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Thursday, 14 March 13
SHIPPERS AND CARRIERS NEED GREATER COMMUNICATION AND MUTUAL UNDERSTANDING
Press Release – Shippers and shipping lines both need to raise their game if global container supply chains are not to be habitually subject to wildly fluctuating service levels. This was a key take-away from Day 1 of the TOC Container Supply Chain Asia conference being held in Hong Kong, on 12-14 March.
Addressing the conference session ‘Carriers Close Up’, Mark Holloway, Head of Supply Chain Asia for global beverage group Diageo, explained that his company’s supply chain is focused on “cost, service and quality”, in other words a natural continuation of Diageo’s corporate culture and approach to its end customers who consume the company’s products.
Understanding customer requirements is key to meeting their expectations, he explained. However, he added that in his experience container shipping lines have little or no engagement with their customers either to discuss issues that arise or plans to improve service levels. He argued that the focus was almost exclusively on price, which in times of highly volatile rate movements often leads to unreliable lead times impacting service levels for end customers and unreliable updates on where particular shipments are at any moment along the logistics chain.
These factors have a negative impact on business often resulting in increased inventory and service risks. However, Mr Holloway emphasised that the current poor state of relationships between shippers and carriers was as much the result of shippers allowing that to happen as also being the fault of the carriers. His principal message was that both partners need to improve their communications with each other in order to achieve more collaborative supply chain management.
“It is now the responsibility of shippers to elevate the quality of the conversations we have with carriers and focus on cost, service and quality, and therefore allow us to have an on-going relationship with our supply chain colleagues just I have an on-going relationship with the customers I serve,” he concluded.
From a carrier perspective, Stanley Smulders, Senior Vice-President Asia - Europe & West Africa Trade Management, for MOL Liner, accepted that various strategies recently adopted by carriers do impact supply chains. However, he also pointed out that the response of many carriers has simply been as a result of the lack of sustainable financial returns. The creation of wider alliances, for example, is an obvious response to the need to phase in larger vessels economically in order to ensure that the ships are fully utilised. But this will likely result in fewer sailings, which has a direct effect on supply chains.
Shipping lines also need to reduce costs, through measures such as slow steaming, he continued. He asked rhetorically whether this is likely to change any time soon, but the answer was “very unlikely” as long as costs such as bunker fuel stay where they are.
Mega-vessels, mega-ports
The impact of mega-vessels and mega ports on the supply chain was also a principal theme of the opening day. In a keynote speech, Mohammed Al Muallem, Senior Vice-President & Managing Director UAE Region, for DP World, noted that ports are integral to supply chains. Moreover, containerisation has expanded the hinterland of ports, leading to the development of regional, local & extended gateways.
Consequently ports have evolved as enablers adding “substantial value” to the freight chain, specifically in terms of facilitating multimodal infrastructure, e-information exchange and integration with hinterlands. This is encouraging a move towards ‘port-centric logistics’ that provide connectivity between supply chain enablers.
Mr Muallem continued by saying that ship size has doubled over the past decade and the market will continue to see increasing numbers of ‘mega-ships’ coming onto the market. With these increasingly large vessels, hub & spoke concepts for ports are likely to be dominant and will enable shipping lines to pursue the economies of scale they are seeking.
This has significant implications for ports. Larger ships mean deeper drafts, wider channels and longer berths. Operational efficiency is also of key importance as the mega-vessels will need to load/discharge greater numbers of containers with each vessels call.
TOC CSC Asia continues until 14 March at the Hong Kong Convention and Exhibition Centre.
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Tuesday, 19 March 13
SHIP PRICES COULD BE CLOSING IN TO REACH THEIR BOTTOM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
One of the latest developments in shipping asset prices has been the reluctance from shipyards to further reduce their price expectations to higher ...
Sunday, 17 March 13
A WEAK WEEK FOR SUB-BIT INDONESIA COAL SWAPS
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for average Q2’ 2013 delivery has lost 2.11 percent and CFR South China coal shipment ...
Sunday, 17 March 13
COAL FREIGHT RATES STEADY ON HIGHER DEMAND - CAPT. REDDY
COALspot.com - This freight market continued to remain firm in all segments.
The BDI was up by 5.81 pct closing at 892 points. Cape index was up ...
Friday, 15 March 13
CHEAP SHIP VALUATIONS DON'T NECESSARILY MEAN ATTRACTIVE SAYS VESSELS VALUE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
With ship prices plunging by double-digits in the past few years, many ship owners are pondering their next moves in a market often described as att ...
Thursday, 14 March 13
SUPRAMAX : INDO - INDIA TRIP RATE IS AROUND $10,000; SOUTH CHINA $9500 - FEARNRESEARCH
Handy
Indian market is still quiet in respect of export of iron ore. WC India market has improved with a few stems out of the MEG, WC India opening ...
