Alphaliner Newsletter no 34

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ALPHALINER
Volume 2014 Issue 34
19.08.2014 to 25.08.2014
Weekly Newsletter
Web: www.alphaliner.com
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Alphaliner Weekly Newsletter is distributed every Monday. The newsletter is available upon subscription. Information is
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Chart of the week
Carrier affiliated logistics companies : Comparison of size and coverage
• Out
of the 20 main carriers, 16 are
linked to logistics and supply
chain management affiliates.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Carrier
APM-Maersk
MSC
CMA CGM
Evergreen
COSCON
Hapag-Lloyd
CSCL
Hanjin Shg
MOL
APL
Hamburg Süd
OOCL
NYK
Yang Ming
HMM
PIL
K Line
Zim
UASC
CSAV
Logistics affiliate
Damco
CMA CGM Logistics
Evergreen Logistics
COSCO Logistics
Hapag Logistics
CS Logistics
Hanjin Logistics
MOL Logistics
APL Logistics
Columbus Logistics Svcs
OOCL Logistics
Yusen Logistics
YES Logistics
Hyundai Logistics
PIL Logistics
K Line Logistics
-
INSIDE THIS ISSUE:
Carriers unbundle liner and logistics
services
1
Corporate Updates
3
Maersk outperforms, but Damco remains in the red
NOL plans divestment of logistics unit
Service Updates
5
CMA CGM, CSCL, OOCL & PIL team up
on NE Asia-ANZ
SITC in new Korea-China-IndonesiaVietnam service
Evergreen and MELL team up on
China-East Malaysia route
Wan Hai launches Malaysia-Belawan
service
Neptune Pacific Line acquires Polynesian Line
CSAV to join Hapag-Lloyd on EuropeME-ISC - leaves MSC
Delivery/New Order Updates
August deliveries
8
90
Presence in no. of countries
MSC, UASC, Zim and CSAV
do not have significant affiliated
logistics service offerings.
100
• Only
80
70
60
50
40
30
20
10
ALPHALINER
0
0
ALPHALINER
1,000
2,000
Revenue in US$ M
3,000
4,000
(2013 figures including estimates)
Carriers unbundle logistics affiliates
When Sea-Land, APL and Maersk started to provide cargo consolidation services in the 1970s, the carriers extended their intermodal capabilities beyond
the provision of end-to-end container transportation. This led to an increase in
demand for integrated supply chain management and third party logistics (3PL)
services, which grew significantly in the last two decades into major independent business units for these carriers, eventually becoming Damco (formerly
Maersk Logistics) and APL Logistics. Other carrier affiliated logistics companies,
such as Yusen Logistics and MOL Logistics, were formed initially to provide air
and ocean freight forwarding services, before moving into contract logistics.
In the last decade, carriers such as Maersk and APL sought to expand the supply chain management capabilities of their 3PL arms, to further differentiate
their ocean freight services and to increase their competitive advantage
through vertical integration with the bundling of logistics services with ocean
transportation. The logistics activities also provided a more stable source of
income than the volatile ocean freight market, whilst requiring much smaller
capital investments than the traditional liner shipping business.
However, the strategy appears to be unravelling, as Damco reported a third
consecutive quarter of operating losses last week, while APL Logistics could be
divested according to a statement by NOL, its parent company. Several other
carriers have also disposed of their logistics arms, including China COSCO
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