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Oct 26, 2006

TRANSPORT & LOGISTIC STUDIES WORLDWIDE

* UK - Exploding shipping demand threatens global supply chains
London,UK -Drewry's Annual Report (subscription) -23 Oct 2006: -- Exploding demand in the container shipping sector is threatening to put a break on the globalisation of supply chains as marine transport infrastructure fails to keep pace. This is the suggestion of a new report from the respected shipping consultants Drewry's, in their annual report on the world's container ports published last week...

* UK - Systemic security failures threat to express industry
London,UK -Transport Intelligence (subscription) -18 Oct 2006: -- Evidence emerging from a recent criminal drug smuggling investigation has raised concerns over the 'known shipper system' used by express parcel carriers to expedite packages from identified customers through customs. If the scam can be used for drugs, it could also be used for bombs. ..

* USA - New survey finds logistics supplier base rationalisation continues
Georgia,USA -Transport Intelligence -25 Oct 2006: -- Georgia Institute of Technology, collaborating with the Cap-Gemini SAP and DHL, have published their annual survey of the '3PL' sector... The survey is quite global in its reach, with big inputs from China but also areas such as the Middle-East. But the survey does suffer from being rather over exposed to sectors such as the chemical and automotive sectors and under-exposed to retail. The former sectors now look quite old fashioned with frequently comparatively parochial supply chains and rigid logistics operations. Their importance in the economy has also declined... One further point. The survey has observed a continuing growth in the globalisation of supply chains with – unsurprisingly – China being the most salient. The report notes that logistics activities within and to China tend to concentrate on transportation and customs brokerage rather than the more sophisticated services such as cross docking and IT. The report also notes that the "lack of continual improvement in China is considered a bigger problem than elsewhere"...

* USA - Collaboration key to China supply chain efficiency, says executive
San Antonio,TX,USA -Transport Intelligence -26 Oct 2006 : -- Companies moving cargo from China to the US must adopt a more collaborative approach to improving the efficiency of their supply chains, according to Brian Lutt, President of global supply chain leader, APL Logistics... He identified a number of key issues US companies face when adding the China link to their supply chains. These included cultural issues, congestion (particularly in inland transportation), connectivity between coastal and inland areas, shipment security, securing sufficient ocean and air transportation (particularly in periods of high demand) and the complexity of managing multiple currencies... He said companies must first understand the current realities of managing a China-linked supply chain, and work with all stakeholders involved, including their overseas vendors, government agencies, and 3PLs in a collaborative framework to improve China's logistics capabilities and ensure their own supply chain success... "The need for partnership is made more urgent by the steady shift in the commodity mix in imports from China towards higher value segments, and imports from China continue to grow at a rapid pace," added Mr Lutt...

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