BUILD TO ORDER SUPPLY CHAIN MANAGEMENT

Alignment, especially supplier alignment, is key for build to order (BTO) supply chain success.

SUPPLY CHAIN & GLOBAL SUPPLY CHAIN

Supply chains, especially global supply chains, are too long and complex to accurately measure.

 

CHEAP FREIGHT RATES

Will the pending end of cheap freight rates force companies to actually manage their supply chain and not just push for low truckload and LTL prices?

SUPPLY CHAIN MANAGEMENT

Will there be a dramatic shift in business models and in Supply Chain Management with the global recovery?

INDIA AND BRAZIL

LTD Management has logistics / supply chain management consulting offices in India and in Brazil.

TANZANIA OR KENYA AS LOGISTICS HUB

The World Bank Logistics Performance Index show that both Tanzania and Kenya need more than port infrastructure investment to be a logistics hub.

World Bank LPI	2007 Score/Rank	2010  Score/Rank	2012 Score/Rank	2014 Score/Rank
Kenya	2.52/76	2.59/99	2.43/122	2.81/74
Tanzania	2.08/137	2.60/95	2.65/88	2.33/138

TANZANIA AS LOGISTICS HUB

April 23rd 2014

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Tanzania aims to become a regional logistics hub

Event

At an investment conference in April, Jakaya Kikwete, the Tanzanian president, announced plans to make Tanzania a regional logistics hub.

Analysis

A key element in the plans is the construction of a new port in Bagamoyo, 75 km north of the commercial capital, Dar es Salaam. The plans include a special economic zone and 65 km of railway to connect the port with the Tanzania-Zambia Railway, a gateway to eastern and southern African markets. Tanzania signed an agreement in 2013 with the Chinese government to finance the US$10bn port, and China Merchant Holdings will execute the project, scheduled to finish in 2017.
A new port would reduce bottlenecks to economic growth and make Tanzania a more attractive investment destination. There are considerable costs and delays at the overwhelmed Dar es Salaam port, and the harbour is shallow, which prevents it from servicing modern mega-transporters. The planned port in Bagamoyo would be able to accommodate modern deepwater ships.
The port would also attract more business from Tanzania's landlocked neighbours in East Africa, making it more competitive in comparison to Kenya. The ports of Mombasa in Kenya and Dar es Salaam, the two gateways to the East African Community (EAC), have long competed for the region's trade. Although Mr Kikwete said that there was is no "commercial arms race" with Kenya, a recent infrastructure co-operation agreement between Tanzania, Burundi and the Democratic Republic of Congo, signed one day after Kenya, Rwanda and Uganda agreed on a similar deal, suggests otherwise.
However, there are several unanswered questions over the port project and it is unclear if the ambitious plans are feasible. The January start date was missed and, although the project is set to be fast-tracked under the government's Big Results Now initiative, a new start date has not been announced. The financing with the Chinese government appears secure, but the government's recent decision to cancel a tender with a different Chinese contractor to construct two new berths at the Dar es Salaam port suggests there are risks to this. The presidential election in 2015 and a possible new constitution will add to the political risk over the next year.

Impact on the forecast

Our growth forecasts are premised on a strong expansion in infrastructure investment and will remain unchanged at present. However, they would be raised marginally if the Bagamoyo port project went ahead in its currently mooted form.

LOGISTICS, 3PLs, STARTUPS

Why do so many logistics providers struggle with how to quote and deal with startup businesses?

DUE DILIGENCE

Due diligence must include supply chain management, from inventory to risks to outsourcing and more.

GLOBAL FOOD SUPPLY CHAIN

LTD Management has developed THE model for the global food supply chain risk identification.  Something that has not been done properly by the EU, FDA, and others.

