NEWS\\\


Issue 6 2015 - Freight Business Journal


7


Traditional forwarding at risk, says Ti


An erratic air and sea freight market, a shiſt in geographic focus and advanced technology and data analysis is bringing the traditional freight forwarding model into question, say consultants Ti. In its annual Global Freight


Forwarding 2015 report, Ti says that forwarders gained volumes but oſten found it hard to translate this into profits. Ti adds that technology “is


having a transformative effect on the forwarding market.” Many forwarders are in the midst of upgrading and enhancing their individual systems; some have been successful while others have struggled. At the same time, e-commerce systems now allow shippers to compare rates, book shipments, track in real- time and perform data analysis. To survive, forwarders will need to plan, adapt and evolve or run the risk of becoming obsolete. Meanwhile, though, the


freight forwarding market reversed its 2013 decline and improved in 2014, said Ti economist David Buckby. “Volume growth was actually


robust in the year. For example, ranked by TEUs and tons, the top 20 in both sea and air forwarding saw average growth of about 5% in 2014. While the sea forwarding market was once again bogged down by year- on-year rate declines which meant another year of negative revenue growth overall, air forwarding rates on average declined only very slightly, permitting market growth for the first time since 2011,” said Buckby. Global trade is becoming


more regional, with the top three flows in terms of value being within Europe, Asia and North America and accounting for almost 50% of global trade in value terms for 2014. • Ti’s Stifel Logistics Confidence Index fell for a third consecutive month in August. With the Index now at 54.1, the first eight months of 2015 have been marked by general decline and driven it to its lowest point since September 2013. Fierce competition, volatility and overcapacity have all taken their toll, says Ti.


MSC and Maersk clip Condor’s wings


There has been a flurry of shipping lines trimming back or revising their Asia to Europe shipping schedules in response to falling demand. MSC and Maersk are to cease


operation of their ‘Condor’ service, jointly operated with Maersk Line (as the Ae9 service)


between Asia and Europe, from 14 September. However, the Condor service which has a nominal weekly capacity of 9,500 teu, will be deployed seasonally if there is sufficient demand. MSC says that since its new Asia – Europe network was launched in January 2015,


it has analysed its performance, allowing it to optimise capacity. The AE9 service called at


Ningbo, Shangahi, Yantian, Chiwan, Tangjung Pelepas (Malayasia) and ports in the Med and Europe, including Southampton and Felixstowe. Meanwhile, CMA CGM and


We’re getting reports of an interesting speaker for the BIFA awards...


Truckers’ friend Sally Boazman is to host the British International Freight Association’s Freight Service Awards 2015 Ceremony in London next year. Better known to drivers the length and breadth of Britain as ‘Sally Traffic’, her BBC Radio 2 travel reports have helped


keep the country moving since she became the station’s first designated travel reporter in 1998. She was also voted one of the most attractive female voices on UK radio in a Radio Times poll, so it should all be easy on the ear. The event is being sponsored by DP World London Gateway.


Scottish independent multi- modal logistics provider and liner agent KC Group Shipping has opened a new office in Antwerp, Belgium. The Belgian port is an important hub for KC Shipping’s global logistics solutions, and will strengthen its presence in the Benelux market. Four new team members have


been recruited to manage the office in Kappellen.


Belgian connection for Scots shipping agent Where should you


Director of KC Shipping


Europe, Luc Dumon, said: “The KC brand has been active within this market for several years; establishing KC Antwerp further demonstrates our commitment to expansion within the Benelux. We currently partner a significant client base already benefiting from our portfolio, our increased footprint in Belgium allows our local team to successfully


manage the increased demand for our specialist services. put your warehouse?


UK-based eſt Supply Chain & Logistics Business Intelligence is carrying out a survey on the best locations for distribution centres or warehouses in Europe. The report will consider factors such as proximity to customers and


suppliers; availability, cost and flexibility of labour; incentives and regulations; and availability of land. No individual responses will be reported and all information will remain confidential. www.research.net/s/eulogistics


its Ocean Three partners, China


Shipping and UASC,


have replaced their FAL2 and FAL3 services with a new route, FAL23. The revised schedule includes a new export call from Felixstowe, improved transit times, a new import call at Chiwan and a call in Vietnam.


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