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

The Department of Commerce reported that January retail sales were up 0.2 percent compared to December and up 3.7 percent annually at $449.9 billion, and the NRF reported that January retail sales, which exclude automobiles, gas stations, and restaurants, rose 0.6 percent over December and 1.4 percent compared to January 2015.

On the freight shipments side, Cass reported that January shipments––at 1.025––trailed December by 1.3 percent and January 2016 by 0.2 percent. These declines were less than the 4.9 percent drop from November to December, though, and January shipments still topped the 1.0 mark for the 65th straight month in December.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) saw a 0.4 percent decline from November to December, its second straight decline on the heels of a 1.0 percent decrease from October to November.

Carloads saw a 11.7 percent annual decline at 241,680, and intermodal containers and trailers rose 10.5 percent to 262,830

An amendment to the International Maritime Organization’s Safety of Life at Sea convention will go into effect requiring all shippers (importers and exporters) to certify and submit the Verified Gross Mass – the combined weight of the cargo and the container – to the steamship line and terminal operator in advance of loading the container aboard a vessel.

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA