Pharma traffic expected to grow 12%
A 12 per cent growth rate is predicted for pharmaceutical air freight over the next five years as air cargo carriers and logistics operators prioritise investment in facilities to cater for the rapidly growing pharaceutical market. In 2011 alone, the pharma logistics market is estimated to be worth €47 billion. Freight giant UPS has invested in five new pharmaceuticals facilities in the past year, while Germany’s Lufthansa recently opened a new cold cargo facility in Frankfurt to complement its pharmaceutical hub in Hyderabad, India, which opened in May. Pharmaceutical logistics growth will average 7.6 per cent in the coming years, reaching €63 billion by 2015, according to a recent report by Transport Intelligence analyst Cathy Roberson. Biotech and pharmaceutical products represent the highest value per airlifted pound for any cargo, she said. The 12 per cent growth predicted over the next five years outstrips the four per cent anticipated in electronics cargo, which has traditionally been the strongest sector for air freight demand, Roberson said. “The growth will be driven by emerging markets,” in particular India, China and Brazil, she said in the report. “Continued outsourcing to these locations, along with changes in government legislation, will drive increases in logistics spending.”
FedEx’s ‘Panda Express’ takes to the skies again
FedEx Express announced that the specially chartered B777F flight carrying two giant pandas from Chengdu, China, to their new home in Scotland’s Edinburgh Zoo took-off. Eight year-old female panda Tian Tian (aka Sweetie), and eight year-old male panda Yang Guang (aka Sunshine), departed in the morning on the flight known as the ‘FedEx Panda Express’. The panda’s arrival will mark the first time in more than 17 years that giant pandas will reside in the UK.
DKSH expands its HK repackaging facility
Swiss-based DKSH, a leading Market Expansion Services provider with a focus on Asia, is expanding its repackaging facility for its healthcare business in Hong Kong to meet what it says is the growing needs of business partners. The new facility now boasts a doubled repackaging area, increased from 4,000 to 8,000 square feet. The repackaging production lines have been increased to a total of nine – eight in the air-conditioned room (15 to 25 °C), and one in the cold room (2 to 8 °C), catering for different requirements. The storage area has also been doubled from 1,000 to over 2,000 square feet, and daily output capacity increased to over 30,000 units. DKSH offers secondary packaging services such as labeling, insert/outer box exchange, shrink wrapping, product condition sorting, and packaging material management for a wide range of pharmaceutical products, narcotic drugs, cold chain products, medical devices, clinical trial products, traditional Chinese medicines, and consumer health products.
Move One wins Carrefour logistics contract in Iraq
Logistics provider, Move One has announced that MAF Carrefour – the world’s second largest and Europe’s largest retailer – is its newest commercial retail logistics client in Iraq. Move One will be responsible for managing the Carrefour supply chain from Dubai, Turkey and Jordan into Iraq, as well as the company’s warehouse in Erbil and final delivery to stores throughout the country. Services offered also include handling and storage of food and nonfood products within our range of climate controlled, refrigerated and freezer facilities in Erbil. Move One Logistics has been active in Iraq since 2003 and the company has three strategically located offices throughout the country, including facilities in Baghdad, Erbil and Az Zubayr.
Aramex acquires South Africa’s Berco Express
Aramex, the global logistics and transportation solutions provider, announced today that it has completed the full acquisition of Berco Express (Pty) Ltd, one of South Africa’s leading logistics and transportation companies. A leading provider of transportation and logistics services, with a significant share of the country’s freight and logistics market Berco operates 15 branches throughout South Africa. The strategic acquisition of Berco Express follows Aramex’s recent venture into the Chinese market with the launch of the joint venture company with SinoAir, and the acquisition of OneWorld Courier and In-Time Couriers in Kenya in the 1st quarter of this year. According to the government of China, trade volume between China and the Middle East in 2010 surged to a record US$190 billion, and in the first half of 2011, trade increased by 36 per cent to reach $120 billion. China is the world’s second largest economy, which recorded 9.6 per cent growth in GDP in the first half of this year. “Aramex has, for some time now, viewed South Africa as a highly attractive market with a business friendly environment and significant growth prospects,” said Fadi Ghandour, founder and CEO of Aramex. The full range of services offered by Aramex will be introduced to the South African market and in the second phase, Aramex plans to further expand across Southern Africa with the opening of additional offices and warehouses. “We have been attracted to Berco Express’ existing platform for growth in sub-Saharan Africa and the regional knowledge and experience it has built over the years,” said Hussein Hachem, CEO for Middle East and Africa, Aramex. “We will use South Africa as a platform for our expansion into the Southern African region, while connecting South Africa, and the wider region, to global trade hubs.”
