Logistics Management - October 2011

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At HMM ‘Green’ is not Just aColor; It’s a Day at the OfficeHMM was the first internationalocean shipping company to receivethe Environmental ManagementSystem Certification, ISO 14001.What does this mean? It meansHMM is long dedicated to the processof safeguarding the environment. Weidentify how our business impacts theenvironment, design effectivestrategies to reduce our footprint,implement systematic approaches toproblem solving, establish goals andmeasure our results.IdentifyOur eco-friendly initiatives have enabledHMM to sharply reduce Green HouseGas and other air pollutant emissionsfrom containerships since the programbegan in 2007:* Carbon Dioxide (CO2) -39%* Sulphur Oxide (SOx) -31%* Nitrogen Oxide (NOx) -16%* Ozone Depleting Substances -63%VerifyActPlan201 1SMWhat’s next? Hyundai will continue to reduceatmospheric and marine pollutants, and makeefficient use of resources to help insure we all haveclean air and blue oceans for generations to come.HMM provides dependable, green ocean transportservice for US, Asia, Europe and South America. Seeour entire schedule online at hmm21.com or ourmobile site at m.hmm21.com. On time. Online.m.hmm21.com1-877-7-HYUNDAI
Special Report: Top 30 Ocean CarriersA special supplement to logistics managementthat transit times have risen, effectivevessel capacity has dropped, shortagesin containers and equipment have beenexacerbated, and meeting customerexpectations is more difficult.“One of the key aspects of the supplychain is that transit times affect inventory,”says Gatti. “Initially, slow steaming acceleratedthe depletion of inventory making itharder for shippers to fill their store shelvesand manufacturer’s production lines ina timely manner.” Over time, however,shippers have been forced to adjust tolengthened voyage times by increasingthe amount of inventory they carry, athigher costs, Gatti adds.“Goods that sit in inventory aresimply not producing real economicoutput or providing any societal benefit,”says Gatti.Reversal of fortuneWhile the world’s leading cargo vesseloperators had seen a remarkable reversalof fortune last year, industry analystspredict the turnaround will be “shortlived.”Alphaliner, the Paris-based shippingconsultancy, reports that 19 of thetop 25 ocean carriers it surveyed earnedan estimated $14 billion in 2010, afterlosing $15 billion just the year before.“Container carriers’ margins recoveredstrongly in 2010 to a positive 7percent from a negative 16 percent in2009,” says Stephen Fletcher, Alphaliner’scommercial director. But analystsadd that margins in the Asia-EU tradehave softened, and that 2011 is likely tobe a much weaker year in general.Indeed, container rates have beensliding on all the major trading lanessince July 2010, with the exception ofa small “hiccough” last winter, as linercompanies tried to push for implementationof general rates increasesin a weakening market, say analysts atthe Baltic and International MaritimeCouncil (BIMCO) in Copenhagen.“The anticipated strong volumerebound following the Chinese LunarNew Year last February did not mate-58S October 2011 • Logistics Management
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