Subscribe to our free, weekly email newsletter!


Manufacturers advised to change logistics strategies

In his address before the Conveyor Equipment Manufacturers Association’s 78th Annual Meeting in Palm Springs California last week, Richard Thompson said the Panama Canal Expansion will be “transformational.”
By Patrick Burnson, Executive Editor
March 10, 2011

A prominent industry analyst maintains that several key infrastructural events will shape the global supply chain in the coming years.

In his address before the Conveyor Equipment Manufacturers Association’s (CEMA) 78th Annual Meeting in Palm Springs California last week, Richard Thompson said the Panama Canal Expansion will be “transformational.”

“It will have huge consequences for U.S. West Coast seaports,” he said Thompson, executive vice president, global supply chain practice for Jones Lang LaSalle in Chicago. “And it will mean many of you will be shipping and sourcing through alternative ports in the East and Gulf.”

Indeed, Thompson maintained that Panama has aspirations to become a “logistical hub” as it completes its widening process. That means more traffic for gateways like Charleston, Savannah, and Miami.

“We can already see companies like Wal-Mart moving part of its supply chain away from LA/Long Beach,” he said. “The concentration of Asian imports will not be as intense there has it has been in the past.”

Thompson was the featured speaker at CEMA’s “global supply chain” session. CEMA is a small but highly influential shipper association comprising the most prominent multinational companies in the conveyor equipment sector – a group that literally moves the world’s goods. Although his remarks provided a general overview of the intermodal arena, he stressed that private investment in U.S. infrastructure would continue to inform shipper decisions.

“While we all wait for the government to spend money repairing our highways and roads, rail providers are using money from investors like Warren Buffet and Bill Gates to get the job done,” he said.
Buffet, who owns BNSF, and Microsoft founder Gates, who owns part of CN, are just two examples of “visionary” businessmen who see the future in rail.

“Given all the energy and regulatory issues related to trucking, the smart money is on direct rail service or intermodal in the future,” said Thompson. “All the major U.S. retailers are reconfiguring their supply chains to be aligned with rail hubs now.”

For related stories click here.

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

Having introduced into the California State Senate a new bill designed to give an exemption from sales and use tax for port terminal operators purchasing zero or “near zero-emission” equipment, Lara is trying to advance two agendas.

The notions of “green shoots” or “cautious optimism” in gauging the current state of the economy does not specifically exhibit what is really happening, when assessing how things are actually going, it seems. That was made clear by Bob Costello, chief economist at the American Trucking Associations, at last week’s NASSTRAC (National Shippers Strategic Transportation Council) Shippers Conference and Transportation Expo in Orlando, Fla. last week.

With a 6.8 cent gain to $2.266 per gallon, this week’s average diesel price is at its highest level since the week of December 28, when it was at $2.237 per gallon.

Manufacturing activity in April remained on the right side of growth for the second straight month, following six months of contraction, according to the April edition of the Manufacturing Report on Business from the Institute for Supply Management (ISM).

Some 22 centuries after the original Silk Road smoothed the path of Chinese silk merchants to Europe, a new effort is beginning to build a new 21st century highway between Europe and the burgeoning economy of China, now the world’s fastest-growing market.

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