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Maersk India records 43% growth in the exports rail movement of containerised cargo in 2021

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Maersk India records 43% growth in the exports rail movement of containerised cargo in 2021. Image: Maersk
Maersk India records 43% growth in the exports rail movement of containerised cargo in 2021. Image: Maersk
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The global logistics ecosystem has been disrupted from the beginning of the COVID-19 pandemic. The restrictions brought about by the pandemic affected manufacturing as well as the movement of cargo.

Supply chains came crumbling down with uncertainties for which there was no playbook to refer from. Demand and supply patterns shifted dramatically, further adding to the disruptions in the system.

At such a time, the logistics suppliers kept the wheels spinning for economies to stay on track as much as possible. Maersk had all its vessels sailing, warehouses functioning, and ports operating.

However, it was not smooth sailing as conditions remained foggy with wavering developments around the spread of the pandemic. One particular challenge that Maersk faced during this period in India was movement of cargo on landside – from manufacturers facilities to the port for exports or vice versa for imports. Truck drivers had returned to their home towns in fear of the virus, and state border transport became a big hurdle with inconsistent rules being implemented across different states.

At the same time, in line with the goal of creating integrated solutions for customers that go end-to-end, teams within Maersk started focusing on understanding customer requirements and designing tailor-made solutions. Increasingly movement of cargo on rail instead of road was one such solution.

Using rail to move cargo had multiple benefits for Maersk’s customers:

  • Up to 30% quicker transit times as compared road transport
  • Solid, unhindered connectivity between ports and manufacturing hubs
  • Scheduled movement for better predictability
  • Around 14.5 MT lower carbon footprint

As Maersk started developing customised solutions for customers rather than offering them off-the-shelf options, deeper insights into customers’ needs and challenges started unfolding. Using this data, Maersk developed 13 new weekly dedicated rail services of which some were based on the ‘assured transit’ concept on the Dedicated Freight Corridors. These rail services were designed in such a way that different industrial verticals were to be connected to the ports. Examples of these were the ‘Automotive Express’ running between the Northern Capital Region’s (NCR) automotive manufacturing hub and the port of APM Terminals Pipavav, Gujarat or the ‘Retail Express’ that ran on DFC to give assured transit time to lifestyle and apparels sector. The benefits of dedicated solutions like ‘Retail Express’ were multi-fold – customers could reduce their inventory hold by almost 10% and were able to connect to ocean transportation leg in time, saving them penalty costs too.

The 13 new services offered by Maersk include:

Train Name From To
Goa Express (x2)
Mormugoa
JNPT
Retail Express 1
Dadri
Mundra
Retail Express 2
Jodhpur
Pipavav
Chemical Express
Ankleshwar
JNPT
Automotive Express 1
Gurugram
Pipavav
Automotive Express 2
Waluj
JNPT
Garden city Express
Bengaluru
JNPT
Malia Express
Malia
Mundra
Maersk Cross Country
Durgapur
JNPT
Industrial Express
Vizag
Jajpur
Solar Express
Mundra
Jodhpur
Rice Express
Bikkavolu
Vizag

 

Maersk became the pioneer of offering ‘Assured transit times’ with its rail solutions to customers. The forward-looking solutions developed are expected to aid the rising demand for sectors such as eCommerce through the dedicated services. eCommerce, which has traditionally run on road transit, is expected to move towards rail even more in the near future as it gives assured transit for time-sensitive cargo.

“Being committed to connecting and simplifying our customers’ supply chains meant we had to go beyond solutions that are on the menu card. We wanted to create exciting offerings that would delight our customers, especially in the tough pandemic situation that we have been operating in.” commented, Vikash Agarwal, Managing Director, Maersk South Asia.

He added, “Having flagged off 13 new services successfully over the year, Maersk is truly proud to have designed and implemented what customers needed. And it doesn’t end there – with the new environment-friendly rail services, in 2021 we reduced carbon footprint that is equivalent to the emissions from a car being driven for around for 60,000 km.”

Maersk witnessed 43% growth in the movement of containerised export cargo on rail in 2021 and 23% growth on rail for import and export combined.

“Unlocking the potential of rail solutions to move cargo during the toughest times of the pandemic has been hugely satisfying. To be able to play a role in developing tailor-made solutions for customers which ultimate helped the traders in the country connect to the global market was even more gratifying.” said Akshyat Bhatia, Head of Landside Transportation, Maersk South Asia.

