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London leads way in making greener logistics a reality

Welcome to our Logistics feature. People in the business have been saying to us for years that running logistics operations in London is uniquely complex, with the high population density and slow moving traffic. But at the same time everyone wants their logistics operations to be cleaner and greener, and the Ultra Low Emission Zone (ULEZ), which comes into effect in London next April, could be just the catalyst (pun intended) to bring that about.

In the article opposite Graham Nagus, head of LCV at Renault Truck, goes along with the idea that electromobility is the future, but says that if we are to increase adoption rates of electric vehicles in the UK and meet the government’s ‘Road to Zero’ targets, we need a strategic roadmap that clarifies the key issues of urban planning, establishing a national charging infrastructure and investing in our power networks.

With three tiers of regulation coming in from the EU, Government and now the new city mayors, Graham argues that gaining a uniformed approach across the whole of the UK and Ireland is a huge challenge and there’s a long way to go.

With only limited charging points for electric vehicles currently in place in London, there’s a lot of work to be done between now and 25 October 2021 when the ULEZ area expands to take in the Inner London area bounded by the North and South Circular Roads. But with 44 cities in the UK having air pollution levels that exceed World Health Organisation guidelines, logistics businesses serving London will be able to take their valuable learnings to their colleagues in the rest of the UK.

As we report in these pages, at the 2018 IAA Commercial Vehicles show held in Hannover in September, Thermo King and Frigoblock introduced a series of truck and trailer innovations harnessing the power of electricity, data and clean technology and presented their vision of a city of the future – Thermotopia.

To quote Pauli Johannesen, vice president and general manager for Truck, Trailer and Bus at Thermo King EMEA, “Thermotopia is a city where the transport refrigeration industry ensures the safety of transported foods and goods for rising populations while eliminating smog, congestion and excessive noise. Thermotopia is where technologies help transport companies stay ahead of the regulations and grow their businesses with increasingly cost effective and environmentally sustainable solutions.”

Echoing the Thermopia vision, the clean city of the future is already coming closer here in the UK, backed by a group of some of our biggest national enterprises. In September Tesco, Network Rail, ENGIE and Anglian Water joined a coalition with plans to replace 18,000 diesel vans with electric models by 2028. This group, including some of the UK’s largest fleet operators formally launched the Clean Van Commitment, ahead of the government’s hosting of the inaugural international Zero Emission Vehicle Summit in Birmingham. We look forward to reporting on developments.

JAMES SURRIDGE

Publishing Editor

james@warehousenews.co.uk

Snapfulfil chosen to keep up with Johnstons

Johnston Logistics UK has selected Snapfulfil warehouse management system (WMS) to help deliver its next stage of growth.

The warehousing, logistics and fulfilment specialists, who handle over 400,000 pallets every year, have chosen the powerful Britishdeveloped software to help keep them ahead of the pack.

“Our clients need to know their materials, goods and customer orders are always in the right place at the right time” said Rob McIndoe, Director of Johnston Logistics. “Keen to innovate, we needed a system which would easily integrate with clients and deliver real-time tracking. Snapfulfil was the clear choice.”

Snapfulfil is a flexible cloud-based WMS which is quick and simple to install. Users pay no upfront fees and all the necessary hardware, software, training and updates are included in a single monthly subscription.

Johnston Logistics UK provides logistics for businesses ranging from leading supermarkets to ambitious start-ups. From its BRC AA grade facility in Snetterton, Norfolk, it handles over 1,000,000 transactions each year for businesses in sectors including alcohol, clothing and manufacturing.

The company conducted a thorough review of options before selecting Snapfulfil, based on its ease of implementation, high level functionality and value for money.

Marcel Larose, Johnston Logistics UK’s IT Manager, said: “Working with household names and independent businesses alike, we needed a system that would further improve our efficiency and satisfy all our clients. It was great to find a solution right here in the UK, delivering exactly what we needed.”

Working closely with Johnston Logistics UK, Snapfulfil engineers were able to get the new system up and running in just a matter of weeks. Since implementation, Johnston Logistics UK has already been able to make cost savings, including reducing re-programming costs.

SNAPFULFIL

www.snapfulfil.com

Manheim Logistics Solutions moves to larger Phoenix facility – DC Velocity

October 30, 2018

Location houses logistics provider’s Ready Logistics and Central Dispatch Operations, company says.

