Logistics – Henrex Logistics https://henrexlogistics.com Thu, 27 Apr 2023 21:04:25 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://henrexlogistics.com/wp-content/uploads/2023/04/cropped-Screenshot_11-Copy-32x32.png Logistics – Henrex Logistics https://henrexlogistics.com 32 32 Global Logistics 2023 https://henrexlogistics.com/global-logistics-2023/ https://henrexlogistics.com/global-logistics-2023/#comments Wed, 28 Sep 2016 12:33:30 +0000 http://jewelry-store.dv.themerex.net/?p=95 Then logistics experts discuss the challenges and prospects for global supply chains in 2023, it’s clear that a multitude of factors are involved. Many shippers and players in the transport and logistics business are currently under great pressure.

This is due to a number of lingering issues including the pandemic; huge increases in energy prices; large fluctuations in the supply and demand for transport capacities; delays in port trans-shipment; and bottlenecks in hinterland transport. Furthermore, numerous countries are experiencing double-digit inflation.

Russia’s war on Ukraine also has effects on the supply and flows of goods, while disruption of supply chains and the West’s dependence on imports continues to intensify the debate about relations with China. Above all, there’s also the environmental challenge and the question of how to reduce CO2 emissions and deal with the costs for doing so.

And in the midst of these unprecedented challenges, industrial and commercial companies are analyzing their supply chains and searching for optimization tactics and alternatives. One possibility is to go back to more warehousing with the aim of greater stability in the supply of goods of all kinds—which has often not been running smoothly as of late. Still, the economy has no short-term alternative to international production and trade.

As we move forward, it’s clear that global supply chains will continue to not only need exceptional risk management solutions, but also improved climate friendliness. According to experts of the German Freight Forwarding and Logistics Association (DSLV), one thing is certain: the trend is to take every bit of CO2 reduction into account and leverage climate potential step by step wherever sensible and effective.

“Through innovative technology and efficient and digital processes, we need fewer resources and can reduce emissions. Switching to low-emission modes of transport, motors, and fuels is the most important way to further climate protection in the transport sector and logistics,” say DSLV experts.

Freight rates remain high

Just-in-time deliveries, a strategy followed for a long time, can often no longer be reliably guaranteed in many places. High-volume consigners have the advantage of market power to exert pressure on shipowners, port terminals, and transport companies to meet just-in-time delivery schedules.

In addition to delays in deliveries worldwide, the huge increases in freight rates caused problems for shippers last year. For 2023, consigners hope that freight costs will gradually taper down toward pre-pandemic levels.

However, Rolf Habben Jansen, CEO of Hapag Lloyd, pointed out at an online press event that the significant increase in fuel prices will mean that shipping lines will have to reckon with freight rates around 20% to 30% higher than two to three years ago. He expects that shipowners will face difficulties in long-term planning in general and will need to rely more on quarterly adjustments in services and rates.

Major seaports, such as Rotterdam, Europe’s largest port, will respond to increasing costs with moderate price hikes of around 2.5% to 3%, according to Siemons Boudewijn, COO of Port of Rotterdam Authority. Other ports are also expected to implement price increases for 2023.

Gradual introduction of a CO2 levy in the EU

Maritime shipping accounts for around 3% of global CO2 emissions, according to a report published in October 2017 by the International Council on Clean Transportation (ICCT). Around 60,000 larger merchant ships, including around 6,000 container ships, operate on the world’s oceans.

In October 2022, the International Chamber of Shipping (ICS) announced its goal of achieving climate-neutral shipping by 2050. In 2018, the International Maritime Organization (IMO) had already set the target of reducing emissions by 2050 to a level at least 50% lower than in 2008. The EU is planning to reduce CO2 emissions and to put taxes on shipping even earlier.

Within the framework of its Emission Trading System (EU ETS), a CO2 tax for ships of 5,000 gross tonnage (GT) and above is to be introduced in the EU in three stages from 2024 to 2026. Some shipping companies, such as MSC, have already informed their customers about additional costs in the future. Container shipping companies have estimated the added costs at about $192 to $202 for a 40-foot standard container on the Northern Europe-U.S. East Coast route.

DSLV’s experts point out that it’s important that the introduction of a CO2 levy in the EU region must not lead to any competitive disadvantages. Equal competitive conditions in international shipping are crucial for global trade. In the opinion of shippers and shipowners, the IMO should implement global regulation in a timely manner.

In the meantime, the development of alternative fuels for shipping is still in its early stages. The production, distribution, and market ramp-up of sustainable alternative fuels, as well as the expansion of shore-side power supply in sea and inland ports, are important steps towards reducing greenhouse gas emissions on the way to climate-neutral shipping.

Green shipping

Shipping lines are increasingly employing modern ships with significantly improved environmental standards as well as new propulsion systems and more environmentally friendly fuels. There’s no doubt that investment in climate-friendly transport chains is on the rise.

