This blog is to promote Logistics and Supply Chain Management among the professionals, Manufacturers and Academics, Research students and general public those who have professional or personal interest towards this discipline.
Sunday, June 3, 2012
Asia-Europe spot rates drop again
Latest Shanghai index points to weakness of GRIs. Peak season surcharges may not materialise
Mike Weir
Monday, 28 May 2012
Last week’s falling spot rates for containerised freight on the Asia-Europe trade lane indicate that the shipping lines’ solidarity over general rate increases (GRIs) could fray, say market commentators. The overall Shanghai Containerised Freight Index (SCFI) fell $17 to $1,409 but this masked bigger drops in the Shanghai-Europe and Shanghai-Mediterranean components.
Container freight derivatives for Q4 2012 were also trading at a significant discount to the spot market suggesting that market participants expect conditions to worsen.
Derivatives broker Ben Gibson of Clarkson Securities said: “The week saw sellers move to lock in Asia-Europe rates for the peak season as confidence in future GRIs or peak season surcharges (PSSs) took a big fall and trading activity took the SCFI Eur Q3 contract below current spot prices.
“Shippers who were looking to hedge at spot prices have now withdrawn back to below where physical business is being done as the overwhelming expectation is that the market will continue to fall in the coming weeks.”
Further weakness in the container market has been highlighted by the slow appearance of the Asia-Europe PSS of around $350 per teu. At least one company, United Arab Shipping Company, has delayed implementation of its PSS until 16 June.
“The gains made by carriers since January have been successful in part due to a unified approach on the implementation dates,” said Cherri Wang of GFI Group, another derivatives broker.
“UASC’s decision to delay suggests that they either don’t feel that the peak volume is there just yet, or that they see an opportunity to increase their utilisation levels by offering cheaper freight for two weeks. Perhaps these explanations seem cynical but the fact remains that in delaying by two weeks they are weakening the overall impact of the wider PSS.
“Carriers will be keeping a particularly close eye on their volumes over the next couple of weeks and will no doubt be ready to move on their PSS position if they fear that their competitors may be attacking their market share.”
Volvo truck leads 'Platoon' of vehicles 200km on public motorway
David Badger
Thursday, 31 May 2012
For the first time, a Volvo truck has led a platoon – a convoy in which vehicles automatically follow a leader – on a public motorway with other road users.
The tests were part of the EU-funded SARTRE (Safe Road Trains for the Environment) project – a joint-venture between seven European partners, including Volvo Trucks.
Last week on a motorway outside Barcelona, Spain, the first test-drive of a road train, consisting of both trucks and cars among other road users, covered 200km in one day.
In the SARTRE project, safety systems, such as cameras and radar, are used by the following vehicles to monitor the lead truck, as well as the other vehicles in their immediate vicinity. By adding wireless communication, all the vehicles in the platoon “mimic” the lead truck – accelerating, braking and turning in exactly the same way as the lead vehicle.
In Spain last week, three cars and a truck followed the lead Volvo truck, the distance between each vehicle being just six metres at 85kph.
“The truck behaved exactly as expected, and the following vehicles responded just as planned. It was great to be a part of this landmark event,” said Andreas Ekfjorden, Project Manager for Volvo Trucks in the SARTRE project and test driver of the lead truck in Spain.
The environmental impact of a road train is lower than that of conventional traffic, since the following vehicles are close behind the truck and each other and can benefit from lower air drag, says Volvo. By improving traffic flow, road capacity will also be able to be utilised more efficiently.
In the haulage industry – where fuel-efficiency is a highly critical success factor – these findings raise questions on how the savings should be distributed. Analysis of business models for platoons is an integral part of the SARTRE project.
“Haulage firms stand to gain from platoons, but more work needs to be done before it is possible to say what a working business model will look like,” said Frida Ramde, Intelligent Vehicle Technologies Manager at Volvo Trucks.
The three-year SARTRE project began 2009. After the test on public roads in Spain, the project is now entering a new phase with the focus on analysis of fuel consumption.
