Maersk introduces Maersk Spot, a new fully online product that simplifies the buying process for customers

Shipping a container has been a complex process for many years. Manual and inefficient, the buying and booking process has been often full of surprises. With the launch of Maersk Spot, Maersk aims to introduce a truly online product that can break the cycle of overbookings and offer a much simpler way to ship a container with load guarantee.

Maersk has expanded its product offering with Maersk Spot. Fully digitally enabled, the new online product provides customers a cargo loading guarantee at a fixed price upfront. With the launch of the new product, Maersk takes further steps towards simplifying the supply chains of its customers by addressing some of the fundamental inefficiencies that exist across the industry.

“It is not uncommon to see overbookings to the tune of 30%, and often this leads to rolling of the customers’ cargoes since there is overbooking to compensate for the high downfall. This creates a lot of uncertainty for our customers,” says Silvia Ding, Global Head of Ocean Products at Maersk. “With Maersk Spot, we provide full visibility of the price and terms that will ensure cargoes get on board. Ultimately allowing customers to move their cargo in a much simpler and more reliable way.”

With Maersk Spot, customers can search and get competitive rates online 24/7. The all-in price is calculated and fixed when the booking is confirmed, which happens instantly. This dynamic online pricing fixed at booking creates one transaction for the customer from quotation to booking confirmation, profoundly simplifying the buying process.

“Maersk Spot radically simplifies the buying experience for our customers. Today’s offline process can be up to 13 individual steps, often involving a lot of communication and paper work from rate sheets to terms and conditions and surcharges, etc. With Maersk Spot, this cumbersome process is reduced to five simple and integrated steps ? all online,” says Ding.

When a booking is confirmed by the customer, Maersk commits to load and grants certainty in operational execution. This is a mutual commitment between the customer and Maersk which ensures that the vicious cycle of overbookings is addressed. In case of booking cancellations, fees apply at the customer’s charge. If cargo is rolled, Maersk compensates the customer. The mutual commitment paired with increased visibility of sailings and certainty of prices has been to date embraced by more than 3,000 unique customers each week, with already over 50,000 Forty-Foot-Equivalent (FFE) units booked in Q2.

One of the customers already using Maersk Spot is The Ramco Cements Limited. The company sends around 120-200 containers from Kattupalli port to Colombo every week, making their bookings one to two weeks in advance to ensure they can deliver to their customers on time with the best deal possible.

“We are quite proactive about our bookings but there were still cases where our shipments were not loaded due to capacity issues which resulted in the loss of trust with some of our customers,” says Ramakrishnan Vivekanandan, General Marketing Manager of The Ramco Cements Limited. “With Maersk Spot, we no longer have the uncertainty of not knowing if we can actually provide our customers with their shipments.”

Maersk Spot is now available on all trades, except in and out of U.S. Currently available as BETA site, the product will be implemented on at the beginning of August.

Maersk to offer customers carbon-neutral transpor

A new carbon neutral product - the first of its kind in the industry - is being piloted with select Maersk customers who are highly engaged in sustainable solutions for their supply chain. H&M Group is the first company to trial it as part of the shift towards carbon-neutral transportation.

The biofuel in the pilot project is the same blend of used cooking oil and heavy which has been tested and successfully validated in a trial driven in collaboration with the Dutch Sustainability Growth Coalition (DSGC), and Shell his year. It is certified as a sustainable fuel by the International Sustainability & Carbon Certification (ISCC) body.

"The biofuel trial on board Mette Maersk has proven that decarbonized solutions for shipping can already be utilized today, both technically and operationally. While it is not yet an absolutely final solution it is certainly part of the solution and it can serve as a transition solution to reduce CO2 emissions today. With the launch of this product, Maersk seeks to help our customers with their goal of moving to sustainable supply chains, "explains Søren Toft, Maersk COO.

The biofuel to be utilized is carbon neutral and provides, H&M Group the ability to reduce their transport and logistics emissions towards their aspiration of carbon neutrality, when accounting for only the emissions from the vessel. The Roundtable on Sustainable Biomaterials (RSB) will provide a procedure to ensure carbon savings are accredited to our customers appropriately. When taking a full lifecycle view including also all emissions from upstream production and transportation, the fuel entails savings of 85% compared to bunker fuel.

