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Ken Norris

BEDFORD, MA, March 1, 2014 (IFPTA) -V Alexander International Logistics Germany welcomed the New Year with a new name and a new look. The logistics firm that specializes in pulp, paper, and forest products cargo has renamed the company to Alexander Global Logistics. The change is part of a corporate restructuring and rebranding effort due to the company's growing success in project cargo. However, customers will see the exact same service for their forest products cargo that they have grown to expect from the company.

"Everything will stay exactly the same for our customers" - Carsten Hellmers, CEO

On January 1, 2014, Alexander Global Logistics reestablished itself as an independent corporation, buying back the 33% stake of the company from their US-based shareholder. As part of the change, shareholders Carsten Hellmers, president and CEO, and Monique Geisler, executive vice president, will now be the sole owners of the German company. Alexander Global Logistics will continue its cooperation on the basis of an agency relationship with their partners in North America. "We will be working together in this key market exactly as we have in the past," said Hellmers.

Customers will experience no difference in Alexander's day-to-day operations. There will be no organizational changes and all the contact individuals for the company will remain the same. Nor will there be any change to the company's array of services it provides. "We intend to consolidate on our position as a strong provider in our niche areas," said Hellmers, "building on the expertise we have accumulated over the years to strategically grow our core business." Alexander will continue its specialization in forest products logistics throughout Europe, Brazil, North America and Asia, for worldwide project cargo transport, and the specific logistics demands of the Turkish market.

In addition to the new name, Alexander has introduced a revamped corporate logo and adopted a new slogan: "Locally based - Globally connected." Keeping its headquarters in Bremen, the goal of the rebranding is to improve the company's distinctive market position with a unique portfolio of business segments. "The new name demonstrates our commitment to the city of Bremen and our own Hanseatic values," said Hellmers, "and also reflects our global relationship with our customers and business partners."

Growing business

Founded in 2006 by Hellmers and Geisler, V. Alexander International Logistics began with the opportunity to bring a new name to the forest products industry. The German-based company was also able to market its services throughout North America and other parts of the world through an initial partnership. Hellmers and Geisler shared control of the company's operations from their Bremen office.

Alexander grew quickly and opened offices in Brazil, Russia, India, Mongolia and China, alongside with the German headquarters. As Alexander diversified its operations, it developed new business fields in general cargo and specialty project cargo. Although still primarily specializing in forest products, project cargo has become a growing part of Alexander's operations over the last few years.

Ironically, there is another small German-based company that works also in project cargo, one that is also headquartered in Bremen and with a very similar name to V. Alexander. While Alexander had established itself as a worldwide brand, some confusion began to emerge in the German project cargo market. With its project cargo business growing, Alexander needed to make it clear to the market that there were two separate companies. "We came to the conclusion that we were going to have to change our name," said Hellmers, "to make sure we looked separate in the market, but still had a connection to the brand ‘Alexander'."

Slogan says it all

While some company's rebranding efforts are intended to establish a new identity for different markets or ventures, Alexander's remarkably small change in the name of the company, as well as leaving "Alexander" as a main part of the new brand, were intentional. "Everything will stay the way that it is," said Hellmers. "What has changed is really only the shareholding due to the name rights from our partners in North America. There is no change in the business or staff," emphasized Hellmers. "Not a single change is done on the other business aspects for the company."

A new name also meant the opportunity for a new logo and slogan. Hellmers and Geisler chose "Locally based - Globally connected", a slogan that they say highlights their commitment to Bremen as their headquarters, a reminder of where they started, and their focus on being a worldwide logistics provider.

"Over the years, we started to build our own network," said Hellmers. "We have started offices in São Paulo, Brazil; St. Petersburg, Russia; and Qingdao, China. These are our main business areas when it comes to pulp and paper. And we believe the new slogan illustrated what we are doing in that market. We are strong here, where we are based. But we are also globally connected."

The new logo appears to tie all these elements together. Based on the letter "A", the rounded circle visualizes a sail with a global around it, calling to attention the core focus on global logistics for the company. The name "Alexander" is also heavily prominent in the new branding to build on the success that the company has enjoyed in the pulp and paper industry since it's beginning.

Pulp remains core focus

Forest products still represents at least 60% of Alexander's turnover, an enviable position for the company given the recent turns by the industry. However, Hellmers is quick to point out that the growth in forest products is limited due to the market itself. "In Europe, many companies have shut down production where it was not workable to produce profitable numbers," said Hellmers. "We wanted to expand our activities into other business fields."

For Alexander, moving into project cargo has helped it become a more sustainable company. Project cargo is now one of their niches, as Hellmers calls them, and a market that is well suited to the strengths of Alexander. "Project cargo requires a lot of know-how," explained Hellmers, "and know-how requires the people and the staff who can find solutions in a special market." Because the company drew on their expertise as a logistics provider for the specialty markets for pulp and paper, Alexander has seen quick success in the project cargo space, allowing it open an office in Ulaanbaatar, Mongolia. Alexander is also part of the Project Cargo Network (PCN), a special agency network for medium-sized companies who work together to find solutions for project cargo.

Despite the growth in project cargo, pulp and paper will continue to be a core part of Alexander's business. Market demand and changes to the global forest products market have altered the company's forest products cargo mix, but there are still plenty of pulp and paper grades that require specialized handling and logistics.

"If we look back, we have been very active with big volumes since we started in publishing papers and newsprint," said Hellmers. "If I look at today, we all know the market how the market has changed. We are more into graphic papers and packaging papers. But we still handle large volumes of pulp."

The company's offices in South America represent the near-term future for forest products cargo, as large volumes of paper pulp, fluff and dissolving pulp will characterize the southern hemisphere for the next few years, if not decades. The Asia, Europe and North America markets have their own set of demands, and a longer-term future for the industry could hold remarkable promise. In those offices around the globe, the familiar name of Alexan

Fresh Look, Same Values

Posted in: Logistics 08/26/2015 - 00:17

BEDFORD, MA, March 1, 2014 (IFPTA) -V Alexander International Logistics Germany welcomed the New Year with a new name and a new look. The logistics firm that specializes in pulp, paper, and forest products cargo has renamed the company to Alexander Global Logistics. The change is part of a corporate restructuring and rebranding effort due to the company's growing success in project cargo. However, customers will see the exact same service for their forest products cargo that they have grown to expect from the company.

"Everything will stay exactly the same for our customers" - Carsten Hellmers, CEO

On January 1, 2014, Alexander Global Logistics reestablished itself as an independent corporation, buying back the 33% stake of the company from their US-based shareholder. As part of the change, shareholders Carsten Hellmers, president and CEO, and Monique Geisler, executive vice president, will now be the sole owners of the German company. Alexander Global Logistics will continue its cooperation on the basis of an agency relationship with their partners in North America. "We will be working together in this key market exactly as we have in the past," said Hellmers.

Customers will experience no difference in Alexander's day-to-day operations. There will be no organizational changes and all the contact individuals for the company will remain the same. Nor will there be any change to the company's array of services it provides. "We intend to consolidate on our position as a strong provider in our niche areas," said Hellmers, "building on the expertise we have accumulated over the years to strategically grow our core business." Alexander will continue its specialization in forest products logistics throughout Europe, Brazil, North America and Asia, for worldwide project cargo transport, and the specific logistics demands of the Turkish market.

In addition to the new name, Alexander has introduced a revamped corporate logo and adopted a new slogan: "Locally based - Globally connected." Keeping its headquarters in Bremen, the goal of the rebranding is to improve the company's distinctive market position with a unique portfolio of business segments. "The new name demonstrates our commitment to the city of Bremen and our own Hanseatic values," said Hellmers, "and also reflects our global relationship with our customers and business partners."

Growing business

Founded in 2006 by Hellmers and Geisler, V. Alexander International Logistics began with the opportunity to bring a new name to the forest products industry. The German-based company was also able to market its services throughout North America and other parts of the world through an initial partnership. Hellmers and Geisler shared control of the company's operations from their Bremen office.