UK AND PAYING SUPPLIERS

Major construction companies sign up to fair payment charter

construction-site-with-scaffolding-shutterstock_57985633.jpg

Construction companies have signed a charter for fair payment terms © Shutterstock

24 April 2014 | Gurjit Degun

Nine major construction companies have committed to ensuring their suppliers are paid within 30 days with no retentions, by 2025.
British Land, Berkeley Group, Barratt Developments, Skanska, Laing O’Rourke, Intec UK, Kier, Stanford Industrial Concrete Flooring and Stepnell are the first to sign up to the Construction Supply Chain Payment Charter.
The Charter comes from the Construction Leadership Council (CLC), the body set up to deliver the government’s industrial strategy for construction. It includes a commitment to reduce payment terms to 60 days with immediate effect, and 30 days from January 2018. Other commitments include not withholding cash retentions, not delaying or withholding payment, and making payments electronically.
All signatories agree “to apply the fair payment commitments in its dealings with its supply chain; to be monitored for the purposes of compliance by reporting against a set of agreed key performance indicators (KPIs); and to consider the performance of its supply chain against those KPIs when awarding contracts”.
The Institute of Credit Management (ICM) worked with the construction industry, the Department for Business, Innovation and Skills and the CLC to produce the charter.
Philip King, chief executive of the ICM, said: “The next step is to agree the key performance indicators by which signatories will be measured, and working to convey both the spirit and the actual meaning of this important new initiative to the widest possible audience.”

LEAN SUPPLY CHAIN MANAGEMENT / LOGISTICS

Real supply chains are lean.

SUPPLY CHAIN RISK

Supply chain risk from Financial Times in February

http://www.ft.com/intl/cms/s/0/abf590b4-9a71-11e3-8e06-00144feab7de.html#axzz2zqP6BWD6

SUPPLY CHAINS, MEGA SHIPS, AND PORTS

I think there will be fragmentation.  Some ports will adapt/invest for mega ships.  Some will not.  Those that do not will draw container lines that do not buy mega ships.  Supply chains will have to adapt to this new operating reality.

WORLD TRADE ORGANIZATION

WTO on mega regional trading blocs to form--
WTO: Mega-regional trading blocs to emerge

Thursday, April 24, 2014

By Eric Johnson

A new paper from the World Trade Organization suggests there is a distinct possibility that countries will form into mega-regional trading blocs in the next two decades.
The paper, “Simulating world trade in the decades ahead: driving forces and policy implications,” attempts to project how the global economy will function through 2035. The primary objective of the research was to attempt to establish which current trends in trade are expected to continue and to what extent individual policy areas will matter for specific countries and regions.
The authors -- Lionel Fontagné of the University Paris 1 and CEPII (Centre d’Études Prospectives et d’Informations Internationales, the French research center for international economics); Jean Fouré of CEPII; and Alexander Keck of the WTO -- assert that the stakes for developing countries are particularly high.
Technological progress is likely to have the biggest impact, the report said, with population changes also playing a major role.
“For some countries, improving workers’ skills will be crucial; for others labor shortages may be addressed through migration,” the paper says. “Several developing countries would benefit from increased capital mobility; others will only diversify into more dynamic sectors when the costs of trade are further reduced.

SUPPLY CHAIN CHAOS

How much of supply chain operations is reactionary that draws and distracts attention and resources from accomplishing what should be done? Segmentation is a perfect tool to mitigate this chaos.

SUPPLY CHAIN METRICS

What are the 3 best metrics for supply chains? Good KPIs should focus on the business, not on logistics functions.

LOGISTICS SERVICE PROVIDERS

Have logistics providers cut sales staff so much that they cannot properly handle existing business and have little time for new sales opportunities and for business development?

AIR FRANCE - KLM FREIGHTER

Air France - KLM consider ending freighter operations http://cargofacts.com/air-france-klm-considers-ending-freighter-operations/

INVENTORY MANAGEMENT

I believe there is no such thing as inventory "optimization" and that is a creation of firms to sell software and miracles.

INVENTORY MANAGEMENT

For supply chains, the real issue is inventory velocity, not inventory "optimization".

3PL

Too many logistics providers focus on what they do and not on what the customers want or need.  They lack a value proposition.

LOGISTICS

Does it seem like too many logistics sales people over promise and under deliver? The opposite of what they should do.

OMNICHANNEL SUPPLY CHAIN MANAGEMENT

It is interesting that companies that struggle with their regular supply chain performance then struggle with omnichannel suppply chain management.

