3PLs prepare to catch Damco shippers jumping ship

A.P. Moller-Maersk’s (OTCMKTS: AMKBY) announcement earlier this week that it will integrate the air cargo and less-than-container-load (LCL) services of its subsidiary Damco into the Maersk brand has some customers checking their options.

Shippers remain unclear how the absorption of Damco into Maersk will impact their overall logistics contracts with the longtime third-party logistics services provider (3PL), as well as what will happen to the customer service staff who were dedicated to their shipping requirements.

Other 3PLs say they are prepared for a possible migration of shippers from Damco.

“The last thing shippers need at present is further uncertainty,” said Thorsten Meincke, a member of DB Schenker’s management board for air and ocean freight, in a statement on Friday.

“We are making an offer to all those who are now looking for long-term security and reliability,” he added.

DB Schenker said it approved a “stability package” for those shippers specifically impacted by Maersk’s announcement, which includes an offer to take over short-term service agreements with up to two-month contract periods that match those agreed by Damco.

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Source: American Shipper

As a vaccine nears, airports and trucking services need to be ready

As the US prepares to announce a vaccine for Covid-19 and Russia claims its Sputnik-V vaccine will be ready for mass use next month, all eyes are on the air freight industry – and whether it will be able to cope.

But it’s airports rather than airlines that could most be at risk of unpreparedness.

Much of the concern has focused on airline capacity, but with many passenger aircraft still underemployed, that won’t be the worst problem, say air cargo executives, who claim airlines are ready.

Pharma.aero has set up a working group to examine the issues surrounding vaccine transport, but many carriers have already developed their own approach.

Air France-KLM has formed a taskforce to define what steps are needed and has worked with shippers and forwarders to assess likely requirements.

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Source: The Load Star

2020 compliance and bunker fuel issues solved, using blockchain and DNA

While the impact of Covid-19 has disrupted the maritime industry far more than the implementation of IMO 2020, the former has exacerbated difficulties with the latter. The maritime industry has seen many delays in ports, disruptions to testing, and bunker delivery authorities suspending sulphur checks so far this year.

With compliance enforcement plans for this year on the back foot, we have seen fragmentation in fuel supplies as more fuel is blended to meet compliance. This, and other supply chain issues have led to problems with IMO 2020-compliant fuel, with a number of shipping companies suffering quality issues, according to a recent survey conducted by BIMCO.

The survey found that more than half of its respondents had received results indicating off-specification properties, and 22% said low-sulphur fuel oil had been de-bunkered as a consequence of 0.50% sulphur fuel oil properties.

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Source: The Load Star

Improve visibility by going beyond the linear supply chain model

COVID-19 has made it clear that organizations must lean into dynamic, collaborative supply networks.

No supply chain has been spared from the impact of the coronavirus. From small shops to multinational corporations, organizations continue to face challenges in manufacturing, distribution, logistics and demand functions, as well as with their overall financial well-being and that of their business partners.

A contributing factor to this disruption is the traditional, linear supply chain model, where each step is dependent on the one before it. Inefficiencies at one stage result in a cascade of inefficiencies down the line. And when the buyer and supplier are located at either end of the chain, it’s easy to see how collaboration breaks down, and end-to-end visibility is nearly impossible.

The resulting reactive and uncoordinated response makes it challenging for procurement teams to know exactly which suppliers, sites, parts and products are at risk. It is, therefore, extremely difficult to secure new sources of supply in a timely manner.

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Source: Supply Chain Dive

Hamburg Süd to increase customer proximity in new Maersk structure

Hamburg Süd has unveiled plans “to optimize its organizational structure” by the end of the third quarter of the year in order to boost its customer proximity and enhance service quality.

It follows yesterday’s announcement by parent company A.P. Moller-Maersk of  the introduction of strategic changes to its Ocean & Logistics organisation which were described as “a major step towards becoming an integrated container transport and logistics company, connecting and simplifying customers’ supply chains.”

In Hamburg Süd’s regions, the organizational and geographical area structure will be closer aligned with that of the parent brand Maersk and a multi-brand Regional Ocean Management team will set up, the  German container shipping line said in a statement.

In addition, Hamburg Süd has established an Extended Management Team in the brand headquarter in Hamburg “to ensure a holistic approach and a sustainable brand with a differentiated service model.”

The Extended Management Team comprises of the CEO and CFO along with the global heads of Marketing, Key Account Management, Customer Experience, IT, and HR.

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Source: Lloyd’s Loading List