Alexander grew quickly and opened offices in Brazil, Russia, India, Mongolia and China, alongside with the German headquarters. As Alexander diversified its operations, it developed new business fields in general cargo and specialty project cargo. Although still primarily specializing in forest products, project cargo has become a growing part of Alexander's operations over the last few years.

Ironically, there is another small German-based company that works also in project cargo, one that is also headquartered in Bremen and with a very similar name to V. Alexander. While Alexander had established itself as a worldwide brand, some confusion began to emerge in the German project cargo market. With its project cargo business growing, Alexander needed to make it clear to the market that there were two separate companies. "We came to the conclusion that we were going to have to change our name," said Hellmers, "to make sure we looked separate in the market, but still had a connection to the brand ‘Alexander'."

Slogan says it all

While some company's rebranding efforts are intended to establish a new identity for different markets or ventures, Alexander's remarkably small change in the name of the company, as well as leaving "Alexander" as a main part of the new brand, were intentional. "Everything will stay the way that it is," said Hellmers. "What has changed is really only the shareholding due to the name rights from our partners in North America. There is no change in the business or staff," emphasized Hellmers. "Not a single change is done on the other business aspects for the company."

A new name also meant the opportunity for a new logo and slogan. Hellmers and Geisler chose "Locally based - Globally connected", a slogan that they say highlights their commitment to Bremen as their headquarters, a reminder of where they started, and their focus on being a worldwide logistics provider.

"Over the years, we started to build our own network," said Hellmers. "We have started offices in São Paulo, Brazil; St. Petersburg, Russia; and Qingdao, China. These are our main business areas when it comes to pulp and paper. And we believe the new slogan illustrated what we are doing in that market. We are strong here, where we are based. But we are also globally connected."

The new logo appears to tie all these elements together. Based on the letter "A", the rounded circle visualizes a sail with a global around it, calling to attention the core focus on global logistics for the company. The name "Alexander" is also heavily prominent in the new branding to build on the success that the company has enjoyed in the pulp and paper industry since it's beginning.

Pulp remains core focus

Forest products still represents at least 60% of Alexander's turnover, an enviable position for the company given the recent turns by the industry. However, Hellmers is quick to point out that the growth in forest products is limited due to the market itself. "In Europe, many companies have shut down production where it was not workable to produce profitable numbers," said Hellmers. "We wanted to expand our activities into other business fields."

For Alexander, moving into project cargo has helped it become a more sustainable company. Project cargo is now one of their niches, as Hellmers calls them, and a market that is well suited to the strengths of Alexander. "Project cargo requires a lot of know-how," explained Hellmers, "and know-how requires the people and the staff who can find solutions in a special market." Because the company drew on their expertise as a logistics provider for the specialty markets for pulp and paper, Alexander has seen quick success in the project cargo space, allowing it open an office in Ulaanbaatar, Mongolia. Alexander is also part of the Project Cargo Network (PCN), a special agency network for medium-sized companies who work together to find solutions for project cargo.

Despite the growth in project cargo, pulp and paper will continue to be a core part of Alexander's business. Market demand and changes to the global forest products market have altered the company's forest products cargo mix, but there are still plenty of pulp and paper grades that require specialized handling and logistics.

"If we look back, we have been very active with big volumes since we started in publishing papers and newsprint," said Hellmers. "If I look at today, we all know the market how the market has changed. We are more into graphic papers and packaging papers. But we still handle large volumes of pulp."

The company's offices in South America represent the near-term future for forest products cargo, as large volumes of paper pulp, fluff and dissolving pulp will characterize the southern hemisphere for the next few years, if not decades. The Asia, Europe and North America markets have their own set of demands, and a longer-term future for the industry could hold remarkable promise. In those offices around the globe, the familiar name of Alexan

Read more

The Port of Baltimore’s long-term strategy appears to be paying off. After weathering the uncertainty from shifting cargo flows, and through the global economic downturn, Baltimore has spent much of the last few years posting record volumes. Container traffic and automobiles are leading the charge, with expectations for further growth ahead, but forest products are also playing a critical role to help Baltimore regain its once enviable dominance on the US East Coast.

Host port for the upcoming PPI Transport Symposium 20, to be held October 28-31, the Port of Baltimore looked to finish 2012 ahead of the previous year’s pace for several cargos. Through the first three quarters of the year, Bal- timore handled 7.21 million tons of general cargo at the public marine terminals, a ten percent increase from 2011, and is on track to possibly match the record of 8.96 million set in 2008. Overall, through the first nine months of 2012, the port handled nearly 30 million tons of for- eign commerce (general cargo plus bulk cargo) across its public and private terminal docks.

The Port of Baltimore is now ranked number one among the 360 US ports for handling imported forest products, as well as farm and construction equipment, automobiles and light trucks, and imported sugar, iron ore and gypsum. In the last two years, Baltimore has improved its position to become ranked 11th na- tionally for total dollar value of cargo (up from 12th in 2009) and 12th for cargo tonnage (up from 14th). Cargoes are up a total of six percent in 2012, over the same period from the previous year, including containers, automobiles, forest products, and roll on/roll off (Ro/Ro). And these increases come after a 15% surge over 2010 volumes, the greatest growth increase of any major US port for that year.

Supersize work ahead

Baltimore may be seeing golden days ahead, but there is short time to celebrate. All eyes are fo- cused on maintaining these volume levels and preparing for more business when the Panama Canal expansion is finished in late 2014 or early 2015. All of the ports on the East Coast are vying to ready for the behemoth super post-Panamax ships, loaded with up to 13,000 containers each, from the Asia Pacific routes. The ships had been previously forced to rely on West Coast ports because their size wouldn’t allow them to fit through the current locks in the Panama Canal.

Because of its long-term planning, Baltimore is one of the first East Coast ports to have completed projects that will allow it to receive the larger ships, and accommodate the demands of loading and unloaded the cargo in a reasonable timeframe. These projects included dredging both the channel and a berth to 50 feet and the installation of four new supersized container cranes at the Seagirt Marine Terminal. Completed in early 2013, the cranes are part of a $1.3 billion 50-year public-private partnership between Ports America Chesapeake and the Maryland Port Administration (MPA), which oversees the Port of Baltimore.

The four monster cranes, towering the sky above the port, represent the future for Baltimore. Each crane weighs more than 1,550 tons and is taller than a 14-story building. Since they are fully electric and will emit no diesel emissions, the cranes also are helping Baltimore meet its environmental targets. With their arrival, the port took one more step toward reaching a goal of being in a competitive position to han- dle the larger ships and higher volumes as soon as the ships begin arriving on the East Coast.

In a statement last year, Maryland Gover- nor Martin O’Malley commented on how strong business had returned to the Port of Baltimore. “These strong third quarter results further prove that the Port of Baltimore is on the right track as

we recover from the challenging economic peri- od of the past few year,” said Governor O’Malley. “The port’s continued success in its cargo and cruise business combined with the new 50-ft deep container berth and supersized cranes mean a very bright future for the thousands of direct jobs generated by the Port of Baltimore.”

With its growing strength in imports, another key to Baltimore’s success lies in the port’s proximity to inland customers and manufacturers. As the farthest inland port on the East Coast, Baltimore boasts that the port is “8 hours to 8 million people,” referring to the eight hours it takes a vessel to sail through the Chesapeake Bay channel from the Atlantic Ocean and the more than eight million people in the greater Baltimore/Washington regional market. From its location, Baltimore is accessible to two- thirds to the total US population within an over- night drive and is the closest East Coast port to the manufacturing centers of the Midwest.

Purpose built terminals

Forest products continue to be a strong component of the overall cargo mix for the Port of Baltimore. A resolute focus on attracting import forest products volumes has helped the port

reach for new record levels. Wood pulp, coming in increasingly larger volumes from Brazil, and demand from companies like Kimberly-Clark and Procter & Gamble for the growing tissue markets, are becoming the biggest drivers for the port and Baltimore Forest Products Terminal (BalTerm), which handles nearly all of the port’s forest products traffic.