SUPPLY CHAIN RISK

From Forbes, on supply chain risk ---

Disaster Looms: Why Today's Global Supply Chains Are At Risk

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The recent occurrence of faulty ignition switches in General Motors cars should serve as a wakeup call to companies that lack good visibility into their global supply chains. But most have failed to implement adequate supply-chain risk-management programs that could head off such problems.
That’s the view of Yves Leclerc, managing director with business consultancy West Monroe Partners. Despite a raft of natural disasters and quality failures over the years, he said, many companies have yet to step up to the requirements of an effective risk-management effort.

 

You might think that 13 deaths and the the recall of 6.1 million cars since February would have top manufacturing executives scurrying to adopt controls that would prevent such nightmares from occurring in their own organizations. And maybe they are. But neither the 2013 floods in Thailand nor the 2011 earthquake, tsunami and nuclear disaster in Japan has resulted in sweeping risk-management measures, Leclerc said. The business world, it would seem, has a short memory.
Many companies remain fixated on boosting shareholder value in the short term. It can be tough to sell top executives on the value of expensive programs that could shield them from disruptions caused by disasters, natural or otherwise. What is the value of a non-event?
Leclerc was disheartened to hear one of his clients brush off the necessity of a plan for coping with lost or delayed containers, even during the critical peak-shipping season. “His reaction was, ‘If I’m in trouble, all my competitors will be, too. It’s no big deal.’”
Even the most innovative companies are vulnerable. Leclerc cites the allegedly defective gas pedals that forced Toyota into a $1.2-billion settlement with the U.S. Justice Department, with recalls numbering in the millions. Toyota is considered to be one of the pioneers of assembly-line quality and efficiency. Yet it found itself facing accusations of criminal mismanagement.
If multi-billion-dollar enterprises like GM and Toyota can’t avoid costly lawsuits due to quality glitches or poor management, how can smaller companies weather their own supply-chain disasters? On top of that, revelations of poor working conditions in overseas factories can have a serious impact on global brands. Regardless of the issue, it all comes down to a lack of visibility, coupled with inadequate response plans when the inevitable problems occur.
The new emphasis on sustainability and safety only exacerbates the challenge. A recent report from the Supplier Ethical Data Exchange (Sedex) found inadequate controls and a lack of compliance with both local and international law among companies doing business in Mexico, Brazil, Colombia and Peru. Management in those countries is failing to meet rules on the environment, health and safety and working hours, Sedex said. The state of affairs extends beyond Latin America — witness the deadly factory fires that occurred in Bangladesh over the past three years.

 

Leclerc believes companies need to take a multi-pronged approach to risk management. He cited the concept of the “Triple-A Supply Chain,” a term coined in 2004 by Stanford University professor Hau L. Lee. The idea of supply chains being “agile, adaptable and aligned” can apply just as much to the discipline of risk management, he said. The quality of “alignment” is especially relevant to the conversation about risk: it acknowledges the fact that good supply-chain management ranges far beyond the walls of an individual company, to embrace multiple tiers of suppliers upstream, and service partners and customers downstream.
A workable action plan, said Leclerc, must be executed at the strategic, tactical and operational levels. From a strategic perspective, companies need to map their global supply networks. In the process, they gain knowledge of the impact that a disruption will have on operations. Tactically, they should look to the end-customer to achieve a full understanding of demand, and how a fall or rise in supply will impact service. Operationally, they should be zeroing in on execution-based tasks like warehousing and transportation. Functions related to “basic blocking and tackling” shouldn’t be overlooked as important means of alleviating global risk, Leclerc said.
In all cases, companies must ensure continuity of supply, should current feeds be interrupted. Many seek to cut costs and boost purchasing power by reducing suppliers to a bare minimum. While that strategy can result in a leaner supply chain, it shouldn’t rule out the use of alternative vendors that can be called on in a emergency.
Good risk management is both a technology and business-process effort, Leclerc said. Companies have spent untold amounts of money on enterprise resource planning (ERP) systems to manage financials and other basic functions, but they’re less advanced in acquiring systems that enable end-to-end visibility and collaboration among all supply-chain partners. At the same time, they need to tear down the functional “silos” that keep various disciplines from communicating key information on raw materials, goods in production and inventory throughout the chain.