The goal of such pilot projects is to unlock the potential of sustainable fuels so they become a commercial reality.

"Our high ambition to become climate positive by 2040 requires cooperation and engagement from all parties in the supply chain. We want to use our size to be a force for good and enable scaling innovative solutions, such as the carbon neutral ocean product, for a greener commercial transport," says Helena Helmersson, COO H&M Group.

We will use the biofuel project learnings to support a broader product offering and will continue to co-develop and facilitate the uptake of solutions that will help bring about more cost-efficient carbon-neutral options for the carbon neutral transportation.

Today the shift away from fossil fuels can be expensive for shippers. Ensuring the wide-scale adoption of carbon-neutral solutions therefore requires technical innovation and supportive global policies.

"We believe this is the only commercially viable path to make the required investments our industry requires to reach the carbon neutral target. We are so pleased to see a significant shift in sentiment and involvement from customers, fuel suppliers, equipment manufacturers, and competitors towards sustainable solutions," emphasizes Toft.

Shipping remains the most carbon-efficient means of global transport today, but accounts for 2-3% of global emissions. This number will continue to grow if left unchecked by industry leaders and policy makers.

Maersk will continue to facilitate, test, and develop low-carbon solutions on our journey to 2050.

Be sulfur-smart: an update on the rocky path to compliance

Ship owners, operators and carriers must comply with new rules on emissions from 2020. Scrubbers currently dominate discussions. In this latest “sulfur-smart” blog post, we give an update on the scrubber debate, but also shed light on the topic of fuel quality. The lack of standardization on the composition and quality of low-sulfur fuels could lead to downtime of ships ? and increased cost.

New rules on ship emissions are coming into force next year. From 2020, the sulfur content of bunker fuels will be reduced to 0.5 percent, compared to 3.5 percent now in most parts of the world. As the January 1, 2020 deadline for adherence to the low sulfur limit looms, ship owners, operators and carriers have three options to comply with #IMO2020:

use low-sulfur fuel
use scrubbers (exhaust cleaners)
use alternative fuels, mainly LNG
What’s with scrubbers

Scrubbers have come under scrutiny as an abatement technology. The main concern is the impact of open-loop scrubbers on the marine environment. Vessels using open-loop scrubbers discharge scrubber wastewater into the sea, whereas closed-loop or hybrid scrubbers allow for temporary storage and later disposal of scrubber wastewater.

In May, the Clean Shipping Alliance 2020 (CSA 2020), the industry association for scrubber manufacturers and users, started a campaign to convince port authorities not to ban the use of open-loop scrubbers within their waters. CSA 2020 has secured written no-objection letters from 20 seaports in Europe, the Americas, Asia and Australia.

Clearly not one of the CSA signatories is the Maritime and Port Authority of Singapore, which earlier banned the use of open-loop scrubbers in its waters, and recently classified residues from scrubber operations as “toxic industrial waste (TIW)”. Under Singapore’s Environmental Public Health Regulations, toxic waste must be handled by a licensed collector. This means that ships wishing to dispose their scrubber residues in Singapore will have to hire a licensed company to collect and dispose the waste material.

The International Maritime Organization (IMO) Sub-Committee on Pollution Prevention and Response (PPR) is already undertaking a review of the 2015 guidelines on scrubbers, also known as exhaust gas cleaning systems (EGCS). The guidelines cover the testing, survey, certification and verification of scrubbers, as well as wastewater discharge standards, and are to be revised by 2020.

A recent IMO guidance mentions that as of March 1, 2020, the carriage of non-compliant fuel oil used by ships, will be prohibited. Would this in effect stop the booming scrubber retrofit market and instead push the ship newbuild industry and refiners to support compliant fuels?

Apart from scrubbers, the ocean freight industry is weighing compliance options and looking into alternative sources of fuel. One alternative is liquefied natural gas (LNG) or clean gas, which leads to negligible sulfur emissions when ignited. Despite project delays and budget overruns, the wave of LNG investments continues, but the LNG bunkering network remains underdeveloped. The other alternative is, of course, low-sulfur fuel. Here, there are concerns over high fuel costs and fuel availability, in the right quality in time.

