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DHL and Air Hong Kong extend their relationship with a new 15-year agreement [Integrator]

DHL will purchase eight A300-600F cargo planes from Air Hong Kong, and lease them back to the carrier
Air Hong Kong has provided capacity for DHL Express since 2002; will continue to support rapid growth of DHL in the region

DHL Express, the world's leading international express services provider, has extended its partnership with AHK Air Hong Kong Limited with a new 15-year block-space agreement which will enable the carrier's overnight air services to continue supporting the DHL Express network until 2033.

As part of the new commercial arrangements, DHL will sell its 40% stake in Air Hong Kong to majority-owner Cathay Pacific, and purchase eight of Air Hong Kong's A300-600F cargo planes which will then be leased back to the carrier. The new arrangement will provide a stable revenue stream to Air Hong Kong and a predictable cost base for DHL. The new agreement takes effect on 1 January 2019, replacing Air Hong Kong's current agreement with DHL when it expires.

The new agreement will initially provide DHL with the same service and access to Air Hong Kong's capacity as per the current agreement, but allows for greater growth and flexibility in aircraft deployment and route selection to support DHL's express services in the Asia Pacific region. Air Hong Kong remains an important partner in DHL's Asia Air Network that utilizes more than 800 daily flights to the United States, Europe and around the Asia Pacific region.

"Asia is expected to experience exponential trade growth and our renewed block space agreement with Air Hong Kong forms a natural complement to DHL's broader growth strategy in Asia Pacific to meet continually strong market demand," said Ken Allen, CEO, DHL Express. "Air Hong Kong has provided the backbone of our air express capabilities in Hong Kong for 15 years since 2002, and the latest agreement with Cathay Pacific will allow it to reach even greater heights as we consolidate its operations for maximal efficiency and availability."

Cathay Pacific Chief Executive Officer Rupert Hogg said: "Air Hong Kong is a joint venture between Cathay Pacific and DHL that has proven extremely valuable to both our businesses, and we expect it to yield even better results and operational agility in its newest iteration. With Air Hong Kong becoming a wholly-owned subsidiary of our group, and with the block space agreement in place, these will enable us to invest in the long-term success of Air Hong Kong, which benefits from the prospering express air cargo market in the region, and capture the abundant business opportunities that are prevalent."

"This new block space agreement reinforces the successful and longstanding collaboration between DHL Express and Air Hong Kong as we gear up for ongoing growth in Asia Pacific trade, guaranteeing capacity on many of our critical routes that use Hong Kong as a logistics hub," said Ken Lee, CEO, DHL Express Asia Pacific. "With Hong Kong's merchandise exports between January and September 2017 growing by 8.5% compared to last year,1 we're keenly aware of the upward momentum that the region's trade lanes are facing. Our renewed partnership with Air Hong Kong, combined with the new leaseback deal governing its fleet, gives us greater flexibility to add new routes and optimize our aircraft utilization in the face of unpredictable changes or sudden increases in demand."

DHL Express recently also announced the expansion of its Central Asia Hub in Hong Kong, a dedicated and purpose-built air express cargo facility at the Hong Kong International Airport which services over 800 flights daily. The expansion will add an additional 8,000sqm of space as well as new technologies including automated X-ray inspection machines and material handling systems. The Central Asia Hub has seen shipping volumes grow 12% year-on-year for the past decade and already handles more than 40% of all DHL shipments in Asia Pacific. When operating at its full capacity, the annual throughput of the expanded CAH is expected to go up by 50% to 1.06 million tonnes per annum. The expanded CAH will handle six times more in terms of shipment volume than when it was first established in 2004.

Posted at 23:08   パーマリンク

Panalpina centralizes and expands Global Supply Chain Solutions offering [Forwarder]


As part of its growth strategy, third-party logistics provider Panalpina has centralized its Supply Chain Solutions offering with plans to expand the existing team of experts and further invest in technology and infrastructure. Panalpina’s customers from across multiple industries will benefit from solutions that manage their supply chains from end-to-end and offer greater flexibility, customization, and visibility.

The end-to-end management and optimization of supply chains is a business segment where Panalpina sees important growth opportunities. To bolster its offering in this area, Panalpina has united the company’s supply chain experts under one centrally organized entity called Supply Chain Solutions and will expand the global and regional teams in the coming months. The new entity is led by Hans Elmegaard in his role as global head of Supply Chain Solutions, reporting to Karl Weyeneth, chief commercial officer, who is a member of the executive board.