While annual volumes are down from their 2008 peak of more than 1.16 million tons, forest products cargo is still healthy, primarily due to Baltimore’s efforts at growing the business dur- ing the previous two decades. A variety of products move through the port, including wood pulp, imported graphic and packaging paper, plywood and hardwood. Baltimore’s deal with UPM continues to bring plenty of printing paper, used mainly in catalogs, specialty papers, label materials and other wood products. And as the US housing market continues to gain steam, the volumes for wood products could increase.

“We have invested heavily in our facilities and welcome any opportunity to show the port to those who work with forest products distri- bution,” said Rick Schiappacasse, director of Latin America, the Caribbean and Forest Prod- ucts. “Our facilities are rather different in that they are very close to the berth so that clamp trucks and other equipment work in close proximity between the ship and warehouse. They are all purposely built for forest products.”

One of the fastest-growing cargoes at Baltimore, wood pulp also might be one of the most promising aspects of the port’s future. BalTerm, in its partnership with the Port of Baltimore and the MPA, recently increased the warehouse space at the Dundalk Marine Terminal by 300,000 square feet, an increased designed as part of the capacity expansion projects to handle more wood pulp from Brazil. This brought the total covered warehouse space available for forest products cargo to more than 1.3 million square feet.

Other enhancements have also been recently completed. At Dundalk, two new berths with a 45-foot draft were added to the existing 416,000 square feet of warehousing. And a new 215,000 square foot warehouse and stern ramp have im- proved the facilities at South Locust Point.

“Both of our main forest products terminals have very well developed inland distribution areas both by rail and for trucks,” said Schiappa- casse. “There are no major traffic lights between our facilities and interstate highway access to expedite delivery to the final destination.”

BalTerm has undergone a minor change as well in the last two years. To close out 2009, Logistec purchased its partner’s 50% interest in BalTerm, making the company a wholly owned subsidiary of the Logistec Corporation. The ac- quisition brought BalTerm closer to Logistec’s stevedoring and terminal operations that operate in 23 ports through eastern Canada, the Great Lakes and the US East Coast. For all in- tensive purposes, however, the daily operations at BalTerm are unchanged.

“We are looking to grow our forest products,” said Schiappacasse. “Baltimore is starting to receive some of the new tonnage from Brazil and this will be the most dramatic volume increase in some time. I think every port will be challenged to keep up infrastructure with the kinds of volumes expected. I think we are very well prepared because we made continuous investments in facilities.”

Welcome to GreenPort

Economic success at the Port of Baltimore is closely aligned with the care of Maryland’s nature resources and the well being of its neighboring communities. The port and the MPA believe that taking responsibility for clear air and water is not only good for business, but helps drive it. To that end, Baltimore has made a “green” commitment to its customers and neighbors.

For several years, Baltimore has been devel- oping an Environmental Management System (EMS) that infuses a stewardship ethic into the daily tasks around the port, as well as making it part of any long-term planning. The EMS addresses pollution prevention, compliance with government rules, and an outreach to private sector partners. These efforts highlight the need for an overall environmental strategy, but spe- cifically target air quality, energy efficiency, and storm water management.

The dredging of the shipping channels are a critical part of Baltimore’s operations, but also a part of their long-term economic and business strategy. Without the dredging efforts of the past few years, Baltimore not be able to attract the larger super post-Panamax ships. However, the need for constant dredging can create a serious disruption to the ecology of the Chesapeake Bay channel.

Working closely with scientists, engineers, citizen groups, and regulatory agencies, Balti- more has minimized the impacts of dredging and put systems in place to monitor water quality at each of its dredged material placement sites. The environmental impacts of dredging are balanced with projects that have used dredged material to restore islands, enhance community parks, and replace schoolyard pavement with green space.

The MPA is the largest creator of wetlands in Maryland. In the last few years, the MPA has created and enhanced wetlands at the Poplar Island, Hart-Miller, Masonville cover, and Cox Creek dredged material placement sites. These shoreline settings have become a mecca for migrating birds and other wildlife. Baltimore is also actively coordinating their efforts with state and local partners to meet federally mandated goals for water qual- ity in the Chesapeake Bay, known as the Total Maximum Daily Load (TMDL). This includes steps to reduce nutrient loads and sediment in storm water runoff, as well as in water decanted from dredged sites.

Efficiency upgrades are saving money and reducing the carbon footprint at the Port of Baltimore and other MPA facilities. Rooftop solar systems at South Locust Point are powering the buildings during peak hours. Together, these upgrades are estimated to have reduced energy consumption by 28.7% and water consumption by 24.6%.

Finally, a multi-year Clean Diesel program has continued with the installation of clean die- sel technologies on cargo handling equipment, dray trucks, locomotives, and harbor crafts. This has further reduced emissions of particulates, carbon dioxide, and nitrogen oxide. For its efforts, the MPA received the ISO 14001 certification, recognizing that its Environmen- tal Management System has met international standards. This achievement is only one part of how the Port of Baltimore is working to promote economy, community and the environmental as integrated priorities in Baltimore’s mission to be one of the world’s leading ports. 

 

Port of Baltimore, Plan of Action

Posted in: Logistics 02/28/2013 - 19:00

The Port of Baltimore’s long-term strategy appears to be paying off. After weathering the uncertainty from shifting cargo flows, and through the global economic downturn, Baltimore has spent much of the last few years posting record volumes. Container traffic and automobiles are leading the charge, with expectations for further growth ahead, but forest products are also playing a critical role to help Baltimore regain its once enviable dominance on the US East Coast.

Host port for the upcoming PPI Transport Symposium 20, to be held October 28-31, the Port of Baltimore looked to finish 2012 ahead of the previous year’s pace for several cargos. Through the first three quarters of the year, Bal- timore handled 7.21 million tons of general cargo at the public marine terminals, a ten percent increase from 2011, and is on track to possibly match the record of 8.96 million set in 2008. Overall, through the first nine months of 2012, the port handled nearly 30 million tons of for- eign commerce (general cargo plus bulk cargo) across its public and private terminal docks.

The Port of Baltimore is now ranked number one among the 360 US ports for handling imported forest products, as well as farm and construction equipment, automobiles and light trucks, and imported sugar, iron ore and gypsum. In the last two years, Baltimore has improved its position to become ranked 11th na- tionally for total dollar value of cargo (up from 12th in 2009) and 12th for cargo tonnage (up from 14th). Cargoes are up a total of six percent in 2012, over the same period from the previous year, including containers, automobiles, forest products, and roll on/roll off (Ro/Ro). And these increases come after a 15% surge over 2010 volumes, the greatest growth increase of any major US port for that year.

Supersize work ahead

Baltimore may be seeing golden days ahead, but there is short time to celebrate. All eyes are fo- cused on maintaining these volume levels and preparing for more business when the Panama Canal expansion is finished in late 2014 or early 2015. All of the ports on the East Coast are vying to ready for the behemoth super post-Panamax ships, loaded with up to 13,000 containers each, from the Asia Pacific routes. The ships had been previously forced to rely on West Coast ports because their size wouldn’t allow them to fit through the current locks in the Panama Canal.

Because of its long-term planning, Baltimore is one of the first East Coast ports to have completed projects that will allow it to receive the larger ships, and accommodate the demands of loading and unloaded the cargo in a reasonable timeframe. These projects included dredging both the channel and a berth to 50 feet and the installation of four new supersized container cranes at the Seagirt Marine Terminal. Completed in early 2013, the cranes are part of a $1.3 billion 50-year public-private partnership between Ports America Chesapeake and the Maryland Port Administration (MPA), which oversees the Port of Baltimore.

The four monster cranes, towering the sky above the port, represent the future for Baltimore. Each crane weighs more than 1,550 tons and is taller than a 14-story building. Since they are fully electric and will emit no diesel emissions, the cranes also are helping Baltimore meet its environmental targets. With their arrival, the port took one more step toward reaching a goal of being in a competitive position to han- dle the larger ships and higher volumes as soon as the ships begin arriving on the East Coast.