Fuel quality ? a burning challenge

Fuel quality is a burning challenge that has implications for global supply chains, both from a cost and disruptions perspective.

There is currently little standardization on a global basis regarding the composition and quality of low-sulfur fuels. The lack of fuel standardization could lead to compatibility and stability issues, because new fuel blends or fuel types can impact a ship’s machinery systems.

Back in March 2018, over 100 ships were affected by blended marine fuels that were bunkered in Houston, Panama and Singapore, and moving on to China. Vessels suffered mechanical issues ranging from clogged pipes and filters to engine breakdown and power loss, leading to operation disruptions and insurance claims worth millions of dollars. As Dr. David Atkinson, principal chemist at emissions monitoring specialists Parker Kittiwake puts it: “Without proper checks in place, the sharp rise in bunker-quality issues seen in recent months could be an indicator of what may lie ahead when the global sulfur cap comes into effect.”

The problem is that the main and auxiliary engines of today’s ships may originally have been designed to run on fuels that differ from newer fuels that comply with the sulfur cap. As fuel supply system provider Auramarine notes, ships with different engines and bunkers have the option of switching to low-sulfur fuel in port. However, if different fuels are blended, the resulting bunker fuels may not be tested or evaluated properly. These factors point to an increase in demand (and related costs) for onboard fuel compatibility testing in the run-up to IMO2020.

IMO2020: What can Panalpina do for its Ocean Freight customers?

The regulators have laid out the rules, but the path for ship owners, operators and carriers to complying with the low sulfur limit remains rocky. As we pointed out before, they will pass on higher costs related to IMO2020 to cargo owners, third-party logistics providers and end-consumers. These costs will be implemented sooner rather than later. Panalpina expects implementation already at the end of Q3 or beginning of Q4. And there is a considerable potential for supply chain disruptions due to delays in fuel supply, denied port calls, retrofitting or downtime of ships. Expect choppy waves in the months leading up to and stretching beyond the IMO2020 sulfur cap.

As the shipping industry grapples with the impact of the new sulfur regulation, Panalpina keeps monitoring developments and is ready to support Ocean Freight customers in dealing with higher costs and potential supply chain disruptions. Panalpina’s Ocean Freight procurement experts will make sure to cut the best and fairest deals for our customers.

Earlier this year, we introduced a globally competitive bunker mechanism that increases visibility for customers and eases the transition towards new fuel types to comply with the low sulfur limit. We update our bunker tariffs for all major trade lanes at the latest two weeks before the beginning of each quarter. The new bunker tariffs, effective as of July 1, 2019, have just been published.

Blockchain: Moving from hype to tangible benefits for supply chains

The initial glitter of blockchain may have taken a beating, but concrete steps are underway to turn its promise into tangible business applications. A keen mover of digital technologies in freight forwarding and logistics, Panalpina has narrowed the use cases for this industry and started a pilot to play the benefits of blockchain to make supply chains more efficient.

Blockchain could well be the next blockbuster technology to truly optimize supply chains. A system where transactions are recorded and maintained across linked computer networks, blockchain is built on trust. It lends itself to sectors where transactions and data transfers are involved, such as finance, insurance, healthcare or supply chains, promising the decentralized, transparent and secure exchange of data.

Beyond the hype

However, blockchain has thus far fallen short of its potential. About 90 percent of all supply chain related blockchain projects will remain proof-of-concept pilots through to 2020, according to Gartner Research.

Alongside several start-up efforts, there have been at least five blockchain initiatives aimed at the ocean freight industry. Two of the more prominent are:

The TradeLens global trade platform jointly developed by IBM and Maersk, which started in January 2018, has over 100 participating organizations, only recently started to sign on carriers such as CMA CGM and MSC, and will now be launched at the port of St. Petersburg under an agreement with the Russian government, and
The Global Shipping Business Network (GSBN), which started in November 2018 to rival the Maersk consortium and is backed by several terminal operators and ocean carriers including COSCO, Evergreen Marine and OOCL.
While almost all platforms sing the tune of ‘open source collaboration’, blockchain often stumbles on the lack of trust and community onboarding that it is supposed to be built on. It did seem unlikely, for example, that CMA CGM would join TradeLens, back in October 2018. Concerns over data ownership and control have led players to go separate ways with blockchain.

