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Logistics News Briefing
July 2019
Topics
Top Stories
Digital Logistics
Perishables & Pharma
Infrastructures
Regulation & Procedures
Express & eCommerce
Maritime & Waterways
Green Logistics

Digital transformation and software-driven process changes are two trends impacting logistics and supply chains, as this month’s stories highlight, prompting the Cluster for Logistics Luxembourg to launch a C4L Digital workgroup for members in September to assess their digital needs and expectations. We recommend that service providers focus on shorter-term software-driven transformation, while shippers address mid-term (around five years) machine-driven changes and Industry 4.0 evolution in supply chain management. Leading firms across the logistics value chain are expected to prioritise operational efficiency with investment in technology adoption. With uncertainty clouding the industry and economic outlook for 2019 and beyond, planning for resilience – our October logistics conference theme – makes business sense.

Top Stories

Cluster for Logistics seeks pitches for mobility and logistics matchmaking event

Luxembourg's Cluster for Logistics has issued a call for pitches for the third Mobility & Logistics Start-ups matchmaking event scheduled for September 24. The event, which is organised by Luxembourg's Ministry of Mobility and Public Works, the Cluster for Logistics and CorpPearls, and sponsored by EY, will take place at the consultancy firm's new offices in Luxembourg City.

Best source: Cluster for Logistics
WDP Luxembourg plans €90m expansion at Eurohub Sud logistics centre

WDP Luxembourg, which is 45% owned by the Luxembourg state, is planning to add two more buildings to its facilities at the Eurohub Sud logistics centre in Bettembourg, at a cost of €90m. The company has already let 20,000 of the 25,000 square metres of available space in the third building, which will be completed by the end of the year. The fourth building, also offering 25,000 square metres, is scheduled to be completed at the end of next year or early 2021. WDP Luxembourg will provide 40% of the funding while the remainder will be financed by Luxembourg banks.

Best source: Paperjam (in French)
European road freight volume up 2.9% in 2018

The European road freight market saw volume growth of 2.9% in 2018, down from 3.3% the previous year, according to Transport Intelligence’s European Road Freight Transport 2019 report. The firm says leading European economies struggled, with Germany flirting with recession, Italy suffering from increasing public debt, and Brexit uncertainty continuing to dampen investment in the UK.

Best source: Global Cold Chain News
Digital Logistics
Bosch allies with K+N for secure truck parking

Bosch is partnering with Kuehne + Nagel to deploy its Secure Truck Parking platform at K+N sites at Contern in Luxembourg and Geel in Belgium. The service provides app-based booking at secure locations to enable drivers to plan routes and rest periods, and to pay parking fees online.

Best source: Eurotransport (in German)
Maritime industry joins CargoSmart digital transformation initiative

Shipment management firm CargoSmart has signed agreements with CMA CGM, Cosco Shipping Lines, Cosco Shipping Ports, Hapag-Lloyd, Hutchison Ports, OOCL, Port of Qingdao, PSA International and Shanghai International Port Group to form the not-for-profit Global Shipping Business Network, an initiative to boost digital transformation in the shipping industry. The venture is intended to act as a platform to enable shipping supply chain participants to collaborate on technological innovation and develop solutions through a secure data exchange facility.

Best source: Globe Newswire
TradeLens blockchain platform extends coverage of global container cargo

Hapag-Lloyd and Ocean Network Express have joined the IBM-Maersk TradeLens blockchain platform launched in early 2018. Both CMA CGM and Mediterranean Shipping Company announced recently that they are joining TradeLens, and the new additions mean the platform now extends to over half of global container cargo.

Best source: TradeLens
Maersk rolls out online booking service

Maersk has launched the Maersk Spot online booking service to offer customers a guaranteed fixed-price slot aboard a specific sailing. Maersk says the offering, currently available worldwide except for shipments into and out of the US, involves just five online steps, compared to as many as 13 for the offline process.

Best source: The Loadstar
Forwardis launches digital transformation with Ramco service

SNCF-owned Forwardis is deploying Ramco’s cloud-based Logistics Suite solution across its operations. The service will link all stages of the logistics chain to support transportation and hub management, fleet and asset management, plus rating and billing, on a single platform.

