Container Shipping Lines Over-ordered Vessels

Container shipping CEOs have killed the golden goose by ordering too many ships, and also might need to re-examine the type of vessels suited to a more regional world dominated by geopolitical tensions, according to the former chairman of two of the world’s leading carriers.

Bronson Hsieh (pictured), former chairman of both Evergreen and Yang Ming container lines, told the latest episode of The Freight Buyers’ Club podcast,  that while containerized shipping volumes were predicted to grow by 2.2% in 2024 compared to 1.4% this year this, “doesn’t mean shipping companies are going to be profitable.”

Instead, he said an improved cargo demand picture would be swamped by a forecast 9.1% increase in global box shipping capacity as more newbuilding container vessels joined the fleet. As a result, Hsieh believes 2024 will be, “really very tough for shipping companies.”

Smaller ships needed?

Hsieh also argued that as investors located manufacturing to a wider diversity of locations to move risk away from China and closer to importers, the nature of global trade would evolve, a process he calls,  “globalisation with regionalisation.”

In future, as a larger share of global manufacturing output migrates to Central America, South Asia and Southeast Asia, this will mean the largest ships will be more difficult to deploy efficiently.

“I would suggest don’t build too many of these huge vessels in the future because part of the cargo will gradually be relocated [away from China],” he said.

Go vertical, my friends

However, Hsieh was positive about the strategies pursued by those carriers which have invested pandemic windfalls in value-added, end-to-end logistics service capacity. He believes this is more logical than hoping that port-to-port service revenues and heavy investment in assets will consistently deliver profits when this strategy has failed over previous decades.

“In my personal point of view, that’s the right direction,” he said, pointing to container lines which have invested in warehouses, trucking companies, consolidation businesses, ports and logistics capacity. I think a lot of shipping carriers, they learn something from the logistics service providers. They don’t build any vessels, but they make some profit. “But shipping carriers, they buy a lot of assets, but the money they earn every year is not the same as those logistics service providers earn.”

 

Container Shipping Lines Over-ordered Vessels

Container shipping CEOs have killed the golden goose by ordering too many ships, and also might need to re-examine the type of vessels suited to a more regional world dominated by geopolitical tensions, according to the former chairman of two of the world’s leading carriers.

Bronson Hsieh (pictured), former chairman of both Evergreen and Yang Ming container lines, told the latest episode of The Freight Buyers’ Club podcast,  that while containerized shipping volumes were predicted to grow by 2.2% in 2024 compared to 1.4% this year this, “doesn’t mean shipping companies are going to be profitable.”

Instead, he said an improved cargo demand picture would be swamped by a forecast 9.1% increase in global box shipping capacity as more newbuilding container vessels joined the fleet. As a result, Hsieh believes 2024 will be, “really very tough for shipping companies.”

Smaller ships needed?

Hsieh also argued that as investors located manufacturing to a wider diversity of locations to move risk away from China and closer to importers, the nature of global trade would evolve, a process he calls,  “globalisation with regionalisation.”

In future, as a larger share of global manufacturing output migrates to Central America, South Asia and Southeast Asia, this will mean the largest ships will be more difficult to deploy efficiently.

“I would suggest don’t build too many of these huge vessels in the future because part of the cargo will gradually be relocated [away from China],” he said.

Go vertical, my friends

However, Hsieh was positive about the strategies pursued by those carriers which have invested pandemic windfalls in value-added, end-to-end logistics service capacity. He believes this is more logical than hoping that port-to-port service revenues and heavy investment in assets will consistently deliver profits when this strategy has failed over previous decades.

“In my personal point of view, that’s the right direction,” he said, pointing to container lines which have invested in warehouses, trucking companies, consolidation businesses, ports and logistics capacity. I think a lot of shipping carriers, they learn something from the logistics service providers. They don’t build any vessels, but they make some profit. “But shipping carriers, they buy a lot of assets, but the money they earn every year is not the same as those logistics service providers earn.”

 

Taking Control of Parcel Delivery

Small ecommerce businesses are hugely reliant on the quality and timeliness of parcel delivery services to ensure customer satisfaction – and growing numbers are taking control of the process by bringing parcel labelling in house, as Jay Kim, Managing Director, BIXOLON Europe GmbH explains.

