Their outstanding achievements in business surpassing the influence of the COVID-19 pandemic allowed them to win this esteemed award
Super Cargo Services Co. Ltd, Globalia member in Ho Chi Minh, Vietnam won the prestigious Asia Pacific Enterprise Award 2021. They were given this award for their excellent achievements in business in spite of the challenges posed by the pandemic. The Award recognition programme recognizes corporate excellence, encouraging innovation, fair practices and growth in entrepreneurship.
To quote Mr. Peter Nguyen, the CEO of Super Cargo Service, “This is really a very proud achievement of the company under difficult circumstances of the global pandemic. Moreover, this award has helped us affirm our leading position for domestic and foreign partners.”In the first six months of 2021, Super Cargo Service witnessed an impressive increase of nearly 128% in revenue compared to the whole year of 2020.
They were able to achieve this sustainable growth by focusing on its six core lines of services which seek to provide one-stop services to its customers. These core lines include investing in people through training and individual development programmes, improving its products and services, and holding a competitive edge in this sector.
Additionally, they are also increasing their assets by building warehouses, purchasing more trucks, and upgrading their IT system.
The SCS Manufacture Setting Up Logistics Services Provider Consultancy (M.S.L.S.C.) is among the company’s future plans. Moreover, the company also seeks to improve its human resources, accounting, and operating system to achieve customer service excellence. “In the future, we plan to continue improving and building up our overseas business development team in countries such as South Korea, Mainland China, Taiwan, Japan, and India. Furthermore, we aim to expand our operation network nationwide,” adds Mr. Nguyen.
Congratulations to Super Cargo Services and all the best for their future endeavours!
As the year draws to an end, it is time to look at the global container shipping trends to get an overview of the market situation in the last year and prepare for the coming season. Our news for today is a special report about the international container shipping trends as suggested by Globalia’s media partner Container xChange– the largest marketplace for container leasing and trading.
A look at the container prices
A look at the important ports in the US, UK, China, and Germany shows a downward trend in container prices between August to November. Container prices in the USA have reduced by almost 15% in the last 3 months. To quote Johannes Schlingmeier, the Container xChange Co-founder, “Over the last two quarters, the industry has faced skyrocketing container prices. However, these increases first leveled off and have now started gradually decreasing. It seems, what we’re seeing now, is a turning point.”
The largest drop in container prices can be noted in the Port of Qingdao from September to November. In this port, the average cost of 40 HC containers went down by over 23% amounting to around $1756. On the other hand, in the Port of Ningbo, a 40 HC container cost $959 less in November compared to September.
Explaining Container Availability Index
The CAx (Container Availability Index) is an index (a tool) that allows interested parties to monitor the availability of containers in certain ports through the import and export moves of full containers. A CAx value of 0.5 means that the same number of containers leave and enter a port in the same week. CAx values of > 0.5 means that more containers enter and CAx values of < 0.5 means more containers leave a specific port. The CAx is calculated based on the tracking data of millions of containers. The data is collected from shipping lines, depots, and terminals.
The Leasing and Trading Rates of Containers
Inbound containers are piling up in ports across the world
The Container xChange research took into account 83 major ports spanning the globe. However, out of these 83 ports, only 9 ports have CAx values lower than 0.50. The CAx values were more than 0.50 in 74 ports. In 2020, 61 ports had CAx values lower than 0.50 while in 2019 just 34 ports had CAx values less than 0.50. This demonstrates how the pandemic disrupted the normal functioning of ports. Generally, the Christmas season sees a surge in containers in North America and Britain while the ports in Asia register a drop in container volume. However, presently, just a few Chinese ports have a lower CAx value while the rest of the ports have greater CAx values. This suggests that containers around the globe are either delayed or stranded.
A look at the regional trends in container shipping
A drop in leasing rates in China
The average one-way pickup rates Ex China to Germany and the UK have reduced between September to November. This rate will further drop in the coming months. The average one-way pickup rate from China to the US has gone down by 25% between August to September. However, this rate has increased in October and November.
A fall in container prices since September
There has been a fall in the prices of 40 HC containers across 14 Chinese ports. Moreover, this same trend can be noted for 20 DC containers as well. Average container prices went to an all-time high in September. Since then the price has been falling till the last week of November. In Shanghai, the cost of 40 ft HC containers went down by 21% from $6,686 in September to $5,746 in the first week of December. In Yantian Port, this drop was around 12%, in Tianjin Port 16%, in Shenzhen around 7%, in Dalian 11%, and in Qingdao 23%.
