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Month: June 2023

Retailers to Reduce Cost and Impact of Returns

Posted on by David Priestman

New global research from DHL Supply Chain among e-commerce decision makers in retail and consumer goods businesses reveals that the rise in returns is driving a major re-evaluation of policies and processes. Nearly half of the businesses surveyed are considering changes to returns handling processes to bring down the cost and environmental impact of returns.

Returns handling processes that aren’t designed for the current large volumes are a major source of the challenge. Retailers are struggling to effectively process and extract maximum value out of returned items leading to financial loss as well as environmental waste. According to the research, 17% of businesses are turning to disposal as their primary method for handling returned items that aren’t being restocked and sold.

With returns increasing on average 19% in the last two years, recent inflation is causing businesses concern and hastening the need for change.

A lack of integration between e-commerce and other channels is exacerbating the problem as it reduces the ways in which returned items can be restocked and resold. Designing product flows and cycles in the most efficient, and environmentally friendly way is key to tackling this challenge. DHL’s omnichannel returns handling capabilities bring together returns from all sources and its digital returns system enables colleagues to ‘grade’ items to determine the best way to handle the product, whether restocking at full price or discounted rate, repairing, reselling on a secondary marketplace or recycling. DHL then has the capabilities to fully manage the goods through each route, from specialist repairs to charitable donations.

While the financial burden of returns is being felt more acutely due to global economic instability, environmental concern remains one of the main drivers for change. A third of businesses stated they are already calculating the carbon emissions associated with returns and the same number plan to start doing so. What’s more, nearly nine out of ten retailers have plans or targets to reduce carbon emissions associated with returns.

As well as looking at returns handling, businesses are exploring the use of technology to drive down volume such as virtual fitting rooms. Meanwhile, many businesses are considering changes to their customer returns policies with a quarter of those surveyed exploring charges for returns not made in-store. However, these changes are being approached with caution due to concerns they could impact customers.

Nabil Malouli, Senior VP E-commerce & Returns Global, DHL Supply Chain, said: “We’ve reached a tipping point in returns both financially and environmentally, and retailers are right to examine their current returns processes and reverse supply chains. Our research shows that customer experience remains the number one priority for retailers but that doesn’t have to be sacrificed with dramatic changes to returns policies. Innovative ways to bring down overall volumes, combined more sophisticated returns handling capabilities allow retailers to offer faster refunds, quickly restock across multiple channels, repair for resale, and recycle responsibly. Enhancements like these have the potential to drive-up revenue and reduce waste, while also enhancing the overall customer experience.”

The full research findings can be found here. All figures are from an industry survey conducted by YouGov in March 2023 of 1,059 senior decision-makers in e-commerce retail across 5 markets: US, UK, Germany, Japan and Mexico.

Key findings:

• Over the last two years, returns have increased on average 19%
• 54% of businesses are concerned about the cost of returns
• 91% say inflation is driving re-evaluation of returns processes and policies
• 42% are considering changes to their customer returns policies
• 47% are considering changes to their returns handling processes
• 40% want to drive down the volume of returns being disposed of
• 29% currently calculate the carbon emissions associated with returns, 32% plan to start doing so
• 40% have plans to invest in any automation and robotics to improve e-commerce fulfilment and returns processes
• 57% are investing or plan to invest in technology initiatives to reduce returns volumes such as virtual fitting rooms
• 41% of businesses’ e-commerce returns are not integrated with non-e-commerce channels
• 23% are planning to introduce charges for returns not made in store
• 44% are considering plans to reduce the timeframe in which customers can return items
• 46% have concerns that changes to returns policy could impact customer loyalty
• 58% want to be able to offer faster refunds
• To reduce the financial impact of returns, the top priorities are (in order):
. Reducing the volume of returns
. Faster processing of returns
. Reducing the timeframe in which returns can be made
• 72% believe that giving consumers multiple returns options (drop off, collection etc) is positive for customer loyalty

London Light Freight Walking Trial

Posted on by David Priestman

Cross River Partnership (CRP), a non-profit and impartial partnership organisation, is excited to have launched the London Light Freight Walking Trial; UPS’s first walking freight trial on public land. This forms part of the Defra-funded Clean Air Logistics for London project.

CRP has been working with The Fitzrovia Partnership, London Borough of Camden, UPS and Heal’s to bring this trial to life, which officially began on Friday 5th May. The trial serves last-mile deliveries and will support the reduction of emissions and congestion in Fitzrovia.