Best source: Ramco
Digital twins can boost logistics operations: DHL report

Digital twin technology – the use of a virtual representation of a physical entity – could significantly improve logistics operations, according to Digital Twins in Logistics, a report by DHL. The authors say digital twins can be used throughout the entire value chain, including container fleet management, shipment monitoring and logistics systems design. However, the report cautions that implementation is a complex and challenging task, requiring close collaboration between all logistics providers.

Best source: FleetOwner
Perishables & Pharma

Swissport constructs new pharma facility in Brussels

Swissport is building a new pharma hub at Brussels Airport, increasing its dedicated pharmaceutical products and ambient pharma area from 800 to 2,620 square metres, and adding a 1,000-square-metre cooling facility. The Swissport Pharma Center is part of a new air cargo facility at the airport comprising a 25,000-square-metre warehouse, material handling system and office space.

Best source: Aircargo News
Infrastructures
Corestate enters French market with STAM Europe acquisition

Luxembourg-headquartered real estate investment management company Corestate Capital has entered the French market with the €2bn acquisition of competitor STAM Europe. Corestate, which says the move is part of its European growth strategy, has around €26bn in assets under management.

Best source: Investment & Pensions Europe Real Assets
Prologis issues another €450m bond for European logistics fund

Prologis has raised €450m for its Prologis European Logistics Fund via a green bond issue and plans to use the proceeds for green building certification, water-saving initiatives and renewable energy projects. Prologis had already issued two green bonds for the fund, each worth €300m, in 2018.

Best source: Investment & Pensions Europe Real Assets
Regulation & Procedures

UK appoints logistics experts to Brexit advisory groups

The UK government has appointed Peter MacSwiney, chairman of clearance software provider ASM, and Seamus Leheny, policy manager for Northern Ireland at logistics group FTA, to advise on Northern Ireland backstop solutions when the UK leaves the EU. MacSwiney joins a new technical alternative arrangements advisory group, while Leheny becomes a member of the business and trade union alternative arrangements advisory group.

Best source: Air Cargo News
Asia-Europe air cargo rates unchanged in year to June

June air cargo rates for Asia-Europe trade failed to record a year-on-year increase for the first time in 28 months, according to data provider Tac Index, with the Hong Kong-Europe price of $3.46 per kilo unchanged from June 2018. The Frankfurt-North America trade lane saw a 16.5% year-on-year decline from a year earlier.

Best source: Air Cargo News
European air freight demand dips slightly in May

European carriers saw a 0.2% year-on-year decline in air freight demand in May, following a 6.9% contraction in April, according to IATA. The sector was impacted by a weaker environment for manufacturing exporters in Germany, indications of a slowing regional economy, and ongoing uncertainty over Brexit.

Best source: IATA
Express & eCommerce
Cargolux adds third weekly flight to Xiamen

Cargolux has added a third weekly service to Xiamen in response, the airline says, to growing customer demand. The outward flight departs Luxembourg on Mondays at 8:10 am, arriving at Xiamen at 4:40 am the following day, with the return leaving Xiamen at 6:15 am and stopping at Los Angeles before arriving back in Luxembourg at 6:15 am. The freight carrier has been running a twice-weekly service to the Chinese city since 2006, with flights leaving Luxembourg on Wednesdays and Fridays. Cargolux says the additional frequency provides the only direct freighter connection between Xiamen and the US, with the flight to Los Angeles earmarked for clothing and electronic goods exports.

Best source: Cargolux
Cargolux adds weekly Jakarta service to Asia-Pacific network

Cargolux has added Jakarta to an Asia-Pacific network that now encompasses 16 destinations, connecting Luxembourg to the Indonesian capital once a week. The service, which leaves the grand duchy on Sundays, continues on to Hong Kong and Ashgabat, the capital of Turkmenistan, before returning to Luxembourg. Cargolux is currently the only freight carrier to offer a direct main deck connection between Europe and Indonesia.

Best source: Luxembourg Chronicle
Cargolux flies artworks from US to Art Basel fair

Cargolux transported 230 tonnes of artworks from the US to Switzerland for the Art Basel 2019 fair in June. The air freight company carried 104 pallets on eight flights, three originating in Los Angeles and five in New York.

