Logistics

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Linking the Mediterranean with Northern America

In February 2015, the Grimaldi Group shipping company launched a new direct maritime service between Civitavecchia and the North American Ports of Baltimore and Halifax for the transport of cars and other rolling cargo.

The Grimaldi Group shipping company began 2015 with big news: as of February it launched a new direct maritime service between Civitavecchia and the North American Ports of Baltimore and Halifax for the transport of cars and other rolling cargo. The new link is the first direct and regular service between the Mediterranean and North America for the ro-ro carrier sector.

And in Jamuary, Grimaldi had also strengthened the connection between Savona and Barcelona that has become a daily service thanks to deployment of the M/V Ro/Pax “Florencia” that has been added to the 4 “Eurocargo” units which already serve the line.

From 6th July, Grimaldi will launch a new standard service between Brindisi, Igoumenitsa and Corfu adding to the service already offered throughout the year between Brindisi, Igoumenitsa and Patras.

In February, Grimaldi Group improved the Brindisi-Greece service thanks to the employment of the M/V Euroferry Olympia and Euroferry Egnazia, able to carry up to 3,200 lm and with a cargo capacity of 200 ro-ro units and 600 passengers. The Ravenna–Greece direct link joined the already operational transhipment connection, thus increasing the number of departures from Ravenna to Igoumenitsa and Patras to 5 a week.

Due to changes in the market, the Grimaldi Group has also decided to meet demand from the market by modifying the previous Rostock-Helsinki itinerary and introducing the harbour of Hanko to the line. Indeed, as of January, there are now 2 connections from Rostock to Hanko and vice versa and 2 connections from Rostock to Helsinki and vice versa.

In order to face the big challenges of 2015, Finnlines, the company serving the Baltic market and of the Grimaldi Group, has decided to invest in eco-friendly technologies on which it is spending about €65 million. Grimaldi Group is a leader in the maritime transport of cars and all ro-ro vehicles with one of the biggest fleets in the world of roro/multipurpose vessels and car carriers.

The fleet today consists of more than 100 vessels. The vessels are ro-ro/multipurpose, Pure Car and Truck Carrier, Cruise Ferry and High Speed Ferries. The current maritime connections operated by the group serve more than 120 ports in 47 countries in the Mediterranean, Northern Europe, Western Africa, North and South America.

Nowadays the Motorways of the Sea Network in the Mediterranean and Baltic Seas alone is made up of 100 maritime lines operated by Grimaldi, Minoan, Finnlines and Malta Motorways of the Sea for the transport of cars, trailers, trucks and passengers. 

MV

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Africans tour Philadelphia Port as new season fruit arrives

Holt and African Delegation - Edited

On the eve of the start of the African fruit season, in which perishable summer commodities originated on the continent begin to arrive on shores in the US, a delegation from several African nations has visited the Port of Philadelphia.

Holt Logistics Corp said that as part of their historic visit and participation in the African Business Roundtable at the Philadelphia Federal Reserve Bank, dignitaries from Côte d’Ivoire, Ghana, South Africa, Togo, and Tanzania toured facilities at Gloucester Marine Terminal to learn about the numerous quality initiatives and processes utilised by the company. 

Additionally, the delegation discussed potential expansion of trade partnerships that will come as a result of the proposed African Growth and Opportunity Act (AGOA) currently before the US congress, Holt said in a press release dated June 15.

The first vessel of the 2015 South Africa fruit season arrived this morning at the Gloucester Marine Terminal. The Lapponian Reefer, a specialised refrigerated cargo ship discharged approximately 3,600 pallets of fresh oranges from the Western Cape of South Africa. The cargo arrived under the strict guidance of 360 Quality, an international shipping association dedicated to ensuring quality and safety in supply chain management for perishable fruits and vegetables, it also said.

