Subscribe to our free, weekly email newsletter!


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

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.
By Patrick Burnson, Executive Editor
August 30, 2012

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. 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Largely leveraging the net positive impact of lower fuel prices, the Shippers Conditions Index (SCI) from freight transportation consultancy FTR made major strides in December, the most recent month for which data is available.

With the Pacific Maritime Association (PMA) and the International Longshore & Warehouse Union (ILWU) recently agreeing to a tentative agreement on a new five-year contract last weekend covering about 20,000 port employees at 29 West Coast ports following roughly nine months of stops and starts and acrimonious negotiations, the focus for all port and supply chain stakeholders is firmly on the future.

Ports of Los Angeles, Long Beach Plan to Cooperate on Environmental, Security, Legislative, Supply Chain Logistics and Marketing Initiatives.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA