Newsletters

THE COOP QUARTERLY NEWSLETTER

SEPTEMBER 2021

140 DELEGATES REGISTER FOR THE COOP’S 2ND VIRTUAL MEETING
15TH-16TH NOVEMBER

KNOW OUR SPONSORS

TIPS TO DEAL WITH THE CONTAINER SHORTAGE

Message from the President

Dear members,

Welcome to the Autumn edition of The Coop’s quarterly newsletters. This edition’s newsletter is crammed with interesting news from the members, the top headlines from the sector, information about our upcoming Virtual Meeting, and much more.

I am delighted to see how our members are getting ahead with their businesses and sharing shipments, despite all the challenges our industry is having to face. The Coop’s 2nd Virtual Meeting that will be held on the 15th and 16th of November will allow you to participate in robust networking activities without having to travel to another country. In the newsletter, you will read how our members have benefitted from participating in our previous meeting. Moreover, we have also created a brief post where we have introduced the sponsors for The Coop’s 2nd Virtual Meeting.

Make sure to check out all the latest news from your network partners in the Members’ News Section. Our industry news in focus for this month is about Maersk’s acquisition of e-commerce fulfilment company Visible SCM. You will also get to read about the top 5 news headlines from the transportation and logistics industry. In the context of the ongoing container shortage, we have published a post where we discussed a few ways in which shippers can effectively deal with the container crisis.

Before concluding, I would like to encourage all of you to be there for our upcoming Virtual Meeting. Networking and collaborating with dependable international partners are the simplest ways to keep your business moving in the right direction. Our Virtual Meeting will provide you with the perfect platform precisely for this. Remember to keep us updated with all the latest news and achievements of your company, so that we can promote your organization by publishing a news on our website and in our next newsletter.

Happy reading!

Kind regards,

Antonio Torres President and Founder

MORE THAN 140 COOP MEMBERS

FROM ALL AROUND THE WORLD ARE GEARING UP

FOR THE COOP’S 2ND VIRTUAL MEETING

If you are trying to grow your existing logistical operations by finding new clients and business partners, the first thing you need to do is meet new people and get your name out there. Since 2020, all the most important business conferences are being held online and the technological advancements have allowed us to re-create the charm of face-to-face, in-person meetings without having to leave the comforts of your home.

WHAT DELEGATES SAID AFTER ATTENDING THE 1ST VIRTUAL MEETING

The Coop’s 1st Virtual Meeting where members got to do their business talks with network partners was an out-and-out success. Here is what the delegates from our previous meeting had to say about their experience:

Emidio Moutinho - COOP Lisbon & Porto (Portugal):

"It has been one of the best Virtual Conferences I have attended; the format was excellent. The FreightViewer presentation was very good and I look forward to the coming features shown"

Faizan Sattar - COOP Karachi (Pakistan):

"The event was very well organized, everything was beyond my expectations. The Coop’s support team, the technical support when there was an issue, and all the meetings were timely without any delay. I feel it is really difficult to organize so many meetings on just one platform and to do it with punctuality and without any disconnection. I must say Congratulations to the whole team of COOP"

Tekad Sukatno - COOP Jakarta (Indonesia):

"I loved much the transition way from one meeting to another that was set up automatically by a very easy-to- use program. In general, the Virtual Meeting was really great, so I would like to thank you for all the effort"

Miguel A. Montero - COOP Barcelona (Spain):

"In my opinion, everything was very well organized. The best part of the event without a doubt was having been able to share experiences and comments with other agents. Congratulations on organizing this event, which I imagine was a great endeavour in these times of pandemic"

A BIT ABOUT OUR SPONSORS

The events and activities during the Coop’s 2nd Virtual Meeting will be sponsored by, Express Air Freight, Kopf + Lubben GMBH, Headway, The Solution, Movers International and Infinity Shipping Services.
We are delighted to partner with these reputed freight forwarding companies. Now is the time to get to know a bit about their businesses.

Express Air Freight, a Coop member in New York, USA, has been in operation since 1990. Their dedicated team, customer focussed services, and bespoke solutions for all transportation requirements make them the go-to freight forwarder in New York. As an IATA member, they provide comprehensive door- to-door air freight services. Additionally, they are also experts in sea and road freight and also provide brokerage services.

Kopf + Lubben is a Coop member in Frankfurt, Bremen, and Hamburg, Germany, they have been providing first-rate services for their customers since 1976. Their years of experience, dedicated team, strategic expertise, and several accreditations have made them the most sought-after choice for the transportation needs of their clients and partners. Moreover, Kopf + Lubben also offers track and trace services for their customer’s shipments.

Headway is a Coop member in Hanoi, Vietnam. Their extensive industry knowledge and client focussed attitude have made them the first choice of their clients and partners. They focus on ‘Value-added logistics’ which is why they always strive to provide innovative solutions that exceed customer expectations. Apart from all kinds of transportation services, they also provide insurance and brokerage services.