“This visit of the delegation of West African leaders is timely in many ways,” said Peter Inskeep, general manager of the Gloucester Marine Terminal. “The beginning of the Summer Citrus season has created a heightened interest and awareness in developing nations of the value of fast, dedicated and direct transport of food products. We are also eager to share best practices in food handling and production with these potentially very important trade partners in support of AGOA, which will greatly increase commodities traffic between our two continents. Holt Logistics Corp is foundational terminal operator member of the 360 Quality Initiative, and we look forward to sharing a framework that can be transposed onto the many high quality food products that reach the North American Market through the Delaware River Ports.”

Holt and African Delegation - Edited (1).jpg

In the photo: (left to right): Sander Daniel, Global Marketing, Holt Logistics Corp; The Honorable Thulisile Mathula Nkosi, Consul General, Republic of South Africa; Florizelle B. Liser, Assistant U.S. Trade Representative for Africa; His Excellency Joseph Henry Smith, Ambassador, The Republic of Ghana; Leo A. Holt, president, Holt Logistics Corp; His Excellency Daouda Diabate, Ambassador, The Republic of Cote d’Ivoire; His Excellency Limbiye E. Kadangha Bariki, Ambassador, The Republic of Togo; Her Excellency Lily Munanka, Ambassador, Republic of Tanzania; and His Excellency Api Assoumatine, Togolese Ambassador to Ghana.

source: Holt Logistics Corp

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C.H. Robinson marks 25 years of business in Mexico

The strategic importance of being located in Mexico is underlined by C.H. Robinson’s celebration this month of a quarter of a century of business operations there.

The strategic importance of being located in Mexico is underlined by C.H. Robinson’s celebration this month of a quarter of a century of business operations there.

The company said in a press release that over the years, trade between the US and Mexico has become increasingly important. “Mexico continues to play a vital role across global supply chains due to the country’s business culture, educated workforce, and proximity to the United States,” it said in a press release.

A global provider of multimodal logistics services, fresh produce sourcing, and information services, C.H. Robinson also said its presence in Mexico “is bolstered by global freight forwarding and over a century of fresh produce expertise.”

Director of the Mexico region, Mike Burkhart, said customers rely on the company’s “experience and cultural knowledge, confidence, and unmatched expertise to accelerate their success in Mexico.”

“We look forward many more years of collaborating with our customers and deepening our value proposition in this growing region,” he said.

C.H. Robinson has more than 200 bilingual employees in 10 offices in Mexico and along the border between the US and Mexico. Founded in 1905, it now provides services to 46,000 customers globally through a network of more than 280 offices and has about 11,000 employees worldwide, working with 66,000 transportation providers. Its revenue last year was $13.5 billion.

 

Mexico map with flag image by Jaimiko (public domain), via Wikimedia Commons

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Banana sector logistics and challenges

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Shipping alliances to play a leading role

Shipping companies plying the banana export routes now also have to deal with the challenge of cutting costs in the face of falling ocean freight rates. Forging alliances will be a strong strategy to maintain competitive edge. One of the most important has been put forward by Maersk and MSC, with an alliance likely to move around a third of all banana cargoes through the world’s most heavily trafficked trade routes, which will bring enormous benefits, including a substantial reduction in operating costs.

Maersk proposes merger strategies

“You need to think inside the box”, says Thomas Eskesen, Reefer Ship Managing Director from Maersk Line, one of the leading companies in the sector, operating in 252 ports worldwide, in 75 countries. Eskesen has analysed the challenges faced in an increasingly demanding world, where consumers expect very high standards in terms of the quality and speed with which produce reaches them. In this sense, he noted that in Maersk there is still room for improvement in some areas, while new services and tools need to be incorporated in order to stay competitive, although they do have interesting strategies to achieve this. “It’s not only about defence, but also playing offensively; you need to unite in order to expand.” He explains that this way of “thinking inside the box” means that it is necessary to examine ways to improve the company “from the inside”, considering all the resources available and the information to hand. “Today we are trying to identify the root of the problem, attempting to analyse the data that we have and solve the problem along with the client we provide our services to, working together with a common goal, which is the only way to keep the customer satisfied”, adds Eskesen.