Maersk plans to develop further on the foundation of the rail solutions in 2022.

“Rail has always been considered as a second alternative to road transport despite being safer and faster. Last year we have created 273 new corridors with rail as the backbone and connected our customers on this highly efficient mode of logistics all the way to their hubs of convenience. Having carried more than 50,000 containers (twenty feet equivalent units / TEUs) over and above the previous year and having covered 150,000 km, we are confident of building on this solution in the coming years too.” said Jyoti Mitter, Rail Product Manager, Maersk South Asia.

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Container Shipping Lines

Euroseas Ltd. signs contract for the construction of two additional fuel efficient 2,800 teu feeder containerships

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Euroseas Ltd. signs contract for the construction of two additional fuel efficient 2,800 teu feeder containerships. Image: Unsplash
Euroseas Ltd. signs contract for the construction of two additional fuel efficient 2,800 teu feeder containerships. Image: Unsplash
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Euroseas Ltd., an owner and operator of container vessels and provider of seaborne transportation for containerized cargoes, announced that it has exercised its option to proceed with the construction of two additional eco design fuel efficient containerships. The vessels will have a carrying capacity of about 2,800 teu each and will be built at Hyundai Mipo Dockyard Co. in South Korea.

The two newbuildings are scheduled to be delivered during the fourth quarter of 2024. The total consideration for these two newbuilding contracts is approximately $86 million and will be financed with a combination of debt and equity. The vessels are sisterships of four other vessels ordered by Euroseas Ltd. in June 2021 and January 2022; Euroseas Ltd. has also ordered, and previously announced, three 1,800 teu vessels at the same shipyard.

The Company also announced that it intends to upgrade the engines of all of its six 2,800 teu vessels ordered to Tier III type (from Tier II) and have the ships be LNG-ready where possible for a total incremental cost for all vessels of about $11 million. Tier III type engine achieve lower NOx emissions. The three 1,800 teu vessels were ordered with Tier III type engines and are LNG-ready.

Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the ordering of two additional modern eco-design 2,800 teu vessels in one of the top quality shipbuilders in the world. The current contracts along with the orders we placed previously bring our newbuilding program to nine vessels and solidify our presence in the large feeder containership sector. It further highlights our commitment for an environmentally friendly fleet. With our earnings visibility well into 2025, we believe that investing in modern new vessels makes good use of the cash flow that our existing vessels generate and positions Euroseas to benefit from upcoming market developments, especially, as related to new environmental regulations for the benefit of our shareholders.”

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Damietta Alliance developing and operating a new container terminal in Damietta, Egypt

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Damietta Alliance developing and operating a new container terminal in Damietta, Egypt. Image: Hapag Lloyd
Damietta Alliance developing and operating a new container terminal in Damietta, Egypt. Image: Hapag Lloyd
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A new terminal will be built in the port of Damietta/Egypt. For this purpose, a Joint Venture was founded to develop and operate the new “Terminal 2” in the port. The Joint Venture “Damietta Alliance Container Terminal S.A.E.” consists of three core shareholders which are Hapag-Lloyd Damietta GmbH, Eurogate Damietta GmbH and Contship Damietta Srl. Two other partners, Middle East Logistics & Consultants Group and Ship & C.R.E.W. Egypt S.A.E., will each hold 1%.

The new Terminal 2 at the port of Damietta is expected to start operations by 2024. It will have a final total operational capacity of 3.3 mio TEU and serve as Hapag-Lloyd´s dedicated strategic transshipment hub in the East Mediterranean.

“With the new terminal Hapag-Lloyd will significantly improve its transshipment operation in the East Mediterranean market as well as access to the local Egyptian trade”, said Rolf Habben Jansen, CEO of Hapag-Lloyd.

Thomas H. Eckelmann, Chairman of the EUROGATE Group Management Board, stated: “With the Terminal 2 being operational in 2024, Hapag-Lloyd and its partners will be able to use a state-of-the-art terminal with sufficient capacity, high productivity and a dense feeder network.”

Cecilia Eckelmann-Battistello, Chairman of the Board of Contship Italia, added: “We feel privileged and are extremely grateful for the support of the Egyptian government. The concession to operate the facility is granted to the Joint Venture for 30 years. This gives us and our respective customers a long-term perspective in the port of Damietta.”

