| 2012 New England Supply Chain Conference and Exhibition - Nicolas
Frischer Presentation
Ocean and Airfreight Industry Conditions – Dilemmas Confronting Today’s Shippers
Nicolas Frischer, Manager, UPS
Supply Chain Solutions
The multitude of factors confronting shipping managers, as they
try to balance the ultimate question of cost verses time, is both complicated
and daunting. Nick Frischer will lead a candid discussion about the events
leading up to present market conditions, and forecasted trends for both the
ocean and air freight industries, as they relate to supply chain decision
making.
We will examine the major contributing elements of ocean cargo supply and
demand, including:
• Vessel operators estimated $6 billion loss over the past year;
• Four general rate increases during the past nine months;
• Vessels out of service and impact of idle fleet;
• TEU capacity;
• Bunker fuel surcharges, and
• Slow steaming.
Our airfreight discussion will:
• Pinpoint root causes and specific data illustrating the number of airlines
eliminating all freighter service;
• Number of decommissioned cargo aircraft;
• Demand for available lift;
• Aviation fuel, and
• New security screening protocols for both international and domestic air
cargo.
As the ever increasing price of transportation exacerbates the landed cost of
goods, we will focus back on the dilemma of balancing the expense of material /
product in transit, measured in hard dollars, versus the speed to market
measured in days. We will conclude with the industry’s response, and newly
packaged hybrid ocean-air solutions that offer a “gap” solution, at twice the
speed of traditional all-water service -- at a fraction of direct airfreight
expense.
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