Another hurdle to broader acceptance and implementation appears to be missing standards, either within a distributed ledger solution or between different distributed ledger architectures. A keen mover of digital technologies in freight forwarding and logistics, Panalpina joined the Blockchain in Transport Alliance (BiTA) in May 2018 to engage with standard setting and collaboration in the industry.

“Panalpina is not a blockchain evangelist, but we have a rational and realistic approach towards the technology,” says Luca Graf, head of Digital Innovation at Panalpina. “Blockchain is only one part of a larger vision that requires the Internet of Things (IoT) and smart contracts to exploit the full potential for end-to-end supply chains, with beneficial effects on costs and time.”

Practical use cases

Panalpina takes a practical approach to blockchain, seeing its promise in optimizing supply chains and making them more efficient. In its ongoing journey to realize the tangible benefits of blockchain, Panalpina has defined eight supply chain use cases for blockchain grouped into four fields of work:

(I) Workflow efficiency

1. Ocean freight core processes: Fully digitize ocean freight order and execution processes. Share documents in blockchain and apply smart contracts.

2. Ocean freight electronic bill of lading (eB/L): Digitize parts of ocean freight order and execution processes. Start with eB/L. Similar to the above but smaller in scope.

3. Captives: Standardize (re)insurance processes between the entities of a company and apply smart contracts in blockchain.

(II) Provenance and authenticity

4. Perishables: Digitize data flow in perishables chain and store product (provenance) and transport information (cold chain) in blockchain. Apply smart contracts.

5. Pharmaceuticals: Store product (authenticity) and transport information (cold chain) in blockchain. Offer full audit trail showing compliance with Good Distribution Practice (GDP).

6. Spare parts: Store spare part serial numbers in blockchain and provide transparency for spare part users (aviation, military, automotive).

(III) Cargo insurance

7. Insurance: Have trusted information on where cargo containers are located. Allow insurance companies to better calculate the risks (e.g. theft or hazard) and offer tailored insurance coverage to shippers.

(IV) Visibility

8. Tracking: Store tracking data of shipments in blockchain and enhance visibility for shippers.

Panalpina blockchain pilots in Air and Ocean Freight: digitize, store, share and optimize

Of these eight use cases, Panalpina has, after considering business value and implementation complexity, zoomed in on one: the ocean freight electronic bill of lading (eB/L). It has started two blockchain projects with selected customers: one dealing with high-tech industrial goods and the other dealing with office supplies. The aims are similar: to digitize trade documents such as the packing list and the bill of lading, store these documents in a cloud, and use blockchain to realize process improvements and cost savings in the long run.

In both projects, blockchains document the flow of imported goods from Asia to Europe, running in parallel to real shipments, but not interfering with current processes. Running the blockchain projects in parallel to live shipments allows Panalpina and its partners to make in-depth comparisons of current standards and processes, versus what they could be in the near future.

Panalpina has also started a third blockchain project with an IT multinational company, aimed at optimizing air freight shipments from North to South America.

“These early-stage projects are 85 percent about digitization and 15 percent about blockchain ? we are starting to see clear benefits in cost savings through simplified and speedier processes, and lower document courier costs,” explains Cedric Rutishauser, senior venture development manager at the Panalpina Digital Hub. “But the real advantage of blockchain lies in the ‘single source of truth’. Improved data sharing between trade partners creates more transparency, with clear ownership and responsibility for each documented step in the supply chain.”

In the next phase, Panalpina expects to pick up on three other use cases ? pharmaceuticals, spare parts and ocean freight core processes ? to exploit the potential there in the long run.

Cautious pragmatism

Blockchain’s time is still to come. A recent study published in the International Journal of Production Economics shows that senior supply chain managers have mixed perceptions about blockchain, with some skeptical about its benefits and others convinced that it will improve security and transparency in supply chains, and ultimately bring efficiencies and customer benefits.

This study focused on three core areas:

The perceived benefits of blockchain to supply chains,
where disruptions are most likely to occur, and
the challenges to further blockchain diffusion.
The researchers from Cardiff University, together with Panalpina’s global logistics optimization and analytics manager Mihaela Rit, conducted interviews with 14 supply chain experts and used the so-called sense-making approach to gain a deeper understanding of their assumptions, expectations and knowledge about blockchain and its impact on supply chains.

