Nov 28, 2017 - Software company Jade Logistics, supplier of the world’s number one Terminal Operating System (TOS) for mixed cargo ports, has continued to increase its global footprint by implementing its Master Terminal product at 22 sites in 2017.
“The importance of strong client ownership and committed super users cannot be stressed enough, and we have been fortunate enough to work with clients that understand and support this collaborative approach” On the back of significant sales growth and what has been a record year for the company, Jade Logistics’ global implementation team achieved go-live at terminals across multiple geographic locations including Europe, the Americas, Australasia, and the Middle East.
This impressive result was underpinned by a substantial Australasian project in which 16 terminals went live in less than ten months, and was complemented by an eight-week implementation of a multi-purpose terminal on the eastern coast of the UAE.
Chief Executive Officer of Jade Logistics, David Lindsay said, “We are well aware of the importance of getting our clients live as soon as possible, allowing them to quickly experience the benefits of a world class Terminal Operating System.
“The implementation times achieved during 2017 are exceptional, and are delivering real value to customers in terms of lowering their total cost of ownership.”
Adding to the varied geographic locations, the terminals represent a diverse range of cargo types including pure bulk terminals, break bulk and RORO terminals, and container only terminals, one of which is handling over one million TEUs per annum.
Jade Logistics Director of Global Services, Mark Ginnever says, “The key to any successful implementation is a dedicated project team, comprising representatives from both organisations.”
“The importance of strong client ownership and committed super users cannot be stressed enough, and we have been fortunate enough to work with clients that understand and support this collaborative approach,” added Ginnever.
Master Terminal is now licenced to over 110 terminals around the world, and Jade Logistics’ growth is set to continue with strong sales forecast into 2018 and beyond.
About Jade Logistics
At Jade Logistics, we’ve developed the expertise required to solve the complex problems of managing a variety of mixed cargo. From mixed cargo ports in Ghana to railways in Europe, Jade Logistics provides the tools you need to become competitive.
Since 1993, Jade Logistics has been designing, building, and supporting innovative software for organizations in the specialist logistics industries.
Our people have extensive experience and understanding of the global logistics industry, which provides the foundation from which we build trusting, long-term relationships with our customers.
We have offices in New Zealand, Australia, USA, the Netherlands, Switzerland, the United Arab Emirates, and Indonesia.
Nov 27, 2017 - Rail is delivering up to $1.5 billion a year to New Zealand in hidden benefits, according to a study prepared as part of a joint KiwiRail/NZTA team looking at integrated transport planning.
"That far exceeds what the taxpayer is spending on rail," KiwiRail Chairman Trevor Janes says.
The study, carried out by professional services firm EY, looked at some of the wider economic benefits the rail network brings to New Zealand.
"The areas where rail is delivering for New Zealand include cutting congestion, reducing greenhouse gas emissions, improving safety on our roads and lowering spending on road maintenance and upgrades.
"These benefits do not show up on the balance sheet, but they are very real, and they make a huge contribution to New Zealand.
"They need to be considered when choices are made about the transport options available, and how to allocate resources."
Mr Janes says the biggest contribution from rail comes from the reduction it brings in road use.
"Rail is taking cars off the road and it’s taking trucks off the road. That is saving the country $1.3 billion a year because it cuts congestion for all road users, including other freight movers.
"The study found that without rail there would be the equivalent of an additional 100,000 daily car trips on our roads each year - 76 million light vehicle hours reduced through rail - and 57 million of those hours were on Auckland roads.
"Rail also means heavy vehicles such as trucks are on the roads for 11 million fewer hours each year - the equivalent of 30,000 trucks driving for an hour every day.
"Using rail cuts New Zealand’s carbon emissions by 488,000 tonnes a year. That is the equivalent of taking 87,000 cars off the road, saving millions of dollars. Rail freight has 66% fewer carbon emissions than heavy road freight which is useful for New Zealand reaching its ambitious climate change targets.
"New Zealand has a road toll issue with deaths on the road rising markedly since 2013. Taking trucks and cars off the road makes for a safer New Zealand with EY estimating that because we have a rail network, there are 271 fewer fatalities and injuries on the roads.
"Most importantly, that means fewer Kiwi families suffering the heartache that road accidents bring.
"In economic terms, it means $60 million in savings."
The approach taken by EY was to model what it would mean for the roading network if there was no rail network.
"EY took a conservative approach. For example, in considering the economic cost of road accidents it took the same approach as the Ministry of Transport. If it had calculated the cost of road crashes the same way as ACC does, the savings from road incidents would have been more than $100 million.
