in 2011 and 2013.

As the sole official freight contractor; Agility will be responsible for assisting exhibitors and contractors from around the world with the shipping of exhibits to and from the show. Some of the exhibits are security-controlled and require expert assistance and coordination.

"DSEI is one of the largest and most complex global defence events, and we are very proud to have secured the contract for the next two exhibitions," said David Richards, Managing Director, Agility Fairs & Events UK. "The contract reflects Agility's long history in managing large international events, made possible through our worldwide network."

Clarion Defence and Security Events is a division of Clarion Events Ltd. Its portfolio of exhibitions includes UDT Europe, ITEC, LAAD and DIMDEX.

Paul Mills, Clarion's Senior Operations Manager, said: "Organised, professional, innovative and passionate -- four words that describe Agility's work on DSEI. This is why we had no doubts in extending the appointment of Agility Fairs & Events as the official lifting and forwarding supplier for DSEI 2015 and 2017. We look forward to Agility continuing to provide excellent service to DSEI for the next four years."

PRESS RELEASE

April 01, 2014: Descartes Systems Group (TSX:DSG) (Nasdaq:DSGX), the global leader in uniting logistics-intensive businesses in commerce, acquired Computer Management USA, a leading US-based provider of security filing solutions and air cargo management solutions for airlines and their partners.

Computer Management's solutions help air carriers to improve operational efficiency and streamline security filing and customs clearance processes, directly and through coordination with ground handlers and container freight stations. The air cargo community is challenged by a rapidly evolving global regulatory environment where customs authorities around the world continue to implement mandates designed to improve security. Recent examples include U.S. Customs and Border Protection's (CBP) Air Cargo Advanced Screening Initiative (ACAS), the European Union's Import Control System (ICS) and Preloading Consignment Information for Secure Entry (PRECISE), Canada Border Services Agency's (CBSA) Advance Commercial Information (ACI) system.

"Computer Management has provided air cargo management applications and security filing solutions to leading airlines and their partners for more than 15 years," said John Lamberti, CEO at Computer Management. "Computer Management strengthens Descartes' Customs and Regulatory Compliance platform with additional airline-focused functionality while adding a community of hundreds of ground handlers and container freight stations to Descartes' Global Logistics Network."

"We're pleased to welcome Computer Management and its customers to the Descartes community," said Edward J. Ryan, Descartes' CEO. "Computer Management customers will now have access to a wider geographic range of customs filing solutions and additional value-added services for the air industry that leverage our Global Logistics Network, such as eFreight and Cargo2000. We look forward to combining forces to broaden the capabilities and reach of our joint solutions, which help improve the efficiency and security of the air cargo industry."

Computer Management has offices in Florida and New York. The all cash purchase price for the acquisition was US $6.6 million.

 

PRESS RELEASE

MARCH 27, 2014: Russia's largest cargo carrier, AirBridgeCargo Airlines (ABC), is expanding its presence in the U.S. market with the launch of Boeing 747-8 freighter flights linking Dallas/Fort Worth (DFW) with Amsterdam and Moscow. New twice-weekly all-cargo flights from Dallas/Fort Worth will operate on Mondays and Thursdays to Amsterdam Schiphol and Moscow's Sheremetyevo airports.

The airline, part of Volga-Dnepr Group, is also developing its current services to Chicago, introducing direct flights from Frankfurt. The new routes are part of AirBridgeCargo's new summer schedule and commence on March 31, 2014. Denis Ilin, Executive President of AirBridgeCargo Airlines, says: "Chicago has been a very successful route for us since we commenced services on the route in 2012 and the extra B747F flight a week from O'Hare International Airport will provide welcome additional capacity for our customers. Expanding services in the U.S. market is a logical step in the airline's development and means we can increase our ability to offer fast and efficient freight deliveries for customers doing business in North America, Europe, Asia and Russia."

ABC started performing flights to/from Chicago in 2012 thus becoming a truly worldwide airline with global coverage. Since then the airline has seen strong demand on this destination, especially in oil&gas industry which export has grown by 6%. ABC's overall cargo tonnage to/from the North Americas has grown by 12% and 4% respectively.