As the blockchain hype wears off, a more sober, cautiously optimistic pragmatism is taking hold. Blockchain will win over its skeptics not with spectacular leaps and bounds, but small, concrete steps that deliver tangible benefits in terms of lower costs and higher efficiency.

One step in this direction is next week’s Swiss Blockchain Hackathon, where Panalpina’s IT developer team will join other hackers in advancing real-world blockchain solutions.

Statement Regarding FedEx Corporation’s Relationship with, Inc.

FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with, Inc. as we focus on serving the broader e-commerce market. This decision does not impact any existing contracts between and other FedEx business units or relating to international services. As previously disclosed, is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018.

There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026. FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it.

Certain statements in this news release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the rate of future global e-commerce growth and our ability to successfully compete in the e-commerce market, our ability to successfully implement operational changes in the expected time frame, our ability to match capacity to shifting volume levels, and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

New Panalpina customer portal: bringing the future of digital supply chain management to transport logistic in Munich

This week, Panalpina will present its new customer portal at transport logistic 2019, the world’s leading trade fair for logistics and supply chain management. Collaborative shipment management, fully automated instant quotation as well as lane risk assessment make the portal unique in the industry. Interested customers have the opportunity to test the customer portal in Munich before it will be made available later this year.

Built on an entirely new architecture and technology, the new customer portal marks a big step forward towards a seamless digital supply chain experience at Panalpina.

The following combined features make Panalpina’s customer portal unique in the industry:

Collaborative shipment management
Fully automated instant quotation
Lane risk assessment

Industry-first collaborative shipment management

“The customer portal enables collaborative shipment management that can be adapted to a company’s structure for ultimate customer centricity. This collaborative feature is an industry first. Customers and their external partners can work in remote teams on the platform and bring in their individual expertise at the same time,” explains Karl Weyeneth, CCO at Panalpina. “Our developers have created an intuitive platform in order to make shipping as easy as ordering a pair of shoes online.”

Instant quotes thanks to smart algorithms

With the portal, Panalpina can provide market-proven instant quotes that are based on historical selling prices. The customer portal’s smart algorithms calculate prices in seconds, no matter how complex a shipment is. This translates into unmatched planning reliability for Panalpina’s customers, especially in combination with the additional feature of lane risk assessment, which we are also bringing into the customer portal.

Lane risk assessment for healthcare customers

Panalpina offers lane risk assessments based on a wealth of data covering carrier capabilities, agent certifications, transport modes and warehouse facilities. This enables customers from the pharmaceutical industry to more effectively qualify suppliers and assess risks during shipment planning and then choose between qualified suppliers for their temperature-sensitive and often high-value products.

Real-time shipment visibility and analytics

Panalpina’s customer portal allows customers to explore shipment options, as well as control risks and costs even months before a shipment. Transparency is maintained when the shipment takes place, as customers can see all their shipments and relevant data at a glance and in real time on the platform.

Since the analysis of a shipment is just as important as the planning, Panalpina has also integrated a new analytics function that allows customers to pull tailored reports directly from the portal.

A unique platform with even more to come

“The quoting and shipment-visibility capabilities of the new portal are hitting the core of today’s demands. Add collaboration and lane risk assessment capabilities to that, and you have a unique platform. Furthermore, we are already working on additional features such as machine learning for quotation, a sophisticated chatbot and big data analysis,”comments Weyeneth. Ultimately, the customer portal will help Panalpina’s customers to better manage and optimize their supply chains in the digital era.

So far, Panalpina has given selected customers access to the new customer portal. In Munich, Germany, interested shippers and other parties now have the opportunity to experience the customer portal in a demo environment at Panalpina’s booth (hall B4, stand 301/402) before it will be made available later this year.

A sneak peek of the new customer portal can be found at

About Panalpina

The Panalpina Group is one of the world's leading providers of supply chain solutions. The company combines its core products ? Air Freight, Ocean Freight, and Logistics and Manufacturing ? to deliver globally integrated, tailor-made end-to-end solutions for 12 core industries. Drawing on in-depth industry know-how and customized IT systems, Panalpina manages the needs of its customers' supply chains, no matter how demanding they might be. Project Solutions is a specialized service for the energy and capital projects sector. The Panalpina Group operates a global network with some 500 offices in around 70 countries, and it works with partner companies in another 100 countries. Panalpina employs approximately 14,500 people worldwide who deliver a comprehensive service to the highest quality standards ? wherever and whenever.