Among the world’s largest carriers, companies such as Maersk already offer their customers special “green shipping offers.” EcoDelivery, for example, takes climate-neutral fuels into account. These are, for example, waste vegetable fats and oils from the food industry. The CO2 saved is certified for the shippers’ carbon accounting, while a total of 3% of Maersk’s total cargo volume was carried with climate-neutral fuels in third quarter of 2022.

The EcoDelivery surcharge for a 40-foot container in major trades, such as the Far East and trans-Pacific, was around $200 to $300 per box in 2022. If you convert that to, say, the 30,000 T-shirts or 6,000-8,000 pairs of shoes that can fit in such a box, at $0.007 per T-shirt, that’s not a huge added cost per unit of product.

The number of consigners interested in EcoDelivery is increasing steadily, according to the shipping company. According to Maersk, customers already using EcoDelivery include H&M, Electrolux, Lenovo, and the Danish fashion group Bestseller.

The shipping company recently ordered 19 container ships powered by climate-neutral green methanol. From June 2023 to 2025, one feeder ship and 18 large container ships with slot capacities of 16,000 TEU and 17,000 TEU will be put into service under the Maersk flag.

The carrier is also moving towards climate neutrality landside and is building or leasing very low-emission warehouses and using electric vehicles at its own terminals. To date, 300 e-trucks are already in use, mainly in the United States, and a further 140 e-trucks have been ordered.

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Logistics Planning: From Good To Great https://henrexlogistics.com/logistics-planning-from-good-to-great/ https://henrexlogistics.com/logistics-planning-from-good-to-great/#respond Wed, 28 Sep 2016 12:32:51 +0000 http://jewelry-store.dv.themerex.net/?p=96 Behind almost every superhero is an intelligent, resourceful support team. With advanced decision-support technology, the support team alerts their superheroes to crime happening nearby, guides them through the quickest route in the city, and encourages them even when the odds are stacked against them.

Now, what does this have to do with your logistics operations?

It’s simple. Your drivers are the superheroes and your planners are their support team.

Think about it. Your drivers are out on the streets battling traffic, roadworks, and whether to meet your SLAs. But who ensures that they get there on time to pick up and drop off shipments? Who ensures that your drivers make as few empty trips as possible?

Their support team, of course – a team made up of your logistics planners and the best decision-support technology.

While your planners don’t help save the world from evil villains, they have to manage daily disruptions in the form of vehicle breakdowns, port congestions, brutal weather conditions, and driver shortages. But the question is, are your drivers getting the most out of their support team? Do your planners have what they need to generate not just good, but great plans? Not yet.

The best support team in logistics planning

To get not just good, but great plans, you need to equip your logistics planners with the best decision-support technology – intelligent planning and optimization software.

An intelligent planning and optimization software like Quintiq is designed to help your planners make better decisions, faster. It frees up your planners to focus on refining optimized plans by applying their years of experience in logistics planning.

Imagine this: A shipment is due to be delivered and a rush order comes in. But your planners know that the shipment due today can be pushed till a day later because the customer has a good relationship with your company.

The best decision-support technology would give your planners insight based on due dates, volume, and drivers available. When combined with their experience and soft knowledge, this would enable them to achieve the ultimate goal: Maximize operational benefits and increase profitability.

What’s possible when you empower your planners?

By empowering their planners with the Quintiq planning and optimization software, some of the world’s leading logistics providers, including P&O Ferrymasters and DHL, have experienced these significant improvements:

Increase in resource utilization by 12%
Delivery performance up by 25%
Costs reduced by 12%
You and I know that even the smallest percentage can mean millions in savings. Join the ranks of leading logistics providers by empowering your planners to do more for your bottom line and be the best support team for your drivers.

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Fleet Management Comes into Focus https://henrexlogistics.com/fleet-management-comes-into-focus/ https://henrexlogistics.com/fleet-management-comes-into-focus/#respond Wed, 28 Sep 2016 12:31:18 +0000 http://jewelry-store.dv.themerex.net/?p=93 Of all the investments a company could make to modernize warehouse operations, fleet management is the most unique. Unlike automation, infrastructure or software, lift truck usage has a huge behavioral component that makes measuring and defining success more difficult. Few other elements of materials handling equipment are mobile anywhere between eight and 24 hours a day, and few interact so frequently with as many stakeholders inside and outside the organization—from operators to managers to service providers.

When the futuristic concept of “fleet management” emerged a few years ago, it promised to leverage the Internet of Things, real-time data, and other buzzwords to bring all the pieces together to cut costs, streamline operations, improve safety and more. The sky was the limit, and the humble warehouse workhorse would finally get the treatment it deserved as such a fundamental component to productivity and profitability.

“We’re done with the hype,” says John Rosenberger, product manager for iWarehouse Gateway and global telematics for The Raymond Corp. “Everyone now accepts that there’s an advantage to fleet management, but it’s like a gym membership. If you don’t go, what value are you getting out of it?”