PRESS RELEASE

March 31, 2014: UTi Worldwide Inc. today reported financial results for its fiscal 2014 fourth quarter ended January 31, 2014. In addition, UTi filed its Annual Report on Form 10-K this morning, which includes the company's audited financial statements for the fiscal year ended January 31, 2014. The company's audited financial statements were issued with no going concern qualification for all periods presented.

Fiscal Fourth Quarter 2014 vs. 2013 Results:

  • Revenues were $1,076.4 million, a decrease of 2.1 percent from $1,099.3 million.
  • Net revenues (revenues minus purchased transportation costs) were $370.0 million, a decrease of 0.3 percent from $371.1 million.
  • On an organic basis, revenues increased 1.7 percent and net revenues increased 4.5 percent versus the comparable prior year period.
  • Net loss attributable to UTi Worldwide Inc. was $50.7 million, or $0.48 per diluted share, compared to a net loss of $142.8 million, or $1.38 per diluted share.
  • The GAAP net loss in the fiscal 2014 fourth quarter includes after-tax severance and other costs of $7.3 million, or $0.07 per diluted share. UTi also recorded an after-tax write-off of $4.5 million, or $0.04 per diluted share, in bad debt related to customer bankruptcies. In addition, despite incurring a net loss, the company recorded additional tax expense exceeding its normalized tax rate by $22.9 million, or $0.22 per diluted share.
  • Excluding the after-tax severance and other costs, bad debt write-off and the additional tax expense described above, non-GAAP net loss attributable to UTi Worldwide Inc. was $16.1 million, or $0.15 per diluted share.
  • Earnings before interest expense, income taxes, depreciation and amortization (EBITDA), as adjusted for the items above and stock compensation expense, totaled $14.1 million compared to $17.1 million.
  • All references to adjusted items and organic items in this release refer to non-GAAP results. A reconciliation of GAAP to these non-GAAP results is provided in the supplemental financial information attached to this release.

Eric W. Kirchner, chief executive officer, said, "During the last several weeks, the company has completed a number of key milestones. First, we executed a $725 million refinancing, which strengthened the company's balance sheet. Second, we filed our fiscal 2014 Annual Report on Form 10-K this morning, which includes the company's audited financial statements for the three fiscal years ended January 31, 2014. The company's audited financial statements were issued with no going concern qualification for all periods presented. Finally, we launched in early March our 1View freight forwarding operating system in South Africa and China, two of our largest markets. This brings to 32 the total number of countries on the system, representing approximately 72 percent of freight forwarding transactions. The deployment in China and South Africa also allows us to pair origin and destination shipments in most of our major markets.

"As we add more countries on 1View, we enable the company to generate greater efficiencies from operations. We continue to target completion of the system deployment in the third quarter of fiscal 2015 and still expect $75-95 million in annualized gross pre-tax cost savings by the end of fiscal 2015, approximately $50 million of which were in place at the end of fiscal 2014. As the transformation nears an end, we expect to have the ability to deploy additional resources on growth opportunities."

Kirchner continued, "Results in the fiscal 2014 fourth quarter continued to reflect a lackluster global economy and difficult operating conditions. While we experienced increased activity in both business segments during the fourth quarter, pricing pressure continued to weigh on margins. Operating expenses were higher in the fourth quarter primarily because of increased amortization, severance expenses and temporary deployment costs related to the roll-out of the new systems. We were able to partially offset these higher costs through expense reduction measures."

Operating expenses less purchased transportation costs were $401.5 million in the fourth quarter of fiscal 2014. The company recorded $10.6 million on a pre-tax basis in severance and other costs in the fiscal 2014 fourth quarter. UTi also recorded $6.5 million in pre-tax bad debt expense related to customer bankruptcies. In the fiscal 2013 fourth quarter, the company reported goodwill and intangible asset impairment charges of $94.7 million as well as severance costs of $5.1 million.

Excluding these items, adjusted operating expenses less purchased transportation costs were $384.4 million, compared to $378.9 million in the same period last year. On an organic basis, adjusted operating expenses less purchased transportation costs increased 5.7 percent, compared to the same period last year. The increase primarily reflects costs associated with transformation related activities.

The company recorded a tax provision of $11.0 million in the fiscal 2014 fourth quarter on a pretax loss of $38.2 million, due to valuation allowances and the mix of taxable income across the company's tax jurisdictions.