“Our ambition is to become a top global player in supply chain management. The new organizational structure allows us to be even more customer-centric and better seize the many untapped opportunities that lie in the provision of end-to-end solutions across key industries,” says Weyeneth.

Elmegaard explains: “There are two fundamental ways companies look at their supply chains: Some companies regard them as a pure cost factor, other companies think of them as a strategic enabler for their business. Our end-to-end solutions are geared towards the second. Not only do we strive to build more efficient and cost-effective supply chains for our customers, but supply chains that actually support their business models. It’s about turning supply chains into a competitive advantage.”

Panalpina’s Supply Chain Solutions experts are represented on the global and regional level in their capacity as solution developers, supply chain analysts and as solution designers and engineers. The solutions they offer go beyond transportation services to additionally cover all supply chain services at origin and destination. They are customized, offer a high visibility (on SKU level) and often include one or more of the following services: cargo consolidation and de-consolidation, vendor and carrier management, inventory and purchase order management as well as the optimization of freight forwarding services and logistics set-ups. “We are dedicating significant additional resources to this offering and investing in people, IT and infrastructure,” says Weyeneth.

The overall goal of any supply chain solution for a customer is to have the right inventory at the right place at the right time and, most importantly, at the right levels. Too much inventory ties up working capital and raises the risk of obsolescence. Too little inventory leads to stock-outs, missed sales and disappointed end consumers.

“The mode of transport to get the job done is secondary; it should not be the first question to ask. The question is much more: What is our customer’s business objective?” says Elmegaard. “It is about understanding our customers in depth. We need to have value-oriented dialogues that go beyond rates, transit times and volumes and build mutually beneficial partnerships.”

Posted at 23:06   パーマリンク

Kuehne + Nagel opens regional Integrated Logistics Control Centre in Shanghai [Forwarder]

In the presence of key customers, Kuehne + Nagel recently inaugurated its first regional Logistics Control Centre for Integrated Logistics in North Asia Pacific. The new hub will drive synergies to meet the growing demand for end-to-end solutions from a single source.

The Logistics Control Centre (LCC) in Shanghai provides a wide range of managed services addressing the fulfilment of customers’ orders across international supply chains. In order to simplify complexity and to meet customers’ requirements for lean and demand-driven supply chains, dedicated teams handle contract and transportation management including logistics partner management in a shared environment. In addition, customer data analytics and continuous improvement methodologies are important activities.

Kuehne + Nagel’s Integrated Logistics’ ControlTower services in North Asia Pacific are of particular interest for customers of the automotive, consumer, high-tech, industrial and pharma & healthcare industries.

Siewloong Wong, President Kuehne + Nagel North Asia Pacific: “The new LCC in Shanghai is in line with the Group’s strategic approach to globally provide integrated logistics services and to expand Kuehne + Nagel’s end-to-end offering also in North Asia Pacific. With the enhanced set-up and know-how bundled in expert teams, we will be able to even better serve our customers by developing, implementing and operating scalable solutions for greater flexibility and speed, thus improving supply chain performance.”

Tobias Jerschke, Global Head of Integrated Logistics: “The Kuehne + Nagel Logistics Control Centre in Shanghai is the eighth of its kind in the world. The footprint extension of our LCC is a clear answer to the growing demand of our Asian customers to manage global supply chains flows.”

Posted at 23:05   パーマリンク


Panalpina 2017, the year when air freight took to new heights [Forwarder]


2017 has been an exceptional year for air freight. The market has developed a new dynamic characterized by tight transport capacity and sustained high freight rates. Summer was anything but the usual calm and Panalpina’s early prediction of a very busy peak season in the last quarter turned out to be correct. In October, Panalpina recorded its highest ever monthly Air Freight volumes, a record that was beaten only one month later in November, as the latest figures show.

Speaking to Lloyd’s Loading List last month, Panalpina’s global head of Air Freight, Lucas Kuehner, shared his insights into the current state of the air freight market, touching upon such diverse topics as capacity scarcity (vs. capacity shortage), Panalpina’s Charter Network, trade lane growth, European airports at their limit, and ‘heavy’ air freight being pushed aside by e-commerce.