DHL report reveals: e-Commerce will have a significant impact on how companies will shape their transport strategies in the future

65% of the respondents identified the exponential growth of e-commerce and its implications on service as having a significant impact on supply chains.
"European Customers are looking for complete solutions with a global reach."
DHL survey "The Logistics Transport Evolution: The Road Ahead": Evolution in the European transport sector is also driven by trends such as the urbanization of markets, and technologies like big data analytics and digitalization.

A recent survey commissioned by DHL has revealed that companies are facing a fast changing market environment, be it in terms of geopolitical changes or technological transformation. But in terms of their ground transportation operations, by far the biggest issue on companies' minds is e-commerce and its implications on service and ground transportation requirements.

Especially the extraordinarily high service expectations born of e-commerce are impacting businesses. Just to name a few: Customers are expecting same or next day delivery, variable last-mile delivery options, high in-transit visibility, as well as flexible or free return policies and always in-stock inventories. Services that are increasingly challenging.

Paul Stone, CEO DHL Supply Chain Nordics and Head of Transport for MLEMEA explains: "Our European customers look for first-class capabilities in enabling last mile deliveries, which is why technology will be central to navigating this new era for ground transportation. The capability of AI and data analytics to manage the order profile and shipping patterns of customers' increasingly complex and demanding operating models while optimizing cost and service, means that they are now viewed as essential services, rather than added benefits."

The DHL survey "The Logistics Transport Evolution: The Road Ahead" found out that the impact of e-commerce on markets, in general, and ground transportation in particular, varies by region. For example, when comparing the impact of e-commerce over the next one to two years versus three to five years, U.S. respondents expect the impact to slightly decrease, from 63% to 60% while, in Europe, Middle East & Africa, Asia Pacific and Latin America, that same impact number increases from 65% to 69%.

Paul Stone, CEO DHL Supply Chain Nordics and Head of Transport for MLEMEA explains: "Here in Europe, transport is undoubtedly a critical aspect of the global business environment, and our findings indicate that companies across sectors and markets now recognize its strategic value. That's reflected by our customers' C-suite executives becoming more involved in transportation discussions. We undertook this study to gain an insight into exactly what companies expect from their transportation service providers, both today and tomorrow. Our research has shown us that customers are increasingly looking for complete solutions with a global reach as they can solve a wide range of transportation issues and requirements. In Europe, particularly, environmental commitments are increasingly important to our customers."

Here the research showed that throughout Europe, the United States and Asia, more and more mega-urban centers are deploying congestion pricing and tolls on vehicles entering urban areas during peak business times - or, in some cases, at any time. Environmental concerns about transportation's significant carbon footprint will grow as an issue and a potential constraint in delivering goods into these highly populated urban areas. Today, 76% of respondents stated legislation around mandatory carbon reporting is having a big impact on their transportation decision making.

Broader societal factors were also highlighted as presenting associated challenges, with 61% of companies referencing the increase in urbanization as a factor that will significantly impact their future business. Technology and its ability to help manage this complex environment are increasingly seen as a standard requirement of 3PLs: more than two thirds (67%) of companies believe that big data analytics and artificial intelligence (AI) are services that are essential for 3PLs to offer their shipper customers

DHL Resilience360 uses improved weather shape tracking data to help companies avert supply chain disruptions from hurricanes

New Risk Report offers overview of at-risk industry clusters and common storm trajectories in the Americas, East Asia and the North Indian Ocean
DHL Resilience360 offers short- and long-term recommendations for mitigating storms' impact on supply chains

In the run-up to the 2019 hurricane season, DHL's cloud-based risk management provider Resilience360 has released a report on the potential supply chain impacts of these storms. The report "Stormy Weather Ahead: A Global Outlook on the 2019 Season" examines the 2018 storm seasons in the Northern Hemisphere and provides an outlook on the 2019 season, including the typical storm paths in each region as well as vulnerable areas and industries. Also included are recommendations for representatives from procurement, logistics and business continuity management for mitigating the impact of these storms on supply chains.