In a statement last year, Maryland Gover- nor Martin O’Malley commented on how strong business had returned to the Port of Baltimore. “These strong third quarter results further prove that the Port of Baltimore is on the right track as

we recover from the challenging economic peri- od of the past few year,” said Governor O’Malley. “The port’s continued success in its cargo and cruise business combined with the new 50-ft deep container berth and supersized cranes mean a very bright future for the thousands of direct jobs generated by the Port of Baltimore.”

With its growing strength in imports, another key to Baltimore’s success lies in the port’s proximity to inland customers and manufacturers. As the farthest inland port on the East Coast, Baltimore boasts that the port is “8 hours to 8 million people,” referring to the eight hours it takes a vessel to sail through the Chesapeake Bay channel from the Atlantic Ocean and the more than eight million people in the greater Baltimore/Washington regional market. From its location, Baltimore is accessible to two- thirds to the total US population within an over- night drive and is the closest East Coast port to the manufacturing centers of the Midwest.

Purpose built terminals

Forest products continue to be a strong component of the overall cargo mix for the Port of Baltimore. A resolute focus on attracting import forest products volumes has helped the port

reach for new record levels. Wood pulp, coming in increasingly larger volumes from Brazil, and demand from companies like Kimberly-Clark and Procter & Gamble for the growing tissue markets, are becoming the biggest drivers for the port and Baltimore Forest Products Terminal (BalTerm), which handles nearly all of the port’s forest products traffic.

While annual volumes are down from their 2008 peak of more than 1.16 million tons, forest products cargo is still healthy, primarily due to Baltimore’s efforts at growing the business dur- ing the previous two decades. A variety of products move through the port, including wood pulp, imported graphic and packaging paper, plywood and hardwood. Baltimore’s deal with UPM continues to bring plenty of printing paper, used mainly in catalogs, specialty papers, label materials and other wood products. And as the US housing market continues to gain steam, the volumes for wood products could increase.

“We have invested heavily in our facilities and welcome any opportunity to show the port to those who work with forest products distri- bution,” said Rick Schiappacasse, director of Latin America, the Caribbean and Forest Prod- ucts. “Our facilities are rather different in that they are very close to the berth so that clamp trucks and other equipment work in close proximity between the ship and warehouse. They are all purposely built for forest products.”

One of the fastest-growing cargoes at Baltimore, wood pulp also might be one of the most promising aspects of the port’s future. BalTerm, in its partnership with the Port of Baltimore and the MPA, recently increased the warehouse space at the Dundalk Marine Terminal by 300,000 square feet, an increased designed as part of the capacity expansion projects to handle more wood pulp from Brazil. This brought the total covered warehouse space available for forest products cargo to more than 1.3 million square feet.

Other enhancements have also been recently completed. At Dundalk, two new berths with a 45-foot draft were added to the existing 416,000 square feet of warehousing. And a new 215,000 square foot warehouse and stern ramp have im- proved the facilities at South Locust Point.

“Both of our main forest products terminals have very well developed inland distribution areas both by rail and for trucks,” said Schiappa- casse. “There are no major traffic lights between our facilities and interstate highway access to expedite delivery to the final destination.”

BalTerm has undergone a minor change as well in the last two years. To close out 2009, Logistec purchased its partner’s 50% interest in BalTerm, making the company a wholly owned subsidiary of the Logistec Corporation. The ac- quisition brought BalTerm closer to Logistec’s stevedoring and terminal operations that operate in 23 ports through eastern Canada, the Great Lakes and the US East Coast. For all in- tensive purposes, however, the daily operations at BalTerm are unchanged.

“We are looking to grow our forest products,” said Schiappacasse. “Baltimore is starting to receive some of the new tonnage from Brazil and this will be the most dramatic volume increase in some time. I think every port will be challenged to keep up infrastructure with the kinds of volumes expected. I think we are very well prepared because we made continuous investments in facilities.”

Welcome to GreenPort

Economic success at the Port of Baltimore is closely aligned with the care of Maryland’s nature resources and the well being of its neighboring communities. The port and the MPA believe that taking responsibility for clear air and water is not only good for business, but helps drive it. To that end, Baltimore has made a “green” commitment to its customers and neighbors.

For several years, Baltimore has been devel- oping an Environmental Management System (EMS) that infuses a stewardship ethic into the daily tasks around the port, as well as making it part of any long-term planning. The EMS addresses pollution prevention, compliance with government rules, and an outreach to private sector partners. These efforts highlight the need for an overall environmental strategy, but spe- cifically target air quality, energy efficiency, and storm water management.

The dredging of the shipping channels are a critical part of Baltimore’s operations, but also a part of their long-term economic and business strategy. Without the dredging efforts of the past few years, Baltimore not be able to attract the larger super post-Panamax ships. However, the need for constant dredging can create a serious disruption to the ecology of the Chesapeake Bay channel.

Working closely with scientists, engineers, citizen groups, and regulatory agencies, Balti- more has minimized the impacts of dredging and put systems in place to monitor water quality at each of its dredged material placement sites. The environmental impacts of dredging are balanced with projects that have used dredged material to restore islands, enhance community parks, and replace schoolyard pavement with green space.

The MPA is the largest creator of wetlands in Maryland. In the last few years, the MPA has created and enhanced wetlands at the Poplar Island, Hart-Miller, Masonville cover, and Cox Creek dredged material placement sites. These shoreline settings have become a mecca for migrating birds and other wildlife. Baltimore is also actively coordinating their efforts with state and local partners to meet federally mandated goals for water qual- ity in the Chesapeake Bay, known as the Total Maximum Daily Load (TMDL). This includes steps to reduce nutrient loads and sediment in storm water runoff, as well as in water decanted from dredged sites.

Efficiency upgrades are saving money and reducing the carbon footprint at the Port of Baltimore and other MPA facilities. Rooftop solar systems at South Locust Point are powering the buildings during peak hours. Together, these upgrades are estimated to have reduced energy consumption by 28.7% and water consumption by 24.6%.

Finally, a multi-year Clean Diesel program has continued with the installation of clean die- sel technologies on cargo handling equipment, dray trucks, locomotives, and harbor crafts. This has further reduced emissions of particulates, carbon dioxide, and nitrogen oxide. For its efforts, the MPA received the ISO 14001 certification, recognizing that its Environmen- tal Management System has met international standards. This achievement is only one part of how the Port of Baltimore is working to promote economy, community and the environmental as integrated priorities in Baltimore’s mission to be one of the world’s leading ports. 

 

Read more

NEW YORK, Feb. 6, 2013 (RISI) -One more step. Last week, Dockworkers and port management for many of the US East and Gulf Coast ports finally reached a tentative labor agreement. This comes after harried months of strike threats, management ultimatums, and the penultimate decision to bring in a government mediator.

On February 1, 2013, US Federal mediator George Cohen announced that the International Longshoreman's Association (ILA) and the US Maritime Alliance (USMX) had agreed on the terms for a new six-year "Master Contract" between the two sides. This umbrella agreement would affect all of the 14 major US ports from Maine to Texas.

But there is still more to come. In a single statement from mediator Cohen, the only release from either party on this outcome, the agreement is still "subject to the ratification procedures of both parties and, as well, to agreements being achieved in a number of local union negotiations." No timeline was announced for the ratification or for the status of the local agreements to be completed.

Three reasons for concern

For the most part, everyone breathed a little easier at the end of 2012 when a pre-holiday strike was averted and the two sides agreed to an independent mediator. And, for the majority of forest products logistics, these discussions have long centered on labor issues surrounding container handling at the ports, leaving breakbulk largely unaddressed. But there are still reasons to be concerned with how these negotiations have been handled and what impact this agreement could hold for the future.

Economic shock

With more than 50% of the US containerized shipments passing through the US East and Gulf Coast ports, a strike would have reportedly affected over $450 billion in US trade. At a time when the US and world economies are still remarkably fragile, nearly all parties involved agreed that a shock of that magnitude would have far reaching implications.

These ports represent approximately 14,500 ILA jobs and provide over half a million additional jobs related to the shipping industry. And the USMX, representing all of the US and East Coast ports, as well as 10 of the largest carriers worldwide, carries a significant responsibility for the health of the larger economy.