Infinity shipping is a Coop member in Karachi, Pakistan who are known for their comprehensive logistical services in the field of air, road, and ocean freight. Additionally, they also offer custom brokerage services, break bulk chartering services, and warehousing services. They are committed to providing personalized solutions to serve their clients in the best possible way.

Movers International is a Coop member in Delhi, India, that has been serving serving the logistics industry for over two decades. In the last twenty years they have garnered several prestigious awards in the freight forwarding industry. They provide comprehensive air/sea/ground freight services along with customs management and warehousing services from over 14 offices all over India.

The Solution is a Coop member in Genoa, Italy. They provide specialized services in the sea and road freight sector and their team is known for their ability to handle every last detail of their client’s special logistics requirement. Additionally, they provide instant quotes for their clients/partners and also allows them to track their shipments.

MEMBERS NEWS

Lovitka Logistics celebrates its 5th Anniversary
Read more

Sinocarry Logistics completes 10 year in business
Read more

Talwin Transport creates a special department entirely dedicated to classic cars
Read more

Sinocarry Logistics signs BSA agreements with several prominent airlines
Read more

Acconage Consignation Transit moves a sea freight shipment for the mining industry from Guinea to Mauritania
Read more

Tuushin LLC moves two helicopters from Antwerp, Belgium, to Ulaanbaatar, Mongolia
Read more

MEDIA PARTNERSHIP

The Coop establishes a media partnership with the Cargotalk Magazine
Read more

SPECIAL MEETING

Andrea Martin, FreightViewer Coordinator meets Wilson Huang, Senior Sales Manager at BlueX

Two years back, the Coop made available FreightViewer, a free and exclusive online quote generation software that allows its members to send instant accurate quotations within a few seconds. This tool that greatly simplifies the quote generation process, was created to encourage the members to embrace digitization. The transportation and logistics industry is going through a transition phase. Moreover, since March 2020, this sector is undergoing a somewhat disruptive transformation. This is precisely why the small and mid-sized forwarders are trying their best to digitize their operations by using solutions offered by companies like BlueX.

The BlueX team provides useful logistics tech platforms making ocean freight service simpler and more accessible both for the freight forwarders and the carriers. Simply stated, they connect the logistics companies and the clients on a single easy-to-use platform.

BlueX cooperates directly with the carriers for fostering a new business model that optimizes the ROI of the freight forwarders. In this interview, Mr. Huang and Ms. Martin discuss how the industry is directing its focus mainly on enhanced productivity and client servicing.

Furthermore, they also talk about the impact of the pandemic on the digitization of the logistics industry.

According to Mr. Huang, the transportation and logistics industry had started the digital transformation around three years back. Nevertheless, the process picked up speed, and now it is absolutely essential to beat the intense competition. Since 2018, this sector has witnessed the rise of many new technologies. For instance, eight out of ten best carriers have invested in creating automated quotation generation software. Maersk, the biggest name in container shipping, did this10 years back by launching Maersk Spot Booking. At the moment, over 52% of their shipments are booked via this platform.

After working for many years in this sector, Mr. Huang thinks that automation is no longer the future, it is happening right now. Until now, it was only the biggest carriers who were taking the major steps towards digitization. However, this is no longer the case. Independent freight forwarders are embracing digitization like never before. They are using online tools and software to automate their daily work process and increase productivity. Flexport, a logistics and customs brokerage firm has set a great example. They have shown us how automation can be used to meet the modern requirements of this industry. In addition, the pandemic has also accelerated the process of digitization of the transportation and logistics industry. In other words, the digital transformation is no longer a vision but a reality.

SPECIAL

HOW SHIPPING COMPANIES CAN CONFRONT THE CONTAINER IMBALANCE

The long delays and rising ocean freight rates are two direct consequences of the container crisis that have worsened the bottlenecks in the international supply chain. Even now many freight companies are having to wait for one and a half to two months before finding an available container. Moreover, they are also paying 3-5 times the normal rates. The container shortage has impacted every sector of the international economy and has lowered the availability of important consumer goods.

Although there are around 200 million containers, there isn’t any production of new containers. The majority of the required containers are either full or are sitting or waiting somewhere instead of being unloaded and reloaded. Apart from higher shipping costs and delays, the container crisis has also led to tremendous short-term supply shortages, scarcity of in-demand goods, and skyrocketing prices.

Air freight is not a solution

Air shipments are not really an alternative for shipping companies. To begin with, the air freight industry is undergoing tremendous pressure since the capacity in the freighter planes is still tight. and we are not too sure about how this industry is going to cope with the rising demand for air cargo. Most importantly, the air freight rates have significantly soared since March 2020. Although the price has somewhat stabilized in 2021, it continues to be higher than normal. In the fourth quarter of this year, the prices might go up a bit because of the increased demand.

What the freight forwarders need to do to cope with the container shortage?

