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  • Maersk Enhances E-Commerce Capabilities with State-of-the-Art, Fully Automated Distribution Centre in Singapore

    Maersk Enhances E-Commerce Capabilities with State-of-the-Art, Fully Automated Distribution Centre in Singapore

    A.P. Moller – Maersk (Maersk) has officially unveiled its World Gateway II: a state-of-the-art, fully automated global and regional distribution centre in Singapore. Stretching over 1.1 million square feet, the facility marks a significant expansion in Maersk’s contract logistics and e-commerce capabilities in the Asia Pacific region.

    Singapore: A Prime Location

    The Singapore Government backed the establishment of World Gateway II, which is poised to cater to the rapidly growing needs of companies that utilize Singapore as a regional or global distribution hub. Singapore’s strategic location and reputation as a top logistics centre make it an ideal choice for business-to-business (B2B) and business-to-consumer (B2C) e-commerce fulfilment across Asia Pacific.

    The new centre will handle a diverse range of products from various sectors, including lifestyle, fast-moving consumer goods (FMCG), retail, wellness, and technology. Its proximity to major transport infrastructure, such as the Tuas Port and Changi Airport, facilitates efficient overseas cargo distribution. Additionally, it lies a short distance from Maersk’s existing 1.0 million square feet World Gateway regional distribution centre.

    Efficiency and Scale through Advanced Automation

    The facility boasts leading-edge automation technologies such as a Multi-Shuttle System, Automated Storage and Retrieval System (ASRS), Autonomous Case-handling Robots (ACR), and Autonomous Mobile Robots (AMRs). These systems increase efficiency by reducing manual handling, thereby enhancing order fulfilment speed, shortening lead times, and improving accuracy.

    Investment and Job Creation

    Maersk has invested over S$200 million in the development of World Gateway II, which currently stands at approximately 70% occupancy. When fully operational, the facility is expected to create around 500 jobs that leverage advanced digital and automation capabilities.

    World Gateway II: Key Features

    The facility is designed with an 11-metre clear height per floor to support dense storage and advanced automation. It also features ample loading bays and rooftop container parking to cater to peak season demand.

    Its strategic location is only 16.8 kilometres from Tuas Mega Port and 42.6 kilometres from Changi Airport. Furthermore, the facility offers customs bonded, zero-GST warehouse storage, real-time shipment tracking, and full visibility of goods flow through an end-to-end transport management system.

    Additional offerings include various value-added services such as labelling, coding, bundling, kitting, and repacking. Moreover, the facility has an integrated Warehouse Management System (WMS) that enhances accuracy, visibility, and agility by integrating with customer systems.

    Finally, World Gateway II adheres to top-tier security standards and is LEED Platinum & Green Mark Platinum certified. The facility optimizes energy and water use with features such as solar panels, smart LED lighting, and energy-efficient insulation.

    Questions & Answers

    What is the significance of Maersk’s World Gateway II distribution centre?
    World Gateway II marks a significant expansion of Maersk’s contract logistics and e-commerce capabilities in the Asia Pacific region. Its strategic location in Singapore, a key logistics hub, makes it ideal for B2B and B2C e-commerce fulfilment across the region.

    What advanced technologies does the World Gateway II distribution centre employ?
    The facility uses a range of cutting-edge automation technologies such as a Multi-Shuttle System, Automated Storage and Retrieval System (ASRS), Autonomous Case-handling Robots (ACR), and Autonomous Mobile Robots (AMRs). These technologies enhance efficiency by reducing manual handling and improving order fulfilment speed and accuracy.

    What impact does the World Gateway II have on job creation in Singapore?
    Once fully operational, the World Gateway II distribution centre is expected to create approximately 500 jobs that leverage advanced digital and automation capabilities.

  • Global giants eye Vietnam e-commerce logistics market

    Global giants eye Vietnam e-commerce logistics market

    The world’s largest container shipping line Maersk and U.S. express delivery company FedEx are seeking to enter Vietnam’s e-commerce logistics market. Ditlev Blicher, regional managing director for Asia-Pacific, A.P. Moller – Maersk (Maersk), was in the country this week, three months after the Danish company spent US$3.6 billion on acquiring Hong Kong firm LF Logistics.

