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China Inside Out by Bill DodsonChina Inside Out
by Bill Dodson
This book deals with 10 trends shaping China and how it affects all of us.
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Slow Steaming (SS) or Super Slow Steaming (SSS) for Container Shipping Part II

  
  
  
  
  
  

Part I

Although slow steaming or super slow steaming saves shipping lines’ fuel cost, it does not benefit certain exporters who consider transit time is their enemy.

According to Stuff.com.nz, New Zealand meat exports, a $1 billion business per year, worries about slower speed shortening their meat’s shelf life when delivering to major companies in Europe, such as such as Marks & Spencer, Tesco and Waitrose.

Take chilled lamb as an example, the shelf life is approximately 70 days. The transit time from New Zealand to major cities in Europe takes:

  ~ 7 days preparation in New Zealand & to its port.

 slow steaming, export, imports, economy, trade

 ~ 32 days normal speed service from Maersk

OR

~ 40 days slow steaming service from other shipping lines.

(New Zealand ---> Southeast Asia ---> Europe)

 slow steaming, export, imports, economy

 
   

~ 10 - 14 days from distribution networks in Europe to consumer markets.

 

From quickest 49 days to slowest 61 days transit time, chilled exporters only have about 10 to 20 days of shelf-life before selling the chilled lamb.

While exporters cannot control the new “normal” transit time on waters, they can manage shorter preparation and distribution time on your supply chain at origin and destination, including an experienced and efficient freight forwarder and customs broker. We believe Universal Cargo Management can be one of your supply chain partners and give you an edge on a fast-paced logistics world.

Response to Ms. Benson's Comment

 

Brian Chan

brian@universalcargo.com

Comments

Transit time debate. 
 
The slow-steaming issue is something that will continue to be a feature in 2011 because of the overhang of new tonnage being delivered this year and next. Commentators expect tonnage capacity to rise by 7-10% this year (depending on scrappage and lay-up), so that will inevitably mean more freight capacity as a function of time, so some adjustment will have to be made to scheduling to keep things under control. Maersk have a specific market positioning as they profile themselves as the conventional reefership (point-to-point) alternative but all the other lines are simply common line-haul carriers when it comes to general freight. The big factor which will change here compared to 2009/2010 is the rapidly rising bunker prices. If fuel costs rise even quicker ($ 100/ barrel not far away) this will put pressure back on the lines to operate more prudently, in spite of increasing demand for trade. With regard to meat and other perishables, the next problem will also be the worldwide shortage of reefer containers- another consequence of the slowdown in 2008, when boxes were simply not being ordered. 
 
So, be ready for space and container space squeeze, increasing Bunker Adjustment Factors and increased equipment surcharges. 
 
Will all this mean a return of conventional reeferships to world trade? Don't bet on it- they're are too expensive to operate, too inflexible and unlikely to be built in numbers which will replace the rapid scrapping that is happening now.
Posted @ Saturday, January 22, 2011 2:07 AM by Martyn Benson
Devin, 
 
I am so very impressed. W@ho would have thought that the little brother of my ex wife would be a world wide exporter. Probably makes life a bit easier than trying to build houses in this depressed economy. After 38 years I am now faced with reinventing my life, not a simple task, but with the Lords grace and guidence, the door that is closed will reveal a door that is open. Much love and continued success in all your endevors. Lar
Posted @ Saturday, January 22, 2011 12:58 PM by Anthony L. Frye
First of all appreciate your share, like your blog, the hope can share with you more wonderful blog,welcome to Canada GooseParka, Canada Goose Coats and Canada Goose UK.
Posted @ Saturday, October 08, 2011 3:03 AM by Canada Goose Parka
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