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Maersk Line has offered some relief to beneficial cargo owners (BCOs) who have being shut out of vessels departing Asia during this unusually busy peak season.
The Danish shipping giant added a single voyage, extra-loader ship to the East Coast and one to the West Coast and introduced slots eastbound slots on NYSHEX, while APL's new, expedited service made its maiden call at Los Angeles.

However, Maersk is the only carrier to announce extra sailings this month, and with vessels in Asia being booked to 110 per cent of capacity, carriers will most likely continue to "roll" some shipments, at least for the next few weeks, both shippers and carriers say. Even the recent launch of APL's new weekly expedited service from China to Los Angeles is not expected to make a significant impact on the capacity crunch in the eastbound Pacific, reports IHS Media.
Head of trans-Pacific trade for Maersk Line North America, Matt Hill, was quoted as saying in a release from the New York Shipping Exchange (NYSHEX): "We typically see a historical market increase in August and September as shippers ramp up for their holiday buying season.
"Combine that with the reduction in capacity shippers are experiencing from many carriers in the trade, uncertainty around the impact on imports out of China because of the tariff issues, and overall higher than expected year-to-date volumes, and you have the makings for a strong peak season," Mr Hill stated.

If other carriers also offer one-off extra loaders in the coming month, the tight situation in the largest US trade lane could be relieved somewhat.

"More extra loaders are expected to be announced in the coming weeks by various carriers, encouraged by both the higher freight rates as well as to ensure service recovery after recent weather delays at Chinese ports have also disrupted carriers' schedules," Alphaliner stated.
In addition to announcing the extra-loaders, Maersk has begun posting offers for trans-Pacific eastbound sailings on NYSHEX. Maersk joined several other carriers posting eastbound offers that guarantee BCOs space and equipment on specific voyages.

On August 14, Maersk's Matar N, with a capacity of 3,421 TEU, began a rotation covering Yantian, Hong Kong, Busan, Houston, Miami, Charleston, Savannah and New York-New Jersey, according to Alphaliner. The 5,078 TEU Dolphin II left Yantian Wednesday for Hong Kong, Ningbo, Shanghai, Los Angeles, Seattle and Vancouver. These extra loaders are for one voyage only.

Hundreds of containers each week are being rolled in Asia in what is turning out to be an earlier than usual peak season, due in part to importer uncertainty over the impact of Trump administration tariffs and counter tariffs by China. However, the fast-forwarding of imports leads some to believe that the peak season could come to an early end in late September or during the Golden Week celebrations in Asia beginning October 1.
A blog about Projects and Logistics free resources, learning material , Case studies and discussion about challenge in logistics industry.

Spot rates for shipping containers from Asia to northern Europe in the week ending Friday rose 3.3 per cent to US$959 per TEU, according to the Shanghai Containerised Freight Index (SCFI).
Asia-Mediterranean trade increased 0.7 per cent to $915 per TEU, London's Loadstar reported.

Asia to the US west coast grew 1.90 per cent to $2,126 per FEU while those to the east coast edged up 0.4 per cent to $3,329 per FEU.

A blog about Projects and Logistics free resources, learning material , Case studies and discussion about challenge in logistics industry.


by Babak Dehghanpisheh (Reuters) Tehran has suggested it could take military action in the Gulf to block other countries’ oil exports in retaliation for U.S. sanctions intended to halt its sales of crude. Washington maintains a fleet in the Gulf that protects oil shipping routes.

Tangsiri said Iran had full control of the Gulf and the Strait of Hormuz that leads into it. Closing the strait would be the most direct way of blocking shipping.

“We can ensure the security of the Persian Gulf and there is no need for the presence of aliens like the U.S. and the countries whose home is not in here,” he said in the quote, which appeared in English translation on Tasnim.

He added, “All the carriers and military and non-military ships will be controlled and there is full supervision over the Persian Gulf. Our presence in the region is physical and constant and night and day.”

Separately, the head of the Revolutionary Guards, Major General Mohammad Ali Jafari, said Iran’s enemies would not prevail in a conflict.

“The enemies are strictly avoiding any conflict with Iran because they know that it will not be beneficial for them,” Jafari said, according to Tasnim.