Walking freight is a mode of logistics where foot-based porters play a key role in deliveries and collections. Overall kilometres travelled by light goods vehicles (LGVs) could be reduced by up to 0.4% across Greater London (i.e. one in every 250 kilometres) if walking freight was expanded to its full potential in the CAZ (Central Activities Zone). (CRP’s Walking Freight Feasibility Study, May 2022).

The economic benefits of walking freight are estimated to be at least £37 million per year, due to decongestion, decarbonisation, improved air quality, minimise noise pollution and reduced road wear.

According to Defra’s Emission Factors Toolkit (EFT), we estimate that expanding walking freight could reduce London’s carbon emissions by 4.7 kilo-tonnes per year. UPS is conducting the e-walker trial in Fitzrovia daily, delivering packages to local residents and businesses on foot utilising an electric-assisted trolley developed by Fernhay. This trial runs until September 2024.

CRP is unlocking potential and transforming space across the logistics sector in London, to deliver solutions that make London fairer, greener and safer. The London Light Freight Walking Trial supports CRP’s vision to make London a better place to live, work and visit. CRP will be monitoring the impacts of the trial with UPS’s data from the pilot. We want to prove walking freight as a model and encourage more logistics operators to look into walking freight feasibility.

A Camden Council spokesperson said “This innovative trial with e-walker trolleys is a further example of how the council is embracing new technology and approaches to reduce motor vehicle traffic and the related air pollution, in line with its transport policies. The e-walkers allow for the prompt delivery of packages to the residents and businesses of Fitzrovia without the associated increase in traffic in this busy area of the borough.”

Mick Atkinson, Head of Environment and Place, The Fitzrovia Partnership, said “We’re delighted that Fitzrovia is being used as a trial for UPS’s first walking freight trial on public land. The demand for next-day deliveries is now a part of life and programmes that reduce the environmental impact of the cost of doing business are fully supported by The Fitzrovia Partnership and its’ business community. This exciting initiative changes the nature of deliveries to minimise their impact on the environment by reducing congestion and emissions on Fitzrovia’s streets.”

Artur Drenk, International Sustainability Director, UPS, said “We are continuing to expand our alternative fuel fleet as we work towards reducing emissions per package. We are excited to introduce the electric-assisted walkers, developed by Fernhay, to the streets of Fitzrovia as part of our efforts to serve our customers in urban areas in a more sustainable way.”

Fiona Coull, Senior Programme Manager, Cross River Partnership, said “Walking freight has real potential to reduce congestion and improve air quality, particularly in central, high density locations such as Fitzrovia. We look forward to understanding the impacts of the trial, as it’s really important to explore these innovative logistics solutions and share any learnings gained.”

NHS Supply Chain: Bids for Logistics Services Provider

Posted on by David Priestman

NHS Supply Chain in the UK has formally commenced the procurement process for the management of its logistics services with a planned award date of late 2024. These services form part of its ongoing Target Operating Model (TOM) programme which aims to deliver improved efficiencies and greater value for the NHS. The contract for the current outsourced Logistics Services Provider expires in 2024.

NHS Supply Chain is seeking a single Logistics Services Provider to manage both core logistics services and Home Delivery Services (HDS).

Andrew New, chief executive officer of NHS Supply Chain said: “This is an exciting time of transformation for NHS Supply Chain as we align with the strategic priorities of the wider NHS and scale our operation to support this. Our requirements for logistics services reflect this growth and our change in approach. We have learnt lots from the pandemic and are looking for innovation from bidders with the ability to invest and partner with us to support our long-term vision and strategy of how we can do things differently. This includes increasing our organisational flexibility, capabilities and building more resilience into our supply chain, while limiting our environmental impact.”

The contract includes:
• Creating an integrated logistics network to serve the future needs of the NHS for medical devices, clinical consumables, facilities (including office solutions) and food
• Future development of a warehouse network which is currently made up of nine facilities strategically located across England
• The capability to provide national pandemic response logistics services such as storage and distribution of personal protective equipment (PPE)
• Implementation of a new warehouse management system (WMS), a significant IT programme of investment
• Provision of the Home Delivery Service and
• Building capability to provide an inbound international logistics service.
The Invitation to Tender (ITT), published on 29 June 2023, invites submissions from bidders interested in operating as the Logistics Services Provider on behalf of NHS Supply Chain to store and deliver products to the NHS.