U-Freight toasts growth of wine logistics in China
Hong Kong-headquartered international freight services and logistics group, U-Freight Group, believes that China’s growing thirst for French wine will be a major boost for the company’s specialist wine logistics services. Earlier this year, following a detailed examination of official documentation and an on-site audit, one of U-Freight Logistics’ facilities in Hong Kong was officially approved by the Hong Kong Quality Assurance Agency (HKQAA) for the provision of commercial wine storage. HKQAA has partnered with the industry to develop the HKQAA Wine Storage Management Systems Certification Scheme for wine storage companies and wine retailers, which is the first of its kind in the world. The scheme has been championed by the industry and a significant number of wine storage facilities have already been awarded the certification. At its Shanghai logistics centre at Pudong Airport, the U-Freight Group also offers a sophisticated wine tasting suite where buyers and sellers can sample wine; as well as comprehensive wine storage facilities with sophisticated temperature and humidity control mechanisms. “The accreditation in Hong Kong and the development in Shanghai came at just the right time for us to support China’s burgeoning wine market and to help French imports into the Chinese market,” said the company’s CEO, Simon Wong. “We have seen robust growth of winerelated business activities in Hong Kong and mainland China since approval from HKQAA,” he added. The growth of wine consumption in China is partly a result of the 30 million people who join the middle class every year in China. The way in which wine is sold in China is also changing. In the 1990s, imported wines were only available in first tier cities like Beijing, Shanghai, Guangzhou and Shenzhen and sold almost exclusively to foreign hotels and retailers. In 2011, however, imported wines are entering second-tier cities and are primarily sold through restaurants and large supermarkets and department stores.
TNT Express opens S’pore command centre
TNT Express has opened its advanced Regional Security Command Centre in Singapore. The new multi-million dollar facility will monitor TNT’s integrated air and road operations in the Asia Pacific region, starting with its Asia Road Network and regional truck fleet. Michael Drake, MD of TNT Express, Asia Pacific said: “Singapore is a critical hub for TNT’s operations in Asia. This facility is our latest initiative to make our proactive security approach more comprehensive, and also to strengthen our integrated air and road solutions for our customers. We established the Asia Road Network back in 2005 with the aim of creating a viable and reliable mode of goods transportation in the region, a costefficient alternative to air and sea.”
K+N wins Bonfiglioli contract in India
Bonfiglioli Pvt. Ltd has selected Kuehne + Nagel to manage the warehousing operations for its new assembly plant in Chennai, India. The Bonfiglioli Group, based in Bologna, Italy, is a global supplier of power transmission and control systems. At the 10,000-sqm premises, Kuehne + Nagel provides Bonfiglioli comprehensive logistics offerings of 6,000 stock-keeping units (SKUs) and 1,200 pallets, including inbound materials receipt, put away services, order processing and line replenishing. The logistics portfolio also includes re-packing, picking & packing, inbound transportation, finished goods loading, materials cleaning and preservation as well as documentation.
E-Commerce doubles holiday shipments
FedEx Corp. expects to move more than 17 million shipments – almost double its daily average volume – through its global networks on 12 December, the projected busiest day in company history. Between Thanksgiving in the US and Christmas, FedEx forecasts more than 260 million shipments will move through its worldwide shipping networks. This is a 12 per cent increase for the holiday season over last year when 232 million shipments were processed. FexEx noted that E-commerce is playing a key role in generating this seasonal growth and in overall global trade in general. Retail inventory such as apparel, personal consumer electronics and luxury goods as well as books and other items from large internet retailers will account for a large portion of FedEx holiday volumes. China is now the world’s second largest online retail market after the US, according to the express giant. In 2010, China registered US$80.7 billion in online sales, doubling sales in 2009. Singapore’s online shopping market size reached S$1.1 billion (US$846 million) in 2010 and is forecasted to hit S$4.4 billion by 2015 according to online payment company PayPal. “E-commerce is growing robustly around the world including in the Asia Pacific region, FedEx has both the global network and the broad portfolio of products and services to help our customers take advantage of this growing trend,” said David L. Cunningham, president, FedEx Express Asia Pacific.
K+N settles US anti-trust fine, waits on NZ case
Swiss global transport and logistics company, Kuehne + Nagel has agreed to pay a fine of US$9.9 million to the US Justice Department in settlement of an anti-trust case, the company said. “Kuehne + Nagel has agreed to pay a fine of approximately $9.9 million under the plea agreement to resolve allegations that international freight forwarders coordinated their activities with respect to establishing certain surcharges.” While the courts approval of the plea agreement winds up a US anti-trust investigation of Kuehne + Nagel launched in 2007, the company still faces charges in New Zealand where K+N is the last defendant of six international freight forwarding companies involved in the case. The other five defendants, Bax Global, Schenker, Panalpina, EGL and Geologistics (Bermuda), have settled with New Zealand’s Commerce Cmmission, with the High Court ordering penalties of NZ$8.85 million (US$7 million).
Logwin opens dedicated fashion facility in Malaysia
In support of its aim of becoming a leader in the fashion logistics industry in Asia, global logistics provider Logwin has opened a dedicated fashion warehouse in Malaysia’s Shah Alam. The company said the new dedicated fashion lifestyle logistics facility will provide a full range of services specifically targeted at meeting the needs of customers in the premium fashion and lifestyle products sector. The warehouse will link with Logwin’s existing operations in Hong Kong, Singapore and Shanghai. Sydney will be the next site to come online as the company expands, with Indonesia, India and more offices in China to join the network. Facilities are also planned for Thailand and Vietnam. “There is growing demand from our fashion and lifestyle customers for dedicated warehousing because the handling of high fashion and lifestyle products is completely different to the way other goods are handled,” said Marc Wijnen, director logistics at Logwin´s Air + Ocean business segment. The service will include the offering of air and ocean freight, distribution and shop delivery.
