What's happening in Europe

 

Europe Trade Specialists 

 

Golden Fame Logistics
Holding Limited

Integrated logistics freight services
between Hong Kong and the PRD
region.
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Globelink Int'l Freight
Forwarding (HK) Ltd.

In Unity, We Link The Globe!
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Greencarrier Asia Ltd.

Yes, it's possible!
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Tianjin Shengyuanyujia
International Forwarding
Co., Ltd.

SYYJ will bring you different service,
differenent surprise, and make you
big achievement. We are longing for
work together with you for a better
tomorrow.
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Sea-Air Logistics (HK) Ltd.

Committed to the highest in industry
standards to meet your needs
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CASA China Limited Shenzhen

Call Anytime, Service Anywhere.
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AEL-Berkman Forwarding
(HK) Ltd.

Global Logistics, Personal Support
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Lucky Freight (HK) Ltd.

Devotion Creates Professionalization
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Odyssey International (HK) Ltd. 

We can provide excellent services
in order to meet customers'
satisfaction.
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MBS Logistics (Shanghai)
Limited

Your World's Local Forwarder
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.
 

Qingdao Wintrust logistics
Co., Ltd

Eager to progress - we serve
costumers honestly and approved
by vast majority of customers
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Worldex Logistics Qingdao
Co., Ltd.

Logistics Service Provider
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Panda Logistics Co., Ltd.
Qingdao Branch

Ever-lasting operation & profit
sharing
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Eternal Fortune Freight
Forwarding Co Ltd.

We are the professional LCL logistics
supplier in Tianjin.
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Gothenburg looks on the bright side of regulations and mega alliances

 


WHILE many in shipping see low-sulphur fuel mandates and the advent of mega alliances as challenging if not problematic, not so Sweden's major Port of Gothenburg.

That's because Gothenburg sees shipping alliances bringing needed direct calls with good import volumes just as it sees the new January 1 United Nations fuel rules in the English Channel, the Baltic and North Sea bringing a flood of exports.

The low-sulphur fuel mandate is expected to wipe out a profitable seagoing trade to Sweden's northern lumber yards and steel mills because it will be far too costly to have ships go north go empty - not with with fuel costing 50 to 60 per cent more that it does now.

This will drive the sea trade to road and rail cross country from the Baltic side of Sweden to the Atlantic side where the Port of Gothenburg is sitting pretty when the fuel rule goes live on January 1.

That's how way Claes Sundmark, the port's vice president for the  containers, ro-ro and rail, explains the situation in an interview with the Container Shipping Manager at the recent Shenzhen Logistics and Transportation Fair.  

As for imports, Mr Sundmark's positive view of shipping alliances is derived from his belief that they can act as intermediaries to channel cargo to Gothenburg in quantities that justify direct calls.

With alliances, cargo for Sweden's main port can be amassed by six sales teams - he was referring to his old G6 customer - and put on a single ship, creating a critical mass to justify a direct call. Which in turn, benefits from the containerised exports bound for the Far East waiting on the dock.

This differs from the usual scenario of a multiplicity of sales  teams working for a multiplicity of shipping lines putting what little they collectively collected for Sweden on a multiplicity of ships in such small quantities that it only justifies feeder services from a northern range transshipment port to Gothenburg.

Mr Sundmark reminds us that the Gothenburg volume to and from China takes 35.7 per cent of total imports to Sweden and 12 per cent of total exports from Sweden.

But with shipping alliances, new efficiencies are possible, he said. Now each liner's independent sales team can put Swedish cargo on the Gothenburg ship on which they share slots.

Once amassed, that designated ship with its Swedish cargo can skip a port on a loop, and go to Gothenburg directly instead of some other port of the regular service rotation.

Such arrangements could be replicated, providing direct calls to other ports with good export potential, which would not otherwise merit direct sailing without shipping alliances to making it possible.

"OOCL by itself cannot come here with a 9,000-TEU vessel. Nor can NYK or Hapag-Lloyd. But by joining their volumes together in the  alliance, they have enough to justify a direct call," he said.

There are problems, he conceded. "Alliances are demanding for us,  because if we talk of Ocean Three, all three must think the port  of Gothenburg is the right approach, then add Gothenburg and drop Qingdao, Ningbo or maybe Dubai," he said.

"It is demanding having the lines agree to this within the  alliance. With all the alliance members, if they put their volumes together, they have enough to make it," he said.

Gothenburg took time to develop this approach and more time to convey, or educate sales teams to the possibility. They were dealing with a direct call from the G6 Alliance from China.

Local sales teams focused on developing exports, which grew well, he said. The problem was on the import side.

"Their colleagues in China and Hong Kong were selling the full  network of the alliance line, they didn't yet have the knowhow of the loop to Gothenburg," said Mr Sundmark.

"So it took some time before they consolidated everything for Gothenburg in Loop 3. They had five different loops and Loop 3 was calling directly at Gothenburg," he said.

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