Plan ahead
Planning ahead can be helpful even during the best of times. It is all the more important while the container crisis is there. Start making preparations at least two months ahead of time. The more lead time you have, the better the chances of your cargo finding a slot in the ships and reaching its destination on time. In case you get a last-minute order, you can try moving it by LCL depending on the nature and volume of your cargo.

Make use of other modes of transport
However, do not disregard the option of rail and trucks. Rail freight is one of the most dependable modes of transportation and you can move your shipment without having to wait for months for an empty container.

Confirm at your earliest
You also need to make sure to communicate and confirm with your clients within the shortest possible time. Presently, there is an intense demand for container space. Therefore, the available space might shortly disappear or become more expensive if you delay the confirmation. Prioritizing the shipment should also be a major consideration for freight forwarders. To begin with, you need to make arrangements for the timesensitive cargoes.

The container shortage isn’t going to go away any time soon. According to the industry experts, it is not until 2022 that we will find a solution to the ongoing container imbalance. Moreover, the port congestion and the labour shortages are adding to the problem of the container crisis. In the face of all these challenges, the freight forwarders need to brace up and do their level best to keep the ships sailing around the world.

LOGISTICS NEWS

Maersk’s acquisition of parcel delivery and e-commerce fulfilment company Visible SCM has added to Maersk’s integrated logistics offering

This strategic acquisition is all set to transform its warehouse network in the USA Maersk, the Danish container shipping company has recently acquired Utah-based Visible Supply Chain Management, a company with 9 fulfilment centres in the USA. Maersk is presently focussing on inland logistics and this acquisition will greatly augment its customer base in the USA. In the words of Vincent Clerc, CEO of Maersk Ocean and Logistics, “While our customers trust us with a wide part of their supply chain, this acquisition will contribute to an even better end-to-end experience by providing more key e-commerce capabilities.”

Additionally, the warehouse of Vision SCM in several parts of the United States will increase Maersk’s footprints in places like Utah, Georgia, and Memphis, where it previously had no fulfilment centres. According to Jared Starling, the CEO of Visible SCM, “Integrating our company with Maersk aligns with our values and strategic goal to scale our services to reach more customers with our business model. Together we can be trusted partners across all customers’ supply chains and bring our B2C expertise to Maersk customers...”.

The addition of Vision SCM’s network will provide Maersk with access to some of the most indemand warehousing markets. For example, Maersk will now have reach to the market in Atlanta where the industrial real estate boom has driven considerable demand for goods. Furthermore, they will also get access to Salt Lake City which is the fifth-highest growing state in the USA. Maersk has started looking beyond container shipping and is venturing into the sphere of end-to-end supply chain services. As a result, now more than ever they have to focus on strengthening their e-commerce base. They are also in the process of acquiring B2C Europe a parcel delivery service based in The Netherlands. “The new supply chain architecture allows more of our small and mediumsized customers to tap into the growth driven by the increased online consumer shopping,” adds Clerc.

MORE LOGISTIC NEWS AT A GLANCE

Container shipping giant ONE is using an inland container tracking system that will help to lower carbon emissions

To this end, they have collaborated with PARIS Optimal Transport Planning Solution, a subsidiary of Hutchinson Port Holdings, who will help in the effective tracking of their inland CO2 emissions

UPS successfully executes the first-ever drone delivery of Covid-19 vaccines in the USA

American Multinational Shipping company UPS delivers vaccines for a hospital in North Carolina via Matternet drones

Parcel2Go, a parcel delivery comparison website creates a data hub to guide forwarders moving parcels from the UK to countries in the EU

The information hub which ensures the seamless delivery of parcels without extra expenses come with checklists, essential guidelines, VAT calculators for EU countries and more

The US government appoints John Porcari as Port Envoy to the Supply Chain Disruptions Task Force

Mr. Porcari will see to the effective tacking of supply chain bottlenecks at the ports in the United States

United Nations extends its partnership with IATA for the facilitation of international trade

The two organizations based in Geneva has agreed to extend the successful incorporation of IATA’s Cargo-XML so as to encourage commercial activities in developing nations via enhanced data exchange

LET'S KEEP GROWING

The Coop is currently covering 134 countries represented by 317 freight forwarders around the world.

HOWEVER, THERE ARE STILL A FEW CITIES IN NEED OF COVERAGE!

Take a look at the cities needing coverage and tell your friends in the industry about the advantages of becoming a Coop member. If the agent you are referring to eventually becomes a part of our network then you will get a 25% discount on your upcoming annual membership fee.

If you refer more than one agent who successfully becomes a part of our network then you stand a chance to get a maximum of four discounts every year which means that your membership fee could be just 0 for the coming year!

Make sure to spread the word about our network and send us referrals of eligible and reliable freight forwarders!

Examples of cities needing coverage

PUBLIC HOLIDAYS

You can check all the public holidays and details on www.officeholidays.com

THE COOP BIRTHDAYS

ENDORSED MEETINGS

The Cooperative Logistics Network is collaborating with many industry events and members can enjoy exclusive discounts.

Check the list of events