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Descartes releases June report on global shipping crisis

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Descartes releases June report on global shipping crisis. Image: Pixabay
Descartes releases June report on global shipping crisis. Image: Pixabay
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Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, released its June report on the ongoing global shipping crisis and analysis for logistics and supply chain professionals. The report shows that May container shipments into the U.S. hit a new all-time high making the task of managing supply chain risk more complicated to navigate.

Fueled by continued strong consumer spending, May container import volumes surpassed 2.62M twenty-foot equivalent units, which not only continues the record monthly trend for the year but also eclipses the 2.6M TEU level for the first time. Container imports for the month crept up 7% over April and, in contrast to previous years, were up 3% over May 2021 and 26% over pre-pandemic May 2019.

“May saw imports from China up 5.4% compared to April, as COVID lockdowns began to ease in major manufacturing hubs, especially Shanghai. Compared to May 2021, however, overall imports from China were down 2.1%, highlighting the potential volume still to come in the months ahead,” said Chris Jones, EVP Industry & Services at Descartes. “Even as wait times at top U.S. ports continued to decline in May, the new overall high for import volumes, increasing production levels in China and the approach of peak season indicate there’s the potential for high activity in ocean trade in the second half of the year.”

The June report is Descartes’ 11th installment since beginning its analysis in August 2021.

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DHL inaugurates a new transhipment hub in Johannesburg

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DHL inaugurates a new transhipment hub in Johannesburg. Image: Pixabay
DHL inaugurates a new transhipment hub in Johannesburg. Image: Pixabay
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DHL Global Forwarding, the leading international air, ocean, and road freight services provider, has inaugurated a new transhipment hub and head office in Johannesburg, South Africa. The sustainable, primarily solar-powered complex was officially opened on Thursday, 22 September 2022. Located in the Sky Park Industrial Estate it provides easy access to “OR Tambo International Airport”.

The facility’s temperature-controlled chambers and Good Distribution Practices-trained personnel enable the new hub to cater to the unique needs of Africa’s rapidly advancing life sciences and healthcare sector. The facility’s opening marks a significant addition to DHL Global Forwarding’s extensive logistics network, further strengthening its positioning on the African continent and in South Africa while enabling the group to handle its customers’ requirements more efficiently.

Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, said: “We are proud that this new facility was built to the highest standards of sustainability and energy efficiency in line with DHL Global Forwarding’s goal of reaching net-zero logistics-related emissions by 2050. Already, our climate protection initiatives and CO2 emissions reduction programs have had a positive impact on logistics supply chains globally and building sustainable infrastructure like this solar-powered facility takes us closer to our goal.”

The new EUR 7-million facility includes offices and a 10,000 m2 warehouse. It will serve as a hub for transport, logistics, and warehouse solutions, as well as international freight expertise for different industries. This includes a strong focus on Africa’s life sciences and healthcare sector, which with an expected annual growth rate of 6.3% and anticipated revenue of EUR 7.1 billion by 2023, is one of the booming industries in the country. To serve the needs of the LSH sector, the site has been designed to meet the DHL Global GxP Pharma standards and the highest Transported Asset Protection Association security standards.

At the facility’s opening ceremony, Clement Blanc, CEO of DHL Global Forwarding for South Africa & Sub-Saharan Africa said: “A new facility in Johannesburg is a natural next step in our efforts to support economic growth and accelerate the pace of supply chain transformation undergoing in South Africa. This facility expands global connections to Africa, ensuring that sectors like LSH can operate smoothly, access an efficient and reliable logistics network, and continue to grow.

Blanc continued: “The strategic location of our new facility at ‘OR Tambo’ will enable us to enhance our service offering to clients. We are excited to be able to transport both time- and temperature-sensitive pharmaceutical goods and health products, among other services. I am confident in our ability to assist our customers in developing and expanding their businesses and continuing to aid the socio-economic growth of South Africa and the greater Sub-Saharan African region.”

The new facility will also create skilled jobs in Johannesburg. DHL Global Forwarding has expanded its total workforce in South Africa by 11% since 2021. The company also has a strong commitment to supporting and driving the participation of SMEs in the economy and ensuring that they have a place in global supply chains.

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DHL Supply Chain to invest EUR 500 million in India

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DHL Supply Chain to invest EUR 500 million in India. Image: DHL
DHL Supply Chain to invest EUR 500 million in India. Image: DHL
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DHL Supply Chain, the global market leader for contract logistics solutions, announced an investment of EUR 500 million in India over the next five years to significantly grow its warehousing capacity, workforce and sustainability initiatives in the country. With this investment, DHL will own and operate wholly-owned large multi-client sites in India, adding twelve million square feet of warehousing space to the Group’s existing portfolio.

The increased warehousing capacity is targeted to effectively cater to growing sectors such as e-commerce, retail, consumer, life sciences, technology, engineering and manufacturing as well as automotive. These warehouses will be enabled with accelerated digital technology solutions including Assisted Picking Robots, Indoor Robotic Transport, Intelligent Process Automation, Wearable Devices, Voice Picking, Inventory Management Robots and Algorithmic Optimizations.

“Despite the current, economic and geopolitical uncertainties in the world, we see enormous growth potential in the Asia Pacific region, with India making a significant contribution. As a dynamic, stable and fast-growing economy, the Indian nation plays a key role for the global economy. Its investment-friendly and entrepreneurial environment makes India a preferred place for Deutsche Post DHL Group to even accelerate its investments. With a rich pool full of highly qualified young talents and innovative digital entrepreneurs India is a favourit hub for our global contract logistics business in DHL Supply Chain and one of our priority markets,” said Oscar de Bok, CEO, DHL Supply Chain.