China Container inbounds ratio highest since 2019
In November 2020, Shanghai Port saw the biggest decline in CAx values that reached a rock bottom 0.05. In 2021, on the other hand, the CAx values went down to 0.50. This implies that the number of containers arriving and departing from the ports is the same. In Yantian Port, the average CAx value of 0.27 demonstrates that the number of outbound containers is greater than before but still not at the pre-pandemic level.
CAx values are higher in Shanghai and Tianjin than in Ningbo and Qingdao
The CAx value at Ningbo has increased substantially than in previous years. It is now gradually going back to the pre-pandemic levels. In 2020 the Port of Qingdao saw a massive drop in the CAx values. In 2021, the drop in value is considerably less. This implies that in November 2020, the number of inbound containers was lesser than that of outbound containers. In 2021, the outbound containers were not greater than that of the inbound containers.
CAx values at Tianjin and Dalian Ports
The CAx values at Tianjin were greater than that of Ningbo and Qingdao ports in November 2021. At the 48th week of this year, the CAx values were around 0.71 while last year it was 0.16. Before the pandemic started, this value was 0.39. Therefore, it shows that there are more inbound containers at these ports. In the Dalian Port, the average CAx value was 0.49 in November that is 4 times greater compared to 2020.
Container shipping trends in India
In Chennai, the cost of 40 ft HC containers has reduced from $5550 in August to $5323 on the 1st of December. In Nhava Sheva Port the price for the same has dropped from $5044 in October to $4875 in the first week of December. The price for the same before the pandemic was around $1000 for 20DC and $2000 for 40DC. The Chennai Port witnessed a 17% jump in average prices of 20 DC containers. In the Nhava Sheva Port, the average container price rose from $2292 in October to $2320 in November
The container availability is not likely to increase in 2022
In the Nhava Sheva Port, the CAx values were more or less stable at 0.78 in October end. In the last two years, this value was lower demonstrating a downward trend till the year ending. This implies that a greater number of outbound containers were recorded at the Nhava Sheva Port during this time of the year. However, this year the trend is not the same. The figures show that there has been a decrease in exports. Moreover, containers have also piled up at the ports and the number of inbound containers is higher than before.
The CAx value at Mundra Port was 5 times higher compared to the same time in 2020. Moreover, it is 3 times higher than that of the pre-pandemic level. This has been a consistent trend all around the year. At Chennai Port, the CAx values on the 48th week of the year are twice that of 2020. The pre-pandemic trend at this port was decreasing CAx values, because of higher exports. However, this year shows an opposite trend of increasing values till the end of the year.
The situation in Europe
CAx values rise at ports in Europe, heavy container inbounds
The Port of Antwerp recorded a 5 times growth of CAx values in November compared to last year. It goes without saying that a greater number of containers are docked. At the Port of Hamburg, the CAx values are more than three times higher than 2020. The average CAx values at the Port of Felixstowe were 0.65 in the past 3 years, but at week 48 this year, the values are 0.89. CAx values at the port of Valencia are 6X from the last year. The CAx value at the Port of Sines was 0.09 in 2020, while it is 0.85 this year. This is a massive increase. Port of Barcelona also has double the CAx values than 2020.
All the ports in Europe have higher CAx values than 2020 and 2019. Moreover, the concentration of CAx values is in the CAx range of 0.63 – 0.89 which indicates the consistent presence of more inbound containers than outbound containers.
Container availability in the US
The number of inbound containers is higher in the US
In 2020 the CAx values at the Port of Los Angeles dropped from 0.85 to 0.34 in the first week of November to last week of November. This year it has dropped from 0.88 to 0.87 in the same time of the year. At the Port of Long Beach, the CAx values ranged between 0.86 to 0.89 since week 31. In November, this value is at 0.86 and similar values will continue till the end of the year. Even though we’ve noted a drop in these values last year in 2020, the forecast is not showing signs of revival this year due to the current situation of the gridlock.
The CAx values at the Port of Savannah was steadily high all though this year. It ranged between 0.90 and 0.96. This suggests tremendous port congestion and container load of inbound shipments.
