Suez Canal Authority Receives Bids for Logistics Hub Expansion

The Suez Canal Authority (SCA) reported that bids have been received to develop an international industrial and logistics hub around the Suez Canal. The SCA is hoping this hub will increase revenue and attract more ships to the area of 29,000 square miles around the proposed hub. Political turmoil and unrest in recent years in this area have decimated the economy. The head of the Suez Canal Authority, Mohab Memish, is eager to accomplish the hub, stating, “Investors must find service here at an international level because if they do not find it here they will go some place else.’ The expansion project (also called the “Third Set of Locks Project”) will double the capacity of the canal, creating a new traffic lane to allow more and larger ships to use the canal. The project also calls for: Two new locks, one each on the Atlantic and Pacific sides Excavation of new channels for the new locks. Widen and deepen existing channels. Raise the maximum operating level of Gatun Lake. Documents concerning the details of the bid were available until January 23, and the Suez Canal Authority selected 14 Egyptian and international bidders, among the 33 groups who responded. A… read more »

Getting Your Product to the Customer Faster and More Cost-Efficiently with Supply Chain Management

Beginning in the 1990’s, with the advent of increasing customer baselines by pursuing the global market, innovative and progressive companies began formulating more cohesive and defined supply chain management techniques. Being able to meet quality, cost and delivery commitments while still satisfying end user requirements, took on global ramifications for companies interested in staying competitive in the world marketplace. There are many factors that influence getting your product into your customers’ hands in a more effective, timely and cost-efficient manner. To begin at the beginning, begin by involving your key suppliers in the improvement of your supply chain management. Probe methods to involve key suppliers in the early phases of the process; explore ways to maximize the product, cost, quality and speedy delivery to your end user. Next, utilize your own purchasing department and encourage initiative in finding ways to shorten time to market and cost reduction among every person on your staff. Encourage your acquisitions department to keep the flow of incoming raw materials maximized to support production. Encourage new product development ideas. Establish a “commodities group” to manage the collection of parts and suppliers on schedule. Broaden your new product development efforts. Try to reduce the time a… read more »

Merging of XPO-Pacer Will Expand the Intermodal Market

Intermodal freight transport, or using multiple methods to move freight, without handling the freight itself, improves security, reduces damage and loss, and results in faster transport of the freight. It also reduces greenhouse gases and reduces transport time. It’s no wonder, then, that the merger of XPO Logistics and Pacer International (the 3rd largest intermodal operator in the US) is an exciting development in the freight world. This $335 million deal is a step in the right direction for the future of truck freight brokerage, encouraging growth in the Northern American markets. Intermodal volumes have been increasing lately, up 7.7% domestically last year. This is rewarding for shippers and truckers alike, because of the resultant cost savings and margin increases. XPO Logistics has been building its intermodal business over the last two years, purchasing ten companies to build its international freight transportation. XPO acquired Pacer International last summer, at the cost of $365 million. Bradley S. Jacobs, XPO Chairman/CEO, stated, “We’re positioning ourselves to be a one-stop, full-service provider. A customer would much rather deal with a single-source provider than several companies. There’s a lot of value in winnowing down your vendor base” With a projected $5 billion in annual… read more »

The Global Market and the Need for Expert Supply Chain Management

Effective management of your supply chain is imperative to improving your competitiveness in today’s global market. Electronics, the web, better communications, travel, and other factors are increasingly opening global markets all over the world. This “shrinking” of world markets offers customers a much wider variety of products to purchase, but also opens competition for goods and services worldwide. Business is faced with three major challenges: More competitive markets with possibly superior products and services A shifting market where consumers can and do place more emphasis on both price and quality Facing the fact that to succeed in today’s marketplace, industries must be prepared to succeed on a global level. You must be able to look at the competition through the eyes of your consumers, maximize every opportunity to exceed your customers’ expectations for products and services, and surpass the efforts of your competitors. Having effective, productive and strategic supply chain management will help you get the advantage you must have over your competition. This globalization of business has given your customers more options to choose from, what they can buy, how much they will pay, and the terms they want to commit to. On a global level, companies are producing… read more »

California’s Ports the First Worldwide to Require Container Ships at Berth to Operate from Shore-Side Electrical Power

Effective January 1, 2013, California ports became the first worldwide to require vessels operate from shore-side electrical power while at berth. This required the international shipping industry to equip vessels and container berths with equipment to operate the vessels’ engines with low-polluting electrical power while at berth. In addition, low-sulfur fuel regulations, aimed to reduce harmful diesel emission from vessels in transit, required using fuels with no more than 0.1% of sulfur content. The at-berth regulation must be conformed to over the next six years. In that time frame, 50% of a container line’s fleet must be able to use shore-side electrical power, with increases to 70% in 2017 and 80% in 2020. Standards to measure compliance are already in place. Environmentalists are confident that this pioneering California model will eventually and gradually be adopted by other ports in Asia, Europe and the US. Once California-bound vessels comply, they will be allowed access to other ports around the world, having already complied with the stringent California regulations. T.L. Garrett, vice president of the PMSA, which represents shipping lines and terminal operators on the West Coast, advised that any vessel, on its first berthing in Los Angeles, Long Beach, or Oakland,… read more »