FastFreight Review


January 16 – January 23, 2014

FastFreight is a weekly review summarizing the ten major events or stories of the past week in logistics and the supply chain. We know you’re busy so each post is under 400 words. Enjoy! Want to get this to your inbox? Be sure to sign up from the right sidebar!

Intersteller Supply Chain

The first space supply chain delivery took place last week when Cygnus, the first commercial cargo spacecraft, docked at the International Space station.

The Battle for Optimization

Analysts predict that logistics in 2014 will focus on efficiency and optimization, reducing empty miles, and selecting optimal routes, this is particularly true for trucking.

Inpatient, much?

Amazon patents process to anticipate online consumer purchases, reducing shipping timeline by shipping to distribution centers before orders come in.

Whole Lot of Containers

China Shipping Container Liners orders five 19,000 TEU container ships from Hyundai, replacing Maersk, if only for a while, as the future owner of the world’s largest ships.

Stay in (Supply Chain) School

The logistics sector in the US will create a million new jobs by 2016. Colleges are sprucing up their supply chain degrees to cope by cooperating with local industry leaders.

Overcapacity Not Going Anywhere

Air of caution in the global freight forwarding market as overcapacity continues. Almost 50 ships with 5,000 FEU capacity will be delivered next year so this problem won’t disappear.

Cost-Cutting the Containers

As a result of the overcapacity, Drewry believes that  ocean carrier pricing is no longer a byproduct of market fundamentals. Going forward, carriers will increasingly have to rely on cost-cutting, not bigger ships, in order to push profits into the black.

Choo Choo Choose Rail

On the flipside, revenue in the US train industry surged 19% over the last four years. Raising diesel prices, technology developments and improved speeds led the US Federal Railroad Administration to predict a 22% increase in tonnage by 2035.

All is not well in the land of trains

Despite the freight train successes, there have been four crude oil freight train accidents in only seven months. US federal regulators are investigating how to improve train safety. About 10% of all US oil is shipped to refineries in mile-long trains.

Battle of the Initials: P3 vs G6

While still not approved by regulators, the P3 (Maersk, MSC and CMA CGM) holds two key advantages over the members of the G6 (APL, Hapag-Lloyd, Hyundai, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Orient Overseas Container Line) – a younger and larger fleet. The average P3 ship is 12% larger than the average G6 ship.

Tune in next week for FastFreight!

Get this weekly update directly to your email! Sign up in the right sidebar!