Trade journalists Stuart Todd turned the conversation with Kuehner into three articles that were published on Lloyd’s Loading List in late November and early December:

E-commerce ‘a challenge and opportunity for air freight’ (December 4, 2017)

“E-commerce is certainly swelling peak season demand this year and accommodating it into airborne trade flows, week in week out, is one of the major challenges facing the industry today.”

Peak season air freight rates set to remain high (November 29, 2017)

“There’s no reason why the current challenges will go away. I think the air cargo community − shippers, airlines, forwarders − have to get used to a market environment where capacity is scarce and at its limit, at least for several more weeks, probably months.”

Air freight capacity ‘scarcity’ continuing(November 27, 2017)

“The available aircraft are there and being deployed and flying record hours to meet demand. But the entire system is reaching its ‘natural’ limits. Demand is overwhelming right now and freighter and belly capacity is being thrown in from all sides and aircraft, including our own, are clocking up extremely high flying hours.”

Kuehner also brought up the unsatisfactory situation at Europe’s airports, where ground handling infrastructure is “bursting at the seams”, especially in Frankfurt, London Heathrow and Luxembourg.

Peak season update

“At least there seem to be no new strikes looming in Frankfurt,” says Kuehner. As for the peak season, there is no sign of a slow-down as yet. Between Asia and Europe, and between Asia and the Americas, demand for air freight is still very high in both directions. Outbound Europe to Asia and the Americas in particular, demand is enormously high and there is hardly any capacity left. The situation is similar for flights to Latin America from Asia, where capacity is almost not available anymore. “On a first-come, first-served basis, we still offer express solutions, of course. The only route where things have slowed down a little is on the Transpacific, from Asia to the US, but it is too early to tell. In any case, we remain alert and agile, just as we have all year through,” says Kuehner.

Posted at 23:47   パーマリンク

DHL and entrepreneurs join forces at DHL Innovation Day 2017 [Integrator]

Over 180 supply chain leaders, industry partners, and innovators participated at DHL Innovation Center in Germany
Winners of DHL challenges announced: Vecna for robotics, Parcelly for sharing economy, and KWIK for "Shark Tank" start-up pitch
PACCAR Parts took home the award for most innovative customer solution following the implementation of the DHL MetriX Freight dimensioning technology

DHL brought together cutting-edge frontrunners and start-ups in logistics and technology with its annual DHL Innovation Day in Germany. Competitions, interactive sessions and keynote speeches proposed new social approaches to transport and reimagined the future of tech in the industry. Participants answered DHL's call for a new mobile-piece picking robot prototype, as well as ideas for incorporating sharing economy strategies into logistics. Vecna from the US won the Robotics Challenge, while the start-up Parcelly from the UK took home the prize in the Sharing Economy Challenge. Entrepreneurs pitched ideas in the "Shark Tank" with KWIK being declared the winner, and PACCAR Parts was recognized for working with DHL on the most innovative customer solution.

"The pivotal forces of digitalization and globalization are reshaping our world, and DHL is committed to facilitating innovation that prepares us for these changes. We couldn't think of a better way to discuss the endless possibilities ahead of us than by bringing together these creative minds at our DHL Innovation Day. We congratulate all of the winners for pushing us one step closer to the future of logistics," said Matthias Heutger, Senior Vice President DHL Customer Solutions & Innovation.

Excellence through innovation
From March to September this year, DHL accepted entries from all over the globe, proposing new prototypes for autonomous mobile-piece picking robots for warehouses, as well as sharing economy solutions for logistics. Finalists were selected by senior DHL executives, with three finalists for each challenge presenting their solutions in front of 180 senior supply chain professionals at DHL Innovation Day. Winners were chosen with a live audience vote.
Winner Sharing Economy Challenge:

For the Robotics Challenge, which was hosted in collaboration with DELL EMC, finalists from Singapore, Switzerland, and the U.S. demonstrated their prototypes live. The robots were designed to autonomously navigate a warehouse and collect boxes of varying sizes from shelves to place in a cart. The winner, the Piece Picking Robot from US-based Vecna, received a grand prize of 15,000 euros, as well as a chance to participate in a proof-of-concept with DHL.

"We are thrilled that our prototype proved itself to be fit for the challenge of autonomous picking and excited to see how far our robot can go through our partnership with DHL," said Daniel Theobald of Vecna.