The National Retail Federation, which has been vocal since the beginning of the USMX-ILA negotiations, has stressed the vital economic importance of keeping ports open to international trade and commerce. "Our ports and cargos that flow through them are truly our economic lifeline to the world," said NFR President and CEO Matthew Shay.

This economic specter has been at the center of the public and industry's concern for these talks and, with any new master agreement, will continue to be a point to watch. As ports grow to handle more cargo, their economic impact will only expand.

Containers, containers, containers

Two contentious issues have been at the epicenter of these talks: container royalties and labor productivity. Although a minority of forest products is shipped using containers, with the largest volume since transported as breakbulk, the agreements surrounding the handling of containers is a concern to watch. Ports worldwide continue to ramp up their container-handling ability, sometimes at the expense of breakbulk shipping, and forest products logistics must assume containerization will grow for it's shippers as well.

While many were focused on the container issue, a larger anxiety is the dispute around work rules. Port management, terminal operators and ocean carriers have pointed to what they call "waterfront abuses" from dockworkers. These include payment for hours worked during a day, overtime pay, and so-called "no-show" jobs.

Although details of the new master agreement were not released, management has been demanding that these abuses must finally be eliminated. Over the next few years, dockworkers and shippers will be asked to substantially improve productivity. In turn, it is expected that ports will look to their container productivity even closer as a measure of their efficiency and profitability.

More to come

This melodrama is far from finished. The tentative master agreement must be ratified by both the USMX and the ILA, and is subject to the agreements being hammered out with local union negotiations. No timeline was given for these points, but both parties did agree that there was no longer any threat of a work stoppage during the process.

However the details of the master agreement have yet to be released, presumably for both the USMX and ILA to present the terms to their bodies. This news will unlikely stay secret for long. What the new agreement contains is anyone's guess, but many industry watchers warn that it will contain enough for both sides to be preparing for the next showdown.

Finally, US ports have enjoyed relatively peaceful labor relations for the past four decades. Since 1977, ILA contract negotiations have been successfully completed without disruption to service. But how long will this last? Port strikes are not uncommon throughout the rest of the world. Unless the new agreement produces an historic long-standing resolve between the USMX and the ILA, there is every reason to expect we may visit these same or similar issues in the next few years.

How did we get here

How did we get to this point, through nearly a year of discussions in an atmosphere that veered from optimistic to contentious and eventually entailed intervention by the Federal Mediation and Conciliation Service?

Click here for a video review of the ILA-USMX negotiations timeline and major developments by the Journal of Commerce.

Click here for the JoC's completed coverage of the ILA-USMX negotiations.

USMX-ILA reach agreement - 3 reasons for concern

Posted in: Logistics 02/05/2013 - 18:01

NEW YORK, Feb. 6, 2013 (RISI) -One more step. Last week, Dockworkers and port management for many of the US East and Gulf Coast ports finally reached a tentative labor agreement. This comes after harried months of strike threats, management ultimatums, and the penultimate decision to bring in a government mediator.

On February 1, 2013, US Federal mediator George Cohen announced that the International Longshoreman's Association (ILA) and the US Maritime Alliance (USMX) had agreed on the terms for a new six-year "Master Contract" between the two sides. This umbrella agreement would affect all of the 14 major US ports from Maine to Texas.

But there is still more to come. In a single statement from mediator Cohen, the only release from either party on this outcome, the agreement is still "subject to the ratification procedures of both parties and, as well, to agreements being achieved in a number of local union negotiations." No timeline was announced for the ratification or for the status of the local agreements to be completed.

Three reasons for concern

For the most part, everyone breathed a little easier at the end of 2012 when a pre-holiday strike was averted and the two sides agreed to an independent mediator. And, for the majority of forest products logistics, these discussions have long centered on labor issues surrounding container handling at the ports, leaving breakbulk largely unaddressed. But there are still reasons to be concerned with how these negotiations have been handled and what impact this agreement could hold for the future.

Economic shock

With more than 50% of the US containerized shipments passing through the US East and Gulf Coast ports, a strike would have reportedly affected over $450 billion in US trade. At a time when the US and world economies are still remarkably fragile, nearly all parties involved agreed that a shock of that magnitude would have far reaching implications.

These ports represent approximately 14,500 ILA jobs and provide over half a million additional jobs related to the shipping industry. And the USMX, representing all of the US and East Coast ports, as well as 10 of the largest carriers worldwide, carries a significant responsibility for the health of the larger economy.

The National Retail Federation, which has been vocal since the beginning of the USMX-ILA negotiations, has stressed the vital economic importance of keeping ports open to international trade and commerce. "Our ports and cargos that flow through them are truly our economic lifeline to the world," said NFR President and CEO Matthew Shay.

This economic specter has been at the center of the public and industry's concern for these talks and, with any new master agreement, will continue to be a point to watch. As ports grow to handle more cargo, their economic impact will only expand.

Containers, containers, containers

Two contentious issues have been at the epicenter of these talks: container royalties and labor productivity. Although a minority of forest products is shipped using containers, with the largest volume since transported as breakbulk, the agreements surrounding the handling of containers is a concern to watch. Ports worldwide continue to ramp up their container-handling ability, sometimes at the expense of breakbulk shipping, and forest products logistics must assume containerization will grow for it's shippers as well.

While many were focused on the container issue, a larger anxiety is the dispute around work rules. Port management, terminal operators and ocean carriers have pointed to what they call "waterfront abuses" from dockworkers. These include payment for hours worked during a day, overtime pay, and so-called "no-show" jobs.

Although details of the new master agreement were not released, management has been demanding that these abuses must finally be eliminated. Over the next few years, dockworkers and shippers will be asked to substantially improve productivity. In turn, it is expected that ports will look to their container productivity even closer as a measure of their efficiency and profitability.

More to come

This melodrama is far from finished. The tentative master agreement must be ratified by both the USMX and the ILA, and is subject to the agreements being hammered out with local union negotiations. No timeline was given for these points, but both parties did agree that there was no longer any threat of a work stoppage during the process.

However the details of the master agreement have yet to be released, presumably for both the USMX and ILA to present the terms to their bodies. This news will unlikely stay secret for long. What the new agreement contains is anyone's guess, but many industry watchers warn that it will contain enough for both sides to be preparing for the next showdown.

Finally, US ports have enjoyed relatively peaceful labor relations for the past four decades. Since 1977, ILA contract negotiations have been successfully completed without disruption to service. But how long will this last? Port strikes are not uncommon throughout the rest of the world. Unless the new agreement produces an historic long-standing resolve between the USMX and the ILA, there is every reason to expect we may visit these same or similar issues in the next few years.

How did we get here

How did we get to this point, through nearly a year of discussions in an atmosphere that veered from optimistic to contentious and eventually entailed intervention by the Federal Mediation and Conciliation Service?

Click here for a video review of the ILA-USMX negotiations timeline and major developments by the Journal of Commerce.

Click here for the JoC's completed coverage of the ILA-USMX negotiations.

Read more

NEW YORK, Jan. 7, 2013 (RISI) -The Journal of Commerce has compiled a list of the top transportation and logistics stories for 2012. Here are some of the news stories that we followed closely for the forest products logistics industry.

US Port Strike

Anatomy of the Dispute

As 2012 entered its final days, the International Longshoremen's Association was on the verge of its first coastwide strike in 35 years. In a speech to the JOC's Trans-Pacific Maritime conference in early March, ILA President Harold Daggett rattled the industry by warning a strike was possible. Negotiations opened in late March and continued in fits and starts through the year.

Superstorm Sandy slams US East Coast

Hurricane Sandy

When monster Hurricane Sandy's storm surge struck New York and New Jersey on Oct. 29, it not only destroyed hundreds of homes and closed the region's rail and road network for days, but also rolled over the port's terminals, scattering containers and damaging cranes. In what was described as a miracle, the terminals reopened less than a week later, but all inbound containers were diverted to Baltimore and Norfolk, creating a migraine for importers who had to pay through the nose to get them back north.