Like a gym, the umbrella of fleet management includes a lot of options, and few people need them all. Sure, January 1 could be the first day of your quest to become an Olympian, but it’s best to set more modest goals. The industry has spent the last few years learning this lesson—often the hard way—and the approach to forklift telematics and fleet optimization programs has adapted accordingly.

“OEMs and third parties that provide fleet management have all rushed to be able to offer everything,” says Greg Simmons, business development manager for Mitsubishi Caterpillar Forklift America’s national account fleet services team. “As we get a couple years into it and customers have tried some things, they’ve taken a half step back to return to the fundamentals. One size does not fit all, so we see a trend to apply small pieces of the fleet management solution set to one area that helps move the needle for one customer. That’s what matters most.”

Finding the needle in the payback
By some estimates, less than 30% of lift trucks are equipped with telematics, according to Steven LaFevers, director of aftermarket solutions for Yale Materials Handling Corp. The rest haven’t bought into fleet management solutions because they haven’t found one with the right balance between cost and immediate concerns.

Instead of a large initial investment in a base telematics solution followed by the added modules and functionality, LaFevers predicts more focused solutions that handle only battery management, or just operator checklists, or just technologies that target operator behavior. Although they might strike the balance of price and impact, all of these elements will require the same consistency of discipline as any fleet management solution.

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2023 European Logistics Update https://henrexlogistics.com/2023-european-logistics-update/ https://henrexlogistics.com/2023-european-logistics-update/#respond Wed, 28 Sep 2016 12:31:04 +0000 http://jewelry-store.dv.themerex.net/?p=91 In our latest analysis of the industrial and logistics market, we examine occupier demand, rental performance, investment market and yields across Europe

 

 

Close to 32 million sqm of logistics space was taken up in 2022. This was only 6% less compared to the 2021 record year, highlighting market resilience in the face of economic headwinds.  With supply still lagging demand, a large number of markets recorded double-digit growth in prime headline rents.

On the other hand, investors are proceeding cautiously as pricing uncertainty slows transaction activity.

Discover the whole story by downloading our full market update below. 

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What You Need to Know About Nearshoring https://henrexlogistics.com/what-you-need-to-know-about-nearshoring/ https://henrexlogistics.com/what-you-need-to-know-about-nearshoring/#respond Wed, 28 Sep 2016 12:29:48 +0000 http://jewelry-store.dv.themerex.net/?p=88 Nearshoring is an attractive business strategy for many companies. By leveraging the advantages of nearshore resources, organizations can reduce costs and accelerate time-to-market while gaining access to specialized talent. Nearshoring can also increase businesses’ agility, allowing them to quickly scale their teams and resources up or down as needed.

While nearshoring may be a great way to gain access to specialized resources, important things must be considered before embarking on such an endeavor. It is important to evaluate the potential complexity of working with a different culture and language and the cost of adapting existing processes and teams to the new environment. In this article, we will explore what exactly nearshoring is, the differences between nearshore and offshore, and how businesses can benefit from it.

What Is Nearshoring?

Offshoring your company’s tasks or operations to a nearby provider can be an advantageous business model, often referred to as nearshoring or regional outsourcing if the chosen destination is within the same region.

By nearshoring, businesses can cut labor and transportation costs while gaining access to a deep bench of talented professionals. Moreover, they can easily transcend any language barriers or cultural differences encountered with offshore outsourcing.

What Is Nearshore Outsourcing Main Function?

Nearshore outsourcing is the perfect solution for businesses looking to expand operations beyond their own locations and hire skilled workers while maintaining an exceptional standard of service. By partnering with a nearshore outsourcing company, companies can access qualified staff from countries situated nearby without compromising productivity or quality.

These Are the Benefits of Nearshoring

Nearshoring has several agile methodologies, making it an excellent option for businesses looking to outsource specific processes or job functions. These consist of the following:

  • Lower costs in labor, transportation, and other expenses.
  • A greater level of trust between the client and provider due to cultural similarities.
  • Access to skilled personnel who are more familiar with the latest technology.
  • Reduced risk of data loss due to compliance requirements.
  • Improved communication and collaboration between teams.
  • The ability to scale up or down quickly and easily.

When Did Outsourcing Begin?

The concept of outsourcing dates back to the 16th century when wealthy British landowners began sending clothing production overseas to India to save money on raw materials and labor costs.

Soon after these steps, other countries followed and began an outsourcing system of manufacturing jobs. Towards the end of the 20th century, large organizations sought to lower costs without compromising on product or service excellence–resulting in the widespread popularity of outsourcing among multinational firms.

The concept of outsourcing dates back to the 16th century when wealthy British landowners began sending clothing production overseas to India to save money on raw materials and labor costs.

Soon after these steps, other countries followed and began an outsourcing system of manufacturing jobs. Towards the end of the 20th century, large organizations sought to lower costs without compromising on product or service excellence–resulting in the widespread popularity of outsourcing among multinational firms.

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