Bidders then submit a completed Supplier Questionnaire (SQ) and if successful will be shortlisted to submit initial tenders.
NHS Supply Chain’s Logistics Service Provider contract will be for an initial period of seven years with a possible extension of up to 36 months.

NHS Supply Chain is part of the NHS family and manage the sourcing, delivery and supply of healthcare products, services and food for NHS trusts and healthcare organisations across England and Wales. It manages more than 8 million orders per year across 129,420 order points and 16,705 locations, delivers over 35 million lines of picked goods to the NHS annually and its systems consolidate orders from over 1100 suppliers. This enables us to bring value to our NHS partners, helping them save time and money in removing duplication of overlapping contracts. NHS Supply Chain aims to leverage the buying power of the NHS to drive savings and provide a standardised range of clinically assured, quality products at the best value.

TechCenter for Testing Unit Load Security

Posted on by David Priestman

Perfectly secured for transport; customers can now have their transport security systems thoroughly tested at Mosca’s new TechCenter. Starting on 28 June, load units can be subjected to sliding, tilting and vibration forces on different test stands. Using the data collected, customers can immediately optimise their load unit security and efficiently minimise material resources. At the same time, they can ensure compliance with legal restrictions in the event of an accident.

On long transport routes, load units and the systems used to hold them in place are subject to a wide variety of stress situations. Load security systems therefore need to be designed to withstand powerful forces from vibrations, impact from potholes or sudden acceleration and deceleration. Mosca opened its new TechCenter on 28 June to help freight companies ensure that their cargo can be safely transported without damage. The Mosca TechCenter uses four test benches to precisely simulate the different forces affecting load units. This enables customers to make sure their load security systems are ready to withstand the stress of transport.

Johannes Wieder, Sales Manager Logistics at Mosca, explains: “Our main objective is to pack and secure load units correctly and robustly in order to minimise damage and injury during transport. Companies need to be aware of their responsibilities when they transport goods. After all, they are liable for any damage caused by improper load unit security. Here at the TechCenter, we carry out testing in accordance with EUMOS 40509 and other key standards.” In the event of an accident, customers can use the detailed test reports from the TechCenter to prove that they have taken all the necessary precautions and thoroughly checked their load security systems.

Four test stations, one calculator and numerous optimisation options

The Mosca TechCenter uses several high-tech systems designed to simulate various load conditions. These include a tilt testing tool, a horizontal stability tester to measure acceleration and deceleration, an impact tester for measuring shock or crushing forces and a vertical vibration system. There is also a camera-supported evaluation unit that records and analyses deformations during stability testing. A data logger is used to record and compile the required data on shocks, vibrations and sudden acceleration during transport. This unit can also be loaned to customers to simulate load units on their specific transport routes. “The customised tests and extensive data collected enable our customers to analyse their transport routes in detail and precisely adapt their transport security systems accordingly,” Wieder explains.

An in-depth analysis of the material input is also conducted. “This often shows options to significantly reduce the primary packaging and save valuable resources,” Wieder says. “It also enables us to design packaging that minimises material input but still protects the goods from damage.” The CO2 product calculator developed by Mosca is used to provide the exact emission data for the specific packaging.

Uncomplicated process provides essential data

It’s easy for customers to arrange an appointment at the Mosca TechCenter. They can simply use the contact form on the company website and outline specific challenges that need to be taken into account during testing. Mosca experts then work with the customer’s technicians to create a test plan that is optimally tailored to the needs of the product as well as the transport route. They also take into account the relevant standards. Different legal requirements must be met depending on the country to which the shipment is being transported and specific tests may be required.

Once the test plan is finalised, customers can send multiple pallets with secured products and a maximum weight of 1.5 tonnes to Mosca. This way, if a pallet is insufficiently secured for transport and gets damaged during testing, there is enough material to complete the remaining tests. Mosca can optionally strap or stretch wrap the products using its own machines in an adjacent showroom. This enables a direct comparison between different types of packaging.

Action-packed opening event with company tour and live demonstrations

Mosca hosted the first group of interested visitors on 28 June. The grand opening of the Mosca TechCenter took place with live demonstrations of the testing routines, group discussions and a dynamic exchange of information. Mosca CEO, Timo Mosca: “Our TechCenter enables us to offer customers professional support when it comes to securing and efficiently packing their unit loads. At the same time, it helps us improve transport safety.”