Critical need for infrastructure investment

The Infrastructure President

President Obama's re-election and the continuation of Republican and Democrat control of the House and Senate set the stage for a much-needed federal infrastructure investment push. But although partisan bickering has subsided, Obama and Congress first needed to offset the so-called fiscal cliff to prevent the U.S. from slipping into another major economic slowdown.

Shipping's Rate Volatility

More frequent ups and downs expected for 2013

Global shipping lines took a roller-coaster ride in 2012. Rates plummeted at the beginning of the year, extending their losses from 2011, but recovered enough to bring them out of the red. By year-end, rates were sliding again, and analysts said carriers would be hard-pressed to sustain increases in 2013 because of the record amount of vessel capacity due for delivery. That could signal even more frequent ups and downs in the coming year. Will carriers have the discipline to idle enough capacity to keep their bottom lines in the black? Stay tuned.

Opening logistics market critical for China's future

China's Evolving Transportation Policy

Whether the new Beijing leadership improves the country's supply chain through opening its logistics market to foreigners will determine China's economic future. China needs to improve its freight connections to better connect its factories, which are increasingly moving westward toward lower labor costs, to ports if the country wants to remain the world's factory.

Click hereto read the full JOC article,"2012: Stories of the Year".

Top logistics stories for 2012

Posted in: Logistics 01/07/2013 - 13:51

NEW YORK, Jan. 7, 2013 (RISI) -The Journal of Commerce has compiled a list of the top transportation and logistics stories for 2012. Here are some of the news stories that we followed closely for the forest products logistics industry.

US Port Strike

Anatomy of the Dispute

As 2012 entered its final days, the International Longshoremen's Association was on the verge of its first coastwide strike in 35 years. In a speech to the JOC's Trans-Pacific Maritime conference in early March, ILA President Harold Daggett rattled the industry by warning a strike was possible. Negotiations opened in late March and continued in fits and starts through the year.

Superstorm Sandy slams US East Coast

Hurricane Sandy

When monster Hurricane Sandy's storm surge struck New York and New Jersey on Oct. 29, it not only destroyed hundreds of homes and closed the region's rail and road network for days, but also rolled over the port's terminals, scattering containers and damaging cranes. In what was described as a miracle, the terminals reopened less than a week later, but all inbound containers were diverted to Baltimore and Norfolk, creating a migraine for importers who had to pay through the nose to get them back north.

Critical need for infrastructure investment

The Infrastructure President

President Obama's re-election and the continuation of Republican and Democrat control of the House and Senate set the stage for a much-needed federal infrastructure investment push. But although partisan bickering has subsided, Obama and Congress first needed to offset the so-called fiscal cliff to prevent the U.S. from slipping into another major economic slowdown.

Shipping's Rate Volatility

More frequent ups and downs expected for 2013

Global shipping lines took a roller-coaster ride in 2012. Rates plummeted at the beginning of the year, extending their losses from 2011, but recovered enough to bring them out of the red. By year-end, rates were sliding again, and analysts said carriers would be hard-pressed to sustain increases in 2013 because of the record amount of vessel capacity due for delivery. That could signal even more frequent ups and downs in the coming year. Will carriers have the discipline to idle enough capacity to keep their bottom lines in the black? Stay tuned.

Opening logistics market critical for China's future

China's Evolving Transportation Policy

Whether the new Beijing leadership improves the country's supply chain through opening its logistics market to foreigners will determine China's economic future. China needs to improve its freight connections to better connect its factories, which are increasingly moving westward toward lower labor costs, to ports if the country wants to remain the world's factory.

Click hereto read the full JOC article,"2012: Stories of the Year".

Read more

NEW YORK, Nov. 20, 2012 (RISI) -Greater Western Sydney's newest major logistical warehouse and operations centre, the DB Schenker facility at Erskine Park, is open for business, poised to become an even greener and smarter local jobs creator. The new logistics centre employs 80 people and will cater to the demanding logistical needs of some of Australia's largest electronics, consumer, as well as healthcare and office supplies companies.

It is the fifth distribution hub in NSW for Schenker Australia Pty Limited, the local arm of DB Schenker, the world's second largest transportation and logistics provider. Overall, it is DB Schenker's 16th Australian facility.

"Erskine Park forms a vital link in our global chain and the opening marks an important step in our strategy of expanding our Contract Logistics footprint in Australia," said Dr Thomas Lieb, Chairman and CEO of Schenker AG. "In Australia, we deliver almost half a million items each year and many of them will pass through Greater Western Sydney."

Erskine Park has sustainability at the heart of its operations with substantial timber pallet, cardboard, paper and plastic recycling operations as well as a fleet of electric forklifts and trolleys.

New South Wales Premier and Minister for Western Sydney, Barry O'Farrell toured the facility and said it was an impressive example of the sort of investment the state was seeking to get economic growth back on the move. "This is a great vote of confidence in the economy of Western Sydney. This facility will provide new job opportunities for Western Sydney and even better, employment close to where they live."

Ron Koehler, CEO Schenker Australia Pty Limited, said "Erskine Park operates 24 hours a day, from Sunday to Friday, and is one of Sydney's largest warehouse complexes." At 21,000 square metres, it's as big as the Sydney Cricket Ground's playing surface and will hold close to 20,000 pallet positions. It is as well cared for with four hours of merchanised sweeping and cleaning each day.

DB Schenker started moving into the new building in April and it was operating at almost full capacity within three months. "Moving into a green-field site means we've been able to place maximum emphasis on employee safety and best practice in processes," Koehler said. "Elevated dispatch signage that leaves the floor free of clutter is just one innovation brought in by our own people. We're also running continuous improvement programmes that will ensure we make it an even more innovative and green facility. One example is the innovative ‘voice picking technology' which we are introducing to ensure better and efficient storage as well as reduced handling while picking the product, leading to less time and costs for our customers."

The Erskine multi-user distribution center includes plug and play technologies for different systems and for different customers backed up with DB Schenker's own warehouse management system to ensure flexibility.

DB Schneker opens new Australia facility

Posted in: Logistics 11/19/2012 - 23:37

NEW YORK, Nov. 20, 2012 (RISI) -Greater Western Sydney's newest major logistical warehouse and operations centre, the DB Schenker facility at Erskine Park, is open for business, poised to become an even greener and smarter local jobs creator. The new logistics centre employs 80 people and will cater to the demanding logistical needs of some of Australia's largest electronics, consumer, as well as healthcare and office supplies companies.

It is the fifth distribution hub in NSW for Schenker Australia Pty Limited, the local arm of DB Schenker, the world's second largest transportation and logistics provider. Overall, it is DB Schenker's 16th Australian facility.

"Erskine Park forms a vital link in our global chain and the opening marks an important step in our strategy of expanding our Contract Logistics footprint in Australia," said Dr Thomas Lieb, Chairman and CEO of Schenker AG. "In Australia, we deliver almost half a million items each year and many of them will pass through Greater Western Sydney."

Erskine Park has sustainability at the heart of its operations with substantial timber pallet, cardboard, paper and plastic recycling operations as well as a fleet of electric forklifts and trolleys.

New South Wales Premier and Minister for Western Sydney, Barry O'Farrell toured the facility and said it was an impressive example of the sort of investment the state was seeking to get economic growth back on the move. "This is a great vote of confidence in the economy of Western Sydney. This facility will provide new job opportunities for Western Sydney and even better, employment close to where they live."

Ron Koehler, CEO Schenker Australia Pty Limited, said "Erskine Park operates 24 hours a day, from Sunday to Friday, and is one of Sydney's largest warehouse complexes." At 21,000 square metres, it's as big as the Sydney Cricket Ground's playing surface and will hold close to 20,000 pallet positions. It is as well cared for with four hours of merchanised sweeping and cleaning each day.

