Amazon continues to change the face of retail. What does it mean for freight forwarders?

The Amazon effect – from MHD magazine

Amazon continues to change the face of retail and recent news hints that the e-commerce giant will have a greater impact on logistics providers in the future. The retailer recently ramped up its ocean freight services and has begun trying to woo shippers from FedEx and UPS as it aims to gain more control of its supply chain. With Amazon showing no signs of letting up, this could signal changes that may bring great transformation to the supply chain industry. Read more

DHL Group grows revenue and earnings in Q1 2019

DHL Group has increased both revenue and operating profit in the first quarter of 2019 compared with the prior-year period.
The company generated revenue of EUR 15.4 billion between January and March, an increase of 4.1 per cent on the previous year.
Operating profit (EBIT) was up 28.1 per cent to EUR 1.2 billion. In particular, the earnings contributions from the DHL divisions were again encouraging – while the surge in earnings was driven by non-recurring income from completing the Supply Chain partnership with S.F. Holding in China initiated at the end of 2018. Previously announced restructuring costs at Supply Chain and in the new eCommerce Solutions division slowed EBIT growth.
“The first quarter played out as we expected. We achieved growth in all five divisions. This shows that we are very well positioned in attractive markets and that our fundamental growth drivers are intact. E-commerce continues to boom all over the world and although some momentum has been lost, global trade is still on the rise, just as we expected for 2019. We are therefore on track towards our target of generating more than EUR 5 billion in EBIT in the coming year,” Frank Appel, CEO of Deutsche Post DHL Group said.

Mainfreight boosts regional coverage with new facilities

Over the last three years Mainfreight has completed over a dozen significant building projects in Australia’s capital cities, both in its domestic and international businesses.
Further development is now taking place in other major cities such as Bendigo, Toowoomba, Albury, and Newcastle.
The company is looking to move into more key regional areas and Bendigo and Toowoomba were earmarked as locations to continue its strategy of wanting to control the delivery quality and to intensify its network.
Mainfreight originally moved into its depot in Albury, NSW, in 2012, and the last five years have seen enough growth for the company to now increase the site by over 50%.
Completed in August, 2017, the extension includes 1,000m2 of hardstand and provide access for B-Doubles and other large vehicles.
New site at Newcastle, NSW
Projected to be completed in 2018, construction is underway on a new purpose-built facility that will ensure the efficient and effective handling of freight.
Built on 1.7 hectares of land, the 5,800m2 facility with 4,200m² of raised dock will allow loaders to have better line of sight when loading products. Four rear loading docks will increase the number of trailers that can be handled, with another 7,200m2 hardstand.
The site is located at the end of the M1 Sydney Motorway, with access to the recently opened Hunter Expressway and Pacific Highway.

MEGATRANS2018 to host Global Shippers Forum in Melbourne

The world’s most senior shippers and logistics providers will be meeting in Melbourne on 8 to 11 May 2018 to discuss trade facilitation, international logistics challenges and other macro-trends affecting global trade. The event will be held as part of MEGATRANS2018, Australia’s leading logistics and supply chain event.
The Global Shippers Forum (GSF), based in London, is the world’s leading trade association for shippers engaged in international trade, including all modes of transport. Its role centres on international logistics policy and it represents shippers’ interests in the major UN agencies including the International Maritime Organisation (IMO), International Civil Aviation Organisation (ICAO), International Labour Organisation (ILO) and the World Customs Organisation (WCO).
It will be the first time the event has been held in Australasia.
“We are excited about the prospect of holding the 2018 meeting in Melbourne,” commented Chris Welsh MBE, Secretary-General, GSF. “This will afford the opportunity of connecting with members in Australasia on issues of concern within the Asia Pacific region and internationally.”
The event will be curated by Australia’s representative to the Global Shippers Forum, the Australian Peak Shippers Association (APSA), an association representing Australia’s top containerised exporters by volume.
“This is a once in a lifetime opportunity for Australian importers, exporters and logistics providers, to be at the forefront of global policy and compliance issues,” said Paul Blake, Chairman, APSA. “APSA has represented Australia’s shippers since 1992 and we are proud to be able to host the global trade community for this event.”
Melbourne secured the event with the support of the Victorian Government’s Melbourne Convention Bureau and private sector sponsor, the Port of Melbourne. It will attract hundreds of local and international delegates, including representatives from inter-governmental organisations, demonstrating Melbourne’s credentials as a destination of choice for global business events.
Find out more about MEGATRANS2018.

