Analyst Insight: Though logistics in China has historically been resistant to change, improvements in express delivery will have a noticeable impact in 2015 due to the rapid growth of e-commerce, food safety concerns, and government measures. The limited supply of land for logistics purposes will affect warehousing costs, and the extra cost will drive the need for storage efficiency. Manufacturing will see modest expansion and gradual migration out of China to lower cost countries. – Jim Serstad, Managing Director, Tompkins Asia
Success in the global economy requires a shift in strategic vision of the Asia-Pacific region's role in supply chains. While it is no secret that an end to low-cost production in Asia is in sight, smart companies are studying the complexity of APAC region and gaining insight into the roles each country plays in the quickly evolving economic horizon. But visibility into where APAC is today isn't enough; forecasting where it will be next year, five years from now, and further into the future are key to positioning supply chains now for ongoing optimization.
Strong trade growth, moderating fleet development and deployment of new fuel-efficient vessels are expected to lead to a recovery in dry bulk shipping rates later in 2015, according to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry.
Japanese freight carrier Kintetsu World Express Inc. is buying Singapore's APL Logistics for $1.2bn, paying a higher than anticipated price for an overseas deal at a time of slow domestic growth.
Liner service reliability fell to a record low in January as the effects of U.S. West Coast congestion and the phasing-in of new alliance services took their toll, according to the Carrier Performance Insight, published online every month by global shipping consultancy Drewry.
Analyst Insight: With stories of Ebola and Boko Haram dominating the news, it would be easy to dismiss Africa from a supply chain perspective. Risk is clearly high and traditional reasons to engage supply chain - either for low-cost sourcing or new market entry - may seem absent. The truth, however, is that many supply chain leaders should start thinking now about how to engage this vital emerging market. - Kevin O’Marah, Chief Content Officer, SCM World
The evidence of strengthening in African manufacturing is increasingly persuasive. Between 2000 and 2010, the share of the African population living on less than $1.25 per day fell from 58 percent to 48 percent. In no small part, the falling rate of extreme poverty is driven by much-improved output performance.
The latest news, analysis, services and systems regarding global logistics and freight and their impact on global supply chains. Today’s companies are transporting and delivering perishables and manufactured goods faster and farther around the world than ever before through global logistics solutions. New technologies that provide information during global shipments are transforming the way companies do business - and allowing them to stay ahead of the competition in their industries. As transportation and distribution services continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies are using global logistics solutions to power their supply chains.
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