The CAx values at the Port of Houston, Texas, in 2020 was half of this year. In November, the CAx at Houston Port was 0.89 while in 2020 it was 0.48. Undoubtedly, the port witnessed an increased burden of inbound containers all though 2021 as compared to 2020 and 2019.
“The main challenges faced by freight forwarders are fluctuation in prices, shipping delays and container shortage. We are offering a service to collect containers to try to cope with this crisis.”
Today we are publishing an interview with Mr. El Mootamid Abbad Andaloussi, President and General Manager of FUTUR TRANS ATLANTIC FTA, Globalia member in Tangiers, Morocco. In this interview, he talks about the distinguishing features of their company, their several accreditation, and the range of services they are offering. Additionally, Mr. Andaloussi also talks about the ongoing problems faced by forwarders and about the need for digitization in the freight forwarding sector.
Q. Can you tell us a little bit about the history of FUTUR TRANS ATLANTIC ?
A. FTA was created in 1999, by Mr. El Mootamid Abbad Andaloussi, one of the major businessmen in Tangier, Morocco. Since then, FTA has obtained numerous certifications and categorizations that testify to the excellence and performance of the company at national and international levels. Some of the certificates we have obtained over the years are ISO 9001 V2015 Bureau Veritas / UKAS / Cofrac, ISO 28000 Bureau Veritas, ONSSA (Office National de Sécurité Sanitaire des Produits Alimentaires), AEO SS, and the Moroccan Green Logistics certificate. Additionally, we are in the process of obtaining the ISO 39001 certification.
Q. What distinguishes FUTUR TRANS ATLANTIC from other freight forwarders in your city?
A. What distinguishes FTA from other freight forwarders in our city is that we are the only Moroccan company preparing for the ISO 39001 Road Safety Management Systems certification. Moreover, the fact that we are categorized as an AEO approved Authorized Economic Operator for “Safety and Security” surely adds to the credibility of our company. This certification is not given to all freight forwarders in Morocco. Thanks to our good working relationship with the customs authorities, this categorization has opened the door to several advantages such as customs simplifications, priority treatment, less document based controls etc.
Furthermore, FTA has a Warehouse of 18950 m², a dry port of 13,000 m², a parking space of 75,000 m², and a modern fleet that meets European standards. Over the years we have established ourselves as a specialist in LTL and FTL shipping specializing in the transportation of industrial items, textile, aeronautical goods, automotives, perishable commodities etc. Moreover our bonded platforms and customs clearance area also adds to the efficacy of our operations.
Q. What services do you offer? Which is the most difficult service offered by you?
A. FTA offers international multimodal transport by road sea and air. In addition, we offer services like groupage and complete transport of industrial products, textile, aeronautical goods, automotive, perishable commodities etc. In order to keep up with the digitization effort in this sector we are providing track and trace services for our customers’ shipments. The most difficult service that FTA offers is Express Service.
Digitization has completely changed the freight forwarding industry. Like all major players in this sector we are also digitizing several of our manual work process. Moreover, our track and trace services has taken us one step further in this regard.
Q. What are the main challenges facing freight forwarders in your country at the moment?
A. The main challenges faced by freight forwarders are fluctuation in prices and shipping delays. Additionally, we are also contending with the container shortage. We are managing the container shortage on a day-to-day basis. Moreover, we offer a service to collect containers from the Spanish coast by road. This is allowing us to somewhat cope with the container crisis.
Q. How do you think technology has changed the freight forwarding industry with the pandemic?
A. Digitization has completely transformed the freight forwarding industry. Like all major players in this sector we are also digitizing several of our manual work process. Moreover, our track and trace services have taken us one step further in this regard. Today our clients can book the dock before the vessel’s arrival to avoid any kind of delay and be more organized, thanks to the services of PORTNET Single Window for foreign trade procedures in Morocco.
Q. What is the most important shipment your team has handled?
A. The most important shipment that our team handled was an OOG shipment all the way to Sri Lanka. The challenges of this shipment were packaging, which was handled by our competent team. Fumigation of this shipment was also a challenging task that was successfully accomplished.
Q. Where do you see FUTUR TRANS ATLANTIC in the future?
A. A. After more than 23 years of success and leadership in the field of logistics and road transport, we see FTA in the future as a reliable operator worldwide with increasing private investments. We are also planning to integrate the stock Exchange of Casablanca. We really look forward to fruitful collaborations with our network partners that will lead our company to the best position.