Tension between Iran and the United States has escalated since President Donald Trump pulled out of a 2015 nuclear deal between Iran and world powers in May and reimposed sanctions.

Senior U.S. officials have said they aim to reduce Iran’s oil exports to zero.

Iran’s Supreme Leader Ayatollah Ali Khamenei, the most senior authority in the Islamic Republic, said last month that he supports the idea that if Iran is not allowed to export oil then no country should export oil from the Gulf.

Reporting by Babak Dehghanpisheh; Editing by Dale Hudson and Peter Graff

A blog about Projects and Logistics free resources, learning material , Case studies and discussion about challenge in logistics industry.

The race to digitize business is on among companies across the Middle East. And SAP Ariba wants to help them win. The company today announced that it has launched datacenters co-located with SAP in United Arab Emirates and Saudi Arabia, giving companies secure, local access to market-leading solutions they can use to digitize procurement and transform their operations.

“Technology is fundamentally altering the way that businesses operate,” said Mohammed AlKhotani, General Manager, head of SAP Ariba Middle East and North Africa. “Companies across the Middle East and North Africa are at the forefront of this digital transformation, and SAP Ariba is committed to delivering innovative solutions that enable them to push the limits of what is possible and move their businesses forward.”

SAP Ariba offers a comprehensive range of cloud-based solutions that companies can use to manage the entire source-to-settle process with greater speed, efficiency and intelligence. Buyers, for instance, can automate everything from sourcing and orders to invoices and payments, while controlling spending, finding new sources of savings and building a healthy supply chain. And suppliers can connect with profitable customers and scale their relationships, simplifying sales cycles and improving cash control.

And with the launch of datacenters co-located within SAP facilities in the United Arab Emirates and Saudi Arabia, these state-of-the-art procurement applications can now be accessed locally. SAP is among the first multi-national technology companies to open a cloud data center in the UAE as part of its 5-year USD 200 million investment plan for the UAE and in Saudi Arabia, empowering Saudi Vision 2030 and beyond.

More than 3.4 million companies – including more than 104,000 in the Middle East and North Africa - use SAP Ariba’s solutions to connect and collaborate around more than $2.1 trillion in commerce on an annual basis. Companies like:
  • Easa Saleh Al Gurg Group (ESAG), one of the top four companies in the Arab world according to Forbes Middle East, which replaced several point applications with SAP Ariba’s single, integrated platform which it is using alongside its SAP ERP system to drive a more transparent and collaborative sourcing process.
  • Gulf News, the top ranked newspaper in UAE, that is leveraging SAP Ariba’s cloud-based sourcing solutions and business network to discover, connect and more efficiently transact with its global suppliers and improve its bottom line.
  • Emdadat, which has built a digital marketplace through which medical providers and suppliers can connect and collaborate across the entire procurement process to increase their efficiency and improve the quality of healthcare across the Kingdom of Saudi Arabia using SAP Ariba as the foundation.
To learn more about SAP Ariba’s solutions and the value they can deliver for your organization, visit www.ariba.com.

About SAP Ariba

SAP Ariba is how companies connect to get business done. On the Ariba Network, buyers and suppliers from more than 3.4 million companies and 190 countries discover new opportunities, collaborate on transactions and grow their relationships. Buyers can manage the entire purchasing process, while controlling spending, finding new sources of savings and building a healthy supply chain. And suppliers can connect with profitable customers and efficiently scale existing relationships – simplifying sales cycles and improving cash control along the way. The result is a dynamic, digital marketplace, where over $2.1 trillion in commerce gets done every year. To learn more about SAP Ariba, visit www.ariba.com.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 404,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

© 2018 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Contacts

SAP Ariba
Karen Master, +1 412-297-8177
karen.master@sap.com


A blog about Projects and Logistics free resources, learning material , Case studies and discussion about challenge in logistics industry.

A supply chain process map shows the path supplies take from raw materials to manufacturers to consumers and afterwards. It provides a quick visual overview of the flow of merchandise through a particular industry.
A blog about Projects and Logistics free resources, learning material , Case studies and discussion about challenge in logistics industry.


1) What are the responsibilities of a logistician?

Primary role of a logistician is to

• Manage the supply chain
• Transportation and storage of material
• Transportation management

2) What is the different position a person can work in logistic industry?