About UTi Worldwide:

UTi Worldwide Inc. is an international, non-asset-based supply chain services and solutions company providing air and ocean freight forwarding, contract logistics, customs brokerage, distribution, inbound logistics, truckload brokerage and other supply chain management services.

PRESS RELEASE

MARCH 25, 2014: UPS has celebrated the official opening of a $200 million expansion of its European air hub facilities at Cologne/Bonn Airport in Germany that will continue to serve as Europe's window into the world of international trade and export. The expansion, which took two years to construct and has already created an additional 200 jobs, constitutes one of UPS's largest facility investments in the company's history and cements its position as the largest employer at the airport with more than 2,500 employees today.

"With this upgrade, we now have the equivalent of 15 football fields of sorting space for a growing export economy on the move," said Cindy Miller, President, UPS Europe. "All of this ensures that UPS's Cologne/Bonn air hub remains the centerpiece of the company's European express network, a key component of UPS's global air operations, and one of the largest and most advanced sorting facilities in the world."

The operating area now measures more than 105,000 square meters (1,130,000 square feet). The addition of eight automated sorters increases the hub's package sorting capacity by 70 percent to 190,000 packages per hour - or around 53 packages per second. The conveyor system now covers a distance of about 40 kilometers (25 miles), with a package taking an average of just 15 minutes to move through the hub from unload to load point.

The expansion equips the existing facility with additional state-of-the-art technology and includes a building extension that is partially dedicated to processing larger express freight shipments. The Cologne/Bonn facility serves as an international logistics hub for both major multi-nationals as well as small and medium-sized enterprises (SMEs) in Europe wishing to tap into UPS's world-class trading network.

"The Cologne/Bonn hub is our flagship facility in Europe and continues to serve us and the needs of our customers well," said Miller. "Our strategic investment in Germany, one of the world's top exporters, underscores our commitment to the European economy. This is part of a long-term strategy to help our customers successfully compete and do business on the important trading lanes within Europe and linking Europe to North America and Asia in an era when free trade agreements on the horizon promise growth for companies large and small."

As an early investor in European operations with Germany as its hub, UPS has enjoyed great success in Europe with solid export volume growth over the past decade. With the Cologne hub expansion in place, UPS can reliably connect the world to Europe and Europe to the world like never before and has positioned itself for continued growth in its international express business.

PRESS RELEASE

April 01, 2014: As part of its ongoing commitment to making a positive impact on health and wellbeing and the environment, Desso, the global carpets, carpet tiles and sports pitches company, today announced its participation in 'Healthy Seas, a Journey from Waste to Wear'. The initiative aims to remove waste, in particular fishing nets, for the purpose of creating healthier seas and recycling marine litter into ECONYL® yarn used for new Desso carpets.

As part of its commitment to recycling healthy materials for its carpet products, Desso has also worked with one of its key suppliers Aquafil, which developed the capability to recycle old Polyamide 6 yarn from used carpets and fish nets into new material known as ECONYL® yarn over and over again.

Today, over 90% of Desso's commercial carpet tile collection is Cradle to Cradle® certified and over 50%[1] of Desso's carpet tiles contain up to 100% ECONYL® yarn, made from 100% regenerated nylon including post-consumer yarn waste from DESSO's Refinity® plant.

"Since 2010, we have been using ECONYL® yarn in many of our carpet products as part of our ongoing commitment to the circular economy powered by Cradle to Cradle® principles," says Desso CEO Alexander Collot d'Escury. "We are delighted to combine our commitment to using recycled content such as ECONYL® with the critical task of helping to clean up the seas."

Since 2008, Desso has followed Cradle to Cradle® principles, ensuring the materials you use are as healthy as possible as well as being safely recyclable. Inspired by nature, the Cradle to Cradle® concept calls on Desso to rethink how it makes things and the materials it uses, leading to less waste of precious natural resources and the phasing out of any toxins in the materials that could pose significant risks to human health and the environment. Cradle to Cradle® encompasses five key elements: Material health, material reutilization, renewable energy, water stewardship and social fairness.

Cradle to Cradle® is enabling Desso to make the transition to the restorative circular economy away from the current 'take, make and waste' linear model.