The Egyptian Minister of Transport, Lieutenant-General Eng. Kamel Al-Wazir, commented: “This is a very encouraging, well planned partnership of international and Egyptian private sector in order to position Egypt as a global hub for logistics and trade. In this first phase we will establish the port of Damietta as an integrated logistics hub for containers, which will then be followed by the establishment of logistic corridors reaching to different manufacturing areas in Egypt by railway network.”

The final signing of the concession agreement has taken place today in Cairo, Egypt.

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A.P. Moller – Maersk completes acquisition of Pilot Freight Services

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A.P. Moller - Maersk completes acquisition of Pilot Freight Services. Image: Maersk
A.P. Moller - Maersk completes acquisition of Pilot Freight Services. Image: Maersk
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A.P. Moller-Maersk has announced the completion of its acquisition of Pilot Freight Services, a leading U.S.-based international and domestic supply chain provider with cross-border solutions into Canada and Mexico. Pilot Freight Services will be rebranded to Pilot – A Maersk Company.

The strategic and highly complementary acquisition will benefit customers by offering customized international, domestic and cross-border logistics to Maersk’s North America landside logistics capabilities for business-to-business and business-to-consumer distribution models. Equally important, new supply chain capabilities for the big and bulky sector with white glove home delivery service are added.

Maersk is constantly working with its global supply chain to accelerate solutions for customers that support their strategic business ambitions. With Pilot – A Maersk Company, Maersk extends its end-to-end offerings deeper into the North America supply chain of its customers, adding important supply chain infrastructure capacity and scale. The combined Pilot and Maersk scale will offer customers approximately 150 facilities in the U.S., including distribution centers, hubs and stations.

“Our customers are looking for us to accelerate their supply chain speed, remove handoffs and constantly improve their end-to-end, omni-channel business model to reach their financial growth goals. Pilot’s expertise and existing infrastructure enables us to achieve these goals by creating more agile, nimble supply chains to serve customers the way they want to be served.” said Narin Phol, Regional Managing Director of Maersk North America.

Pilot brings customized shipping and logistics expertise with a network of 190 global partners and a North American facilities-based network of 87 stations and hubs through which freight is transported and distributed to end customers. The company uses mainly third-party providers of trucking and has access to controlled capacity which includes full truckload (FTL) and less-than-truckload (LTL) for both B2C and B2B distribution including heavy and bulky shipments with white glove service for expedited and time definite services.

“Teaming up with an industry leader like Maersk is a natural fit and will enable our company to tap into significant, new future growth opportunities for our customers and employees. We like Maersk’s continuous improvement mindset and active investment pattern in expanding supply chain solutions so we’re excited to work together in our expanded role.” commented Zach Pollock, Pilot Freight Services CEO.

The transaction price of USD 1.68bn equals to an enterprise value of USD 1.8bn post IFRS-16 lease liabilities.

Maersk continues its ambitious plan integrating North American supply chain infrastructure and solutions for customers, adding new end-to-services and scale on an annual basis.

In 2022, Maersk invested in over 400 electric trucks to lead the sustainable transport sector in the U.S. with fleet orders from Volvo Trucks and Einride. Also ahead in 2022, Maersk North America customers will tap into more transatlantic air freight cargo capacity when the acquisition of Hamburg, Germany-based Senator International is completed in Q2 2022, pending all regulatory approvals. In 2021, Maersk E-Commerce Logistics acquired Salt Lake City, Utah-based Visible Supply Chain Management – a leading U.S.-based E-commerce fulfillment provider to strengthen the company’s business model – with emphasis on B2C and B2B e-fulfillment. In 2020, El Segundo, California-based Performance Team – A Maersk Company was acquired, operating over 60 distribution and fulfillment center locations and Transportation services. In 2019, Maersk Customs Services USA, Inc. acquired Vandegrift Inc., adding important U.S. Customs Brokerage services, expertise and scale to customers looking to optimize their Customs compliance and reduce financial risks.

Pilot Network locations

A.P. Moller - Maersk completes acquisition of Pilot Freight Services. Image: Maersk

A.P. Moller – Maersk completes acquisition of Pilot Freight Services. Image: Maersk

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