By DC Velocity Staff

Manheim Logistics Solutions, a non-asset transportation provider, has moved to a larger, upgraded facility in Phoenix, the company said this week.

The 51,000 square-foot facility houses Manheim’s Ready Logistics and Central Dispatch operations, which serve the vehicle transportation market. Ready Logistics is a full-service solution that moves vehicles through a network of more than 6,500 carriers; Central Dispatch is a self-service solution that connects shippers and carriers, the company said.

Manheim Logistics Solutions said it has invested $2.7 million in the facility, in a move to support the expanding logistics market in the Phoenix area. The move to the larger facility follows an earlier investment the company made in its technology platforms, which helped Ready Logistics and Central Dispatch, combined, transport nearly 10 million vehicles last year, the company said.

Based in Atlanta and with a logistics office in Phoenix, Manheim Logistics Solutions is Cox Automotive company.


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From strength to strength Palletforce Euro volumes up 45%: Eddie Stobart buys TPN: Pallet-Track on a roll

It was Britain’s haulage and logistics companies who first developed the concept of pallet networks. Since then they have shown the way forward in terms of operational efficiency and cost savings and the pallet network model, with regional members delivering and collecting from hubs, now operates across the world.

The major networks continue to gain ground. Palletforce has reported a 45% increase in European volumes and extended its European coverage from eight to 24 countries, with volumes in Spain and Italy doubled in the last 12 months. And after reducing their rates in Germany, they now expect high growth there too.

The UK pallet networks raised their profile in the wider business community recently when Eddie Stobart bought The Pallet Network (TPN). The recent deal enhances Eddie Stobart’s capabilities, including smaller load deliveries, and will benefit both businesses and TPN’s members, cross-selling their services to existing Eddie Stobart customers and deploying Eddie Stobart’s operating model in Europe.

Meanwhile TPN and its member companies have been rising to the challenge posed by the skills shortage and attracting younger people into the industry, among them 32 year old pharmacy assistant Emma Wilson, who, as reported recently changed career to became an LGV driver with TPN member Jays Logistics.

Another leading pallet network, Pallet-Track have had a winning year, winning two prizes at the Midlands Business Awards, being listed in the London Stock Exchange’s ‘1000 Companies to Inspire Europe’ and taking the Growth Award at the 2018 Logistics Awards. The 14-year-old company also picked up the Delivery and Logistics Company of the Year and the Operational Excellence awards at the UK Business Awards, and appeared in the UK’s top 20 fastest growing companies in the Sunday Times Virgin Fast Track 100.

Pallet-Track’s members are winning too. The latest joiner is Carlisle-based J. Dickinson Transport, started 23 years ago by former carpet fitter Jimmy Dickinson with just one van and now running 20 vehicles. And Alan Firmin, one of Kent and the southeast’s most respected haulage companies, has reported significant improvements in service levels and communication since joining the Pallet-Track network in December 2017.

Embracing technology is a popular route for the pallet networks to boost their businesses. UPN is establishing a market leader “IQ” in the pallet network sector through its IT and service quality, with live signature capture on both IOS and Android platforms. The increased service capability is attracting new members, including Swanseabased A.T. Morgan and Son, run by MD Helen Morgan, and, following its recent FORS Silver accreditation, Chingford based LHT Logistics.

In other network news A Davies Transport has re-joined Pall-Ex, covering Wakefield. They first joined Pall-Ex in 2009 then left in 2017 for Palletforce. Elddis Transport has joined Palletforce after a 17-year break from pallet networks. Based in County Durham, Elddis runs 160 vehicles from nine hubs. Elddis joins Murray Hogg, a founder Pall-Ex member and a Palletforce member since May.

And finally, training the next generation of pallet network leaders is crucial. Palletways member Walkers Transport, a leading UK transport and thirdparty logistics specialist with operations in Manchester and Leeds, has rolled out a new management training programme, following Walkers’ MBO in October 2017.

XPO Logistics rolls out upgrades to XPO Connect digital freight marketplace

Global freight transportation and logistics services provider XPO Logistics announced today it has made upgrades to its XPO Connect, its cloud-based digital freight marketplace, and Drive XPO mobile app, which interfaces with XPO Connect.

XPO Connect was introduced this past April. It provides shippers with what it calls a single point of entry for visibility across various transportation modes in real time, which, in turn, helps shippers identify both time- and cost-saving opportunities. And it also noted that XPO Connect enables shippers to gain access to usable business intelligence that can be leveraged to more efficiently purchase transportation in various ways.

