Logistics and Freight Considerations between Canada and the EU Patrick Bohan Director, Supply Chain Solutions Email: pbohan@portofhalifax.ca Moncton, NB – Tuesday, Sept. 10, 2019 1
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• “Port Operations Centre” • Online information and tracking tools • Carrier Route Maps, Schedules and www.portofhalifax.ca More • Sign up for “Online Alerts” • More information and tracking tools are under development. 3
Companies across Canada and Glo lobally use the Port rt of f Hali lifax – for Im Import and Export Supply Chains PortofHalifax.ca 4
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Container Shipping De- mystified…… FCL, LCL, Reefer, Dry, Special Equipment
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HPA South End Container Terminal Extension w. Operator of “ Halterm ” 9
Before You Ship – What you need to know……
Cargo Movements – points of reference Container Trade Roll on/ Roll off • TEU – 20 foot equivalent unit • CEU – car equivalent unit PortOfHalifax.ca 11
Container Ships – points of reference Container Main Line Vessel Container Feeder Vessel • Antwerp, Hamburg, Rotterdam • E.g. – Halifax to St. John’s, Argentia or St. Pierre & • E.g. – Halifax to Liverpool, Miquelon, Portland, Maine Antwerp, Rotterdam or Hamburg This Photo by Unknown Author is licensed under CC BY-SA This Photo by Unknown Author is licensed under CC BY-SA PortOfHalifax.ca 12
New Ultra Large Container Ships In 2019 new ships have been launched Extreme Dimensions that challenge that are capable of loading 24,000 TEU port infrastructure • Approximately 400 metres long • Require deep water container berths (16 metres of draft) • Also require aerial clearance so as to avoid low bridges and power lines • Require 4 or more “super post - panamax ship to shore gantry cranes” This Photo by Unknown Author is licensed under CC BY-SA 13
14 More STS Cranes June 2020
Roll On/Roll Off Ships – points of reference Con/Ro – Roll On and Container Trade -PCTC - Roll on/ Roll off • Pure Car and Truck Carrier This Photo by Unknown Author is licensed under CC BY-NC-ND PortOfHalifax.ca 15
Ocean Shipping has some unique risks and limitations of liability It also offers the exporter great rates, reliability and proven multimodal methods to move your product door-to-door around the world. In 2018, estimates are that about 130 million containers of product were moved on the world’s oceans. 16
Before You Ship – What you need to know…… The 7 “R”’s of Logistics Get the Right Product To the Right Place At the Right Time In the Right Quantity And the Right Condition To the Right Customer For the Right Price
When to ship “Ocean” and when to ship “Air”……
Ocean Shipments v. Air Cargo Shipments Air Cargo Ocean Cargo • Sample commodities – live lobster, • Frozen Seafood, Bottled or Canned fresh flowers, overnight courier Beverages, Grains & Special Crops packages • Economics of the commodity won’t • Speed is key factor required sustain air cargo for realistic shelf prices • Product is normally “high value” • Larger order quantities (full • Product is often highly perishable containerloads to entire ships in • Smaller, lighter, high value some cases) shipments • Product has shelf life, inventory levels can be held in the supply chain 19
International Freight Forwarders and 3 rd Party Logistics Companies Do we have any in the room?
Int’l Freight Forwarders (3PL’s) Act as “Your Travel Agent for Your Cargo” and can arrange “Marine Insurance” policies for you. Offer a range of value-added services for the door to door arrangement of moving your product Can bundle in a range of compliance services, dealing with border services, paperwork filings, access to global carrier networks and local offices on the other side of the move. 21
“Marine Insurance” and Risk Management in Logistics What risks do you want to be aware of?
Why carry Marine Insurance? 1. To guard against limits to the carrier’s liability under the terms of the Bill of Lading. 2. To guard against being a part of an expensive and extremely litigious situation such as a declaration of “General Average”.
What else can you do to manage risk? • Ship on more than one vessel per week if you have the quantities and the choices available. • For oncarriage destinations you can even diversify your mainline port of discharge (Antwerp, Rotterdam, Hamburg for oncarriage into destinations by feeder barge, by truck or by rail). • Meet with your international freight forwarder once per year to go over your forecast shipping needs and to review performance of your supply chain over the past 12 months. • Know your supply chain partners and their performance (on time record, equipment supply and reliability, keep notes, take photos, communicate). 24
So the moral of the story is…. Do your homework well before the sale is made to understand – -how many viable carrier options do you have? -how many days of transit time are involved with each? -what is the realistic pricing to move your product from door to door? -what measures are available to remove some of the risk in transit or to manage your inventory? -Do you have a handle on what can go wrong – “the unexpected”? 25
European Ports and “Carriage” to the Hinterland Markets
Germany, the Netherlands, Belgium and the UK Some special focus on logistics issues….
Port of Antwerp, Belgium Export Transit Time from Halifax as little as 10 days Port to Port Carriers including ACL (Atlantic Container Line), Hapag Lloyd & THE Alliance partners plus numerous others. Oncarriage options throughout the EU from Antwerp as well as logistical support of every description. 28
Port of Rotterdam, - the Netherlands Transit time on Export side – very fast – THE Alliance AL1 service – 6 days Also Maersk/CMA CGM SL1/CAE Outbound Call Services offered by a range of other lines as well including ACL, Hapag Lloyd, EIMSKIP, and others provides full EU access and distribution support services. 29
Port of Hamburg, Germany Transit times for export cargo from Halifax – 11 days Port to Port Carriers including ACL, Hapag Lloyd & THE Alliance Partners + others Access to Germany and Eastern Europe destinations by rail and other modes including Czech Republic, Hungary, Austria, etc. 30
Port of Gdansk, Poland The major European carriers serving Halifax are likely going to provide you with oncarriage from Antwerp, Hamburg, Rotterdam where the mainline services are presently calling. Rates and transit times can be obtained via ACL, Hapag Lloyd, Maersk, CMA CGM and several others – or via your international freight forwarder. 31
Questions? www.portofhalifax.ca Contact Information: Patrick Bohan Email: pbohan@portofhalifax.ca Tel: (902) 426-8138 32
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