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For Maersk, June of 2016 was the breaking point. After a rough 2015, the first half of 2016 was no different. Demand for ocean freight was lower than anticipated, and Hanjin Shipping, another top ten ocean liner, was already teetering on the verge of bankruptcy. The Post-2016 Strategy: End-to-end Shipping.
Global shipping prices are continuing to rise as Houthi rebels keep up attacks on cargo vessels in and around the Red Sea. The disruptions are at a key point for ships passing through the Suez Canal and are creating ripples across supply chains in Europe and the U.S., And now on to this week’s logistics news. East Coast.
Cargoships lost 661 containers at sea in 2022, down from the 15-year average of 1,566 lost per year, according to the latest figures from the World Shipping Council (WSC). Some major ocean carriers have also announced new fees for goods shipped on the route as of June 1 in response to the canal restrictions.
Global shipping is national news with most stories covering the symptoms. Since 1990, the size of ships increased 3X, but the design of the west coast ports remained largely unchanged. meters, to accommodate ships with 20 rows of containers) and 15.2 meters, to accommodate ships with 20 rows of containers) and 15.2
Help With Shipping Crisis (WSJ – sub. market, and as reported by the Wall Street Journal yesterday: Since the shipping company filed for bankruptcy protection in a Seoul court Wednesday, terminal operators, ports, cargo handlers, truckers and others have refused to handle its cargo, for fear they won’t get paid.
Starting with Miami, this port primarily handles containerized cargo with small amounts of breakbulk, vehicles and industrial equipment. Going up the coast in Jacksonville, FL, there is a huge port that receives the second-most automobiles in the US along with all types of cargo. In 2016, this port handled 1.1 of total U.S.
In 2016 many companies abandoned their fixed-price contracts to avail themselves of the low spot market. Conversely in 2021 when rates were sky high, suddenly companies that had negotiated fixed rates couldn’t get their cargo on the ship without paying an extra premium surcharge. But seriously, what does it mean?
Walmart added new functionality that lets sellers purchase shipping labels for domestic orders on its marketplace. Ship with Walmart (SWW) was previously available only for cross-border orders. The feature is standard on other major marketplaces, offering sellers reduced shipping rates and integrating with their platforms.
10 Controversial Freight Predictions For 2016. There’s been several great predictions for logistics in 2016. Well, that’s China’s 2016 prediction. It’s a bad time to sell for scrap, so more ships are idle. 2016 will continue to be a busy year of consolidation. China’s “Slowdown” Is Good News.
10 Controversial Freight Predictions For 2016. There’s been several great predictions for logistics in 2016. Well, that’s China’s 2016 prediction. It’s a bad time to sell for scrap, so more ships are idle. 2016 will continue to be a busy year of consolidation. China’s “Slowdown” Is Good News.
Air cargo firms feel the pressure from plunge in freight prices (Reuters). percent between the final quarter of 2015 and the first quarter of 2016 and the International Air Transport Association has lowered its growth forecast for air freight demand in 2016 to 2.1 Sucking robot arm wins Amazon Picking Challenge (BBC).
As a logistics service provider, focusing on over-the-road surface transportation management solutions via technology and managed transportation services, we find the following information on the history of shipping containers of great significance to the logistics and supply chain community at large. Readers' choice! Significance.
Accenture Releases Enhanced Ocean Cargo Pricing Software to Provide Greater Pricing Visibility for Carriers. February 2016 Freight Transportation Services Index (TSI). How long before Amazon announces that it is buying its own 18,000 TEU container ship? CargoSmart Offers SOLAS VGM Solutions Free of Charge.
The History of the Shipping Container. 26 April 2016 marks the 60th anniversary of the maiden voyage of the Ideal X and the birth of modern container shipping, a development that played a critical role in spurring the global economy. But the modern shipping container has changed much more than one industry.
The 2018-19 contract season for ocean shipping is here, and it’s time to think about the best way to approach negotiations. Ocean Shipping Contracts: 5 Factors to Keep in Mind. Still, if you had ocean freight in 2016, the memory of the bankruptcy of the Hanjin shipping line may linger in your mind. Why does this matter?
