According to logistics and cargo executives, South China Morning Post, the first English language Hong Kong newspaper, reported, airlines have lost out permanently to the ocean carriers and this shift appears to be an inevitable structural shift, not a temporary phase. The senior vice-president for sea freight in the Asia Pacific at logistics giant Kuehne + Nigel Mr.Alfred Hofmann said: “It is a trend that can’t stop”. Mr. Charles Wellins, a senior vice-president of supply chain solutions at CEVA Logistics endorses the view of Mr.Hofmann. Interestingly enough, the Director of Cathay Pacific Cargo agreed with them and observed: “I suspect they are right and that much of shift to sea is permanent”. Mr. Hofmann observed that the pharmaceutical industry and the manufacturers of temperature-controlled products preferred the shift of their cargo from airlines to the ocean carriers. Of course, they are aware of the merits and demerits of each kind of transport. Moving 10 tonnes of cargo by sea was from Shanghai to Los Angeles was a little bit more expensive than moving the same cargo by air; it might cost about 5% more; but, at the same time, airlines have a great advantage in transit time. Logistics firm DB Schenker observed that shipping freight by sea from Shanghai to Hamburg would need 28 days as against 4 to 6 days by air. But, all the same, the International Airport Association, a group of about 240 airlines, said that the cargo demand was down by 6.6 percent in the eight months to August, compared with the same period last year. Mr. Hofmann, aware of the challenges in shifting cargo from air to ocean, said that better planning between the manufacturers, logistics operators and shipping lines would go a long way in achieving a reliable reduction in transit times. Again, he also said that the cargo owners would reach cost reduction as well through better inventory control and improved cash flow.
Friday, 26 October 2012
Ocean carriers grab freight from airlines, South China Morning Post
According to logistics and cargo executives, South China Morning Post, the first English language Hong Kong newspaper, reported, airlines have lost out permanently to the ocean carriers and this shift appears to be an inevitable structural shift, not a temporary phase. The senior vice-president for sea freight in the Asia Pacific at logistics giant Kuehne + Nigel Mr.Alfred Hofmann said: “It is a trend that can’t stop”. Mr. Charles Wellins, a senior vice-president of supply chain solutions at CEVA Logistics endorses the view of Mr.Hofmann. Interestingly enough, the Director of Cathay Pacific Cargo agreed with them and observed: “I suspect they are right and that much of shift to sea is permanent”. Mr. Hofmann observed that the pharmaceutical industry and the manufacturers of temperature-controlled products preferred the shift of their cargo from airlines to the ocean carriers. Of course, they are aware of the merits and demerits of each kind of transport. Moving 10 tonnes of cargo by sea was from Shanghai to Los Angeles was a little bit more expensive than moving the same cargo by air; it might cost about 5% more; but, at the same time, airlines have a great advantage in transit time. Logistics firm DB Schenker observed that shipping freight by sea from Shanghai to Hamburg would need 28 days as against 4 to 6 days by air. But, all the same, the International Airport Association, a group of about 240 airlines, said that the cargo demand was down by 6.6 percent in the eight months to August, compared with the same period last year. Mr. Hofmann, aware of the challenges in shifting cargo from air to ocean, said that better planning between the manufacturers, logistics operators and shipping lines would go a long way in achieving a reliable reduction in transit times. Again, he also said that the cargo owners would reach cost reduction as well through better inventory control and improved cash flow.
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