Delivery Imperative

Ecommerce companies have long recognised the importance of a robust, reliable delivery experience, from offering customers delivery choice to ensuring products arrive on time. New research, however, reveals just how damaging a poor delivery experience can be: almost two thirds (63%) of frequent shoppers in the UK will abandon an online retailer over a poor delivery experience. The situation is similar in France, where 53% of shoppers will abandon a retailer, dropping to 38% of German shoppers. Improving the shipping and delivery processes, therefore, has a very significant value. Yet from extended queues at Post Offices, to damaged barcodes and labels leading to parcels being returned, rather than arriving with the customer, many smaller businesses continue to struggle to achieve the level of delivery certainty required to support essential customer promises.

With Post Offices closing and the Royal Mail offering a parcel pick up service, many companies are reviewing delivery strategies and taking responsibility for their own parcel and post labelling.

Efficient and Green

Investment in technology such as label printers has, of course, always been an option, but traditional products had some limitations – such as the need to print several labels on one sheet of A4. The latest generation of linerless label printers is completely changing the experience for small businesses. These printers, which use a roll of sticky labels that require no backing, provide a new level of flexibility.

Labels are not pre-cut, allowing companies to print labels of any size. This means that all the information required – including barcodes, addresses and product safety information – can be included in a single label. Furthermore, linerless labels are far more robust, which means barcodes are safer from the damage caused by rain water, sunlight or scratches, leading for far greater delivery certainty.

In addition, linerless labels also support companies’ sustainability goals. The lack of plastic liner ensures businesses comply with the EU directive on packing and packaging waste. In addition, because labels are cut to size there is no wastage. And with the price of linerless labels dropping significantly in recent years, there is no additional cost associated with the green approach.

Post Office Improvements

Linerless label technology is also helping postal services to improve their delivery experiences. In Europe, postal workers are using mobile linerless printers for ‘you were out’ parcel delivery information. Rather than the scrawled paper notes that customers can struggle to decipher, a postal delivery person can print the time of delivery, location of parcel for collection and opening times on the label, which is then attached to a paper card and posted through the letterbox. The linerless technology ensures there is no plastic wastage that has to be carried – or dropped – making the process much easier and safer to manage.

In addition, this technology is being used to offer self-service access to services within Post Offices. Kiosks are becoming ever more popular, allowing people to pay for shipping and print their address labels in the Post Office – and reducing the pressure on queues. Critically, printer manufacturers are leveraging the vast amounts of data collected from diverse printer products to deliver the new levels of printer reliability that are essential in any self-service experience.

Ecommerce businesses increasingly need to offer flexible delivery options to entice customers to buy – and ensuring delivery promises are met is key to achieving repeat business. Whether through self-service kiosks or in-house printing, small businesses that embrace the chance to take control of the printing process, especially the use of robust and sustainable linerless labels, can achieve another level of vital delivery certainty to reinforce the end-to-end customer experience.

Taking Control of Parcel Delivery

Small ecommerce businesses are hugely reliant on the quality and timeliness of parcel delivery services to ensure customer satisfaction – and growing numbers are taking control of the process by bringing parcel labelling in house, as Jay Kim, Managing Director, BIXOLON Europe GmbH explains.

Delivery Imperative

Ecommerce companies have long recognised the importance of a robust, reliable delivery experience, from offering customers delivery choice to ensuring products arrive on time. New research, however, reveals just how damaging a poor delivery experience can be: almost two thirds (63%) of frequent shoppers in the UK will abandon an online retailer over a poor delivery experience. The situation is similar in France, where 53% of shoppers will abandon a retailer, dropping to 38% of German shoppers. Improving the shipping and delivery processes, therefore, has a very significant value. Yet from extended queues at Post Offices, to damaged barcodes and labels leading to parcels being returned, rather than arriving with the customer, many smaller businesses continue to struggle to achieve the level of delivery certainty required to support essential customer promises.

With Post Offices closing and the Royal Mail offering a parcel pick up service, many companies are reviewing delivery strategies and taking responsibility for their own parcel and post labelling.

Efficient and Green

Investment in technology such as label printers has, of course, always been an option, but traditional products had some limitations – such as the need to print several labels on one sheet of A4. The latest generation of linerless label printers is completely changing the experience for small businesses. These printers, which use a roll of sticky labels that require no backing, provide a new level of flexibility.

Labels are not pre-cut, allowing companies to print labels of any size. This means that all the information required – including barcodes, addresses and product safety information – can be included in a single label. Furthermore, linerless labels are far more robust, which means barcodes are safer from the damage caused by rain water, sunlight or scratches, leading for far greater delivery certainty.