INVENTORY MANAGEMENT

Do companies really care how much money is tied up in inventory?

SUPPLY CHAIN MANAGEMENT

Is there a correlation with firms that struggle to compete and be profitable and how well they perform with supply chain management?

CONTAINER LINES

Transpacific Stabilization Agreement for container lines. Is the name an oxymoron?

SUPPLY CHAIN COLLABORATION

Much supply chain collaboration sounds like an 800 pound gorilla dictating to others.

Chinese and P3

Chinese shippers oppose P3 container line alliance, from American Shipper--
Chinese shippers maintain opposition to P3

Monday, April 21, 2014

By Chris Dupin

The China Shippers Association is maintaining its opposition to the P3 Network a month after the U.S. Federal Maritime Commission chose not to block plans by Maersk, MSC and CMA CGM to form the shipping alliance on the major East-West trades.
China’s Ministry of Commerce “is still examining the P3’s application; we don’t know what the ministry’s decision is yet,” said Cai Jiaxiang, who is vice chairman of the CSA as well as the Asian Shippers Council, adding that the “China Shipowners Association, China Ports Association, COSCO, China Shipping, as well as Shanghai Shipping Exchange, all oppose the formation of the P3 alliance.”
“We just request our government to stop the formation of alliance according to our country’s antitrust law and other regulations,” Cai added. “Our position is that all governments do not need to approve the P3 alliance or not, just tell them what laws and regulations they have touched upon. ... If you approve it, that means you allow them to form the alliance, and they are legal to operate.”
In a memorandum last year (see full text below provided by Cai) to China's Ministry of Commerce, the CSA said the three carriers are enforcing terminal handling charges "in the way of monopoly" and "abusing dominant position to collect THC and other unreasonable surcharges."
The CSA also said that the companies would create an alliance that "most of the shipping company cannot tolerate because they are afraid of being squeezed out."
"The stifle of competition in the market is quite obvious; the global shippers are extremely worried of a new round of fright rates increases and a longer list of surcharges," CSA added.
“As regard to the approval by FMC, I am also shocked by such an action since the U.S. always stands in the forefront of anti-trust and FMC is the sea transportation order keeper,” Cai said.
His remarks echoed those of John Lu, chairman of the Singapore Shippers Association.
“We were shocked when we heard of FMC’s approval of both P3 and G6 alliances,” Lu said.
CSA outlined the reasons for its opposition to the P3 Network in a memorandum, which can be read in full here.

BAHRAIN LOGISTICS ZONE

Is Bahrain going to reinvigorate its efforts to be the logistics hub for the GCC or will it be content to watch others be the hub?

NAMIBIA LOGISTICS HUB

Namibian port poised to be logistics hub

 

Photo Credit:REUTERS/STR New
Namibia's Walvis Bay could emerge as southern African states' gateway to Europe.
Walvis Bay is already Namibia's largest commercial port and links the country's multimodal transport corridors to local, southern landlocked countries and international markets, according to the African Development Bank (AfDB).

Late last year, the port of Walvis Bay and the AfDB signed a loan agreement to expand the project at a cost of NAD 3 billion (USD 280 million).

The expansion will include the construction of a new container terminal spread over 40 hectares of land and increase the port's capacity to 650,000 TEU per annum compared to the existing 350,000 TEUs per annum.

The expansion, which is set to be completed by 2017, will raise the port's bulk goods handling capacity by freeing up the existing container terminal.

The port expansion project complements Namibia's vision of becoming the logistics hub for southern Africa, the two parties said.

"In addition to the facilitation of flows of trade and trans-shipments via Namibia, one of the great opportunities for the country is to be positioned as a logistical hub to take advantage of rapid economic growth in a number of SADC countries," AfDB noted.

The availability of a good international logistics network in Namibia (offering services ranging from transport and storage solutions to customized integrated supply chain management services) is likely to create employment opportunities for Namibians.

The port already receives about 3,000 vessels and handles five million tons of cargo each year.