Rohlig opens Sydney warehouse facility

International freight forwarding firm Rohlig Logistics has opened a new 6,000m2 warehouse in Sydney.
The new warehouse is equipped with the latest in warehousing and logistics technology, including a sunken dock with a seven-metre in-ground hoist capable of handling 14 tonnes of airfreight. Additionally, the facility will be able to handle up to 4,000 pallet spaces, covering from warehousing and freight, to contract logistics.
“Our research and development team are always looking at new processes and technologies that can streamline our operations, deliver cost savings and efficiency, while also adding value for customers,” said Hany Amer, Managing Director, Rohlig Australia. “The sunken dock, for example, means we are able to cope with much bigger loads and offer more services than any of our competitors.”
This new addition to the organisation’s operations is the latest in a line of improvements to facilities in Brisbane, Melbourne, Freemantle and Adelaide, following the launch of a small parcel service last year and a new customs consulting service.

DB Schenker wins freight forwarding and customs clearance contract

DB Schenker has announced that it has been awarded a contract to provide international freight forwarding and customs clearance services to Chevron Australia.
The three-year contract covers freight logistics movements as well as customs clearance requirements for Chevron’s interests in Western Australia.
To support the contract, DB Schenker will utilise its global network of oil and gas offices. The operations team in Perth will be supported by the DB Schenker iTeams software solution that allows for full visibility and tracking through all stages of the logistics cycle.
“We are proud to continue our relationship with Chevron. With our dedicated people around the world we have a strong record of operating safely and efficiently even on the most remote sites,” said Frank Vogel, Director Projects/Oil & Gas, AU/NZ. “The contract will support our goal to become the market leader in the industry by 2020.”

Sadleirs Global Logistics receives Australian Trusted Trader accreditation

Sadleirs Global Logistics has announced that it is the first national customs brokerage and international freight forwarder to be fully accredited as an Australian Trusted Trader by the Australian Border Force (Customs).
“This is another pioneering milestone for Australia’s oldest family business,” Sadleirs wrote in a press release. “We were initially selected and are now fully accredited as a result of our strong security practices and very long history of compliant behaviour.”
Australian Trusted Trader is a trade facilitation initiative that recognises businesses with a secure supply chain and compliant trade practices. It provides accredited businesses with a range of trade facilitation benefits.
Australian Trusted Trader is an Authorised Operator (AEO) programme, one of many such programmes operating internationally. AEOs work to secure the international supply chain, while facilitating the movement of legitimate trade.
 

New MD for DHL Global Forwarding HK, Macau

DHL Global Forwarding, provider of air, sea and road freight services in Europe and Asia, has appointed Mark Slade as Managing Director of Hong Kong and Macau.
Slade has been for the organisation for 14 years, until recently serving as Managing Director of Japan. In that role, Slade delivered record financial performance, and also receive the highest internal accolade for corporate responsibility – Deutsche Post DHL CEO Award 2012 for Living Responsibility – for his role in leading the company’s aid efforts after the 2011 earthquake and tsunami, and remaining in Japan to maintain staff morale in the aftermath of the disaster.
While in the role, Slade also established the Japan Power Network, a global forum for overseas Japanese sales professionals to support one another in business development and finding local support, and he has also been the Chairman of Japan’s Logistics and Freight Committee for the European Business Council since 2012.
“In his six years leading our operations in Japan, Mark showed a care for the entire market that went well beyond simply doing business,” said Steve Huang, CEO, DHL Global Forwarding Greater China.
Slade commented, “Our successes in Japan stem from the steadfast commitment of our team to literally going the extra mile for both our customers and the communities we operate in, and I believe our customers can anticipate even greater results in the years ahead.”

Amazon operating as global freight forwarder

The Wall Street Journal has revealed that Amazon has ventured into shipping, having discovered that the commerce giant has been handling the logistics of shipment of its goods from China-based merchants selling on its site to its US warehouses.
At least 150 containers have been shipped by ‘Amazon Logistics’ since the arrangement began in October 2016, the WSJ reports. The company does not own its own ships, rather it is acting as a freight forwarder and third-party logistics provider, booking space of ocean-bound vessels itself instead of through a middleman.
Ryan Peterson, CEO of logistics company Flexport, revealed back in January 2016 that Amazon China had been granted a licence from the US Federal Maritime Commission to ship ocean freight cargo.
“The role of the freight forwarder, which is what Flexport is, and which is the license that Amazon got, is to coordinate that complexity; to string it together,” Peterson told GeekWire in March. “It doesn’t mean they’re going to own ships or planes, though I wouldn’t be surprised to see that Jeff Bezos has those ambitions.”
Amazon, under the name of its Chinese offshoot – Beijing Century Joyo Courier Service Co. – reportedly began posting rates for sorting, labelling and trucking shipments this month, services it has not previously provided and which are usually performed by freight companies.

©2019 All Rights Reserved. MHD Magazine is a registered trademark of Prime Creative Media.