Joint Effort by Cargo Tracking and Loss Detention Groups to Prevent Freight Theft

US – Covert cargo and vehicle theft detection, recovery, and loss prevention company, SC-integrity (LoJack SCI) and perishable and high value shipment tracking firm Locus Traxx Worldwide, have announced an alliance which aims to both advance and bolster supply chain and cargo shipment security and efficiency. Together, the organisations plan to release a series of bundled tracking and information solutions based on Locus ‘SmartTraxx™ GO’ tracking technology, which monitors both the security and condition of the freight in real-time. LoJack SCI CEO, Ted Wlazlowski, said:

"We couldn't be happier with this collaboration. This venture will allow both Locus Traxx and LoJack SCI to support the latest generation of communication and geo-localisation technologies, while continuing to provide high value service to customers. Our market is ready for the flexibility and ease in providing a disposable tracking solution; and, together with Locus Traxx, we intend to exceed expectations for reliable, low cost visibility and control."

Locus Traxx will cooperate in providing information to and through the LoJack SCI sponsored Supply Chain Information Sharing and Analysis Center (Supply Chain-ISAC). Food is the primary target product for freight theft, accounting for 27% of recorded sector robberies in the US last year, leading to the industry facing increasing regulatory pressures from the FDA. The ability for Supply Chain-ISAC participants to obtain an enhanced view of potential risk or efficiency opportunities in the food, produce and cold chain markets could be extremely beneficial.

Source: http://www.handyshippingguide.com/shipping-news/joint-effort-by-cargo-tracking-and-loss-detention-groups-to-prevent-freight-theft_5605

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Japanese logistics firms to share drivers

Logistics companies in Japan are moving to combine their freight truck operations amid an industry-wide shortage of drivers as the economy recovers.

Yamato Transport, Seino Transportation and six other companies have set up a committee to study possible collaboration, according to Nikkei Report.

As early as the fall, the group, which also includes Tonami Transportation, Sapporo Express, Meitetsu Transport, Chuetsu Unso, Daiichi Freight System and Kanda, plans to begin sharing cargo space and sorting sites on a trial basis as early as the fall. Based on this, they will decide how to split costs.

A nationwide association of logistics companies will implement the initiative. Other carriers, such as Sagawa Express and Nippon Express, will be encouraged to take part as well.

Trucks handle about 90 percent of domestic freight transport.

About 60 percent of the carriers had anticipated a labour shortage between April and June, according to an industry survey. And drivers are ageing as well. By collaborating with peers, the carriers will work to maintain quality service while curbing costs.

The joint operations will be employed on routes that include small and mid-size cities. Trucks hauling freight along these routes often have under-utilised cargo space on return trips.

Source: http://www.cargonewsasia.com/secured/article.aspx?id=7&article=33655

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FedEx strengthens its domestic ground and supply chain services in India.......

Mumbai, May 7, 2014 — FedEx Corp. (NYSE: FDX) announces the successful integration of its acquired AFL and UFL businesses in India.  Since the acquisition in 2011, FedEx has focused on strengthening its domestic transportation and supply chain capabilities to meet the demands of Indian businesses. FedEx now offers end-to-end logistics solutions, including international and domestic air express services, domestic ground services, warehousing and supply chain management.

With the integration complete, FedEx has:

• Expanded its service coverage from 4,000 postal codes to over 19,000 in India
• Strengthened its ground transportation service: it now has a fleet of over 1,000 trucks connecting cities and towns across India, leading technology and competitive pricing
• Increased its office and hub space capacity from 300,000 to over a million square feet
• Added inventory management services via more than 900,000 square feet of warehousing space across the country

“In a little over a decade, India is expected to have as many as 18 mega-demand cities with a GDP surpassing $20 billion.[1]  The internet is also propelling small towns such as Guntur in Andhra Pradesh or Choryasi in Gujarat, into the league of top rural hubs for eCommerce in India.  This is why we have expanded our network to over 90% of India’s manufacturing GDP, thereby providing seamless access to Indian businesses with diverse logistics needs,” said David Canavan, vice president, Operations, FedEx Express India.
“Increasingly, the success of modern retail chains, hi-tech industries or booming eCommerce sites depends on the efficiencies and intelligence of their supply chain.  Innovative services such as cash on delivery, repair-and-return, pick and pack and returns management are critical.  Our successful integration places us in a formidable position to meet all of these logistics requirements.”
Now, customers using FedEx domestic ground services can also benefit from shipping applications that enable them to create waybills for single or multi-piece shipments. In addition, they can monitor incoming and outgoing packages, get status notifications and near real-time tracking. High volume businesses such as eCommerce are supported with robust web integration for faster processing.
Industries with complex supply chain requirements (particularly hi-tech, retail, medical equipment or consumer durables) will gain a competitive advantage by using FedEx domestic ground and supply chain services.

Source : http://news.van.fedex.com/fedex-strengthens-its-domestic-ground-and-supply-chain-services-india-following-successful-integrati

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Air cargo industry needs a structural redesign

The freighter plane may become a thing of the past if airlines failed to devise strategies to make their cargo operations more efficient, an aviation industry specialist has warned.

The industry needs a structural redesign, said Glyn Hughes, director of cargo industry management at International Air Transport Association (IATA).

Air cargo volumes have remained flat since 2010, he said during IATA’s annual general meeting.
IATA predicts cargo volumes will total about 52 million tons this year, effectively unchanged since 2010.