Driver Shortage isn’t just Personnel Problem

Posted on by David Priestman

It’s no secret that global supply chain disruption has dominated headlines since mid-2020, writes Stephan Sieber (pictured), CEO of Transporeon. And, over the past three years, the continuing aftershocks of the COVID pandemic, combined with geopolitical factors and an economic downturn, have caused significant upheaval for shippers, cargo receivers, service providers, brokers, freight forwarders, carriers – and of course consumers.

Today, driver shortages in the road freight sector are threatening to cause further disruption. Catalysed by initial pandemic downtime – which saw many drivers leave the industry, take early retirement or extended sick leave – driver shortages are now a significant strain on supply chains. Especially given rising demand for road freight transportation.

A recent report by the world road transport body IRU revealed that there could be an eye watering two million unfilled driving positions in Europe by 2026 (already now there are around half a million unfilled positions in Europe).

In the UK, a drop in migration from Central and Eastern Europe caused by Brexit has further highlighted driver shortages where, according to the French transportation union FO Transports, the number of driving vacancies in France could currently be as high as 50,000. The situation is even worse in neighbouring countries where there are currently around 80,000 vacant driving positions in both Germany and Poland (IRU).

Transforming the ‘Great Retirement’ into greater opportunities

With a global recession looming, it’s widely believed that we’ll soon see an influx of candidates onto the job market. Though this may ease personnel shortages in some sectors, it’s unlikely to solve road freight driver shortages.

The primary reasons for this are demographic shifts leading to the ‘Great Retirement’. The same IRU report found that 30% of drivers are planning to retire by 2026 – outstripping any potential recession-related increases in driver availability. So, it’s clear that simply poaching drivers from elsewhere in the industry isn’t a long-term solution for companies.

The IRU also found that young people are joining the driver community in the road freight industry at a rate between four and seven times lower than drivers are retiring – with the average age for European drivers now over 50 years old.

Twentieth-century approaches won’t solve a twenty-first-century problem

The bottom line is that the European driver shortage is not just a personnel problem. Dwindling driver numbers would not present such a challenge if transport operations were smarter and more efficient. According to scientists at the MIT Center for Transportation and Logistics, increasing the efficiency of US drivers by just 18 more minutes of active driving time per day could solve the country’s driver shortage. This claim was based on research in the US but pointed out that the same principle is likely to apply in Europe.

There’s a multitude of ways that companies can look to boost efficiency. But to do so, they must first understand where there’s room for improvement. More are now turning to solutions that offer real-time insights. This helps companies to uncover previously hidden inefficiencies (like empty runs and excessive waiting times in yards) and improve visibility by tracing deliveries.

Within the logistics industry, another trend we’re seeing is Autonomous Case-handling Robot systems (ACR) to reduce labour needs. Self-driving trucks are still a long way off in logistics transportation, but it is possible to make significant efficiencies within warehouses in loading and unloading processes, as well as automating time slot and yard management processes. But by implementing smart software, businesses can start to look to reduce waiting times for drivers from hours to minutes.

Ultimately though, enhancing the effectiveness of transport logistics depends on increasing collaboration between all participants, rather than companies simply working to optimise its own performance – as is currently often the case. Indeed, a recent survey of international supply chain experts revealed that the vast majority rate ‘increased collaboration between supply chain partners’ as both ‘highly probable’ and ‘highly desirable’ in the run-up to 2025.

When working collaboratively as part of a wider network, rather than in isolation, organisations can significantly streamline key processes such as freight sourcing, transport execution, dock scheduling, freight matching, payment and settlement.

Solving the UK and Europe’s road freight driver shortage can’t be done overnight. And, moving forward, companies should view this as an operational matter, rather than simply an HR or personnel problem. The solution lies in adopting a network approach and collaborative solutions that focus on finding new efficiencies.

With the unique approach of combining automation, real-time insight, and collaboration, a transportation management platform can alleviate the driver shortage, reducing empty miles, eliminating unnecessary dwell times and optimising yard operations – the integral intersection between the road and the warehouse.

MSC Air Cargo Partners with IBS

Posted on by Keith McKinley

IBS Software, a global leader of SaaS solutions to the travel and cargo industry, has been selected by the air cargo unit of MSC Mediterranean Shipping Company, as a strategic partner in a bid to digitally transform its air cargo operations.

iCargo, the Software as a Service solution for air cargo management from IBS Software, will install a true digital platform that covers cargo sales, operations, cargo accounting and portal for MSC. The standard product implementation will help MSC to go-live faster and start business operations at the earliest opportunity. Once fully implemented, iCargo will enable MSC to have full visibility of its air cargo value chain, covering sales, operations and accounting, while also gaining insights for continuous business improvement.