As for the new changes to XPO Connect and the Drive XPO mobile app, XPO said the offerings have been expanded to add counteroffers to the online experience, with the new functionality able to generate digital counteroffers to carrier bids that are not accepted and based on real-time market conditions. And when a carrier agrees to a counteroffer, XPO said the freight is immediately visible in a truck driver’s assigned loads.

“We’re giving carriers more opportunities to serve our customers,” said Troy Cooper, president of XPO Logistics, in a statement. “Now, if a bid is above market pricing, the carrier gets a second chance at the load through the counteroffer feature in our Drive XPO app. This dynamic process takes place on our XPO Connect digital platform based on real-time supply and demand. Both shippers and carriers can benefit from XPO Connect’s market intelligence.”

An XPO spokesman told LM earlier this year that the company is investing more than $450 million in technology annually across its global organization to bring value to its customers, and to their customers, adding that XPO Connect joins a list of major advances the company has introduced to automate key supply chain services. 

“Shippers can use XPO Connect to purchase transportation more efficiently. They can see fluctuations in capacity, compare spot rates from carriers, assign loads and track their freight,” he said. “Carriers are using the same XPO Connect technology to locate loads by geography, bid on freight and reduce empty miles. There’s also an electronic proof of delivery feature.”

As for how XPO Connect works, the spokesman said it is a four-part process, which includes: logging in to view assigned loads and the current shipment status; viewing historic lane level freight spends; getting quotes for an order (if the contract rate is in the system, then no need for a quote and straight to order); and converting quotes to secure capacity.

And as multiple modes are added, the XPO spokesman said customers will have more choices to automatically secure the best fit capacity and mode. XPO Connect will initially begin with brokerage and expand across all modes from there, including intermodal and last mile, among others.  

UPS reports solid 3Q earnings results in advance of holiday swing – Supply Chain 24/7

Atlanta-based global transportation and logistics services provider UPS reported solid third quarter earnings results today.

Quarterly revenue was up 7.3% annually at $17.4 billion, while earnings per share at $1.82 were up 26% (topping Wall Street estimates of $1.81 per share), with net income up 16.6% at $1.508 billion.

UPS Chairman and CEO David Abney said these quarterly results showed positive and sustained momentum for the company.

“The U.S. domestic segment showed strong yield improvement as the initial impact of our disciplined pricing and improved customer mix lifted our performance,” he said on the company’s earnings call this morning. “We continue to incur near-term expenses for the expensive upgrade to our U.S. network, where we are opening a record amount of highly-automated capacity. Our international segment generated higher revenue, even on top of last year’s exceptional growth level. Margins remained at industry-leading levels, and we recorded out second highest ever Q3 operating profit ever, even with commodity headwinds and changing trade policy. Supply chain and freight units continued to deliver strong performance. These units benefitted from revenue diversification, focused growth strategies and…market share gains.”

Individual segment result for Q3:

  • U.S. domestic revenue increased 8.1% to $10.4 billion, with operating profit at $949 million, down from $1.011 billion a year ago. Average daily shipments were up 3.3% to 16.4 million, with Next Day Air up 3.7% at 1.526 million, Deferred was up 1.3% to 1.256 million, and Ground was up 3.4% to 13.624 million;
  • total U.S. domestic revenue per package was up 4.8% to $10.10, with Next Day Air up 3.3% to $19.72, Deferred up 5.2% to $13.47, and Ground up 5.1% to $8.71
  • International Package revenue headed up 3% to $3.478 billion. Domestic international package average revenue per piece was up 3.4% at $6.47, with export average piece per package revenue up 0.8% at $29.32; and total international daily package volume down 0.2% to 3.1 million shipments per day
  • Supply Chain and Freight revenue was up more than 12% annually at $3.5 billion, and LTL revenue was up 11.4% at $867 million, due to higher pricing and heavier shipments, and LTL revenue per hundredweight was up 5.1% at $25.70. Total quarterly shipments were up 0.5% at 2.603 million, and shipments per day at 41,300 were up 0.5%

In regards to the 2018 Peak Season UPS COO Jim Barber said on the call that the added capacity UPS has brought on through its extensive facility expansions and upgrades this year is a big boost to the company’s peak preparations.