BETTER THAN THE COMPETITION

"It has good port infrastructure, which ranks among the best in Africa and offers competitive tariffs. It is less congested than its main competitors in east and southern Africa," AfDB said in a new report.

The Walvis Bay Corridor is a network of transport links that connect Namibia to other southern African countries. These include the Trans-Caprivi Corridor, which can be accessed by road and rail and is used to transport exports and imports for Zambia, Zimbabwe, the Democratic Republic of Congo and Malawi.

The Trans-Kalahari Corridor is accessible via road and rail and is mainly used by Botswana and the northern provinces of South Africa, specifically Gauteng region.

Meanwhile, the Trans-Cunene Corridor connects southern Angola through Tsumeb, primarily to transport goods and construction materials imported for the redevelopment of southern Angola.

The Port of Luderitz, further south of Walvis, is also emerging as an important base for fishing, mining, and offshore diamond mining industries, apart from being a base for oil and gas drilling operations off the southern coast.

Namibia is keen to emerge as the regional hub thanks to Walvis Bay's strategic position and shorter transit times to Europe. The strong transportation network benefits neighboring countries too, including the DRC, Malawi and Zimbabwe along the Walvis Bay Corridors as it offers the shortest possible regional route on the west coast.





ECONOMIC DRIVERS

The Walvis port's expansion will allow Namibia to build on its strengths as a strong economic performer in the region. The country's real GDP is expected to average 5% per annum over the next two years, as investors injected funds into mining projects, the AfDB said.

The International Monetary Fund expects a more subdued 4.5% growth by 2016, "supported by the strong construction sector owing to a planned public housing program and recovery in the mining sector through the full-capacity production of the Husab uranium mine."

The country is also looking to improve the performance of the Export Processing Zones and develop manufacturing facilities that would leverage its transport strength, the IMF noted.

"Their current strategy involves developing commodity-based value chains to enhance growth and economic diversification," the IMF said. "This strategy also involves a comprehensive review that aims to improve the investment climate, the ease of doing business, support SMEs and pursue deeper economic integration."


TRADING NATION

Namibia benefits from being part of the Southern African Customs Union (SACU) comprising South Africa, Botswana, Lesotho and Swaziland. The union feature common external tariffs and guarantees the free movement of goods among the member states under SACU's Common Monetary Area (CMA) program.

The CMA has helped stabilize Namibia's monetary and exchange rate policies and helped the economy integrate with its more advanced South African financial market.

It has also enabled the country to enjoy an unrestricted transfer of funds. Recognizing the benefits that it could get from a larger market, with a single economic space, Namibia is participating in negotiations to create the Common Market of Eastern and Southern Africa, East African Community and SADC (COMESA-EAC-SADC) tripartite free trade area, according to the IMF.
Namibia is also a member of the 15-state Southern African Development Community of mostly southern states focused on socio-economic integration and security issues.

"Namibia is a great advocate of regional integration owing to its small domestic market and the need to benefit from economies of scale," the AfDB said. "Its membership of SADC provides it with opportunities for expanding and diversifying its export markets through access to a regional market of close to 400 million people."

More crucially, the Namibian government is keen to conclude the Economic Partnership Agreement (EPA) with the European Union by October 2014. Failure to finalize the deal will end Namibia's duty-free exports of beef, fish and grapes to the European market. The country reportedly earns NAD 5 billion (or USD 465 million) of its exports from these commodities.

The feature was produced by alifarabia.com exclusively for zawya.com.

KUEHNE & NAGEL

From Supply Chain Asia for Kuehne & Nagel --
Kuehne + Nagel still seeing tough markets Written by SCA Editorial Team