The partnership enables IBS Software to deploy iCargo for a company that is already the world’s largest container carrier and which is now growing its MSC Air Cargo unit, as a complementary business to its core ocean shipping solution. iCargo adheres to best practices in the air cargo industry and is fully compliant with global industry standards and initiatives – such as Cargo iQ, C-XML, OneRecord, e-AWB and e-Freight – making this latest development a remarkable moment across the logistics industry. It is an important step toward achieving seamless operations across multi-modal logistics models, increased efficiency and the productivity to power rapid global trade and growth IBS Software has long advocated for.

“This is our first step into this market, and we plan to continue exploring avenues to develop air cargo in a way that complements MSC’s overall solutions to our customers. This is why we’ve engaged IBS Software in a strategic agreement to implement their industry leading iCargo platform. While we appreciate that many existing processes may remain relevant, our business is continuously evolving; and we believe that improvements in how a multimodal business operates internally can help its customers achieve success. We see great potential in IBS Software’s capabilities and solutions, through which we expect to harness the power of digitalisation to help achieve MSC Air Cargo’s objectives” said Mr. Jannie Davel, Senior Vice President, MSC Air Cargo.

“We’re thrilled to embark on this partnership and to support MSC Air Cargo’s new business objectives in the cargo industry. We’re confident the iCargo solution and the team that continuously innovates our products will take MSC’s multi-modal business model to new heights.” said Ashok Rajan, Head of Cargo & Logistics Solutions at IBS Software.

MSC Mediterranean Shipping Company, headquartered in Geneva, Switzerland, privately owned and founded in 1970 by Gianluigi Aponte. As one of the world’s leading container shipping lines, MSC has 675 offices across 155 countries worldwide with over 150,000 employees. With access to an integrated network of road, rail and sea transport resources which stretches across the globe, the company prides itself on delivering global services with local knowledge. MSC Air Cargo is a new business unit that complements the existing ocean container shipping solutions and is serving key trade lanes and various industries, including those which traditionally have significant air cargo transportation needs.

Middle Mile not Supply Chain Middle Child

Posted on by David Priestman

CloudSort Corporation, a logistics technology company for packaged goods moving through the supply chain curated a panel of supply chain and logistics leaders to dive into a robust discussion around the under-innovated and often ignored, yet vital middle mile. As an innovator of the middle mile, CloudSort discussed how its proprietary and modular Cloud-based software platform creates mutually-beneficial partnerships – all while delivering value that enhances the end customer experience.

The panel was moderated by Kevin Lawton, featured CloudSort CEO and Founder Derek Szopa and included a diverse group of experts across supply chain including:
● Ryan Park, Head of Product & Insights, CloudSort
● Ellen Voie, CEO/Founder/President, Women In Trucking
● Allison Ullrich, Director of Supply Chain, Outer
● Dwight Shakespeare, eCommerce Director, Jillamy

“It’s no surprise that the middle mile has historically been deprioritized within the industry, however we continue to see increasing attention being given to its importance and ability to transport goods from points A to B more efficiently thanks to the technological advancements transforming today’s supply chain,” said Derek Szopa, CEO of CloudSort. “We were inspired to bring partners and industry experts together in our panel discussion to share the ways a modular middle mile can do just that for their businesses, shippers, carriers and the end-consumer.”

Honouring Technology Innovation

Having tackled some of the middle mile’s biggest challenges, CloudSort’s cloud-based sortation software brings together all the players – omnichannel retailers, online retailers, fulfilment centres and third-party logistics businesses (3PLs), shippers, carriers and end-consumers – with an ecosystem that reduces capital intensity and improves efficiency by moving work to the point of greatest value creation.

With the middle mile becoming more prominent in the industry, companies are taking steps to directly control aspects of their delivery experience, and CloudSort enables them to make smarter choices about how shipments move along the supply chain, benefiting e-commerce by extending order windows and providing capacity that scales. As a result of this, CloudSort’s modular platform has just been named Sortation System Innovation of the Year by SupplyTech Breakthrough, which received more than 1,400 nominations and recognizes the world’s best companies, products and services in the supply chain technology and logistics industry.