“As in year’s past, we expect record demand between Black Friday and New Year’s Day,” he said. “We have developed our most comprehensive plan ever, and it is the product of a highly coordinated effort across operations, engineering, sales, and many other parts of the UPS organization. Our plan fully considers the unique needs of those customers, who, like UPS, flex their network right up to nearly double to take advantage of this important time of the year. At the same time we are clearly focused on our other customers who rely on UPS’s reliable service to ensure healthcare, critical inventory, urgent repair parts, or other important deliveries arrive on time.”

Barber said that during the holiday sales season in November and December, UPS expects to deliver around 800 million packages during this period, and UPS is preparing to deliver 30 million packages on 19 of 21 operating days during that span. UPS expects to deliver more than 37 million packages worldwide on its peak operating day.

“We have a comprehensive plan in place to collaborate with more customers, greatly expand network capacity through facilities and technology, coordinate daily volume schedules, and, of course, control the package characteristics in our network,” he said.

UPS has myriad key elements to execute on this plan, he explained, including:

  • collaborating on demand forecasts with customers who represent 80% of the volume surge and includes harmonizing the daily shipment needs of its peak customers by product and customer location;
  • UPS has completed a redesign of its network capacity, with its new peak alignment volume tools synchronizing volume demands from both origin and destination capacity, which helps to ensure network reliability for customers;
  • significant facility and technology investments to provide new capacity and network resources for Peak Season, opening 22 new or retrofit facilities globally with between 25%-35% higher efficiency than traditional buildings;
  • bringing online 400,000 pieces per hour of additional sort capacity before the holiday season, which Barber said greatly improves flexibility to manage peak demand;
  • added six 747-8s and three 767-300s to its fleets since last year, increasing its international capacity and cascading smaller aircraft to serve key U.S. routes

“UPS is doing a great job managing its business, but it may not elate Wall Street however,” said parcel expert Jerry Hempstead, president of Hempstead Consulting. “For example, at this time last year, UPS was awash with international business that it had taken away from TNT (now part of FedEx) because of a cyber attack that took the TNT systems down. Now ,Wall Street is looking at year over year and scratching its head wondering why 25% growth slowed to 3%. Well, UPS took what they would take from TNT and that is non-recurring. That said, everything domestic and international is growing in packages, and that’s’ the real measure of success in the parcel business. Revenue was up per shipment, particularly notable was the 5% increase in ground revenue per piece, which means two things, first pricing discipline by sales, and second, the rate increase in January and the increases in accessorial charges are sticking. That translates to [shippers] as ‘its going to be costing me more to ship.’”

Ryder rolls out last-mile expansion plans

Freight transportation and logistics services provider Ryder System Inc. recently announced it has expanded its Ryder Last Mile service.

Ryder describes this service as a home delivery and white glove installation offering for big and bulky goods in 11 North American markets.

Through this expansion, Ryder is upping the square footage at its last-mile fulfillment facilities in Toronto, Atlanta, Ga., and Lathrop, Calif., with the expansion also including partnerships in eight “strategically located U.S. cities. What’s more, Ryder said that the company’s e-fulfillment network is now comprised of 136 facilities that cover 95% of the U.S. and Canada within a two-day window. And the company also noted that this expansion augments Ryder’s standing at the second-largest last-mile provider of big and bulky goods, based on an independent audit by Simon-Kucher, a global consulting firm.

“In this “now” economy, consumer expectations are increasing which means our customers’ e-fulfillment needs are more demanding,” said Patrick Coughlin, vice president and general manager of Ryder Last Mile, in an interview. “That’s why Ryder Last Mile is constantly finding ways to get closer to the customer, allowing us to reduce delivery timeframes and position our customers to stay ahead of the curve.”

Coughlin added that this expansion of Ryder Last Mile puts its customers even closer to their customers, well positioning them to deliver on their promises.

And he also pointed out the biggest competitive advantages of this news from a Ryder perspective.

“With this latest expansion, Ryder Last Mile continues to strengthen its position to lead the charge in delivering a complete turnkey solution that not only includes last-mile delivery and white-glove installation, but also warehousing, distribution, and transportation management,” he said.

Local authorities not ready for growth in last mile logistics – Logistics Manager Magazine

Urban logistics facilities are expected to expand by 40 per cent over the next four years, but only a quarter of local authorities have policies to deal with the demand, according to a study by planning consultant Lichfields.