Investing in infrastructure for current and future customers

DHL Supply Chain India will add twelve million square feet of capacity in wholly-owned DHL multi-client sites in key metro cities such as Bangalore, Chennai, Kolkata, Mumbai, National Capital Region (NCR) and Pune. These cities are among the top contributors to India’s overall Gross Domestic Product (GDP).   Furthermore, multi-client sites are being built in the fast-growing state capitals and tier 2 cities such as Ambala, Baddi, Cochin, Coimbatore, Guwahati, Sanand, Hyderabad, Jaipur, Indore, Lucknow, Bhubaneshwar, Hosur, and Visakhapatnam.

DHL Supply Chain India will also open two new Business Support Centers (BSC) in Bangalore and Pune within the next 12-18 months to support customer demand. Currently, the company runs three Business Support Centers (BSC) at Mumbai, Gurgaon and Chennai. These BSCs provide 24×7 value-added services including domestic and international Transport Control Towers, Business Analytics to support decision-making, Freight Bill Audit Payment (FBAP), Order to Cash (O2C),  LLP Control Towers and similar support services to its customers in India and across the globe.

Creating employment opportunities

To support its strategic expansion plans in the country, the company plans to augment its workforce by doubling the size to 25,000 employees by 2025. Investment in Skill Development and Resourcing Centers is being undertaken to induct and train employees with certification programs to prepare them for work processes changes brought about by rapid transformations and digitalization in the industry. The first Resourcing Center has been opened in Bangalore with more to follow in Mumbai, Delhi, Chennai and Kolkata.

Transportation

DHL Supply Chain’s SmarTransport division will also leverage its warehouse investments to further accelerate transport growth by providing strategic, scalable solutions to large customers enabling economies of scale with end-to-end service offerings. Through its asset-heavy and asset-light model, DHL Supply Chain currently offers the full suite of transport solutions include Full Truck Load (FTL), Part Truck Load (PTL),  “milk runs”, secondary transport, intra-city and inter-city air movements.

GoGreen

In support of the DPDHL’s roadmap to have climate-neutral logistics by 2030, DHL Supply Chain India will be converting its entire intra-city fleet into Green fuel / EV versions by 2025. In fact, by the end of 2022, 100%  of the two-wheeler fleet will be converted to EVs. Furthermore, all new sites will implement green features, including solar panels for electricity, rainwater harvesting, LED lights, smart meters, etc.

“Asia Pacific currently accounts for about 15 percent of DHL Supply Chain’s global revenue but is among the fastest growing regions, with India being a key contributor to this growth. The Indian logistics market, worth over US$200 billion now, is expected to grow at about 10% per year in the next five years to reach around US$330 billion. We take a long-term view in India with businesses here having reasons to be optimistic,” said Terry Ryan, CEO, DHL Supply Chain Asia Pacific.

In recent years, the government has also increased efforts to improve the country’s logistics performance, boost trade and safeguard foreign investment – in particular, expenditure on logistics is expected to reach USD$500 billion annually by 2025. A Logistics division was recently established to introduce positive changes to existing procedures and bring related technology and innovation to maximize efficiency.

Vikas Anand, Managing Director, DHL Supply Chain India Pvt. Ltd said, “Building up large multi-client sites with efficient end-to-end transport solutions along with value-added services run by highly skilled employees allows us to maximize operational efficiency and puts us in a strong position to scale according to what our customers need, across various sectors. As one of the best places to work in India, we will continue to invest in our people, to deliver the best service quality to our customers.”

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CEVA Logistics connects commerce through its direct presence in Bahrain

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CEVA Logistics connects commerce through its direct presence in Bahrain. Image: CEVA Logistics
CEVA Logistics connects commerce through its direct presence in Bahrain. Image: CEVA Logistics
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CEVA Logistics is connecting commerce in Bahrain and across the Middle East through its new direct presence in Manama. The new office will offer a full range of air, ocean, ground and contract logistics services.

Bahrain, Middle East seeing economic growth

According to the International Monetary Fund, Bahrain’s economy is set to expand 3.3 percent in 2022 and 2.9 percent in 2023. In addition, annual GDP growth, along with oil and gas market dynamics, are likely to support further economic growth.

The new office will accelerate growth in key industries and Middle East markets, where the company’s revenues grew 30 percent in 2021. In addition, the direct presence with support the company’s offering of end-to-end deliveries and last-mile services. CEVA’s direct Middle East presence now includes Bahrain, the United Arab Emirates, Qatar and Oman.

Axel Herzhauser, regional managing director, Middle East & Africa, CEVA Logistics said: “Our growth strategy of adding local expertise is central to delivering our responsive logistics solutions. Our CEVA employees in the local market can adapt our solutions to ensure a reliable, sustainable supply chain connecting our customers in Bahrain to other Middle Eastern and global markets.”

CEVA Logistics, a world leader in third-party logistics, provides global supply chain solutions to connect people, products and providers all around the world. Headquartered in Marseille, France, CEVA Logistics offers a broad range of end-to-end, customized solutions in both Contract Logistics and Freight Management thanks to its approximately 98,000 employees at more than 1,000 facilities in 170 countries worldwide. With pro forma 2021 annual revenue of US$12 billion, CEVA Logistics is part of the CMA CGM Group, a world leader in shipping and logistics.

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