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- Semirara Mining and Power Corporation, Philippines
- Central Electricity Authority - India
- Electricity Authority, New Zealand
- ASAPP Information Group - India
- Borneo Indobara - Indonesia
- Barasentosa Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- The Treasury - Australian Government
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- Independent Power Producers Association of India
- Toyota Tsusho Corporation, Japan
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Formosa Plastics Group - Taiwan
- Larsen & Toubro Limited - India
- ICICI Bank Limited - India
- Dalmia Cement Bharat India
- Agrawal Coal Company - India
- Gujarat Electricity Regulatory Commission - India
- Mercator Lines Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- Oldendorff Carriers - Singapore
- Coastal Gujarat Power Limited - India
- Attock Cement Pakistan Limited
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- Maheswari Brothers Coal Limited - India
- SMC Global Power, Philippines
- CIMB Investment Bank - Malaysia
- Georgia Ports Authority, United States
- Banpu Public Company Limited - Thailand
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- Meenaskhi Energy Private Limited - India
- Heidelberg Cement - Germany
- Semirara Mining Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Vizag Seaport Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Gujarat Sidhee Cement - India
- PowerSource Philippines DevCo
- Latin American Coal - Colombia
- Gujarat Mineral Development Corp Ltd - India
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- Standard Chartered Bank - UAE
- Aditya Birla Group - India
- Electricity Generating Authority of Thailand
- Lanco Infratech Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Salva Resources Pvt Ltd - India
- Anglo American - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- The State Trading Corporation of India Ltd
- Simpson Spence & Young - Indonesia
- Leighton Contractors Pty Ltd - Australia
- London Commodity Brokers - England
- Romanian Commodities Exchange
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Mjunction Services Limited - India
- TeaM Sual Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Central Java Power - Indonesia
- Pendopo Energi Batubara - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- Antam Resourcindo - Indonesia
- Goldman Sachs - Singapore
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Cement Manufacturers Association - India
- Bhatia International Limited - India
- Billiton Holdings Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Indian Oil Corporation Limited
- IHS Mccloskey Coal Group - USA
- Essar Steel Hazira Ltd - India
- Thiess Contractors Indonesia
- Wood Mackenzie - Singapore
- Carbofer General Trading SA - India
- Bukit Baiduri Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Riau Bara Harum - Indonesia
- India Bulls Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Baramulti Group, Indonesia
- Uttam Galva Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- San Jose City I Power Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- Rio Tinto Coal - Australia
- Mercuria Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Malabar Cements Ltd - India
- Bhushan Steel Limited - India
- Tamil Nadu electricity Board
- Holcim Trading Pte Ltd - Singapore
- Sarangani Energy Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Kumho Petrochemical, South Korea
- Bharathi Cement Corporation - India
- AsiaOL BioFuels Corp., Philippines
- International Coal Ventures Pvt Ltd - India
- The University of Queensland
- Australian Coal Association
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Renaissance Capital - South Africa
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- GVK Power & Infra Limited - India
- Africa Commodities Group - South Africa
- Chamber of Mines of South Africa
- Planning Commission, India
- Meralco Power Generation, Philippines
- Savvy Resources Ltd - HongKong
- Power Finance Corporation Ltd., India
- Bangladesh Power Developement Board
- Kartika Selabumi Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Energy Link Ltd, New Zealand
- Grasim Industreis Ltd - India
- Ministry of Transport, Egypt
- PetroVietnam Power Coal Import and Supply Company
- Indonesian Coal Mining Association
- Vedanta Resources Plc - India
- Deloitte Consulting - India
- CNBM International Corporation - China
- Minerals Council of Australia
- Commonwealth Bank - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- Intertek Mineral Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- New Zealand Coal & Carbon
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- Bukit Makmur.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- MS Steel International - UAE
- Global Business Power Corporation, Philippines
- Parry Sugars Refinery, India
- SMG Consultants - Indonesia
- Coalindo Energy - Indonesia
- Indian Energy Exchange, India
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- Kobexindo Tractors - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- PTC India Limited - India
- Kepco SPC Power Corporation, Philippines
- Indika Energy - Indonesia
- Ambuja Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Marubeni Corporation - India
- TNB Fuel Sdn Bhd - Malaysia
- Interocean Group of Companies - India
- Chettinad Cement Corporation Ltd - India
- Australian Commodity Traders Exchange
- Global Green Power PLC Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Mines - Canada
- GAC Shipping (India) Pvt Ltd
- Eastern Coal Council - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sojitz Corporation - Japan
- Maharashtra Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- Manunggal Multi Energi - Indonesia
- Jaiprakash Power Ventures ltd
- Indo Tambangraya Megah - Indonesia
- McConnell Dowell - Australia
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Bulk Trading Sa - Switzerland
- Singapore Mercantile Exchange
- White Energy Company Limited
- Siam City Cement - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- Sakthi Sugars Limited - India
- Edison Trading Spa - Italy
- Globalindo Alam Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Kohat Cement Company Ltd. - Pakistan
- Posco Energy - South Korea
- Parliament of New Zealand
- Makarim & Taira - Indonesia
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