Subscribe to our free, weekly email newsletter!


Horizon Lines targets KC hub with transpacific imports

The company launched the Five-Star Express (FSX) trans-Pacific ocean service between China and the United States in December, and selected Kansas City as a key hub for its express ocean-rail intermodal package
By Patrick Burnson, Executive Editor
January 25, 2011

Horizon Lines announced it has instituted a 15-day transit schedule for containerized cargo shipped from Shanghai to Kansas City with its new International service.

The company launched the Five-Star Express (FSX) trans-Pacific ocean service between China and the United States in December, and selected Kansas City as a key hub for its express ocean-rail intermodal package.

Jon Monroe, president of Shanghai-based Monroe Consulting, told LM that this will be a valuable service now that inbound volumes are ramping up.

“Furthermore,” he said, “KC is becoming more of a logistical hub than Chicago.”

As reported here late last year, Horizon commenced the FSX service with a sailing from Ningbo, China, on December 14 and Shanghai on December 15. The cargo arrived in Kansas City on December 30, and was available for pick-up at 4:32 a.m. that day.

Brian Taylor, senior vice president, chief commercial officer, for Horizon Lines, said in a statement that the carrier’s goal is to provide the weekly deliveries by using scheduled intermodal rail service from Los Angeles.

He added that the 15-day Shanghai-to-Kansas City schedule is proving to be “on-target and completely effective.”

Chris J. F. Gutierrez, president of Kansas City SmartPort, Inc., said the service offers his region a competitive advantage.

“This will allow our companies to meet delivery times more efficiently,” he added.  A non-profit economic development organization, Kansas City SmartPort promotes and enhances the Kansas City region’s status as a leading North American logistics hub.

The announcement comes on the heels of good news from the Port of Los Angeles. Imports increased 12.8 percent in 2010, or 3,973,933 twenty-foot equivalent units (TEUs) compared to 2009 with 3,524,386 TEUs.

The Port of Shanghai, meanwhile, has supplanted Singapore as the world’s largest ocean container gateway this year.

“Other carriers have reduced inland service locations and slowed service speeds but our customers are telling us they want fast and reliable service alternatives, not only port-to-port, but inland to final destinations as well,” said Taylor said.

He said that retailers are still reluctant to carry to inventory, and that the Five-Star Express service provides some assurance of just-in-time delivery.

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

APICS and ASTL said they have signed off on an agreement in which AST&L will merge with APICS upon ratification by an AST&L member vote.

The average price per gallon of diesel rose 4.3 cents to $2.854 per gallon, following gains of 3.1 cents and 2.6 cents, respectively, the previous two weeks for a cumulative ten cent gain over the last three weeks.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 57.8 in April which was 1.3 percent above March and also 0.5 percent above the 12-month average of 57.3. Economic activity in the non-manufacturing sector has grown for the last 63 months, according to ISM.

Non asset-based 3PL XPO Logistics reported solid first quarter earnings last night, with total gross revenue seeing a 148.9 percent annual gain at $703.0 million and net revenue up 349.0 percent to $262.2 million. Despite the significant gains in total gross revenue and net revenue, the company had a $14.7 million quarterly net loss, which marked an improvement compared to a $28.3 million net loss a year ago.

So far, so good may be the best way to describe the current state of progress in the negotiating process regarding the announcement made last month by FedEx that it plans to acquire Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion.

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