April 2016 Freight Transportation Services Index (TSI). In Google’s case, the company was issued a patent this week that, as reported in Quartz , “outlines a theoretical strategy for ensuring that autonomous and remote-controlled robots in a warehouse facility aren’t overloaded as they move cargo around the warehouse.”
The International Maritime Organization’s (IMO) new requirements go into effect on July 1, 2016, stating that all packed containers must have verified gross mass weights reported to the carrier and terminal before loading. Shippers, beneficial cargo owners or non-vessel-operating common carriers (NVOCCs) are responsible for verifying weights.
Future of brokerage: Cargo Chief to bet on pay for time ( Overdrive ). Cass Freight Index Report January 2016. The new business will locate Amazon at the center of a logistics industry that involves not just shippers like FedEx and UPS but also legions of middlemen who handle cargo and paperwork associated with transnational trade.
Amazon Cuts Shipping Fees in Threat to Alibaba’s U.S. Uber for shipping startup Roadie picks up $15 million investment from UPS, others (Atlanta Business Chronicle). Descartes: The Impact of SOLAS on Ocean Shipping and Data Management. Online Shoppers Want Delivery Faster, Cheaper, Survey Shows (WSJ – sub.
Wal-Mart cuts delivery time for pilot shipping plan (Reuters). Hapag-Lloyd, Five Asian Liners Form New Shipping Alliance (Bloomberg). March 2016 Freight Transportation Services Index (TSI). Finally, in more terrestrial news, Walmart is making adjustments to its subscription shipping program.
bound ship is being held ‘hostage’ (Reuters). July 2016 Freight Transportation Services Index (TSI). The fallout from Hanjin’s bankruptcy continues, with $14 billion of cargo still stranded at sea. Cargo owners such as consumer products maker Dorel Industries Inc and the U.S. project44 Raises $10.5M
Amazon has launched Amazon Air , its dedicated air cargo fleet, in India as the e-commerce giant bulks up its logistics infrastructure in the key overseas market where it has deployed more than $6.5 in 2016 with over three dozen Boeing freighter aircrafts. Regional shipping companies across the U.S. That’s all for this week.
2016 was an incredible year for tech in logistics as companies both large and small are working on some transformative technologies not just for logistics, but for society as a whole. Here’s a few interesting tech advancements in 2016 that were important for the year, but could also point to what’s to come in the near and long-term future.
In technology news, INTTRA announced a partnership with JDA Software, which will give JDA customers access to INTTRA’s full suite of ocean shipping software, data and services. The post This Week in Logistics News (January 4-8, 2016) appeared first on Talking Logistics with Adrian Gonzalez. And with that, have a happy weekend!
Shipping costs are always an item of interest, and as the Wall Street Journal reported : . In the quarter, shipping costs jumped 37% to $4.17 As a percentage of sales, shipping costs rose to 12.5% Robinson announced that it opened “a new state of the art certified cargo screening facility (CCSF) in Carson, CA.”
Blockchain Makes Inroads in Shipping (WSJ – sub. Trade in 2016 to grow at slowest pace since the financial crisis. Flexport wants to track products that are in transit as well as to handle sorting, relabeling and reshipping of goods when they are sold while they’re being shipped.
Why Tech Giants Are Focusing on Trucks and Ships. to ship a 5 lb package the full distance from Shenzhen to Los Angeles. Basically, the 7,236 miles from China to the US may have the same shipping costs as the last mile. Amazon hasn’t shied away from expensive shipping; it spent a full $3.9 billion on shipping in Q3 2016.
A version of this article originally appeared in The Journal of Commerce (August 6, 2016). Plummeting freight rates mean that under 50% of logistics providers turn a profit on ocean shipping, while threatening competition from industry newcomers like Amazon and Alibaba spell out unprecedented challenges for the logistics industry.
The Regulation’s Impact on Ocean Shipping and Data Management. The revised Safety of Life at Sea (SOLAS) container weight verification requirement is a significant change in the ocean cargo supply chain. In regard to rolling out the regulation in practice, multiple considerations remain depending on the type of cargo and other factors.