A person can work under various position

• Logistic director
• Logistic supervisor
• Logistic associate
• Logistic engineer
• Logistic coordinator
• Logistic specialist
• Logistic analyst

3) Explain what is supply chain management?

Supply chain management includes an integrated approach of planning, implementing and controlling the flow of information, materials and service from raw material to the finished good for the ultimate distribution to the customer.

4) Explain what is ASN (Advance Shipping Notice)?

It is a notice that is sent to the customer about the detailed shipment information in advance of delivery. It may also include carrier and shipment related information like time of shipment and expected time of arrival.

5) Explain what is Anti-Dumping duty?

Anti-dumping duty is an import duty levied in cases where imported goods are priced at less than the normal price in the exporter’s domestic market and cause material loss to the domestic industry of the importing country.

Transportation

6) Explain what is LTL (Less than truckload)?
LTL (Less than Truckload) shipment is a contract between the shipper and transport owner. According to the contract, instead of the entire truck, the shipment are priced according to the weight of the freight and mileage within designated lanes.

7) Explain the term deadweight tonnage?

Deadweight tonnage is the difference between the laden and unladen weight of the ship. In other words, it is the weight of everything that ship carries except the ship itself.

8) Explain how to organize storage area for bulk items?

Look storage place which has the facility of single, double or multiple depth locations

• Bulk storage in vertical or straight direction: It is the most common method of organizing the container, it is organized in a vertical direction piling the container over each other.
• Bulk storage at angle: It is one of the solutions that can be applied in a situation when there is a limited place to accommodate containers. But it is applicable in special cases only, depending upon what material it carries.

9) Explain what is cross docking?

Cross docking is a process of unloading materials from an incoming semi-truck and loading directly into out-bounds trucks or trailers. It reduces handling costs, operating costs and the storage of inventory.

10) Explain what is TEU?

TEU stands for Twenty foot Equivalent Unit. It is a method of calculating vessel load or capacity, in units of containers that are twenty feel long. For example, a 40ft long container measure 2TEUs.




11) What is the advice of shipment and advising bank?

• Advice of shipment: It is a notice sent to a foreign buyer or local trader informing them that the shipment has processed forward and carried information about packing, routing, etc. A copy of the invoice is often sent with it and if recommended a copy of landing also attached along with that.
• Advising Bank: Advising bank is a bank operating in the seller’s country, that handles letters of credit in behalf of a foreign bank

12) Explain what is affreightment?

Affreightment is a contract between ship owner and merchant, where ship owner provides or rented the space in the ship to the merchant for an agreed amount and for a specific period. In this contract, merchant is liable for the payment whether or not the ship is ready for the shipment.

13) What does a bill of lading include?

A bill of lading includes following details

• Name and complete address of shippers and receivers
• Special account numbers or PO used between business for order tracking
• Instruction for the carrier for secure delivery
• Date of the shipment
• Number of shipping units
• Types of packaging that includes cartons, pallets, skids and drums
• Description about the shipped items (common name & material of manufacture)
• Declared value of the goods being shipped
• Note included if there is any hazardous substance in it
• Exact weight of the shipments – for multiple commodities, weight for each commodity is mentioned separately
• Freight classification of the items shipped, according to NMFC (National Motor freight classification)

14) Explain what is blanket way bill?

A way bill which covers two or more consignment of freight is referred as blanket way bill.

15) What are the activities performed at operational level in logistics’?

Various activities at operational level includes

• Goods receipt and checking
• Bulk storage
• Order picking
• Stock replenishment
• Order marshalling
• Load Scheduling
• Returns
• Availability of Personnel
• Update of stock
• Completion of documentation

16) Mention what is freight class based on?

Freight class is based on four factors

• Density: Weight per cubic foot
• Freight Stowability: width and length based on carrier mode rules
• Ease of handling: Evaluation of the effort required in transporting
• Liability: It includes liability to damage, breakability and perishability, freight price per pound and susceptibility of theft

17) Explain what is declared the value for carriage?

Declared value for carriage is the value of the goods, declared by the shipper on the bill of lading, to determine the limit of the carrier’s liability or a freight rate.

18) Explain what is export declaration?