Desso's vision is to 'make the floor work for our health and wellbeing', driven by its three pillared innovation programme: creativity, functionality and Cradle to Cradle®. The result of this combined commitment to the environment, health and wellbeing has been the creation of a number of product innovations including the DESSO AirMaster® carpet - engineered to help improve indoor air quality; it has been proven to reduce the concentration of fine dust indoors eight times more effectively than hard flooring, and four times better than standard carpet.

"The Cradle to Cradle® vision is to design products and services that make the world better than it was before," says Alexander Collot d'Escury. "The way the oceans have been fished - leaving waste behind and harming sea life and the environment - is a very stark example of bad design. We are delighted to support the HealthySeas initiative, which fits in with Desso's commitment to developing a business model that utilises waste in order to create healthy new materials and at the same time make a positive impact on the planet."

"We are delighted to have Desso's support for the Healthy Seas initiative," says Giulio Bonazzi, CEO of Aquafil, and a co-founder of the Healthy Seas initiative. "It is fitting that our largest customer of ECONYL® yarn in Europe and one of the companies that has been leading the way in terms of Cradle to Cradle® and the circular economy should be involved in this critical project to clean up the seas and turn waste into an economic benefit."

According to a report from the Food and Agriculture Organization of the UN (FAO) and the United Nations Environment Programme (UNEP), there are approximately 640,000 tons of abandoned fishing nets in the oceans, accounting for one-tenth of all marine litter. These discarded nets can remain in the sea for centuries continuing to catch or injure marine life such as fish, dolphins, turtles and marine birds (known as ghost fishing). Healthy Seas aims to provide a solution by bringing together businesses, NGOs, divers, fishermen and other stakeholders to recover the fishing nets and recycle them into Desso carpets, amongst others.

'Healthy Seas, a Journey from Waste to Wear' is an initiative founded by the ECNC Group, Aquafil and Star Sock. For more information on the initiative visit: http://healthyseas.org/

 

 

PRESS RELEASE

April 01, 2014: At the company's sixth security conference Lufthansa Cargo called for a more efficient air cargo screening process. This should be combined with the necessary measures to further enhance security levels, pointed out Dr. Karl-Rudolf Rupprecht, Lufthansa Cargo's Board Member for Operations.

Approx. 250 representatives of the logistics industry attended the cargo airline's conference,which was held under the title "Air Cargo Security 2020: Recognizing Risks – Forming Alliances".Apart from industry leaders, speakers of the lectures and panel discussions included senior officials and politicians, such as former ambassador Wolfgang Ischinger, who has been chairman of the Munich Security Conference since 2009, and Jörg Mendel, President of the Federal Office of Civil Aviation in Germany.

The key topic of the conference was the forthcoming implementation of the EU's ACC3 regulation (Air Cargo Carrier 3rd Country), which is to ensure a uniform security level through validations of non-EU airports in a closed process chain. "ACC3 is a major step towards making world-wide air cargo transport even more secure", emphasised Dr. Karl-Rudolf Rupprecht. Lufthansa Cargo is well-prepared for implementation on 1 July, and first validations of non-EU stations are already in progress, said the Lufthansa Cargo manager. But he also pointed out that in some areas of implementation there is still need for political action. The demand for additional transfer screening is a "step backwards" said Dr. Rupprecht. "Every air cargo shipment needs to be secured reliably before being taken on board for the first time", he explained. "Transfer screening only causes higher costs and longer transit times – without increasing security."

The company praised the use of explosive detection dogs. At the last security conference in Frankfurt two years ago Lufthansa Cargo had still strongly advocated their admission. Today, using the dogs is a reliable, proven and efficient way to screen shipments.

A new Air Cargo Security Manual, which was first presented to the public at the conference, is to help logistics professionals keep abreast of the complex field of air cargo security. The manual was co-authored by the researchers Prof. Elmar Giemulla and Bastian Rothe, as well as Lufthansa Cargo's Chief Security Officer, Harald Zielinski. He said: "The Air Cargo Manual, of which the first volume is dedicated to air cargo security, is to serve as a new reference tool offering orientation and delivering clear facts and information on current security requirements and processes. As an airline, we want to offer the entire logistics industry a real added value and contribute to a safe and efficient transport of air cargo." To keep informed of the latest developments in ever-changing security regulations, the digital version of the manual is constantly updated. It is available directly from Lufthansa Cargo.

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