Port of Antwerp is strategic entry point for banana in Europe

The main port of entry in Europe for Ecuadorian bananas is Antwerp in Belgium, located very close to the three major fruit consumer markets on the continent (Rungis, Venlo and Duisburg). Representative Germán Calderón explains how “72 hours before the ship’s arrival, the process of releasing the goods begins and, within 24 hours of unloading, the produce is ready for delivery to any of these three big markets, unlike the Port of Rotterdam, which moreover suffers congestion issues, so much so that this year a significant percentage of vessels which used to dock there had to do so in Antwerp.” He also mentioned that the arrival of the fruit through Belgium allows delivery of the produce between 6 and 12 hours faster than if it was channelled through any other port in northern Europe.

New opportunities in banana route to Russia

On the other hand, Russia, with steadily growing per capita annual consumption in recent years, represented a great opportunity for the Ecuadorian banana sector, which has enjoyed a growing share in this market and is now the leading banana exporter to this country. The fruit is mostly traded and shipped in refrigerated containers and mainly enters through the port of St. Petersburg. Forecasts for 2015 point to 41% growth in banana uptake by Russian traders, equivalent to 10.6 kg of banana annually per capita. Vasiliy Shultsev, Sales and Marketing Manager for Global Ports, notes that “the port of St. Petersburg has special facilities for handling this commodity. We handle all transport of the product, even to the remotest locations in Russia, ensuring that the quality is maintained.”

More routes with the Mediterranean

The Marseille-based company is also strengthening its web of routes between southern Europe/Morocco and northern Europe/Russia, on which it uses 1300 reefer boxes. CGA-CGM already owned MacAndrews, acquired in 2002, and has just bought OPDR – which operates similar shortsea services, particularly from Morocco, the Canary Islands and the Iberian Peninsula – from the German shipowner Bernhard Schulte. “This increases our capacity and our commercial strength,” highlighted Michel, “allowing us to develop services that can compete with road transport. Even if our rotation is less flexible than with HGVs, our ships offer cheaper and more environmentally-friendly solutions.” Sea freight currently accounts for 10% of Spain’s fruit and vegetable exports, for instance. At the close of 2014, OPDR should have carried over 240,000 TEU and MacAndrews over 290,000. CGACGM, which carries 10% of the world’s reefer traffic, will have turnover of $16 billion this year (€13 billion), slightly up on last year “although our margins are lower owing to market pressure,” Michel pointed out. CGA-CGM handles the rotation of 10.6 million TEU (traditional and reefer) around the world, in 1.54 million containers carried by 429 ships, 83 of them owned by the company, serving 450 ports of call in 150 countries.

NV
 
 

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How to tackle the risks in perishables transport

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Produce quality more important than carriage factors for good shelf-life.

Cooling and carriage factors clearly are not the only aspects that can lead to waste. The weather during cultivation, crop husbandry, grade at harvest, post-harvest handling, the type of packaging and pre-cooling all play their own role in the quality and storability of the product. As Alex Schenz put it at the 6th Cool Logistics Conference, “The container is not a hospital, if you put garbage in, you get garbage out.”

Yet in terms of carriage factors, there are many aspects to control. Humidity management can prevent mold or wet cartons, as Leo Lukasse, a climate control specialist from Wageningen University, highlighted at the conference.

Another point of concern are periods without power during transportation. German expert in ocean transport and reefer containers Yves Wild said power-off periods seem to be increasing because operations take more time due to reefers getting larger and larger. A connected reefer would be able to supply real-time information on the situation, thus reducing cargo loss and costs.

Michael Dempsey, sales and marketing vice president at WAM Technologies in the US, said such technology already exists but various parties throughout the chain are reluctant to invest in it as they would not be the only party to benefit and it still is unclear who would own the data collected. Yet a lot is to be gained from connectivity – visibility, monitoring, compliance and security – which would lead to a return on investment.