A Single Destination for Middle Mile Logistics

A first-of-its-kind cloud-based sortation software that sorts, groups and routes packages based on the parameters defined by a user or system, the CloudSort platform is modular – able to be configured in real time, while reducing barriers to entry for organizations that want to take control of their own supply chain. It’s infinitely scalable, providing an agile and adaptive approach that harnesses predictive technology to sort smarter and route better.

Knowing that the industry’s complex, systemic problems required a paradigm shift and not just incremental adjustments, CloudSort designed its platform to address the issues for shippers and carriers to trade in delivery capacity. Unlike other package level sortation systems on the market today, CloudSort sortation operations are easier, cheaper and faster to build which puts deliveries closer to their destinations, sooner.

CloudSort enables adaptive nodes, rather than static pre-planned hub-and-spoke routes, through smarter sortation earlier on and that rely on artificial intelligence (AI) and big data. Partners can engage in multiple ways through modular solutions that can scale up and down, so it’s fully customizable, meaning CloudSort technology is interoperable and designed for seamless integration with both shippers and carriers’ existing tech stacks.
● Human-first tech design engages, entertains, and empowers front-line employees to do their best work
● Innovative and sustainable containerization solutions facilitate more direct shipment transfers and produce less material waste
● Enables businesses to tap into its system at a rate that works for them, which enables a safer ‘test and learn’ environment for innovation and experimentation
● Inherently responds to seasonal fluctuations in supply and demand

Modular Solutions

CloudSort’s middle mile software platform is the backbone of its modular solutions, which can be configured to meet the specific needs of any business since it integrates with existing systems and partners.
● For businesses that only need the technology to transform current operations, CloudSort integrates with existing stack and systems, and manages everything from manifesting and routing to payment and tracking.
● Its forwarding gets shipments from points A to B by ground or air in the most efficient and cost-effective way because its platform complements a partner’s existing operations and works alongside their teams.
● By becoming a host in its network, any business can monetize its sortation activities and assets while helping strengthen and grow the CloudSort ecosystem.
● It offers a fully-outsourced delivery solution for the middle mile from dock to doorstep, by coordinating and optimizing every aspect of the delivery journey.
● Its smarter sortation, better routing, and innovative containerization raise the bar on delivery. Intelligent sortation that occurs earlier in the delivery journey has a compounding effect on speed and accuracy later on to ensure shipments get where they’re meant to go, faster.

The CloudSort network is a combination of company and host operated facilities, where all facilities use the same software and follow established processes to ensure a uniform experience across all locations. With established operations in Los Angeles, Salt Lake City, Dallas, Nashville, Indianapolis and Philadelphia, CloudSort recently expanded its U.S. footprint to Ohio and Illinois bringing its combined total to eight operations to serve clients across the country.

Container Shipping ‘Maxed Out’ Claims Analyst

Posted on by Keith McKinley

Jan Tiedemann (pictured), Head Analyst at Alphaliner, says for the first time in history the latest fleet additions are replacement vessels rather than designed to boost global capacity and increase the penetration of containerisation.

With record deliveries of container ships expected this year and next, most analysts have predicted further heavy downside pressure on container shipping freight rates to be offset by carrier efforts to reduce capacity by slow steaming and layups or, alternatively, by a self-destructive scramble for market share. However, Tiedemann believes a very different picture might play out in the coming years as a deluge of new vessels enter service.

“The thing that makes me at least a bit hopeful is that, for the first time, maybe in history, or in the history of container shipping, we’re coming towards a point where some of the orderbook might not be for growth, but actually for replacement,” he told the latest episode of The Freight Buyers’ Club podcast, produced with the support of Dimerco Express Group.

Alphaliner forecasts that a record 385 vessels totalling 2.22m TEU capacity will be delivered this year. This new high mark for box ship deliveries will then be immediately broken in 2024 when a further 391 ships of almost 3m TEU capacity is forecast to enter service, including 113 ships of over 12,500 TEU capacity.

Tiedemann notes that global fleet capacity is now around 26m TEU, up from six million TEU just 20 years ago. “For the last 20 years the global container fleet has grown by roughly 1 million TEU every year,” a rate he believes is unsustainable in the coming years given the previous success of containerisation penetration and the lack of new markets to target.

He argues that for the first time many new deliveries have been purchased primarily as replacements for older, less safe, less clean and less efficient ships rather than to enable the expansion of containerisation. Instead, he predicts rising vessel scrapping in the coming years, including of ships as young as 15 years.