Export declaration is a government document that defines the goods to be supplied out of the country. This declaration should be filed by exporter to the U.S government.

19) Explain what is documents against acceptance?

A documents against acceptance are an arrangement or provision, where exporter instructs a bank to hand over shipping and title documents to the importer only if the importer agrees the accompanying bill of exchange or draft by signing it. This provision ensures that the buyer is legally bound to pay the full price to the exporter for the shipments, before ownership is transferred.

20) Explain what is the difference between document against acceptance and document against payment?

• Document against payment: The document remains with bank and importers have to pay the exporter before they release the documents. In this payment is immediate, and document is released quickly

• Document against acceptance: In this importer gives 30-45 days to bank to deduct the amount and then release the documents. In this provision, there is much risk, and if there is no sufficient balance in the account then, the process will get delayed.

21)      Explain what is Carton Clamps?

It is the most versatile attachment used for handling and transporting multiple unpalletized products such as furniture, carton, appliances, etc.

22)      What is SKU number?

Stock Keeping Unit also referred as SKU number is a unique code used to identify particular line items.

23)      What are APS, ASN and ASRS?

APS: It stands for Advance Planning and Scheduling
ASN: It stands for Advanced Shipment Notifications
ASRS: Automated Storage and Retrieval Systems
24)      What is compliance labels?

Compliance label are used as shipping labels, carton labels, pallet labels and they usually contain bar codes. It is used for the identification of goods delivered.

25)      Explain what is consignment inventory?

Consignment inventory is in the possession of the customer but still owned by the supplier.  It means you will pay the supplier only when their goods are sold.

26)      Explain what is chargeback?

When any shipment that does not meet the customers decided terms and conditions, a financial penalty is charged against the supplier by customer.  This charge is referred as charge back.  For example, lack of proper packaging or labelling.

27)      Explain what is cycle time?

Cycle time is the time consumed to get and order from order entry to the shipping dock.

28)      Explain what is bonded warehouse?



Bonded warehouse is a dedicated portion of a facility where imported goods are stored before the customs duties or taxes are being paid.

29)      Explain what is blind shipment and bread bulk?

When the source of the supplier is hidden from the customer, such shipment is referred as a blind shipment.

Bread bulk is referred to overseas shipments, where the cargo being shipped consists of smaller units like crates, bales, cartons and so on.

30)   What are the major transportation issues in warehousing?

The major transport issues in warehousing are

Costs
Delays
Tracking and communications
Warehouse Safety

31)    Explain what is batch picking?

The technique of transporting inventory which are grouped into small batches at one go is known as batch picking.

32)   Explain what is wave picking?

Wave picking is a technique of assigning orders into groups and release them together, so as to allow several activities to run parallel and complete the task.

33)   Explain what is the difference between logistics and transport?

Logistics: Logistics is referred as the procedure of managing goods, resources and information from the source to the consumers in a manner that it fits the requirements of both parties.

Transportation: Transport is the movement of the goods from one point to the other.  It is considered as part of logistics.

34)   In inventory management what do you mean by allocation?

It is a demand which is created by the Sales Order or Work Orders next to a particular team.

35)   Explain what is a capacity requirement planning?

It is a process for determining the quantity of machine and manual labor resources necessary to assemble a production.

36)   Explain what is activity based costing?

It is a method which helps in the breakdown of the costs into specific activities in order to maintenance of accuracy in the distribution of costs in product costing.

37)   Explain what is the meaning of Triage?

The sorting of products or goods based on their condition or quality is referred as Triage.  Some of the goods needs to be repaired and sent back, others have to be sold off as used or defective goods.

38)   Explain what is meant by Reverse Logistics?

Reverse Logistics is the collection of all processes that come into play for goods that move in the reverse directions which means transportation of goods customer to the business.

39)   What are the main supply chain challenges companies face today?

The five big challenges that companies face today is

Ignoring the continued growth of e-commerce as a channel in the industrial sector
No attention to the potential risk like volatile transportation costs
Over expectation that supply chain management technologies will fix everything
Over-reliance on past performance to predict future sales
Increase complexity added to supply chain operations with implementation of unnecessary technologies
Lack of understanding of the full capacities of suppliers and service
40)   What are the areas should be focussed more in order to improve warehouse transportation?