Dell EMC co-sponsored this year's DHL Innovation Day. As a company with a strong track record in delivering innovative solutions for organizations undergoing IT transformation, Dell EMC is well positioned to help tech leaders of the future explore new horizons in cutting-edge robotics and logistics. Timmy O'Dwyer, Vice President, Global Parts Operations and Limerick Site Leader at Dell EMC, said: "As one of the largest technology solution companies in the world, it has been a fantastic opportunity for Dell EMC to co-sponsor this initiative. We believe Innovation is at the core of digital transformation, and are proud to be involved in this robotics challenge."

Finalists of the Sharing Economy Challenge also presented their inspirational solutions aimed at rethinking the status quo of access and ownership. Out of over 60 submissions from around the globe, Parcelly took first place with their platform that coordinates convenient package drop-offs at local businesses, along with immediate notification and flexible pick-up times.

"We are encouraged by DHL's openness to logistics strategies that challenge conventional business models," said Sebastian Steinhauser from Parcelly. "We are absolutely on board with adapting to customers' changing needs by extending the capabilities at the first and last mile of the DHL network, allowing dynamic on-demand pick up and drop off."

Ending the conference on a high, four start-ups participated in a Shark Tank competition, in which entrepreneurs presented their ideas before an expert jury consisting of Dr. Alex von Frankenberg of High-Tech Gründerfonds, renowned founder and tech investor Frank Thelen of Freigeist, and Peer Bentzen of Deutsche Post DHL Group. The start-up of choice, KWIK, won and will have the chance to conduct a proof of concept with DHL and showcase its solution at the DHL Innovation Center.

KWIK impressed the judges with its online shopping solution that allows customers to reorder their favorite products with just the push of a button. KWIK's open marketplace and analytics dashboard also offers brands the ability to develop a direct relationship with customers.

"It was a great platform to illustrate how our solution combines the Internet of Things and online shopping to the benefit of both customers and companies," said Ofer Klein, CEO and Co-founder of KWIK.

Pushing the limits of logistics
DHL also recognized the most innovative customer solution from the past year. Michiel Greeven, Executive Vice President Sales Europe, DHL Express presented the honor to PACCAR Parts in recognition of their role in the co-creation DHL MetriX Freight, a high-potential dimensioning system developed by startup company Metrilus GmbH, jointly with DHL's innovation team. The need for a modern, low-cost, high performance dimensioning system was identified during an Innovation Center tour and workshop. Based on the camera sensors of a renowned game console manufacturer and Metrilus state-of-the-art software algorithms, DHL MetriX Freight allows for accurate measurement of a piece of freight - regardless of shape - in less than a second, a process that previously required up to a minute and two employees. A pilot was conducted with DHL, PACCAR Parts, and software start-up Metrilus and subsequently scaled up to five additional DHL sites. PACCAR Parts has shown a people- and quality-first approach, promoting a culture highly receptive to new technologies. Ever looking towards the next innovation, DHL and PACCAR's brand DAF will conduct a platooning pilot to demonstrate the safety and efficiency of wirelessly-linked truck combinations, or "platoons", in 2019.

Keynote speakers inspired attendees with new insights on social issues and technology. Thomas Ogilvie, Board Member for Human Resources at Deutsche Post DHL Group, emphasized how cultural change and innovation can be mutually beneficial, while Lufthansa's Dr. Christian Langer presented the impact of digitalization and evolving planning processes on business improvement efforts. Anab Jain of Superflux discussed future-focused topics from the internet of things to climate change in her talk on why imagining different futures matters.

DHL Innovation Day presents a chance to bring together senior supply chain leaders, innovators, industry partners, and start-ups once a year to push the limits of logistics and technology. Here the audience sees live demonstrations of new prototypes and participates through interactive workshops, voting on challenge winners, and the active exchange of ideas. DHL's challenges for 2017 focused on social issues, tech, and entrepreneurship and allowed an opportunity for bright minds from around the world to showcase ideas that could change the landscape of the logistics industry.

Posted at 23:16   パーマリンク


Hapag-Lloyd and Kuehne + Nagel agree to 17 percent CO2 reduction by 2020 [Forwarder]

Hapag-Lloyd and Kuehne + Nagel have committed themselves to significantly reduce carbon dioxide emissions in their common container-transport activities. The Carbon and Sustainability Pact that both companies concluded in the last few days calls for a 17 percent reduction in CO2 emissions per container moved by Hapag-Lloyd by 2020 compared to 2017. The agreement between the largest seafreight logistics company and one of the largest liner shipping companies in the world also allows for potential for additional reductions on selected routes.