Reefer container trade: bright spots and financial challenges

Although it seems clear that the reefer containers are definitively taking the lead over conventional reefer shipping where perishable transportation is concerned, that does not mean the industry is not facing challenges.

As Thomas Eskesen, global head of refrigerated business with Maersk Line, showed during his presentation at the conference, carrier results have not been sustainable for a long time. They dropped below the level of generally accepted margins since the beginning of 2011 and have remained there ever since, even dipping into the negative figures for prolonged periods.

This has left the industry with serious financial challenges. At the same time, a compound annual growth rate (cagr) for reefer containers of 6.5% is reported with prospects for further growth. Where the reefer container share was 72.3% in 2013, it is predicted to reach 79.8% in 2018, according to Alexis Michel, CMA CGM’s senior vice president of logistics and reefers. Yet he, too, expressed concerns about profitability versus investment in the reefer container fleet and the need for better operating margins.

Growth in perishables trade

However, according to figures from the Seabury Group, there are bright spots on the horizon, too. A shift in transportation is noticeable, with a move away from air towards ocean trade, particularly in containers. Indeed two thirds of the global perishables’ ocean volume is in containers. In Europe and Africa in particular, there seems to be more room for further growth in containers, the Seabury Group believes. Volume-wise, it is the short distance trade that is the most significant and it is also this that is seeing the fastest growth. A compound annual growth rate (CAGR) of 4.8% is forecast for trade in perishables between 2013-2018. The Asian Pacific region, with an expected CAGR of 6%, is the main driver of growth.

Increased demand for value–services

Both Maersk and CMA-CGM have also observed that reefer customers are demanding increased service. This had lead Maersk to introduce a vast toolbox to both improve service and lower costs. In the toolbox, services such as network rationalisation, speed equalisation and slow steaming, inland optimisation and much more can be found. The end result should be lower network costs, improved products and lower CO2 emissions. What it should not lead to is one single service for all customers. Maersk Line will continue to differentiate when it comes to sales experience, the booking process, service levels and customer service. CMA-CGM observes that the seaborne mode split leads container carriers to higher service level criteria where compensation of longer transit times, the ensuring of fumigation and logistic schemes, such as open sea exchange, are concerned. In all of these processes, data will be a key priority. Indeed, as Maersk points out, data will be the future value driver. 

MW

This is an abbreviated version of an article which appeared on p62 of edition 135 of Eurofresh Distribution magazine. Read the full article for free here.

 
 

 

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Port of Barcelona, driver of economic activity in Europe and the Mediterranean

The Port of Barcelona is Spain’s number one in terms of the value of the goods handled.



The strategically located Port of Barcelona is not only Spain’s number one in terms of the value of the goods handled, it is an engine of economic activity for southern Europe. It ranks fourth in the world for cruise ship traffic and is the Mediterranean leader in vehicle traffic.

Barcelona is also among European ports with the greatest potential for growth. Oriented towards the handling of high value added cargo, the port is now in an important growth phase marked by two key aspects: the completion of the largest expansion in its history, and the extension of its range of activities, through the enhancement of its maritime, road and rail connectivity.

“Historically, the commercial development of the Port of Barcelona was based on imports, but in recent years, driven by the local business sector, exports have increased significantly and the situation has reversed,” said Lluís París, the port’s commercial manager.

“In this context, the extension of the Barcelona container terminal (TCB) and the opening in 2012 of the Barcelona Europe South Terminal (BEST) by the Hutchison group, gave us the ability to handle a larger volume of containers and to compete with the major ports of northern Europe. In addition, we have forged alliances with logistics operators and are expanding our short sea routes, linking Spain, Italy and the Mediterranean, with services such as those provided by the Grimaldi group, the leading Italian shippers.”

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The expansion more than doubled the port’s surface area to 1,300 hectares. “The docks and terminals built or enlarged in the new port allow terminal operators to handle bigger ships and largescale cargo,” París said. Furthermore, to provide better services for perishables passing through the port, the new Border Inspection Point (known in Spanish as PIF) has 31 loading docks and other features designed to streamline border control and quality standards compliance requirements.