The $6.8 trillion worth of goods transported by air cargo every year represents 35 percent of international trade by value but only 0.5 percent of total volumes, Hughes pointed out.
He called for more drastic changes to shorten transport times and regain ground lost to the shipping industry.

Some carriers have already reduced the number of freighter planes they operate, he said.
Air freight built a reputation for getting bulky, expensive goods from A to B as quickly as possible. But as paperwork has increased, the average time it takes to shift a product from the manufacturer to the final importer stands at 6.5 days, compared with Lufthansa Cargo’s boast in the 1960s that the process took only three days.

High value goods such as electronics have also become smaller, meaning they take up less space and do not need dedicated freighters for transportation.

These trends are pushing companies such as AstraZeneca, Ericsson and Sony to transport more of their pharmaceuticals and electronics via sea at lower cost. In addition, growing demand for plane travel means more and more freight is being transported in the holds, or bellies, of passenger planes.
Airlines have so far reacted to the tough cargo market by cutting capacity and taking freighters out of service.

To remain competitive in the long term, airlines need to cut shipping times and position themselves as premium operators specializing in high value or perishable goods, such as flowers, or bulky over-sized goods, delegates said.

To boost competitiveness and revitalize trade growth, the industry is working toward a goal of reducing shipping times by 48 hours before 2020.
Of the 6.5 days on average it takes to get air freight from door to door, only a few hours are actually spent in the air, according to IATA.

It is therefore encouraging airlines to simplify procedures with freight forwarders and ground handlers, and to cut down the amount of paperwork it creates by moving to digital documents.
The association said that just 14.3 percent of contracts, known as airway bills, were in electronic form in 2013, short of its target of 22 percent for 2014.

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US postpones 100 per cent container scanning US postpones 100 per cent container scanning

FORWARDERS are not surprised by the latest US climbdown on controversial plans to introduce 100 per cent ocean container screening.

Peter Quantrill, director general of the British International Freight Association (BIFA), says it is “hardly surprising” to hear the news that the USA has delayed – for another two years – its demand that all cargo containers entering the USA must have been security scanned prior to departure from their origin stations.

The decision comes amid questions over whether the total scanning scheme is the best way to protect US ports.

Five years after Congress set a deadline requiring all US-bound shipping containers to be X-rayed overseas for nuclear weapons, US Customs officials now appear to have given up on the goal.

Screening 100 per cent of incoming containers would be nearly impossible to implement now, would cause huge delays and be less cost-effective than focusing only on suspicious cargo, observers say.

More than 30,000 ocean containers arrive at US ports each day and many foreign ports are just not physically equipped to comply.

“As BIFA has said repeatedly, the Department of Homeland Security (DHS) has consistently underestimated the enormity of the task in hand relative to the costs both to the US government and to foreign governments as well as, importantly, the limited ability of contemporary screening technology to penetrate dense cargo, or large quantities of cargo in shipping containers,” says Quantrill.

BIFA’s comments are in response to a letter from Thomas Carper, chairman of the Senate Committee on Homeland Security and Governmental Affairs, which suggested that the use of systems available to scan containers would have a negative impact on trade capacity and the flow of cargo.

Quantrill notes: “Media reports suggest that the US government now doubts whether it would be able to implement the mandate of 100 per cent scanning, even in the long term, and it would appear that it now shares BIFA’s long-standing opinion that it is not the best use of taxpayer resources to meet the USA’s port security and homeland security needs.

"We have always said that expanding screening with available technology would slow the flow of commerce and drive up costs to consumers without bringing significant security benefits.”

BIFA says the US government should take an even bolder step – and repeal the original legislation.

“That would be the most appropriate way to address this flawed provision and allow the Department and industry to continue to focus on real solutions, including strengthened risk-based management systems to address any security gaps that remain in global supply chains.”

Source: http://www.aircargonews.net/news/single-view/news/us-postpones-100-per-cent-container-scanning.html

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AirAsia revenue jumps 40% under cargo services

Upgrowing Malaysian airline AirAsia X Berhad achieved a revenue of 749.5 million ringgits ($233 million) for the quarter ending 31 March, while carrier cargo services geenrated 25.3 million ringgits throughout.

The cargo revenue is a 27 per cent year-on-year increase from the 19.9 million ringgits it generated in the same quarter last year. The quarter's overall revenue was a leap of 40 per cent, compared to the first three months of 2013.
Also, AirAsia X has 19 Airbus A330-300, up from 15 in December last year. The carrier has ordered 51 Airbus A330-300, with six more being leased from the International Lease Finance Corporation; bringing its fleet deliveries to 57 by 2019. The airline also has 10 Airbus A350 eXtraWideBody on order. Osman-Rani adds: "As new capacity typically takes 12-months to reach break-even, we expect to see yield improvement and an earnings turnaround in the second-half of this year." AirAsia X received one A330-300 on finance lease and two on operating lease in the first quarter.  With thirteen aircraft under operating lease as of 31 March, operating lease expenditure escalated 58.6 per cent year-on-year to 59.9 million ringgits, from 37.8 million during the same period. Due to a one-off investment in its sister airline, Indonesia AirAsia X and one aircraft delivery earlier this year under finance lease, net cash flow reduced to 136.8 million ringgits.

Source :  http://www.aircargoweek.com/news/AirAsia-X-Berhad-sees-40-revenue-jump_5243.html

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