In addition, linerless labels also support companies’ sustainability goals. The lack of plastic liner ensures businesses comply with the EU directive on packing and packaging waste. In addition, because labels are cut to size there is no wastage. And with the price of linerless labels dropping significantly in recent years, there is no additional cost associated with the green approach.

Post Office Improvements

Linerless label technology is also helping postal services to improve their delivery experiences. In Europe, postal workers are using mobile linerless printers for ‘you were out’ parcel delivery information. Rather than the scrawled paper notes that customers can struggle to decipher, a postal delivery person can print the time of delivery, location of parcel for collection and opening times on the label, which is then attached to a paper card and posted through the letterbox. The linerless technology ensures there is no plastic wastage that has to be carried – or dropped – making the process much easier and safer to manage.

In addition, this technology is being used to offer self-service access to services within Post Offices. Kiosks are becoming ever more popular, allowing people to pay for shipping and print their address labels in the Post Office – and reducing the pressure on queues. Critically, printer manufacturers are leveraging the vast amounts of data collected from diverse printer products to deliver the new levels of printer reliability that are essential in any self-service experience.

Ecommerce businesses increasingly need to offer flexible delivery options to entice customers to buy – and ensuring delivery promises are met is key to achieving repeat business. Whether through self-service kiosks or in-house printing, small businesses that embrace the chance to take control of the printing process, especially the use of robust and sustainable linerless labels, can achieve another level of vital delivery certainty to reinforce the end-to-end customer experience.

Planning Permission for Logistics Park

Planning permission has been granted for a further phase of development at Prologis Park Hemel Hempstead, Hertfordshire, UK, as a result of collaboration between leading owner, developer and investor of logistics property, Prologis UK and Dacorum Borough Council. The next wave of development will see five new units being built within Maylands Business Park, which is already home to a number of businesses, including Hermes and Vitabiotics.

Prologis UK and Dacorum Borough Council have worked closely over recent years to deliver large-scale and complex logistics property developments to the area. Prologis Park Hemel Hempstead has played an important role in supporting logistics and supply chain operations in South East England and, once complete, will see the Park grow by over 280,000 sq. ft., with the new units ranging between 19,000 and 75,000 sq. ft..

The granting of planning permission for this next phase of development forms part of a drive to deliver long-term, high-quality infrastructure, in line with the Think Hemel initiative; a vehicle to promote and drive investment for the town.

All of the new units have been designed with customer needs and sustainability in mind and will feature unique brise soleil cladding. In line with Prologis UK’s sustainability commitments, the units will all include a rooftop solar array, target an EPC A+ and BREEAM ‘’Outstanding” rating, as well as being net zero carbon in construction. Once complete, the new units will support the delivery of an additional £7 million of social value to the local area.

Construction is planned to commence in Q1 2024 and is due to be complete in Q1 2025.

Caroline Musker, Head of Planning, Prologis UK, said: “Gaining permission for our expansion to Prologis Park Hemel Hempstead is an example of what a truly effective partnership can look like. Over the years of working with Dacorum Borough Council, we have formed a deep understanding of what each other wants, resulting in the ability to deliver seamless packages of work. It is a privilege to be developing in such a great urban location and to be a part of a growing community. We look forward to seeing the units come out of the ground in 2024.”

Councillor Sheron Wilkie, Dacorum Borough Council, said: “Prologis UK continually proves itself to be a valuable and meaningful partner to the Borough, and we were pleased to collaborate in such a meaningful way on this development. The success of our partnership approach over the years has resulted in a number of swift planning applications, with the five new units at Prologis Park Hemel Hempstead the most recent. As our community continues to grow, we’re pleased to have Prologis UK grow with us, and in particular are looking forward to seeing how its developments help those in our community find work.”

ASRS and Software Enhance Milk Delivery

Swisslog, a leading provider of best-in-class intralogistics warehouse automation and software, has announced that Walmart will install a Swisslog automation solution within its Valdosta, Georgia, USA facility to enable seamless material flow and increase uptime. Walmart is planning to break ground on the milk processing facility later this year and the project is scheduled to be completed in 2025.

According to Walmart, the automated storage and retrieval solution (ASRS) will bolster the company’s capacity to meet consumer demand for milk. It continues the company’s commitment to building a more resilient and transparent supply chain to deliver high-quality products. This is Walmart’s second milk processing facility. The company worked with Swisslog to open its first milk processing facility in Fort Wayne, Indiana, USA in 2018.

