The new ocean freight consolidation services on Japan’s south coast serve exports out of the three regions Kansai (Kobe as well as Osaka and Kyoto), Chūbu (Nagoya) and Kantō (Tokyo including Yokohama and Kawasaki). In terms of TEUs (twenty-foot equivalent units), Japan’s exports are mostly driven by the automotive (26%), chemicals (19%) and manufacturing (18%) industries. (1) The port of Nagoya has become one of the country’s most important economic drivers. The headquarters of notable international corporations of the automotive, high tech, ceramic and construction industries are located here.
“With our improved, own operated service offering via Singapore, we can now offer our customers in Japan a seamless connection to our global LCL network. Access to end-to-end solutions and the global market, especially the main markets in Europe, the east coast of Latin America, Asia and Africa is greatly simplified,” said Frank Hercksen, Global Head of Ocean Freight at Panalpina. Singapore is Panalpina’s most important ocean freight hub for connecting Asia to the rest of the world, and it is the world’s second largest container port. Panalpina’s announcement follows on the heels of a new record month for the port of Singapore. In May, its volumes reached 2.8 million TEUs, surpassing the previous May record in 2008 by 6%. Compared to May 2011, cargo volumes were up 9%. (2)
The additional LCL services are part of Panalpina’s long term strategy to grow business on key Asia trade lanes, especially on the Far East Westbound, Transpacific Eastbound, Intra Asia, Asia to Latin America and Asia to Middle East trade. The majority of the more than 50 new LCL services launched in 2011 through Panalpina’s in-house carrier Pantainer Express Line involved Asia. Past September, Panalpina announced the launch of three new Singapore inbound LCL services from Haiphong (Vietnam), Phnom Penh (Cambodia) and Cebu (Philippines).
Panalpina is one of the leading LCL service providers in the world. Less than Container Load or LCL offers the possibility to consolidate multiple consignments from several customers in one Full Container Load (FCL). Customers can ship low volumes without having to fill a full container first. Hence, LCL gives customers with lower volume shipments access to ocean freight economies of scale that normally are restricted to full container movements. Panalpina operates its own global LCL network consisting of numerous direct LCL services and strategically located hubs. The in-house carrier Pantainer Express Line offers LCL customers strategic connections and concerted rotations across the globe. Customers benefit from an optimized logistics spend, more flexibility and seamless door-to-door services with the highest level of schedule integrity and reliability in terms of transit times.
(1) Source: Seabury Global Ocean Database, 2011
(2) Source: Maritime and Port Authority of Singapore (MPA)