They moved the cargo consisting of a piece of machinery in 5 x 40´ FR and 2 x 40´ HC from the Port of Buenos Aires to the Port of Manaus
LAC Worldwide do Brasil, Globalia member in Itajai and Sao Paolo, Brazil recently moved an OOG projects Ex-works from Argentina to Brazil. LAC contracted this project for the transportation of machinery at Incoterms: Ex Works. They used 5 x 40´ Flat Racks and 2 x 40´ High Cubes for moving the OOG shipment from Buenos Aires to Manaus.
In the words of Mr. Luiz Gustavo Avesani Moura, the CEO of LAC Worldwide “Perhaps the greatest challenge of this project was to obtain the special containers during this ongoing equipment shortage. Furthermore, we had to ensure the space for various equipment of this type with the shipowner. Lastly, the numerous blank sailings at the port of Buenos Aires led to a huge accumulation of cargo at the point of origin. In spite of all these challenges, our team stood up to the occasion and ensured the seamless transportation of the cargo.”
They also carried out the transportation of the machines from the point of origin to the port. Additionally, LAC was also responsible for several other aspects of this shipment. This included obtaining special transport licenses, loading/lashing of machines, and equipment certification. Moreover, they were also in charge of the complete survey at the origin and destination. “This was yet another successful project performed by our project team. I would like to congratulate my entire team and especially our project director Felipe Sellera who impeccably handled every aspect of this complicated project,” adds Mr. Moura.
Congratulations to LAC Worldwide for the successful handling of this project and all the best for their future projects!
They inaugurated their new office with a short ceremony held on the new office premises
Baj Freight and Logistics, Globalia member in Tema and Accra, Ghana, has recently celebrated their new office move. The new building is situated at Tema Community 3 on Meridian Road, adjacent to the Ghana Cocoa Board. They invited their clients and stakeholders for a distinguished ceremony which was held on the premise of the new site.
Their need to own a spacious and well-located office prompted the relocation. Moreover, Baj Freight had the vision of housing a school for heavy duty drivers on its premise.
This new office space will allow them to materialize this plan. To quote Mr. Ishmael Oduro-Marfo, the Special Project Coordinator of Baj Freight, “Our new office space will offer enough room to undertake more projects. From here we will work hard to fulfill our objective that is to provide excellent and swift services by employing the best practices with the most modern technology.”
Congratulations to Baj Freight and Logistics and wishing them the very best for the future!
The Autumn edition of Globalia’s newsletter includes all the latest news from our member, the network, and the sector along with several other interesting posts
Globalia Logistics Network’s newsletter for September 2021 is now online. This newsletter comes with all the highlights of our recently concluded Virtual Meeting. Moreover, there is also an article about Post-Conference Follow-up Tips that will come in very handy for the members.
Click on the above image to read the newsletter
Inside the newsletter there is a news compilation of the latest achievements of our members in the past 3 months. The report on the challenges of the sea freight sector by Globalia Porto Alegre is surely going to be an interesting read. Additionally, there is another report where our member in Piraeus talks about how they’re growing their operations by productive collaboration with Globalia partners.
We have also published an interview with Maria Serrano, Globalia’s PR and Event Coordinator. In this interview she talks about the advantages of attending Globalia’s Annual Meetings, the marketing goals of the network in 2021, and other relevant topics. Like every time this newsletter is packed with all the important news and news-bits from the transportation and logistics sector. The post on Cargo Theft Tactics and How to Prevent Them will definitely make for a very engaging read.
If you want to feature your company’s latest news in our upcoming newsletter then kindly send us an email with a few lines about your recent undertakings.
This brochure comes with information and photos from Globalia’s Second Virtual Meeting in October
We are excited to tell you that you can now download the post-conference brochure from Globalia’s 2nd Virtual Meeting on our website. Inside the brochure, you will find all the members who attended the meeting. We have also included an introduction from our President Antonio Torres and opinions from attendees. Moreover, inside the brochure, you will find a summary of all the events from the meeting.
Since our meeting two weeks ago, we have received positive feedback about the event and how it helped delegates foster their relationships within the network and discuss new business. Globalia’s team has put together this Post-Conference Brochure as a permanent souvenir of the event and we hope you enjoy.
