Quick News for Monday 9-12-05

DHL begins rollout of nationwide plan to improve customer service. No really, I am serious, stop laughing, they are spending $50 Million over a 4 month period in a campaign to improve customer service. I probably shouldn't make light, I am sure are plenty of very satisfied DHL customers out there, I just never had very good experiences with them. Got any positive or negative DHL stories you'd like to share ? We love to hear them.


It's been almost 2 weeks since Katrina hit New Orleans and the port of New Orleans, an important player in the worldwide distribution of a number of commodities, is eager to get back in the game:

In putting the Port of New Orleans out of commission, Hurricane Katrina didn't just deliver another blow to the local economy.

The port is the gateway to a river system that allows cargo to move to and from 33 states, either on the Mississippi or its tributaries. Its reach is broadened farther with the port's connection to six railroads.

Knocking out one of the world's busiest shipping ports has set in motion almost certainly higher prices on goods working their way to stores and manufacturers warehouses nationwide.

"It's inevitable," said Yvonne Rhodes, vice president of Houston-based shipping consultant Ocean Trader International. "It's not just oil and gas." The port's closure freezes or slows movement of a range of goods, Rhodes said.

Read the whole thing, perfect perspective on how the loss of a major port can effect the entire logistics picture for a number of economies.


In Saipan, rising fuel surcharges are increasing transportation costs which is forcing prices on all imports to rise :

Carmen Safeway Enterprises Inc., which operates as a wholesaler and retailer of general merchandise, said the impending increase in ocean freight costs would result in high prices of their commodities.

"We also bring in goods via Matson and Horizon," said Carmen Safeway general manager Eli Maravilla. "We don't want to [increase the prices of commodities], but we can't help it."

"With the situation of the economy right now, it's sad that we have to increase prices at this time," Maravilla said.

He said past increases in fuel prices and the implementation of fuel surcharge by the Commonwealth Utilities Corp. have forced Carmen Safeway to increase prices of commodities.

Logistics behemoth Deutsche Post (i.e. DHL/Airborne/Danzas/AEI all rolled into 1) is expected to announce that it has reached a deal to take over Exel Global Logistics, which, if it happens, would make Deutsche Post the largest logistics organization in the world, hands down.


In another good news story about how logistics companies are helping out with the relief effort, Pilot Airfreight has announced that they have shipped more than 115,000 meals to victims of Katrina :

Both deliveries originated at the San Joaquin Defense Depot in Tracy, California and were flown from Stockton Airport to Louis Armstrong International Airport in New Orleans. The first shipment, which contained 35,000 pounds of ready-to-eat meals, required Pilot Air Freight to supply a 727 cargo aircraft within 2.5 hours of notice at 9 pm on Wednesday, September 7, 2005 and deliver the meals to New Orleans by 8 am the next morning. The second shipment, which contained 100,000 pounds of ready-to-eat meals, came with 1.5 hours of notice on the evening of Thursday, September 8, 2005 and required Pilot Air Freight to supply a cargo DC-8 aircraft to meet the next morning, 7 am delivery deadline.

Awesome.


On to the bad news, the Center for Asia Pacific Aviation in Sydney reports that airfreight volumes continue to weaken as capacity outpaces demand:

The Sydney-based international aviation consultancy said Lufthansa is the latest global carrier to report further weakness in cargo traffic despite a strong passenger demand.

"It could be evidence of an easing in underlying economic conditions, which would be of concern to airlines and airports worldwide," CAPA said.

International air freight volumes are seen as a key forward indicator of global economic activity.

On Sept 1, the International Air Transport Association (IATA) reported July year-on-year growth in international cargo traffic of 2.2 pct, much weaker than year-on-year passenger growth of 8.5 pct.

IATA's July data continues a trend of falling international freight volume growth, which over the first six months of the year was just 3.4 pct compared with international passenger growth for the first half of 8.8 pct.

The organization sees the freight volume data as indicating extraordinarily high fuel prices are softening international trade.

Ouch. Not good.

And, last, but not least, FedEx and Aegean Airlines have placed orders for a number of Airbus aircraft.

update : Late, but not forgotten : Delta Airlines plans to file for bankruptcy protection:

The consultant, who was not authorized to disclose the information and thus spoke on condition of anonymity, said Delta is working with GE Commercial Finance and other creditors to arrange roughly $2 billion in debtor-in-possession financing. The money would allow the airline to operate in bankruptcy.

Delta, which has lost nearly $10 billion since January 2001, likely will pledge the few remaining assets not already pledged as collateral for loans as part of the bankruptcy financing agreement, the consultant said. "There is nothing unencumbered after this," according to this consultant.