‘Going the last mile: Planning for last mile logistics’ found that 80 per cent of councils have logistics sector policies in place, but that fall to 27 per cent for last mile logistics.

Associate director Ross Lillico said: “The scale of anticipated growth means that it is vitally important that local authorities plan appropriately to meet the needs of the sector or risk overheating commercial property markets and crowding out more cost sensitive industrial occupiers in urban areas.”

Many councils say designated general employment sites, and a degree of policy flexibility, are sufficient to cater for the needs of last mile logistics operators, but the study found that the proportion of authorities who felt they were well positioned to cater for last mile logistics requirements – at 55 per cent – is currently below the proportion that have experienced growth in demand from the sector in recent years – at 65 per cent.

“It would appear that some authorities are currently attracting investment in last mile logistics despite, not because of, their approach to plan making,” said Lillico.

CMA CGM ups share stake in CEVA Logistics to 33% after rejected DSV bid

Container shipping line CMA CGM has raised its stake in CEVA Logistics from 24.99% to 33% of company shares following the failed takeover approach for CEVA by Danish logistics giant DSV.

CMA CGM, the world’s third largest container shipping group, has also announced an “additional economic exposure of 4.56%” in CEVA Logistics’ share capital.

The increased share purchase by CMA CGM came after the CEVA Logistics board rejected DSV bid of CHF27.75 per share in cash, which valued CEVA, quoted on the Swiss stock exchange, at around $1.5bn.

CMA CGM’s duty to not increase its holding above the current 24.99% of the share capital until 5 November, 2018 was amended to allow it to increase its holding up to one third of the voting rights with immediate effect.

In a statement today, CEVA Logistics stated: “The company [CEVA] and CMA CGM are deemed to be acting in concert due to the relationship agreement between the parties entered into in the context of the initial public offering (IPO).

“The company has further been informed that CMA CGM entered into a derivative transaction related to the shares of the Company with cash settlement (Total Return Swap) giving CMA CGM an additional economic exposure of 4.56% in CEVA Logistics’ share capital.

“A formal disclosure notice disclosing the combined shareholdings of the group is expected to be published simultaneously.

“The duty to launch a mandatory takeover offer is triggered only if a shareholder holds a position in shares of more than one third of the voting rights of a company.”

A statement by CEVA at the time of the unsolicited approach by DSV said that the proposal “significantly undervalues” CEVA’s prospects as a standalone company.

In response, DSV said: “The proposal would provide CEVA shareholders with an attractive premium of 50.7% to CEVA’s share price of CHF 18.42 as of 10 October 2018.”

DSV added that it has “long respected and followed CEVA’s business and believes combining the two companies would deliver significant value to all stakeholders (including shareholders, employees, customers and suppliers)”.

Read more  Freight Forwarder news

MSC, TRAXENS Pact for Smart Containers


October 15, 2018

The container shipping and logistics giant MSC Mediterranean Shipping Company is increasingly introducing smart container solutions for customers at many locations around the world, using IoT solutions developed by its partner TRAXENS.

MSC is committed to equipping 50,000 dry cargo containers in the coming months to meet the growing demand from shippers for TRAXENS solutions, said a press release from the company.

“MSC’s partnership with TRAXENS will enhance supply chain management for shippers through unprecedented visibility of dry cargo flow from door-to-door, adding efficiency, safety and predictability,” it said.

TRAXENS provides shippers with an Internet-connected device to permanently fix on dry cargo containers. This transforms the container into a smart, connected object which collects and communicates real-time data on its position and movements throughout its journey. Other factors which help to keep cargo secure include: temperature, humidity level, shocks and vibrations, door opening and closing.

Lack of real-time, end-to-end visibility is a major issue in today’s global supply chains and until today, no importers or exporters could say they had total visibility over the whole trip.

The use of digital technologies like smart containers will bring substantial gains in efficiency, service, security and safety along the entire supply chain. It will also help manage delays and other problems along the supply chain where historically chasing information has been time-consuming and expensive.

“MSC believes that the real-time tracking of containers is the future of the shipping industry,” said Diego Aponte, President and CEO of MSC Group. “While shipping lines should of course compete on service, we will achieve better results for our customers by working in a more harmonized way on technology and innovation. Smart containers are a perfect example of where we can cooperate according to industry standards to make our services truly comprehensive and TRAXENS is the top innovator in this area.”

In due course, TRAXENS solutions are also expected to facilitate easier and quicker pre-customs clearance for shippers.