Ryder Reports Second Quarter 2016 Results. Booking a flight has been electronic for 50 years, but the cargo on airplanes, trucks, and ships is still booked manually. percent increase in net income in Q2 2016 compared to the same period last year. DHL to Expand U.S. E-Commerce Operations (WSJ – sub. Finally, C.H.
Amazon is even entering the transportation space, signing agreements with the Air Transport Services Group and the Chinese government to enter into the freight cargo business – effectively cutting out the middleman. It’s great to offer same day shipping, but what happens if there’s a catastrophic level disruption at the origin source?
On the horizontal carrier integration front, Maersk has doubled down on its extension from ocean consolidation (Hamburg Sud, 2017) to air cargo, increasing Maersk Air by 33% with three leased cargo planes and two new Boeing purchases. Image via StarAir.dk). Behind the Maersk shift. Enter Big Tech. One goal, two different motivations.
Global Shipping Effects of the Hanjin Bankruptcy. Hanjin Shipping, a South Korean company and the seventh largest container shipper in the world, filed for bankruptcy on Wednesday, August 31, 2016, which has prompted significant questions and confusion around the world as to how this will affect global shipping.
We have also seen shortages of semiconductor chips , shipping containers, and even test monkeys (seriously). Between 2016 and 2019, Amazon converted around 25 shopping malls into distribution centers. And now we may be facing a new shortage: ketchup. However, the East Coast is setting records too.
What do you get when you combine an electric van with a fully automated cargo space, drones, joystick control, and cloud-based algorithms to control order picking, the loading of packages, the automated cargo space, and route planning for the vehicle and delivery drones? DOT pushing slower truck speed limits (The Hill).
Since its July 2016 launch, the Freightos Marketplace has grown exponentially, with a 600% increase in orders in the first six months, a 100% growth in Q1 2017 orders over Q4 2016, over 10,000 registered users, and dozens of sellers, including top twenty global freight forwarders. . . Jonathan Pulitzer. CHECK IT OUT.
Amazon expands logistics reach with move into ocean shipping (Reuters – Jan 2016). Amazon to compete with Fedex, UPS and Alibaba with secret ‘Dragon Boat’ plan, report says (GeekWire – Feb 2016). Amazon Partners with Atlas Air Worldwide for Cargo Services (WSJ – May 2016). 3 million sellers].
CSX customers demand end to shipping bottlenecks as CEO apologizes (Reuters). Spot freight availability was 74 percent higher than in September 2016. per mile, 19 cents higher than in August and 35 cents higher than in September 2016. SMC³ Expands API Relationship with MercuryGate, Launches New Pricing API. There were 6.6
This tremendous growth was driven by freight shipping, which scaled in size but didn’t significantly improve underlying technology, getting bigger, not getting smarter. For example, 26% of the 730 million TEUs shipped annually and approximately 30% of trucks on the road are empty. By 2014, it reached $77 trillion dollars.
How technology in logistics grew throughout 2016 is not limited to the technology that delivers products or enables better, faster picking processes. Radio frequency identification (RFID) tags were expected to become commonplace among individual shipments in 2016. IoT-enabled devices grew even more in 2016 than anyone expected.
SPECIAL FEATURE: FIVE TRENDS TO SHAPE THE SHIPPING INDUSTRY. IHS Identifies Top Five Trends in 2016 That Will Shape the Global Maritime Industry for the Coming Decade. OUR TAKE A tonic for the (following) Carriers & Cargo section. This insight is much more instructive than studying changes in ships and related systems.
Revenues increased 25 percent to $38 billion in the quarter compared to Q2 2016, but profits fell by 77 percent as the company continues to invest heavily in its various businesses, including its logistics and fulfillment network. Shipping expenses increased 36 percent in the quarter to over $4.5 Shipping — how hard can it be?
Global shipping is national news with most stories covering the symptoms. Returning containers is an ongoing issue resulting in some manufacturers investigating a return to break-bulk shipping (container free). Since 1990, the size of ships increased 3X, but the design of the west coast ports remained largely unchanged.
“FedEx and UPS have ground to a complete standstill today due to what they say is a virus in their logistics shipping software…blaming the hacking group Anonymous after they declared their intention to punish shipping companies for halting shipments of flu vaccines into China. Could this fictional scenario come true someday?
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