We are very happy with the Virtual Meeting’s success and look forward to our next conference. We look forward to seeing everyone at our next physical Annual Meeting, whose dates and location are still to be determined.
Globalia’s 2nd Virtual Meeting held on the 14th and 15th of November was a perfect opportunity for network members to assemble virtually and carry on with their business talks
Six major webzines of the transportation and logistics sector cover the news of Globalia Logistics Network’s 2nd Virtual Meeting. The online conference ensured that the delegates get to network and collaborate without leaving the safety of their homes. During the two days of the meeting, Globalia hosted 1150 one-to-one video conferences among network members. The one-to-one meetings among freight forwarders allowed them to consolidate their partnerships and work on more concerted projects with their network partners. In other words, the meeting helped to achieve the fundamental goal of the network viz. the business expansion of the member companies.
The news of the event was covered by AJOT, and Logistics Business, Actualidad Maritima y Portuaria, DC Velocity and Cargo Breaking News.
AJOT aka American Journal of Transportation is a leading online journal of the logistics sector. It covers the latest news and insights from the freight forwarding industry.
Logistics Business is an UK based online supply chain journal. It is a comprehensive database of all the important news and reports from the transportation and logistics sector.
Actualidad Maritima y Portuaria is a Spain based web journal that has been publishing supply chain news since 2009. They are an initiative of the students and professors of the International Maritime Business School.
DC Velocity is a leading multi-media magazine serving the specific informational needs of professionals in the logistics sector. This US based logistics magazine offers comprehensive coverage of the supply chain industry.
Cargo Breaking News is India’s No. 1 platform for cargo, multimodal logistics, warehousing, and all other sub-sectors in the supply chain industry. Furthermore, this magazine includes several sections like news, opinions and interviews from the freight forwarding sector.
Jioforme is a news portal dedicated to several topics like business, health, sports, and technology. With a vast network of strategically located correspondents all over the world, they publish a wide selection of breaking news stories.
The press release published in the above six websites talks in-depth about the successful outcome of Globalia’s 2nd Virtual Meeting. They mention how during the present travel restrictions, the network members were able to conduct their business discussion online. Additionally, the reports also touch on the FreightViewer workshops that acquainted the delegates with the newest updates of Globalia’s cutting edge rate management system.
Make sure to click on the above links and check out their coverage of our online conference!
The cloud conference on 14th and 15th October afforded the delegates a perfect opportunity to network with their logistics partners and attend the online FreightViewer workshops
Globalia concludes its 2nd Virtual Meeting successfully, that expedited networking among the members and reunited them virtually. After the great reception of their 1st Online Conference, the Globalia’s team worked hard to surpass the previous meeting experience. The Virtual Meeting enabled the members to assemble on one platform and consolidate relationships with their network partners.
Members participated in more than 1150 one-to-one video conferences during the two days of the event. Furthermore, the professional and user-friendly meeting platform created by Globalia made for a seamless conferencing experience. It organized all the video conferences automatically according to the agenda and time zone of the delegates.
“It has been wonderful experience, thanks to the Globalia team, who made it possible,” says our Globalia Member in Karachi, Pakistan.
The primary goal of the conference was to encourage a perfect working partnership between the network members. The meeting majorly contributed to expanding the scope and opportunities of the member companies. Moreover, Globalia’s team was always present to help members with every step of the meeting process.
“Globalia Logistics Network’s Virtual Meeting is a great platform where to improve your work and increase your business activities,” declares our Globalia member in Jeddah, Saudi Arabia.
Additionally, this year, the delegates also had the chance to touch base with their network partners during the coffee breaks. They had the choice to access a room with up to 5 random participants and engage in informal discussions. This allowed to promote a sense of trust and bonding within the network. This is expected to strengthen the partnerships and have a positive impact on the number of concerted projects.
The event started with a Welcome Speech from Antonio Torres, the President and Founder of Globalia Logistics Network. Next, the members started with the one-to-one business discussions. Additionally, members also took part in the FreightViewer workshops. Andrea Martin, Globalia’s FreightViewer Coordinator, explained the new features added to the software.