The performance of Kuehne + Nagel over the past quarter implies that, despite the optimism of many service providers during the results season, logistics markets have remained difficult. The Swiss based forwarder and contract logistics provider saw net turnover fall slightly but Earnings Before Interest and Tax (EBIT) grew by 12.4 per cent year-on-year to CHF190m.
Results in its core sea container freight business were weak. Even though K+N saw container volumes increase by 6.9%, revenue fell year-on-year 3.6 per cent, gross profit edged down by 2 per cent whilst (EBIT) was down 4 per cent. This suggests that average container rates are falling. The company stated that business from Europe to North America and Asia “increased substantially” but Latin America was not strong. Kuehne and Nagel ascribed weakness in pricing to “volatility” although they assert that the “EBIT-to gross profit-margin” was “stable” at 28.8 per cent.
The situation in air freight was slightly better with EBIT up CHF9m to CHF62m, but revenue was flat on the back of tonnage up 1.4 per cent. Demand appears to be ‘bouncing-back’ in North America and Europe but not in Asia and, surprisingly, the Middle-East and Africa. K+N claim that their ability to grow their margins is due to better management, so it is difficult to assess whether rates are improving or the forwarder has simply been better at avoiding rate-cuts for customers.

MEGA SHIPS

Are mega ships too big to fail, or will they fail because they are too big?

SUPPLY CHAINS

There are 3 supply chains -- product, information and finance.

3PLs LSPs LOGISTICS / SUPPLY CHAIN OUTSOURCING

Is outsourcing that has no value proposition likely to not meet the expectations of all parties?

OCEAN CONTAINER LINES

There are 14 ocean carriers in the 3 primary global trade lanes--Asia-Europe, transpacific, and transatlantic. With supply exceeding demand and its impact-- and other factors, I expect there to be only 9 in a few years.

WAL-MART

Wal-Mart out of stock.  Supply Chain! There is likely more to issue than article says. http://www.forbes.com/sites/paularosenblum/2014/04/15/walmarts-out-of-stock-problem-only-half-the-story/#./?&_suid=139767883117707339477421076729

CONTAINER LINE SURCHARGES

From American Shipper -- Global Shippers Forum wants an end to all the surcharges--

Shippers call for campaign against surcharges Wednesday, April 16, 2014 By Chris Dupin The Global Shippers’ Forum said it will organize a new global campaign “to confront the imposition of unsubstantiated shipping surcharges, terminal charges and more than 20 other non-negotiable local charges on shippers worldwide.” GSF said it will focus on “persuading national competition authorities or other appropriate regulatory bodies to introduce new shipping regulations and laws to prevent these local anti-competitive practices. Current widespread malpractices include imposing non-negotiated charges on consignors and shippers for a range of local charges over which the consignor or shipper has no control or influence in their freight rate negotiations with the shipping line, terminal operator, shipping agent, or third party logistics provider. Shippers generally are not party to the contracts in which these fees are set, yet they have no choice but to pay the fees if they want their cargo to be transported.” “Shippers in Africa, Asia and South America have now called time on these unacceptable shipping practices which long ago disappeared in European, North American and liner shipping trades in other more developed economies. As part of a coordinated global campaign, the GSF will take the matter up with the main political, United Nations and other international agencies,” said Chris Welsh, secretary general of the GSF. “In addition, we will support the implementation of the kind of national legislation introduced in Sri Lanka to deal with this widespread problem.” GSF said it decided to take up the campaign at its annual meeting in March. Addressing the GSF annual meeting, Sean Van Dort, vice chairman of the Sri Lankan Shippers’ Council, said, “We are already seeing the benefits of new laws in Sri Lanka that specify that all charges for shipping containerized cargo must be quoted so as to cover the entire cost of the carriage of goods from origin to destination or agreed delivery point. The provision of so-called “all inclusive freight charges” to be paid by the shipper, including all local add-on charges and surcharges, has resulted in dramatic reductions in the door-to-door freight costs, reductions that benefit both the seller and buyer of the goods.” Van Dort said the new rules will take effect from April 30 for existing contracts and that "the new arrangements do require close collaboration and cooperation between buyers and sellers, and in particular, there will need to be a change in business practices, including using the new and more appropriate Incoterm for containezised cargo shipments such as “free carrier named place” (FCA). But, the prize for both sellers and buyers is the elimination of illegitimate and inflated charges and surcharges and considerable reductions in freight costs which benefit both parties." GSF said, “unsubstantiated charges and surcharges imposed on consignors and shippers without bargaining power in Africa, Asia and South America has been a concern for shippers in these regions for many years. It is only now that the true scale and impact on shippers and trade in these regions is being fully understood and appreciated. The GSF maintains that non-negotiable surcharges and local charges imposed on non-contracting consignors and shippers effectively act as an indirect trade barrier which inhibits international trade.” The Union of African Shippers’ Councils, a member of GSF, said shippers’ organizations in the region have found the additional cost to trade from anti-competitive practices in the region is likely to represents billions of dollars. It estimated the cost to the economies of Ghana, Cameroun and Nigeria alone to be in the region of €437 million ($604 million) per year. “These unsubstantiated and unjustified local charges and carrier surcharges not only increase the cost of doing business in Africa, but impose unacceptable burdens on the economies of West and Central Africa whose goods and commodities often struggle to compete in the modern global economy,” said Adamou Saley Abdourahamane, secretary general of the Union of African Shippers’ Councils. “Wider regulatory measures are necessary to curb the power of shipping lines in the African region.” He said his group, and other shippers’ organizations in the region will, with the support of the GSF, “campaign for Sri Lankan style legislation to tackle the problem of local charges and surcharges." GSF provided the following list of typical surcharges that it said are imposed on non-contracting parties on top of known terminal handling charges in Africa, Asia and South America: Pick-up surcharge Scanner surcharge War risk surcharge Off-dock surcharge Port cost surcharge Transit surcharge Assurance surcharge Freight tax Emergency terminal congestion surcharge Additional port surcharge Entry summary declaration for exports surcharge Ship security surcharge Congestion surcharge Drop-off surcharge Container cleaning charge Manifest charge Evaluation charge Seal handling fee Administrative charge Release fees/delivery order charge Reefer monitoring fee Bulk administrative fee Maritime security fee Hazardous fee Documentation fee Demurrage deposit Container maintenance charge Facilitation fee Switch bill of lading fee Movement fee FCR fee Bill of lading fee Washing charges Loading surcharge AMS charges Liner charges Less-than-containerload charges Full containerload charges Administrative charges