Best source: Air Cargo News
Zalando to build Dutch fulfilment centre

German e-commerce company Zalando will shortly commence construction of its first Dutch fulfilment centre at Bleiswijk, near Rotterdam, to serve customers in the Benelux countries, France, Spain and the UK. Zalando is planning to invest €200m in intralogistics at the new facility, which will have the highest level of automation anywhere in the company’s network. Its target is to more than double revenues in the Benelux markets over the next five years.

Best source: Parcel & Postal Technology International
E-commerce to transform logistics sector strategies: DHL

The rapidly evolving e-commerce sector will oblige more than half of all logistics businesses to change their distribution strategies, according to The E-Commerce Supply Chain: Overcoming Growing Pains, a report by DHL. The authors say a majority of logistics companies have failed fully to implement an e-commerce strategy, even though 70% of the firms surveyed rate e-commerce of high importance.

Best source: Air Cargo World
German parcel market worth €20.4bn in 2018

Revenues for the German messenger, express and parcel sector totalled €20.4bn in 2018, up 5.2% on the previous year, while total shipments grew by 4.9% to 3.5 billion, according to the country's Federal Parcel & Express Logistics Association. The average price per shipment remained at €5.80, despite increases from a number of providers.

Best source: Verkehrsrundschau (in German)
Maritime & Waterways

Port of Antwerp freight volume up 0.7% in first half of 2019

Total freight volume at the Port of Antwerp was up 0.7% year on year in the first six months of 2019, as continued growth in containers and dry bulk volume more than compensated for declines in sectors including liquid bulk and breakbulk. Container traffic peaked in April and May, largely due to increased transhipment to and from all regions except South America.

Best source: Port of Antwerp
Rotterdam accepts first blockchain-backed container delivery

The Port of Rotterdam has taken delivery of the first paperless, instantly financed and constantly tracked container using Samsung’s Deliver blockchain platform. Samsung says the proof of concept demonstrated that Deliver is able to support cross-supply chain, end-to-end visibility for multimodal cargo transport through ocean carrier, truck and inland shipping.

Best source: Ship Technology
Rotterdam sees first simultaneous operations LNG bunkering

CMA CGM-owned Containerships has successfully conducted its first simultaneous operations liquefied natural gas bunkering together with Shell at the Port of Rotterdam. Simultaneous operations enable goods to be loaded and unloaded at the same time as LNG bunkering, reducing the vessel’s time in port.

Best source: Ship Technology
Green Logistics
Proposed Dutch freight levy criticised by Air Cargo Netherlands

Air Cargo Netherlands has criticised Dutch government proposals to impose an air cargo tax that would see aircraft with the highest noise levels taxed at €3.85 per tonne of cargo and those with the lowest at €1.925, although the government has also said the tax would be based on the weight of an aircraft. The industry association argues that there is no direct link between the proposed measure and reducing pollution. The Dutch government says the levy will not be introduced if there is agreement at EU level on an aviation tax.

Best source: The Loadstar
Chinese transport sector key to climate change challenge: report

Chinese transport sector developments will have a global impact and prove crucial to efforts to combat climate change, according to Mobility Developments in 21st Century China: Snapshots, Dynamics & Future Perspectives, a report by Germany's Federal Ministry for Economic Cooperation and Development. The country has the world’s largest car market and high-speed rail network, is the second-largest civil aviation market, and home to seven of the 10 largest container ports.

Best source: Sustainable Transport
Noah’s Train adds containers in Luxembourg to promote rail freight

Cargo containers painted by Luxembourg artists Daniel Mac Lloyd and Alain Welter have been added to 'Noah's Train' after the travelling exhibition passed through the grand duchy in July to highlight rail freight as an environment-friendly alternative to road transport. Created by the association Rail Freight Forward, whose 18 members include Luxembourg's national railway operator CFL, the project is part of efforts that have targeted doubling rail cargo volumes in Europe from 18% to 30% by 2030, eliminating 290 million tonnes of transport-related carbon emissions.

Best source: FreightWeek
See also: RTL






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