DB Schenker started moving into the new building in April and it was operating at almost full capacity within three months. "Moving into a green-field site means we've been able to place maximum emphasis on employee safety and best practice in processes," Koehler said. "Elevated dispatch signage that leaves the floor free of clutter is just one innovation brought in by our own people. We're also running continuous improvement programmes that will ensure we make it an even more innovative and green facility. One example is the innovative ‘voice picking technology' which we are introducing to ensure better and efficient storage as well as reduced handling while picking the product, leading to less time and costs for our customers."

The Erskine multi-user distribution center includes plug and play technologies for different systems and for different customers backed up with DB Schenker's own warehouse management system to ensure flexibility.

Read more

NEW YORK, Nov. 5, 2012 (RISI) -Forest products logistics was largely spared from the effects of Hurricane Sandy that hit the New Jersey coast one week ago. Within two to three days of the storm passing, most of the ports, trucking and railways with dedicated forest products breakbulk services were resuming services. This could be due to the distributed nature of the US logistics infrastructure, but also to the luck that Sandy made landfall farther north.

Most of the East Coast ports dedicated forest products transport and distribution lie in the South and Mid-Atlantic region. The Port of Wilmington, North Carolina, the Port of Baltimore and the Port of Philadelphia, experienced some closures as precautions for the storm, but no significant damage was reported. These ports all resumed full operations within days after the storm.

The Port of New York and New Jersey, the largest container port on the East Coast, took the brunt of Sandy's 90+ miles per hour winds and flooding. However, by the Sunday, two terminals in Port Elizabeth, N.J. received calls from container ships. The Port Authority of New York and New Jersey also said two more terminals, Port Newark Container Terminal and Global Terminal, would reopen today, leaving only two container terminals still closed.

Road closures due to flooding and power outages continue to cause the most disruptions to logistics in the Northeast after Sandy. Many trucking companies held their drivers off the road until the storm passed, in part due to transportation restrictions. CSX and Norfolk Southern railroads told customers to expect shipments delayed up to 72 hours after the storm as railways came back online. Gasoline shortages are causing delays in areas closest to the New York area.

These operational problems forced numerous box plants across the Mid-Atlantic region to close for the week. Pratt Industries' recycled containerboard mill on Staten Island in New York City was knocked out by the storm, but mill officials said operations would restart soon. Two other mills were briefly disrupted; Fusion Paperboard in Connecticut and PaperWorks Industries in Philadelphia, both coated recycled paperboard mills.

Heavy toll, but a silver lining

The economic effects of Superstorm Sandy will take some time to calculate. Combining the two days of inactivity for the region, along with the extensive damage to heavily populated areas, initial estimates place losses by Sandy between $35 billion to $45 billion.

These initial estimates could double or triple as cleanup and recovery continues. In comparison, Hurricane Irene, which hit the region in 2011, was considered a much smaller storm than Sandy and initially estimated to cause $7 billion in damage. The economic cost of Irene was ultimately tagged $15 billion to $20 billion.

Rebuilding could lead to a short-term boom for forest products shipment. Richard Garneau, CEO of Resolute Forest Products, said the impact of Sandy would help the already strengthening housing recovery.

"They're going to have to rebuild, but it always takes some time for the cleanup to be done so I think the impact on demand of wood consumption is probably going to materialize in the second and third quarter of next year with the rebuilding efforts," Mr. Garneau said in an interview.

Last week, forecasts for an increase in construction material helped lumber prices surge to a 19-month high. The benchmark futures contract for January delivery of lumber closed at $331.20 (U.S.) for 1,000 board feet on the Chicago Mercantile Exchange, up by the maximum $10 daily limit. Reports say traders are focusing on the need to rebuild thousands of homes that were damaged or destroyed from the storm.

Forest products logistics resilient, lucky after Hurricane Sandy

Posted in: Logistics 11/04/2012 - 15:30

NEW YORK, Nov. 5, 2012 (RISI) -Forest products logistics was largely spared from the effects of Hurricane Sandy that hit the New Jersey coast one week ago. Within two to three days of the storm passing, most of the ports, trucking and railways with dedicated forest products breakbulk services were resuming services. This could be due to the distributed nature of the US logistics infrastructure, but also to the luck that Sandy made landfall farther north.

Most of the East Coast ports dedicated forest products transport and distribution lie in the South and Mid-Atlantic region. The Port of Wilmington, North Carolina, the Port of Baltimore and the Port of Philadelphia, experienced some closures as precautions for the storm, but no significant damage was reported. These ports all resumed full operations within days after the storm.

The Port of New York and New Jersey, the largest container port on the East Coast, took the brunt of Sandy's 90+ miles per hour winds and flooding. However, by the Sunday, two terminals in Port Elizabeth, N.J. received calls from container ships. The Port Authority of New York and New Jersey also said two more terminals, Port Newark Container Terminal and Global Terminal, would reopen today, leaving only two container terminals still closed.

Road closures due to flooding and power outages continue to cause the most disruptions to logistics in the Northeast after Sandy. Many trucking companies held their drivers off the road until the storm passed, in part due to transportation restrictions. CSX and Norfolk Southern railroads told customers to expect shipments delayed up to 72 hours after the storm as railways came back online. Gasoline shortages are causing delays in areas closest to the New York area.

These operational problems forced numerous box plants across the Mid-Atlantic region to close for the week. Pratt Industries' recycled containerboard mill on Staten Island in New York City was knocked out by the storm, but mill officials said operations would restart soon. Two other mills were briefly disrupted; Fusion Paperboard in Connecticut and PaperWorks Industries in Philadelphia, both coated recycled paperboard mills.

Heavy toll, but a silver lining

The economic effects of Superstorm Sandy will take some time to calculate. Combining the two days of inactivity for the region, along with the extensive damage to heavily populated areas, initial estimates place losses by Sandy between $35 billion to $45 billion.

These initial estimates could double or triple as cleanup and recovery continues. In comparison, Hurricane Irene, which hit the region in 2011, was considered a much smaller storm than Sandy and initially estimated to cause $7 billion in damage. The economic cost of Irene was ultimately tagged $15 billion to $20 billion.

Rebuilding could lead to a short-term boom for forest products shipment. Richard Garneau, CEO of Resolute Forest Products, said the impact of Sandy would help the already strengthening housing recovery.

"They're going to have to rebuild, but it always takes some time for the cleanup to be done so I think the impact on demand of wood consumption is probably going to materialize in the second and third quarter of next year with the rebuilding efforts," Mr. Garneau said in an interview.

Last week, forecasts for an increase in construction material helped lumber prices surge to a 19-month high. The benchmark futures contract for January delivery of lumber closed at $331.20 (U.S.) for 1,000 board feet on the Chicago Mercantile Exchange, up by the maximum $10 daily limit. Reports say traders are focusing on the need to rebuild thousands of homes that were damaged or destroyed from the storm.

Read more

NEW YORK, Oct. 30, 2012 (RISI) -As the remnants of Hurricane Sandy passed through the Northeast US, downgraded to a "post-tropical cyclone" in Monday's evening hours, the superstorm's effects were still being felt across the region.

Flooding and wind advisories continue to be in effect from Upper Michigan to New England and as far south as Georgia. The heaviest rains are reported to be on the western and southern flanks of the storm, which is expected to pass through Pennsylvania on Tuesday.

Along the Northeast coast, the major ports in Sandy's wake remain closed, with little news yet of damage. The Port of New York-New Jersey, expected to be hardest hit, closed all marine terminals on Monday and has not yet reopened. The Port of Wilmington, Delaware and the Port of Maine in Portland were also closed on Monday in advance of Sandy. There are no reports when they expect to open.

The ports handling the larger forest products volumes for the East Coast, especially the ports of Baltimore and Philadelphia, were largely spared when the hurricane made landfall in southern New Jersey. But power outages and flooding have stopped road and rail transportation throughout the region, forcing traffic to hold at the ports for an indefinite time period.

Up to 8 million people within the region are without power on Monday morning, with some reports that it may take between 7 - 10 days for utility crews to fully restore service.

Most of the bridges and highways from Maryland to New England were closed on Monday evening. Multiple stretches along I-95 are affected by closings, effectively stopping all road freight through the area. Several sections of interstates through Pennsylvania are also reported as closed.