According to Antonio Torres, “This year we once again organized a cloud conference keeping in mind the safety concerns of our members. Our virtual meeting yielded a remarkable outcome for the second time. All in all, it had been a wonderful and highly productive experience. It gave our members a chance to expand their operations in a time when the shipping industry is facing an unprecedented crisis. The meeting allowed the delegates to set the stage for new collaborative projects that forms the basis of our network. I am confident we will be able to conduct an in-person meeting next year when we leave the pandemic behind us.”
Globalia member in Porto Alegre, Brazil, explains to us the tendencies and challenges of the sea freight industry and how they are dealing with them
The last one and half years have been a rather tumultuous one for the international sea freight shipping industry. The lockdown and the pandemic-related restrictions had severe repercussions on international trade. Moreover, the container shipping industry is also having to contend with the problems of port congestion and container shortage. In spite of all the challenges, the sea freight forwarders are continuing to move goods across the world offering logistical solutions to keep international trade afloat during these difficult times.
Instability of ocean freight rates
It can be said without a doubt that the container crisis has led to the soaring sea freight rates. Added to this, other issues like limited air freight capacity, overuse of split shipments, changes in shopping trends, and the shortage of equipment also hiked up the shipping costs. As stated by Mr. Fernando Meyrer from the Shipping Department of Clemar Logistics, Globalia member in Porto Alegre, “The values of the freights have increased a lot, and it impacts the entire Brazilian market. If we talk about imports, the rising freight rates also affect the duties and taxes. This means that, besides the international freight, the importers also pay more duties and taxes here in Brazil.”
To cope with this situation Clemar Logistics has been focusing on advance planning of their shipments. “As a company with over 20 years of experience in sea freight shipping, we fully understand how planning can help us serve the interests of our clients. We have a very close relationship with our clients. We make sure to treat our customers’ shipments with priority. For this reason, we plan the shipments beforehand and manage to avoid the delays and surcharges,” adds Mr. Meyrer.
The problem of container shortage
The global container shortage is yet another constant trend in the sea freight shipping industry since 2020. Additionally, the congestion in several ports around the world has resulted in backlogs, delays, and blank sailings. This in turn has further complicated the container shortage problem. Several ports are still trying to deal with the backlog of containers and the situation isn’t likely to improve till the end of this year. Presently, container manufacturers are racing to produce sufficient supplies of boxes to cope with the demand for containers.
Mr. Meyrer explains that “It’s very hard to find containers and all vessels are overbooked. For export cargoes, basically, you have to keep in mind that you will only get a booking for a shipment with a date of departure approximately one month after the request. This is probably one of the most difficult aspects of my job. However, we are managing to cope with this problem by informing our clients about all the steps while optimizing time and resources. Our team works constantly and coordinates with all the parties to successfully execute our customers’ projects.”
Increased dependence on technology
Instead of relying on paperwork, the sea freight industry is now embracing digitization. The Covid-19 induced complications have pushed the ocean freight forwarders to make use of new online platforms. More and more companies in this sector are now increasingly dependent on a host of software that helps with freight booking, quotation generation, spot booking, shipment tracking, and more. All the multinationals like Maersk, CMA CGM, Hapag Lloyd, etc are using artificial intelligence to better serve their customers.
Small companies are also using AI-based platforms to keep up with the competition and make more informed decisions in this volatile situation. Clemar Logistics for example has digitized its manual processes to automate their processes and minimize human errors. “The most important benefit of digitization in this sector is that it is allowing us to offer more flexible services for our clients,” says Mr. Meyrer.
A rise in the use of cargo insurance
Having cargo insurance greatly helps to cover all sorts of risks related to the damage or loss of a shipment. They protect the importers/exporters from substantial financial losses. For example, they will be protected in case of untoward incidents like an accident, natural disaster, piracy, or customs rejection. According to Mr. Meyrer, “The price you pay for the insurance is not even close to the loss you may incur if your cargo is damaged. Therefore, we always suggest our clients to get international insurance on their cargoes.”
Now that we are going through one of the most difficult times for the international shipping industry, the relevance of competent freight companies has become abundantly clear. “Experience, industry knowledge, and the right contacts are some of the most important factors that are allowing us to attract new clients and provide the best logistical solutions. Honestly, I just hope that in the future the prices will stabilize, empty containers will be found easily and the shipping lines will be more committed to sticking to their schedule,” concludes Mr. Meyrer.
We wish Clemar Logistics the very best for their future endeavours!