Slowing growth

“There will still be growth in the market, but to some degree, growth in container shipping is maxed out because there’s no more geographies to expand into,” he said. “There’s not much more slow steaming you can implement because you’re already slow steaming. There are no more commodities you can really expand container shipping into because everything is already containerized with very, very few exceptions.

“So, we will see maybe for the first time on a big scale – on a global scale – in the next five to 10 years, a fleet renewal and vessel replacement scheme which means that a [lot] of tonnage will have to go to scrap. And that could concern ships – depending on how the economy and how the trade fares – which are maybe barely even 15 or 20 years old at some point.”

If lines do not start accelerating the scrapping of vessels, they will very soon have few deployment options left open, he adds. “There are so many ships ordered that the answer to the question, ‘Where are they all going to go?’ needs to be, ‘Everywhere.’ “Every trade will have to absorb these ships.”

Brother Expect Auto-ID Labelling Sales Rise

Posted on by David Priestman

Business and technology solutions provider Brother UK is expecting to double sales of its professional label printers over the next 12 months, on the back of significant investment to strengthen its proposition and growing market demand.

Over the last year, Brother UK has partnered with major Auto-ID resellers and vendors in the UK, as well as specialist partners BarcodeGenie and Planglow, to create new routes to market and develop tailored solutions for the retail and food hygiene markets respectively.

The technology provider has also upgraded two of its most popular label printing lines – the TD-2000 and the QL – to improve connectivity and security, introduce an auto-sleep mode as default to reduce operators’ energy use, and boost manufacturing capacity to service higher demand.

The business says that an increasing demand for thermal labelling devices across retail, supply chain and hospitality will also help to drive the growth as more firms look to digitise and unlock new operational efficiencies. Forecasts from market research consultancy VDC reveal that the UK market for thermal labelling devices is set to grow by 44% to $137.9m by 2026, compared to 2021.

Ged Cairns (pictured), head of SPS business category at Brother UK, said: “We have built a strong proposition to take advantage of a buoyant market as more firms, specifically across supply chain, retail and hospitality, digitise their day-to-day operations. Labelling systems form a central part of those functions and we have the right range of devices, from our mobile RJ series to the TJ desktop range for high-volume label printing, to support reseller partners in delivering the products and solutions that their customers need. Combining our updated product range, new routes to market, focus on tech integration and customer support, from industry-leading warranties to on-site visits and next-day replacements, we are positioned well to grow quickly.”

Over 100 years of innovation have gone into making Brother the global business solutions provider that it is today. Founded in Japan in 1908, and now operating in 44 countries around the world, Brother has continually adapted to thrive in an ever-changing marketplace. From managed print services through to printers and scanners, Brother’s products and services are designed to increase efficiency, boost productivity and encourage collaboration in the workplace.

Automation Technology the Key in Ecommerce

Posted on by David Priestman

Geodis VP of Engineering, Antoine Pretin, says that technology is rapidly becoming a key success factor in ecommerce logistics. Speaking at the Deliver Europe conference in Amsterdam, Pretin said automation is better than manual handling because costs are controlled after installation, whereas labour costs can rise, as they are now, thereby impacting the running costs of the warehouse.

“Automation increase accuracy and quality,” he said. “In automated distribution centres you need a strong and stable team, but less training and management. Square metre optimisation is achieved by using the full height of the building.” Employee satisfaction can also be good, he argued, as automation and robots are considered to be both fun and safe.

“The length of a third party logistics operator’s contract must match the investment and payment for technology,” he advises, “or you can rent robots. Larger DC system integrations can take two years to complete as materials handling suppliers are very busy.”

Pretin says that shared user warehouse facilities are very challenging. His preference is for standardisation, i.e. all Geodis warehouses would be the same, with the same technology. “I prefer to have one AMR or AGV supplier, so they can be moved from site-to-site if required.” There are around 250 suppliers currently.

ROI

“It’s all about customer-orientated solutions,” he emphasised, “we start with an understanding of what the customer does, then design the facility and project accordingly. Offering flexibility is important in ecommerce, for example in being able to reduce the number of cartons.”

What about the return on investment of automation? “Automation prices are rising. ROI varies depending on the number of shifts operated. But when you can’t hire staff there’s no alternative to automation and AMRs. I expect costs to fall as we get to mass uptake.”

 

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