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This report appeared on p67 of edition 135 of Eurofresh Distribution magazine. Read more Logistics news in the section starting on p62.

 

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Port of Koper: making waves in the Adriatic

The multipurpose port of Koper, Slovenia, located in the North Adriatic, is in close proximity to various big cities in Central Europe and in a very attractive location for fresh produce deliveries to Western and Eastern Europe – providing weekly dispatch to the UK and Moscow – for goods originating from the Eastern Mediterranean and Far East. It has a modern fruit terminal infrastructure and offers a high quality service of fast cross-docking and customs clearance 7 days a week, year-round.
The Port of Koper lies in the Northern Adriatic Sea, where the Mediterranean most deeply penetrates the European continent. Consequently, it represents the shortest link from the Far East via Suez to Central and South-Eastern European markets, with excellent road and railway connections, and a sea distance about 2,000 nm shorter than other North-European ports. The port’s hinterland covers a vast area with a high economic potential and rapidly developing economies. The most important European business centres are less than a day away from Koper. This is why in addition to Slovenia, the major inland markets of Port of Koper are Austria, Italy, Hungary, the Czech Republic, Slovakia, Bavaria and Poland. Its location is not the port’s only advantage. It is a modern, well-organised and well-equipped multipurpose port. It operates day and night, all year long. The port is an approved EU border inspection post and the entire area has free zone status. The basic port activities in Koper take place in 12 terminals specialized in handling and warehousing various types of goods, such as containers, general cargo, fruit and perishable goods, livestock, vehicles, timber, dry bulk and liquid cargoes. Moreover, to fully meet customers’ needs, ‘Luka Koper’ also performs a variety of additional services that add to the value of goods.
In 2013, the Koper port continued its growth in various cargo types via 12 different terminals, exceeding 18 million tons of throughput, most of it being exports and imports for the hinterland markets of Slovenia. The container terminal reached 600,000 TEU, again being ranked first among Adriatic ports. Since obtaining the status of an official EU port of entry in 2004, the Port of Koper has enjoyed continuous growth in various cargoes. Fresh produce is the most sensitive and demanding cargo, requiring excellent service by everyone in the chain from arrival at the port to the promptest possible departure. 

Customs-cleared goods by reefer truck just a few hours later
Its high demand clients (exporters and importers) have awarded Port of Koper a reputation as a reliable, safe, high quality and flexible service provider.
Koper port is certified to ISO 9001, 14001, 22000, BS OHSAS, EFQM, HACCP and has ECO certification for organic produce. Koper port continually invests in the upgrade of its facilities: modern equipped cold stores at the fruit terminal offer storage of up to 16,000 pallets, an area of 26,000 m2 and 1,500 pallets in the refrigerated rooms, and an area of 2,000 m2 at -180 C. Last year, this major gateway handled 9,000 40’ reefer containers containing 220,000 pallets. In the peak season, most containers arrive twice-weekly from Israel – up to 400 40’ reefers weekly – and are swiftly dispatched to various European destinations in Germany, Holland, Poland, Austria, Switzerland and the UK, and occasionally also to Moscow. This season, improved weekly arrivals from Egypt have been observed, and recently also citrus from Turkey. Arrivals of grapes from India, which started last season, are expected to continue. More and more goods are reaching supermarket shelves direct from Koper. Year-round for the last four years, fresh cut flowers and herbs have arrived from Israel for dispatch to the Dutch auction. The port also handles bananas all year, more of which are arriving in containers, in addition to those in conventional reefer ships. Banana ripening in the port’s ripening chambers is also available.
CV  

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Foodcareplus, dedicated logistic provider from Antwerp

TRANS foodcarePLus

“For more than 25 years, our company has been providing logistics services for perishable industry operators,” according to Marie Lammertyn, sales management assistant at foodcareplus. 
A privately owned logistics provider, foodcareplus is based in Antwerp – the leading gateway to Europe. Unlike most logistics service providers, the company’s business model does not allow third-party logistics service providers to deal with transactions under common and standard agency agreements. All business services are strictly controlled through a business platform. Another office is located in Tianjin, a large Chinese port.
The company is also pleased to be able to provide its customers with more efficient distribution solutions, a key reason it is the sponsor of Cool Logistic Global conferences on pressing issues for the industry.