Designed by Swisslog’s automation experts, the ASRS brings together five Vectura pallet stacker cranes with KUKA palletizing and de-palletizing robots, a ProMove pallet conveyor system, as well as a conveyor system for small loads. The automation solution operates on synchronized intelligence from Swisslog’s SynQ software, which provides warehouse management, material flow and automation control system functionality in a single, modular platform.

“We are excited to partner with Walmart once again to open its second milk processing facility. From the initial discussion through design completion, it has been a very hands-on, collaborative and proactive approach,” said Sean Wallingford, president, and CEO of Swisslog Americas. “Our automation experts worked closely with Walmart’s group to incorporate lessons learned and best practices from the first processing facility, as well as improvement concepts designed to enable Walmart and its farmers to bring fresh, transparently sourced dairy to market.”

The project also includes Swisslog’s IT Managed Services, which puts in place experts to proactively manage the IT systems and software required to keep the equipment running at peak performance. The higher-level 24/7 support allows Walmart to free up internal resources from routine IT system administration, while also enabling data-driven proactive maintenance that helps reduce unplanned downtime.

SynQ management software not only optimizes the flow of the equipment to increase efficiency and accuracy of the operation, it also orchestrates the operation of multiple sub-systems. It equips warehouse automation and IT systems with synchronized intelligence of people, processes and machines to boost the efficiency and productivity of warehouse processes and adapt to changing market requirements. SynQ provides sophisticated inventory management and material flow capabilities that enable real-time inventory tracking and management of items to ensure freshness, quality and transparency of the food supply chain.

14 Years of Innovation and Dedication

In the world of logistics and supply chain automation, few stories are as compelling as that of Nick Eijkemans, whose remarkable journey with Ancra Systems spans over a decade and a half. With a passion for crafting customer-centric solutions and a commitment to maintaining Ancra Systems’ position in the field of Automatic Loading and Unloading of goods in trailers, his’s story is one of unwavering dedication and technological prowess.

Eijkemans’ adventure with Ancra Systems started back in 2009, just after he had graduated from ‘s-Hertogenbosch College with a specialization in industrial automation. His early experiences included internships at CSi Palletising and a graduation project at Vanderlande, which ignited his fascination with logistics automation. It was at Ancra Systems in Boxtel, Netherlands, where he discovered his true calling — a place where he could be deeply involved in projects from their inception to execution.

For Eijkemans, the choice was clear: a role that seamlessly blended office work with hands-on practical testing in the workshop, culminating in the global commissioning of machines. Little did he know that this choice would pave the way for an incredible career filled with innovation and customer satisfaction.

The Rise to Engineering Manager

Over the course of fourteen years, Eijkemans‘ journey at Ancra Systems has been nothing short of extraordinary. From his early days as a recent graduate, he has climbed the ranks to become the engineering manager. He emphasizes that ‘no day is the same,’ which keeps his job as challenging and exciting as ever.

Unforgettable Projects

Throughout his career, Eijkemans has had the privilege of working on some truly unforgettable projects. One of his first projects, completed in 2009 at Hartog and Bikker in Den Bosch, involved a complex customization system with numerous buffer choices, a shuttle car, and pallet supply by AGVs. Another project that holds a special place for him is the one at SAS Automotive in Ghent, where a loading system for Volvo dashboards was developed. This system, with two levels in trucks and on the shuttle car, turntables, cross tables, and various buffer tracks to load and unload. Barcode scanners monitored the correct sequence, and through manual input sections or so-called ‘fast lanes’, a dashboard that was entered later could still be placed in the right position in the truck. It was a technical marvel that required precision.

Leading a Fantastic Team

Eijkemans thrives on the daily challenges he faces at Ancra Systems. He remarks, “both technology and customer demands change at a rapid pace. Every day, you must give 100% effort to come up with the most suitable solution for customers.” Together with his colleagues, he has dedicated himself to making Ancra Systems one of the market leaders in automatic loading and unloading.

LEGO Technic Passion

Lifelong passion for technology has been the driving force behind Eijkemans’ fascination, starting at a young age with LEGO Technic sets. Today, he remains deeply engrossed in technology, both at work and in his personal life. He’s the go-to person for repairing his children’s electronic toys, frequently dissecting them down to the circuit board level. At Ancra Systems, he and his fellow engineers stay up to date with the latest technology through regular courses, ensuring they remain at the cutting edge.