Delivery Frequency
Turnaround Times
Journey Times
Fixed Routing
Unification of product
Performance standard
Vehicle fill
Scheduling
Vehicle and operational records
Preloading



41)   Explain what is WTS (Warehouse Tracking System)? How does it work?

WTS or Warehouse Tracking System is a software application which is specifically designed for the warehouse industry. It uses the system of barcode labels which allows you to track product movement, audits and shipments easily.  It enables you to identify each piece of stock by a unique serial number.

42)   With the help of WTS how you can generate an Invoice?

There are two ways you can generate Invoice using WTS technique

One way of creating an invoice is assigning it directly with the orders that you are working on
And the other way is to export the order to QuickBooks and create the invoice there.
43)   How Warehouse Tracking System will be helpful in warehouse transportation?

In the warehouse, WTS will help you

Eliminate searching for lost products and saves your transportation time
Reduce picker walk time
Monitor warehouse activity and order status in real time
44)   What are the important aspects of transportation and fleet management?

The important aspects of transportation and fleet management

Transport Acquisition
Transport Planning
Routing maintenance planning
Fleet maintenance and Scheduling
Risk management
Human resource management
45)   From health and safety point what are things to be taken care while warehouse transportation?

Don’t leave items in aisles on the floor or perched insecurely on a surface
Clean up all spills immediately
Don’t block fire exits, sprinklers or fire extinguishers
Put items in their assigned places
Don’t leave sharp tools or cutters perching out
Keep cord and wires off the floor
Report loose flooring or tripping hazards
Dispose of trash immediately in proper containers


A blog about Projects and Logistics free resources, learning material , Case studies and discussion about challenge in logistics industry.
Logistics makes all this possible. A $4.3 trillion industry affecting nearly every country in the world, logistics is the network of services that supports the physical movement of goods within and across borders. It comprises an array of activities including transportation, warehousing, brokerage, express delivery, terminal operations, and even data and information management. How efficiently goods can move through these systems to their final destinations is a key determinant to a country’s trade opportunities.


“Logistics are the backbone of global trade,” notes Caroline Freund, Director, Macroeconomics, Trade & Investment Global Practice at the World Bank Group. “As supply chains become more globally dispersed, the quality of a country’s logistics services can determine whether or not it can participate in the global economy.”

Benchmarking Logistics Performance

With trade and logistics touching so many areas of an economy, it can be difficult to get a complete picture of a country’s performance. This is why the Logistics Performance Index (LPI), part of the biennial report Connecting to Compete, evaluates countries across a number of indicators. The index, which takes into account factors such as including logistics competence and skills, the quality of trade-related infrastructure, the price of international shipments, and the frequency with which shipments reach their destination on time, helps governments benchmark their progress over time and in comparison to similar countries.



2018 LPI: Key Findings

  • The top 10 performing countries have remained relatively unchanged over the past few years and tend to include high-income countries in Europe. Of the top 30 performers, 24 are members of the OECD.
  • The bottom 10 countries in the ranking are composed of mostly low-income and lower-middle-income countries. These are either fragile economies affected by armed conflict, natural disasters, political unrest, or landlocked countries that are naturally challenged by geography or economies of scale in connecting to global supply chains.
  • The LPI scores of high-income countries, on average, surpass low-income countries by 48 percent.
  • Among the lower-middle-income group countries, large economies such as India and Indonesia and emerging economies such as Vietnam and Cote d’Ivoire stand out as top performers. Most of these countries either have access to the sea or are located close to major transportation hubs.
  • There is currently a labor shortage of logistics professionals in both developed and developing countries. Developed countries need more blue-collar workers, such as truck drivers, while developing countries seek more managerial-level workers.
  • More countries perceive cybersecurity threats a risk to logistics. However, while 78% of high-income countries have increased their preparedness, only 26% of low-income countries have done so.
  • Given that 23% of all energy-related CO2 emissions can be attributed to transport, the environmental sustainability of logistics is an important emerging trend. Strong performers in logistics are the most likely to seek eco-friendly shipping options. In the top quintile of LPI performers, 28% of respondents indicated that shippers often or nearly always ask for environmentally friendly shipping options. In the bottom quintile, this percentage falls to just 5%.


Source: World bank

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