Author Archives: just2bruce

Why NVOs Like Congestion

Posted on September 15, 2015 | Leave a comment

It is interesting that NVOCCs grow market share and business when there’s congestion.  It is because they are information hubs, in my opinion.    They can quickly establish a few shipments to a port different from the prearranged one. Also interesting: some of the shipments are essentially at zero profit.

According to the authors data come from the House Bills of Lading reported to the CBP.

Here’s the actual report:

PIERS_NVOCC_Whitepaper__2015 NVOCC penetration

Piers

This report examines the NVOCC market providing comparison providing ocean carriers, NVOCCs, importers and exporters a macro-assessment of performance.

Source: Download Our Latest Whitepaper: Why NVOs Like Congestion Plus Market Dynamics: Imports & Exports 1H2015 vs. 1H2014

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“The Third Coast” Port of Houston

Posted on September 14, 2015 | 1 comment

An interesting take on the rapid developments in container movements.  Houston and the Gulf Coast ports have some impetus.  Where can you distribute from there?

While the West Coast struggles with congestion and dysfunctional politics, the Third Coast – the urbanized, broadly coastal region spanning the Gulf from Brownsville, Texas, to greater Tampa – is emerging as a center of industry, innovation, and economic growth.

Source: “The Third Coast” Port of Houston Primed for Success – Supply Chain 24/7

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Posted in Logistics, Shipping, Strategy, Supply Chains

XPO Logistics Said Near Deal to Buy Con-way for $3 Billion Cash

Posted on September 11, 2015 | Leave a comment

Yet another mega-merger in the 3PL space. But with all the headaches of putting together two large businesses, will more profits result?  I doubt it. as the article below makes clear, CHR grew organically from within, whereas XPO is growing through mergers.  As a veteran of some mergers, I think there are major operational and information (IT) obstacles that always need to be overcome, not to say differences in corporate culture.

According to Supply Chain 24/7’s correspondent, ‘in seeing how CH Robinson’s EBITDA translates to margins, and in realizing that XPO’s acquisition volume will likely slow in the years ahead, one could predict that XPO will perform very much like CH Robinson, and that questions surrounding profitability will soon be answered.’

Source: What CH Robinson Worldwide’s Profits Tell Us About XPO Logistics’ Future – Supply Chain 24/7

Source: XPO Logistics Said Near Deal to Buy Con-way for $3 Billion Cash – Supply Chain 24/7

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Posted in Logistics, Managerial Econ, Strategy, Supply Chains, Trucking

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