In the document, both companies clearly state that they “want to take advantage of this unique opportunity to influence the logistics sector.”

In doing so, the two companies particularly wish to give Kuehne + Nagel customers options based on transparent data. Hapag-Lloyd will thus make it possible for Kuehne + Nagel to use information about the CO2 emissions of the ships in Hapag-Lloyd’s fleet, which has previously been verified by the independent Clean Cargo Working Group (CCWG), in its communications with customers.

With their Carbon and Sustainability Pact, both companies have also committed themselves to a series of additional actions to better protect the environment. For example, there are plans to optimize the movement of empty containers as well as to identify alternatives to truck transports using ships or trains. In addition, there are also plans to use the most modern and eco-friendly reefer equipment whenever possible as well as to use containers with steel rather than wooden floors where appropriate.

Posted at 22:28   パーマリンク

Panalpina A taste for less waste [Forwarder]

In today’s world, the purchase of a product often marks the end of a supply chain. But the end point has to change, and change fast, as consumers question the traditional linear process of “take, make, dispose”. More and more consumers are demanding that manufacturers and retailers ensure that the products they buy do not end up as waste. “Waste can be defined as anything that has no ultimate liable owner and no economic value,” says Geneva-based professor Walter Stahel, one of the leading thinkers on the circular economy. In the circular economy, products and services are redesigned to eliminate waste and extend the life of physical assets through reuse, remanufacturing and recycling – and logistics companies have an important role to play in managing the life cycle of these assets.

New research into the circular economy to be presented in May

To this end, Panalpina and its research partner, Cardiff University, together with a number of other leading industry partners, have been awarded a substantial research grant from the EPSRC (Engineering and Physical Sciences Research Council) for additional fundamental research into the supply chain implications that arise from the circular economy. The research is being carried out at the Panalpina Centre for Manufacturing and Logistics Research.

“The take-make-dispose supply chains of the past are morphing into the distributed, circular and sustainable supply chains of the future,” explains Mike Wilson, Panalpina’s global head of Logistics and Manufacturing. “But the transition to the circular economy brings challenges to traditional manufacturing and retail supply chains and the grant has allowed us to intensify our research and help our customers address these challenges.”

Dr. Borja Ponte Blanco, who recently published a paper on the topic (more in a later post), is leading the new research and in May 2018, Cardiff University and Panalpina will present the early findings from it at the CIRP Conference on Manufacturing Systems in Stockholm, Sweden.

New member of the European Remanufacturing Council

In another move that underpins the company’s thought leadership in the area of circular supply chains, Panalpina has also become the first logistics company to join the European Remanufacturing Council. The Council represents companies from all sectors intent on extending product life cycles through remanufacturing. The aim of the Council is to grow remanufacturing sales in Europe from €30 billion to €100 billion by 2030.

“There is a new generation of consumers that questions why waste is regarded as normal and Panalpina provides the enabling services for a global circular economy that reduces such waste,” says David Fitzsimons, director of the European Remanufacturing Council. “We are delighted to welcome Panalpina as a new important Council member. The company’s contribution to the research agenda in remanufacturing is already significant and its foresight in this domain is impressive.”

As the circular economy grows more in importance, Panalpina is seeing increased demand for reverse logistics, which includes screening and repairs for its customers’ products. “We are well aware of the challenges that retailers and manufacturers are faced with as they shift towards circular supply chains, and with our global network and remanufacturing capabilities we are in a position to help them succeed in the transition,” says Wilson.

Extended Product Life Cycle Management

Panalpina provides an Extended Product Life Cycle Management service, which allows its customers to return, screen and repair products anywhere in the world. The company uses its global freight forwarding network, its logistics and manufacturing facilities and a selected network of suppliers to provide its customers with a range of circular supply chain services, including pickup and return, screening (in-house), remanufacturing (refurbishment and repair), reselling and recycling.

“The circular economy demands a new mindset and behavior from all stakeholders – consumers, politicians, manufacturers as well as third-party logistics providers. Our strategy is to enable the circular economy by providing in-house and subcontracted services through which our customers can manage their assets more efficiently. We look forward to playing our part and working with all our partners as we continue to shape the future of supply chains.”

Posted at 22:28   パーマリンク

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