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Lufthansa Cargo delivering to the doorstep

TRANS LufthansaCargo_CoolChainGroup

Receiving flowers, fresh fruit and vegetables at your doorstep has never been so straightforward. 

Lufthansa Cargo and the Cool Chain Group (CCG) have joined forces on the to-door delivery of fresh products. Lufthansa Cargo has been providing this service for the past 15 years, and with CCG, it will be expanded to other markets including 36 European destinations. It is ideal for customers requiring fast and reliable shipment of fresh cargo in a temperature-controlled environment but with no transport service of their own from airport to consignee.
A few days before Valentine´s Day, 1,000 tonnes of roses were flown from warmer climates in Africa (Kenya) and South America (Ecuador and Colombia) to Frankfurt, with Lufthansa Cargo. On a single flight, up to 90 tonnes of roses can be transported, and this is actually more environmentally-friendly than growing the roses in Germany. According to by the UK’s Cranfield University, that would produce more CO2 as each individual flower needs artificial irrigation and an additional heat supply to grow.  
To meet the exceptionally high demand for roses on Valentine’s Day, the cargo airline arranged special flights in addition to the scheduled connections.  As soon as the roses are harvested, they are whisked to the packaging centre then direct to the aircraft. They are unloaded in Frankfurt, where, from this hub, the roses are sent to other destinations.

1,7 million tons delivered
Lufthansa Cargo ranks among the world’s leading cargo carriers. Its 2013 traffic figures show the airline carried around 1.7 million tonnes of freight and mail and sold 8.7 billion tonne-kilometres (RTK). Lufthansa Cargo focuses on the airport-to-airport business. The cargo carrier serves 300 destinations in around 100 countries with its own fleet of freighters, the belly capacities of passenger aircraft operated by Lufthansa and Austrian Airlines, and an extensive road feeder service network. The bulk of the cargo business is routed through Frankfurt airport. Lufthansa Cargo is a wholly owned Lufthansa subsidiary of Deutsche Lufthansa AG.
The CCG Group, based at Kelsterbach near Frankfurt, operates a global network dedicated to managing the supply chain of temperature-sensitive products. As a perishables integrator and specialist logistics provider, CCG offers innovative concepts for start-to-finish supply chain solutions from source to destination.
CV  

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Emirates airline builds new hub for perishables

SPECIAL middleeast EMIRATES AIRLINES Skycargo-ULD-1_0155

A new and additional logistics hub for the “World’s Best Airline” is being constructed at Dubai World Central Al Maktoum International Airport. The new freighter base will allow expansion of Emirates’ cool chain services. It will feature a dedicated perishable temperature controlled area, de-linked from the temperature zone for pharmaceutical and healthcare cargo. Emirates is also working on innovative solutions to provide a streamlined service for the perishable supply chain, the launch of which is planned for early this summer.  “We are currently working on developing our facilities including our ‘Cool Dollies’ with a real time automated temperature mapping system. In the next stage our aim is to develop this at shipment level (with single-use data loggers),” said André Martin, senior corporate communications manager at Emirates Airlines.  With its three Cool Chain solutions (basic, advanced, premium), Emirates SkyCargo is able to meet the varying demands of the perishable industry across its global network. Its major trade lanes for fruits, vegetables and flowers are from Africa into Europe and the Middle East, for meat (chilled and fresh) these are mainly from Australia, New Zealand and the sub-continent, while source markets like South America are also in strong focus, with shippers using its cool chain products.