At the same time, Resilience360 is launching its improved weather shape tracking and alerting capability. The algorithm analyzes the projected path of a hurricane or cyclone and notifies users of possible impacts on their specific supply chains. Using the new capabilities, customers will be able to get better analytics on affected locations and assess what this means for the company's ability to produce and deliver to its end-customers.

"A minor hurricane that affects only a small region can nonetheless prove disastrous if it affects a crucial logistics hub or a critical supplier" explains Tobias Larsson, CEO Resilience360. "Preparedness is key to avoiding costly interruptions. Despite the increasing complexity of supply chains, advanced technologies allow us to map out multi-tiered supply chains, including interdependencies up and down stream. This makes it possible to understand how changes at one node - such as cargo ships stranded at a port - could impact the entire supply chain. When businesses are able to visualize where problems could arise, they can also plan appropriately with back-up suppliers and rerouting when a storm is forecast to hit a key area."

Improvements in meteorological forecasts now allow scientists to predict a hurricane's path three to five days in advance, affording risk mitigation experts a critical window of time to respond before disruptions occur.

Outlook on 2019 hurricane, cyclone and typhoon seasons

For the 2019 hurricane season, DHL's risk experts have collected forecasts from the leading meteorological agencies to predict the number of tropical storms likely to occur in the Americas, the North Indian Ocean and East Asia. Scientists at the Colorado State University expect five hurricanes, a slightly below-average season in the Americas due to cooler ocean temperatures. However, other forecasters expect a total of seven hurricanes. The season in this region spans from June through November with a peak in mid-September. In East Asia, the typhoon season began in May and will continue until October. In the absence of a regional outlook, two meteorological services offer localized forecasts. The Hong Kong observatory expects four to seven tropical cyclones to approach Hong Kong within 500km this year, while the Philippine's National Meteorological and Hydrological Services agency expects two to four in the Philippine area. No official forecasts for the North Indian Ocean region are typically released. The area usually experiences three to four cyclonic storms per year within a season running between April and December with two peaks in May and November.

Areas and industries at risk

In the Americas, aerospace, petrochemical, automotive and pharmaceutical industries tend to lie in risk-prone areas in Florida and along the Gulf and East Coast as well as in Puerto Rico. Typhoon season in East Asia could threaten manufacturing hubs in China and Japan, automotive clusters further inland in China and electronics suppliers in southwestern Japan. For the North Indian Ocean, more than 80 percent of cyclones affect the eastern coast of India, affecting the petrochemical, pharmaceutical, automotive and other heavy industries.

Mitigating supply chain disruptions

Despite the difficulty of predicting exactly when and where storms will hit, businesses can take short- and long-term precautionary measures to mitigate the impact. In the short-term, companies should create continuity plans, stock up on essential materials, and ensure methods of communication are available in the case of power outages. In the longer term, visibility tools, diversifying the company's network, and establishing long-term partnerships with logistics suppliers can strongly influence how seriously a supply chain is affected by a hurricane. DHL's risk management experts use advanced mapping techniques, near real-time information from meteorological organizations, and the visibility and risk management tool Resilience360 to identify potential storms and disruptions for specific customer supply chains.

Kuehne + Nagel successfully issues two inaugural bonds for a total of CHF 400 million

CHF 200 million with a fixed coupon of 0.02% and a tenorof 3 years 5 months
CHF 200 million with a fixed coupon of 0.20% and a tenorof 6 years

In the ordinary course of financing Kuehne + Nagel International AG today issued two inaugural bonds.The proceeds of both bonds will be used for general corporate purposes.

The first bond has a fixed coupon of 0.02% and a tenor of 3 years 5 months, maturing on November 18, 2022. The second bond has a fixed coupon of 0.20% and a tenor of 6 years, maturing on June 18, 2025.

"These bond issues allow Kuehne + Nagel to benefit from the current attractive interest rates and to optimise the financing structure while enhancing our strategic flexibility. We see it as an additional opportunity to engage with the Swiss Capital Market to support our strategy", says Markus Blanka-Graff, CFO Kuehne + Nagel International AG.