    He said with LF Logistics’ expertise in omnichannel orders, Maersk would have a better position in the global e-commerce market, including Vietnam. He said that his company plans to offer business-to-business (B2B) and business-to-consumer (B2C) delivery services.

    Hoan Dang, head of omnichannel order fulfillment at Maersk Vietnam and Cambodia, said with the acquisition of LF Logistics, his company could join hands with e-commerce platforms to handle goods orders in the Vietnamese market.

    FedEx is integrating its services with e-commerce platforms to enable online retailers to use them without leaving the platforms.

    Hardy Diec, managing director of FedEx Express Indochina, said e-commerce would continue to flourish in Vietnam.

    Earlier this month his company opened a new $2-million operations center in Hanoi’s Bac Tu Liem District. Vietnam will be one of the top 10 countries for FedEx in terms of trade volume growth over the next five years.

    Vietnam will achieve the highest growth in the digital economy in Southeast Asia between 2022 and 2025, a report by Google, Temasek and Bain & Company has forecast.

    Its digital gross merchandise volume is likely to reach $23 billion in 2022, and $32 billion by 2025.

    According to global firm Allied Market Research, Vietnam’s express delivery market is expected to be worth $4.88 billion by 2030 after growing at 24.1% annually, with the growth of e-commerce being one of the main drivers.

    Logistics firms are expanding their services and lowering prices.

    This month Lazada Logistics announced it would start offering omnichannel deliveries for online shops.

    J&T Express announced cuts of 10-20% in freight.

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  • Maersk agrees US$3.6 billion deal to buy LF Logistics

    Maersk agrees US$3.6 billion deal to buy LF Logistics

    Container shipping giant Maersk on Wednesday agreed to buy Hong Kong-based LF Logistics for $3.6 billion in an all-cash deal, as it seeks to expand beyond its core ocean freight business.

    The deal is one of the group’s largest takeovers to date and follows a series of acquisitions including e-commerce firms, a freight forwarder specialising in air freight and its smaller rival Hamburg Sud.

    “The acquisition will further strengthen Maersk’s capabilities as an integrated container logistics company, offering global end-to-end supply chain solutions to its customers,” the company said in a statement.

    Maersk will buy LF Logistics from controlling shareholder Li & Fung, a Hong Kong-based supply chain manager, and from Singapore state investor Temasek which bought 22 percent of the company in 2019. The deal is expected to close in 2022.

    With a network of 223 warehouses and around 10,000 employees in 14 Asian countries, LF Logistics provides land-based logistic services such as warehousing and trucking to over 250 global customers.

    The company had revenue of $1.3 billion last year. Maersk said it expects to more than double the revenue and operating profit at the company by 2026.

    Record high container freight rates stemming from the impact of the pandemic have boosted big shipping companies and prompted deal-making by Maersk and its rivals, including CMA CGM and Mediterranean Shipping Company (MSC).

    With chaotic conditions in the global supply chain, big companies have been willing to pay a premium for more reliable and integrated freight solutions.

    The price implies that the valuation of LF Logistics has more than doubled since the Temasek deal valued the company at nearly $1.4 billion two years ago.

    French billionaire Vincent Bollore received a 5.7 billion-euro ($6.43 billion) offer from MSC for his African logistics assets, his company Bollore SE said on Monday.

    This month, French rival CMA CGM accelerated its push into warehouses and end-to-end logistics by agreeing a $3 billion deal to buy assets from US technology group Ingram Micro. In November, it bought a container terminal in Los Angeles for around $2 billion.

    Since breaking up its conglomerate in 2016, including selling its oil and gas business, Maersk has transformed into an integrated logistics company.

    Although container shipping accounted for 73 percent of its revenue last year, Maersk aims to offer customers such as Walmart and Nike shipment of goods from factory to store, even offering last-mile delivery to end-customers.