Large trucks, along with most other traffic other than passenger cars, were banned from New York city bridges on Monday afternoon. The George Washington Bridge, Outerbridge Crossing, Goethals Bridge and Bayonne Bridge were all affected.

Norfolk Southern announced on Monday that shipments along the railway's network from Virginia to New England are expected be delayed at least 72 hours.

The Port of Virginia reopened on Tuesday morning, but will not be accepting vessels until later Tuesday night. All marine terminals at Virginia reopened Tuesday at 8 a.m., two hours later than usual, following the passing of Hurricane Sandy, as reported by the Journal of Commerce.

The Virginia Port Authority said there would be no vessel operations until the U.S. Coast Guard completes a port assessment and the sea lanes are reopened. The truck gates, transfer zones and on-dock rail will be operating.

For more logistics coverage of the storm and its aftermath, see theJournal of Commerce's Hurricane Sandy special topic page.

Superstorm Sandy shuts down Northeast US logistics

Posted in: Logistics 10/30/2012 - 01:05

NEW YORK, Oct. 30, 2012 (RISI) -As the remnants of Hurricane Sandy passed through the Northeast US, downgraded to a "post-tropical cyclone" in Monday's evening hours, the superstorm's effects were still being felt across the region.

Flooding and wind advisories continue to be in effect from Upper Michigan to New England and as far south as Georgia. The heaviest rains are reported to be on the western and southern flanks of the storm, which is expected to pass through Pennsylvania on Tuesday.

Along the Northeast coast, the major ports in Sandy's wake remain closed, with little news yet of damage. The Port of New York-New Jersey, expected to be hardest hit, closed all marine terminals on Monday and has not yet reopened. The Port of Wilmington, Delaware and the Port of Maine in Portland were also closed on Monday in advance of Sandy. There are no reports when they expect to open.

The ports handling the larger forest products volumes for the East Coast, especially the ports of Baltimore and Philadelphia, were largely spared when the hurricane made landfall in southern New Jersey. But power outages and flooding have stopped road and rail transportation throughout the region, forcing traffic to hold at the ports for an indefinite time period.

Up to 8 million people within the region are without power on Monday morning, with some reports that it may take between 7 - 10 days for utility crews to fully restore service.

Most of the bridges and highways from Maryland to New England were closed on Monday evening. Multiple stretches along I-95 are affected by closings, effectively stopping all road freight through the area. Several sections of interstates through Pennsylvania are also reported as closed.

Large trucks, along with most other traffic other than passenger cars, were banned from New York city bridges on Monday afternoon. The George Washington Bridge, Outerbridge Crossing, Goethals Bridge and Bayonne Bridge were all affected.

Norfolk Southern announced on Monday that shipments along the railway's network from Virginia to New England are expected be delayed at least 72 hours.

The Port of Virginia reopened on Tuesday morning, but will not be accepting vessels until later Tuesday night. All marine terminals at Virginia reopened Tuesday at 8 a.m., two hours later than usual, following the passing of Hurricane Sandy, as reported by the Journal of Commerce.

The Virginia Port Authority said there would be no vessel operations until the U.S. Coast Guard completes a port assessment and the sea lanes are reopened. The truck gates, transfer zones and on-dock rail will be operating.

For more logistics coverage of the storm and its aftermath, see theJournal of Commerce's Hurricane Sandy special topic page.

Read more

MINNEAPOLIS, MN, Oct. 5, 2012 (RISI) -Global logistics specialist C.H. Robinson announced it will acquire freight forwarder Phoenix International in a deal worth over $635 million in cash and stocks.

C.H. Robinson, one of the world's largest third-party logistics providers, appears to expanding its international presence in ocean and air transport. Based in the US, more than three-quarters of Robinson's gross profits in 2011 derived from trucking and related services, with only 6% from ocean and air.

"We see significant long-term opportunity in international forwarding as global trade expands, scale and technology continue to become more important, and shippers increasingly look to transportation providers to provide global services," said John Wiehoff, C.H. Robinson chairman and chief executive officer. "Together, Robinson and Phoenix will be in a strong competitive position to capitalize on those growth opportunities and continue expanding our market share."

C.H. Robinson's acquisition of Phoenix comes as a stock-purchase agreement of $571.5 million in cash and approximately $63.5 million in newly-issued Robinson stock. The deal is expected to close in the fourth quarter of 2012 and Robinson will use existing cash and plans to enter into a revolving credit facility with major banks to finance the cash portion of the purchase price.

Phoenix is a privately-held international freight forwarder and primarily provides international freight forwarding services, including ocean, air, and customs brokerage, currently serving approximately 15,000 customers globally.

In its most recently completed fiscal year, as of June 30, 2012, Phoenix generated gross revenues of approximately $807 million, net revenues of approximately $161 million and adjusted operating income of approximately $48 million. Phoenix has approximately 2,000 employees, located in 76 offices in 15 countries. The compan is headquartered in Chicago, Illinois.

"Joining with C.H. Robinson enables Phoenix to offer its customers a broader menu of services, leverage combined volumes more efficiently, and provide employees with even greater career path opportunities," said Bill McInerney, executive chairman of Phoenix, who founded the company in 1979.

This is the second major acquisition in a month for Robinson. Earlier in September 2012, Robinson acquired freight firm Warsaw-based Apreo Logistics, which provides various truckload services, and additional air, ocean and warehouse services to approximately 2,000 customers. Terms of that deal were not disclosed.

Following the completion of the Phoenix acquisition, McInerney plans to retire. Phoenix chief executive officer Stéphane Rambaud, 48, will lead the combined international freight forwarding services of C.H. Robinson and Phoenix.

C.H. Robinson expands international ocean and air services

Posted in: Logistics 10/05/2012 - 02:26

MINNEAPOLIS, MN, Oct. 5, 2012 (RISI) -Global logistics specialist C.H. Robinson announced it will acquire freight forwarder Phoenix International in a deal worth over $635 million in cash and stocks.

C.H. Robinson, one of the world's largest third-party logistics providers, appears to expanding its international presence in ocean and air transport. Based in the US, more than three-quarters of Robinson's gross profits in 2011 derived from trucking and related services, with only 6% from ocean and air.

"We see significant long-term opportunity in international forwarding as global trade expands, scale and technology continue to become more important, and shippers increasingly look to transportation providers to provide global services," said John Wiehoff, C.H. Robinson chairman and chief executive officer. "Together, Robinson and Phoenix will be in a strong competitive position to capitalize on those growth opportunities and continue expanding our market share."

C.H. Robinson's acquisition of Phoenix comes as a stock-purchase agreement of $571.5 million in cash and approximately $63.5 million in newly-issued Robinson stock. The deal is expected to close in the fourth quarter of 2012 and Robinson will use existing cash and plans to enter into a revolving credit facility with major banks to finance the cash portion of the purchase price.

Phoenix is a privately-held international freight forwarder and primarily provides international freight forwarding services, including ocean, air, and customs brokerage, currently serving approximately 15,000 customers globally.

In its most recently completed fiscal year, as of June 30, 2012, Phoenix generated gross revenues of approximately $807 million, net revenues of approximately $161 million and adjusted operating income of approximately $48 million. Phoenix has approximately 2,000 employees, located in 76 offices in 15 countries. The compan is headquartered in Chicago, Illinois.

"Joining with C.H. Robinson enables Phoenix to offer its customers a broader menu of services, leverage combined volumes more efficiently, and provide employees with even greater career path opportunities," said Bill McInerney, executive chairman of Phoenix, who founded the company in 1979.

This is the second major acquisition in a month for Robinson. Earlier in September 2012, Robinson acquired freight firm Warsaw-based Apreo Logistics, which provides various truckload services, and additional air, ocean and warehouse services to approximately 2,000 customers. Terms of that deal were not disclosed.

Following the completion of the Phoenix acquisition, McInerney plans to retire. Phoenix chief executive officer Stéphane Rambaud, 48, will lead the combined international freight forwarding services of C.H. Robinson and Phoenix.

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