LEAN & INTERNATIONAL LOGISTCS / SUPPLY CHAIN

Lean and international supply chain management share two commonalities with the wastes of inventory and of time.

PANAMA LOGISTICS HUB

For years, there has been talk of Panama becoming a logistics hub.  The World Bank Logistic sPerformance Index scores and rankings indicate that Panama needs more than investment in infrastructure to be a logistics hub.

World Bank LPI	2007 Score/Rank	2010  Score/Rank	2012 Score/Rank	2014 Score/Rank
Panama	2.89/54	3.02/51	2.93/61	3.19/45

LEAN LOGISTICS / SUPPLY CHAIN MANAGEMENT

The biggest obstacle for effective lean supply chains is accounting. Excess inventory is an asset to accountants. It is waste in lean.

LTL

FROM AMERICAN SHIPPER--

Old Dominion to raise rates by 4.3%

Tuesday, April 15, 2014

By Jon Ross

Old Dominion will raise its base rates by an average of 4.3 percent in May, the company said.
The increase won't be felt across the board, officials said, but will instead take into account a customer's length of haul.
In July, the carrier increased the base rate by an average of 4.9 percent. Rates also rose by 4.9 percent in August 2012.
Todd Polen, OD's vice president of pricing, said the increase is needed due to rising equipment, wage and insurance costs, and in order to add capacity and develop new technology.
"Our customers are asking for more capacity, and more value added products and services. In order to meet that demand and deliver on the promises we have made to our customers, we must continue to build our network and systems. OD’s philosophy is to take a fair and equitable approach that minimizes the impact to our customers’ budgets yet at the same time, supports the value proposition we promised to the market place and OD stake holders," he said in a statement. "We believe the increase is essential in order to continue to provide our customers with an industry leading value proposition."

SUPPLY CHAIN MANAGEMENT

How strong is the correlation between supply chain management success and C-level support?

MANUFACTURERS AND SUPPLY CHAIN MANAGEMENT

Why do so many manufacturers lag in effectively applying SCM and its best practices?  They fail at competitive differentiation and negatively impact revenue, margins, and service.

OCEAN CARRIER VOLATILITY

How harmful are price and service volatilities to the ocean transport industry and their customers? Why do carriers continue to do it?