  • Maersk Line appoints new Greater China head

    Maersk Line appoints new Greater China head

    Maersk Line has announced that effective from 1 January 2017, Mike Fang will take up new responsibilities in Shanghai as Head of Maersk Line Greater China.

    Commenting on his new position, Mike Fang said: “I feel privileged that I can take on this new role. Greater China Cluster contributes around 30% of Maersk Line business globally, this is where we have to win in the market place. I’m keen to explore further the opportunities and growth spots with my colleagues and to ‘Make Greater China Cluster Greater’”.

    Robbert van Trooijen, Maersk Line Asia Pacific Region CEO said: “I’m delighted that Mike has decided to take over as the Head of Maersk Line Greater China. Mike has a track record of outstanding performance in many leadership roles in Maersk Line. I believe that his extensive experience, passion for serving our customers and deep insight of the local market will bring great value to our Greater China organization.”

    Mike Fang joined Maersk Line as a sales representative in 1994. In the past 22 years, he has held a succession of leadership positions in Maersk Line’s business in China including leading Maersk Line’s North China and East China organizations respectively from 2012 to 2015. Most recently, he is the Head of Sales in Maersk Line Greater China.

    Mike Fang was born in 1968. He graduated from Hua Zhong University of Science and Technology with a Master degree in System Engineering in 1992 and earned an Executive MBA from the China Europe International Business School (CEIBS) in 2004.

    Mike Fang will take over from Silvia Ding, who is moving to Copenhagen to take the position as Head of Trade Management in Maersk Line. “Moving to headquarter and stretching myself into a job that can make a multiplying impact on our business, customers and organization has always been in my long term career plan in Maersk,” says Silvia Ding, “I can pass the baton to Mike’s capable hands. Together with the rest of the leadership team, I’m sure the performance of Greater China Cluster will be raised to the next level, building on a strong foundation we together created in 2016.”

  • Seatrade has placed an order with Maersk Container for 4,000 containers

    Seatrade has placed an order with Maersk Container for 4,000 containers

    According to MCI, the containers will be Star Cool Integrated reefers that are equipped with an automatic ventilation system. A large number of the reefers will also be equipped with a controlled atmosphere system. Delivery is expected to be completed by December 2016.

    “We are delighted to have been chosen by Seatrade to support their strong market position with reefer containers as a complement to their specialized reefer services,” said Stig Hoffmeyer, CEO of Maersk Container Industry. “The results of their thorough testing confirmed that a reefer container is not a commodity. Innovation and cutting-edge technology is key to ensuring optimal cargo care and low energy consumption throughout the operational life of the reefer.”

    Before choosing Star Cool Integrated, Seatrade carried out live trials of every relevant refrigeration unit by shipping chilled bananas from Ecuador to Germany, monitoring energy consumption and cargo condition.

    “It is essential that our reefer container equipment supports our Fast, Direct and Dedicated concept,” said Yntze Buitenwerf, president and chairman of Seatrade. “Besides timely delivery, our customers need the longest possible shelf life for their produce. The vast majority of our cargo is perishable fruit and vegetables requiring chilled mode transportation with narrow variations in temperature and monitoring of food preservation. In addition, energy efficiency, whole-life costs and long-term operational value are critical to our operations.”

    Some of the units will be manufactured by MCI’s new factory in San Antonio, Chile, while the remainder will be made by the Qingdao factory, according to MCI.

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  • Maersk Line has ordered 14,800 additional refrigerated containers, to be delivered in 2017.

    Maersk Line has ordered 14,800 additional refrigerated containers, to be delivered in 2017.

    According to Maersk, which already has a reefer fleet of more than 270,000 containers, some of the new ones will be used as replacements while the rest will be used for expansion.

    “We continue to invest and modernize our reefer fleet to include the latest technologies in supply chain visibility and cargo care,” said Shereen Zarkani, head of reefer management at Maersk Line. “With the new equipment we will offer even stronger products across the reefer portfolio – enhancing transparency and care to our customers’ perishable products across Maersk Line’s extensive network.”

    The new reefers will offer enhanced data visibility and care to customers.

    The investment will lower the average age of the line’s reefer fleet to 7.9 years, according to Maersk.

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