APL's Next Cost-Saving Move

SAN FRANCISCO—Adding emphasis to the “American” in the APL brand, the carrier recently announced that it has restructured its business by creating three distinct regions of U.S. service.

Most shippers will recall the pre-globalized era of containerization when American Presidents Line was a U.S.-flag icon. The carrier has been a subsidiary of Singapore-based NOL for some time now, but its identity is closely tied the nation of its origin.

News that it has divided oversight of its southern region activities among the existing eastern and central regional offices, effective Feb. 1, came as small surprise to industry watchers, and shouldn’t be disruptive for shippers.

The southern region includes 14 states, and is considered one of APL’s fastest growing U.S. liner destinations.

According to APL spokesman, Mike Zampa, APL’s surface transport operations in the U.S. South will remain untouched for now.

Meanwhile, George Hearn, formerly vice president and managing director of APL’s southern region, has been named vice president and managing director of the carrier’s western region. He replaces Keith Shibata, who will now serve as vice president of process improvement and special projects for NOL in Singapore. Based in Irvine, Calif., Hearn will manage sales and network operations for APL in 12 western states.

As reported in “Critical Cargoes,” APL announced that it will move its Americas headquarters from Oakland to Phoenix (“APL Explains its move to the desert”). The move, which is part of several cost-saving measures implemented by NOL in recent months, is scheduled to take place this fall.

Analysts observed that it may be a good time to make such a move. Like all  other major asset-based carriers NOL reported a dramatic decrease in container shipping volumes and demand on all major trade lanes last year. Saving costs on every area of its operations will be critical, they said.