H.J. Heinz Co. and CEVA Logistics engage in “transformational” ocean freight agreement

When H. J. Heinz Company and CEVA Logistics announced a five-year ocean freight contract earlier this week, it may signal similar groundbreaking deals in the future.

CEVA, one of the world’s leading non-asset based supply chain management companies, said this represents the first time that a shipper with an annual volume of 60,000 twenty-foot equivalent units (TEU’s) has entrusted a single logistics provider.

“We believe that this arrangement will truly be transformational,” said CEVA’s CCO, Inna Kuznetsova in an interview.  “The strategy was led by Heinz’ global procurement organization, which recognized that our economies of scale can take some of the complexity and cost out of the supply chain.”

Kuznetsova added that CEVA intends to build in more enhanced supply chain visibility and reduce supply chain cost.

“And beyond that, we hope to provide market forecasting and analytics,” she said. “With a long-term contract, we can fine tune the shipper’s routing and consolidations as the relationship matures.”

She added that while the deal focuses on ocean carriage, Heinz will be provided with air and ground guidance as well.