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Volume 2, Number 9, Monday, July 16, 2007

Breaking News

Port of Rotterdam Opens Major Rail Link to Germany

The Netherlands has opened a long anticipated rail line, which links the Port of Rotterdam (Europe's largest) with Germany. Although the rail line will help ease truck congestion around the port, many say Europe's neglect of its railways needs to change.

Nearly three-quarters of all freight shipped within the 25 member states of the EU moves via truck, while rail represents about 14 percent.

The European Commission set out to address this imbalance five years ago. The goal was to increase rail's share of the cargo transport mix to 25 percent by 2020. But five years later, the commission's efforts have delivered only modest results. Rail's share of the non-sea freight transport market has increased to about 16 percent in 2006 from around 14 percent in 2001.

Most agree that the new rail line from the Port of Rotterdam to Germany is a good, albeit expensive, start. But, there's much further to go.

To read more, click here.

 

EU Rolls Out New Supply Chain Security Program

As of July 1, shippers and freight forwarders in Europe can voluntarily participate in a new program designed to improve supply chain security.

The Authorised Economic Operator (AEO) program is aimed at EU-based organizations involved in foreign trade between the EU and other (third) countries.

At a recent conference, shippers were told how they could benefit from participation in the AEO program. For starters, they could receive 'priority treatment' for goods moving between the EU and other countries; commercial advantages from having the AEO 'quality mark' associated with their company; and even a slight reduction in the amount of data they would be required to report to customs.

 

Med Ports Emerge as Alternative to Congested No. European Ports

An increasing number of shipping lines are turning to Mediterranean ports as an alternative to seaports in northern Europe as a way to avoid congestion.

For example, the port of Marseilles in southern France announced last month that it would add two more container terminals to meet growing demand on Asia-Europe and east-west trade lanes.

Furthermore, a new container terminal at Morocco's Port of Tangiers, which opens this month, is expected to develop into a major transshipment hub.

In the Mediterranean region, the leading container port is Algeciras in Spain with a 2006 throughput of just over 3.2 million TEUs, followed by Gioia Tauro in Italy with about 2.9 million TEUs.

 

Eurotunnel to Cut Freight Rates

The executive chairman of the Eurotunnel, which connects the U.K. and France, told the Financial Times that a system of 'off-peak' rates will be introduced once government authorities give their approvals.

For the two decades that the Channel Tunnel has been in operation, freight operators have avoided using it due to the high charges imposed by Eurotunnel. Not that there is any shortage of freight. In fact, the English ports are at maximum capacity in many cases.

The leading rail freight company in the U.K., English Welsh & Scottish, has welcomed the move, issuing a statement saying, "An economic and affordable pricing regime for freight trains, set at a level the market can bear, will allow goods to be re-captured to freight trains."

In the meantime, Deutsche Bahn recently confirmed its plans to take over the entire shares of English Welsh & Scottish and with Deutsche Bahn's aim being an attempt to build a trans-European freight network, a viable Channel Tunnel for freight would be a huge boost to these ambitions.

For example, it might even raise the possibility of shipping containers being 'railed' into English customers from the Port of Rotterdam, bypassing the congested southern English container ports.

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Each day, the editors at World Trade peruse industry publications, Internet sites, and various trade resources to bring you the hottest news items relative to supply chain professionals.

 

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Strategies & Trends

Top Firms Using Technology to Reduce Landed Cost

Global trade solutions provider Management Dynamics says new research from the Aberdeen Group, entitled "Global Trade Management Strategies: Surviving Growing Complexities in 2007," reveals the importance of technology in reducing landed costs. Aberdeen surveyed more than 200 enterprises for the study, according to which:

  • Companies that currently have import or export compliance automation are 1.4 times more likely to have reported increased customs clearance speed over the past 2 years
  • Companies that currently use a global supply chain visibility platform are twice as likely to have reduced total landed costs, lead times and lead time variability from international locations over the past 2 years

The Aberdeen research analyst who authored the study noted that, “Technology plays a critical role in providing the much-needed visibility into international orders and shipments and facilitating the management of all aspects of global trade. Based on this studys findings, Best in Class companies have used a variety of technology enablers to support GTM (Global Trade Management)." She added that, "These enablers have helped to better plan, execute, and track transactions while keeping global supply chain risks at bay.

To read more, click here.

 

Mark Your Calendar

World Trade, NASSTRAC, AST&L, ISM and NITL present the seventh of 12 webinars in the 2007 Supply Chain Management University series:

 

Lean Six Sigma Logistics

 

Date and Time: July 25th, 2007 at 1:00 pm ET

Professor: Thomas J. Goldsby, Ph.D.

University: University of Kentucky

Sponsor: C.H. Robinson 

 

Course Objectives:

      Logistics, Lean, and Six Sigma form a natural union.  Logistics is about managing inventory.  Leanis about speed, flow, and the elimination of waste.  Six Sigma  is about understanding and reducing variation.  Therefore, Lean Six Sigma Logistics embodies the elimination of wastes through disciplined efforts to understand and reduce variation, while increasing speed and flow in the supply chain. 

      This session illustrates how Logistics Flow, Capability, and Discipline can form the essence of a successful logistics strategy that yields robust processes – processes that delight customers at the lowest possible costs.

Register today, and if you're busy that day, sign up anyway. You can play back the scheduled webcast any time you like. 

Missed a previous event? No Problem! The First 6 Webinars are Now Available On-Demand!  

Visit the archive section and choose from previously held events by leading U.S. Supply Chain Management Universities, at http://supplychainwebinar.worldtrademag.com.

 

BNP Media
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U.S.A.

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