Customer-Centric Success

Eijkemans takes immense pride in Ancra Systems‘ global success. He emphasizes the company’s dedication to its customers, highlighting that, “giving each customer the right attention and time, involving them in what we do and what we excel at, is the key to success.”

Looking ahead, Eijkemans envisions a future at Ancra Systems filled with exciting challenges. He has been increasingly involved in operational matters like project management and procurement, which he finds incredibly fascinating. As the months unfold, he’s focused on finalizing the standardization of important ATLS systems, knowing that new goals and technologies are just around the corner. “Engineering is a department that never stands still; each year brings new goals and new technologies.” With his dedication and Ancra Systems’ commitment to innovation, the future looks bright for this dynamic leader and the company he has helped shape.

14 Years of Innovation and Dedication

In the world of logistics and supply chain automation, few stories are as compelling as that of Nick Eijkemans, whose remarkable journey with Ancra Systems spans over a decade and a half. With a passion for crafting customer-centric solutions and a commitment to maintaining Ancra Systems’ position in the field of Automatic Loading and Unloading of goods in trailers, his’s story is one of unwavering dedication and technological prowess.

Eijkemans’ adventure with Ancra Systems started back in 2009, just after he had graduated from ‘s-Hertogenbosch College with a specialization in industrial automation. His early experiences included internships at CSi Palletising and a graduation project at Vanderlande, which ignited his fascination with logistics automation. It was at Ancra Systems in Boxtel, Netherlands, where he discovered his true calling — a place where he could be deeply involved in projects from their inception to execution.

For Eijkemans, the choice was clear: a role that seamlessly blended office work with hands-on practical testing in the workshop, culminating in the global commissioning of machines. Little did he know that this choice would pave the way for an incredible career filled with innovation and customer satisfaction.

The Rise to Engineering Manager

Over the course of fourteen years, Eijkemans‘ journey at Ancra Systems has been nothing short of extraordinary. From his early days as a recent graduate, he has climbed the ranks to become the engineering manager. He emphasizes that ‘no day is the same,’ which keeps his job as challenging and exciting as ever.

Unforgettable Projects

Throughout his career, Eijkemans has had the privilege of working on some truly unforgettable projects. One of his first projects, completed in 2009 at Hartog and Bikker in Den Bosch, involved a complex customization system with numerous buffer choices, a shuttle car, and pallet supply by AGVs. Another project that holds a special place for him is the one at SAS Automotive in Ghent, where a loading system for Volvo dashboards was developed. This system, with two levels in trucks and on the shuttle car, turntables, cross tables, and various buffer tracks to load and unload. Barcode scanners monitored the correct sequence, and through manual input sections or so-called ‘fast lanes’, a dashboard that was entered later could still be placed in the right position in the truck. It was a technical marvel that required precision.

Leading a Fantastic Team

Eijkemans thrives on the daily challenges he faces at Ancra Systems. He remarks, “both technology and customer demands change at a rapid pace. Every day, you must give 100% effort to come up with the most suitable solution for customers.” Together with his colleagues, he has dedicated himself to making Ancra Systems one of the market leaders in automatic loading and unloading.

LEGO Technic Passion

Lifelong passion for technology has been the driving force behind Eijkemans’ fascination, starting at a young age with LEGO Technic sets. Today, he remains deeply engrossed in technology, both at work and in his personal life. He’s the go-to person for repairing his children’s electronic toys, frequently dissecting them down to the circuit board level. At Ancra Systems, he and his fellow engineers stay up to date with the latest technology through regular courses, ensuring they remain at the cutting edge.

Customer-Centric Success

Eijkemans takes immense pride in Ancra Systems‘ global success. He emphasizes the company’s dedication to its customers, highlighting that, “giving each customer the right attention and time, involving them in what we do and what we excel at, is the key to success.”

Looking ahead, Eijkemans envisions a future at Ancra Systems filled with exciting challenges. He has been increasingly involved in operational matters like project management and procurement, which he finds incredibly fascinating. As the months unfold, he’s focused on finalizing the standardization of important ATLS systems, knowing that new goals and technologies are just around the corner. “Engineering is a department that never stands still; each year brings new goals and new technologies.” With his dedication and Ancra Systems’ commitment to innovation, the future looks bright for this dynamic leader and the company he has helped shape.

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