"The numbers produced reflect the value of rail at a point in time. We will continue to refresh the data with our transport stakeholders, ensuring we are reflecting the changing nature of rail in New Zealand.
"There are further benefits which are not quantified in this report such as the economic benefits rail brings to the regions through network resilience, land use and value uplifts, together with benefits from its tourism and freight businesses.
"It is also important to note that the study reflects similar work done in Scotland, Australia and the wider United Kingdom.
"This study is an important contribution to the transport debate and underlines the value of rail to New Zealand," says Mr Janes.
Nov 24, 2017 - Northport Ltd is celebrating its 15th anniversary. Cargo volumes at Marsden Point have more than doubled since the port opened in 2002 to a record 3.64 million tonnes last financial year. Ship calls have increased from 93 a year to 250 a year over that period, with berth occupancy now at a record 66.4 percent, up from 52.9 percent just five years ago.
The company, a 50/50 joint venture between Marsden Maritime Holdings Ltd and Port of Tauranga, is marking these milestones by launching a public discussion about the potential future size and shape of the port.
It has published its ‘vision for growth’ online at www.vision4growth.co.nz and is inviting people to ask questions or make their views known to its management team via the website. Chief executive Jon Moore stressed that the vision was not a confirmed plan, or even a formal proposal. No decision has yet been made by Northport’s Board to grow the port.
“It’s a conversation-starter; a vision based on what we believe is possible here,” he said. “At this early stage all we’re doing is prompting a discussion among tangata whenua, other Northlanders, our neighbours, customers, port users, suppliers and other stakeholder groups with an interest in what happens here, about what role they see Northport playing in the future of our region.”
Mr Moore said that in recent years, and particularly in the run-up to the recent general election, there had been much discussion about what should happen at Northport. Although Northport Ltd had no firm growth plans at this stage, its management team wanted to make public their vision for future growth.
“Some of the most frustrating narrative we’ve listened to over recent months has been around the perception that it’s not possible to grow Northport beyond its existing size,” Mr Moore said. “Our vision for growth demonstrates clearly that this is not the case. It introduces some reality to the discussion and shows that we are, in fact, well positioned to support economic growth both in Northland and in Auckland.”
Mr Moore said Northport would need to grow if it was going to play a key role in the future growth of the upper North Island. “Importantly, we don’t need to expand northwards into the harbour. Instead, we can extend our existing linear wharf east and west,” he said.
Northport Ltd’s vision for growth at Marsden Point includes 1,390m of linear berth, more than twice its current length, and involves growing its overall footprint from 48ha to 75ha. Mr Moore said his team felt this was necessary if Northport was to play a meaningful role in developing Northland's economy and supporting Auckland's growth.
“Growing a port is an expensive and complex undertaking. To support economic growth and meet the forecast demand for shipping across the upper North Island we need to plan and build for the future, not just today.”
The vision Northport Ltd is making public today is based on many years of research, technical planning and engineering input from a raft of experts in this field. The company now has a good idea about what is physically and technically possible at Northport, and what isn’t.
It has not put any dates to its decision-making process around possible growth.
“We know full well that what we look like in the future will be shaped to some extent by our communities and our customers,” Mr Moore said. “So first we want to hear from these groups about what role they see us playing in Northland’s and the upper North Island’s growth.”
This initial discussion period will be followed by further technical and environmental studies and modelling, and if there are no surprises the company will then embark on a detailed stakeholder consultation exercise.
About Northport Northport, situated at Marsden Point at the mouth of Whangarei Harbour, is New Zealand’s northernmost port. It is a flexible facility catering for large, multi-purpose vessels and full cargo handling facilities are available from its 570 metre linear berth.
Logs, woodchip and processed timber for export comprise the bulk of cargo processed by the port. Other export items include kiwifruit, dairy products and manufactured goods. Imports are an important part of Northport’s business and include fertiliser, gypsum, coal and palm kernel. Northport has full container handling capability, including a mobile harbour crane. Containers are being imported and exported, as well as shipped around the coast.
A weekly coastal container service links Northport with other ports around the country.
The company has published its ‘vision for growth’ online at www.vision4growth.co.nz and is inviting people to ask questions or make their views known to its management team via the website.
The port is owned and operated by Northport Ltd, itself owned jointly and equally by Marsden Maritime Holdings Ltd and the Port of Tauranga Ltd.
Nov 22, 2017 - Company to streamline business operations and support a drive for efficiency across the entire organisation. Coda Group, one of New Zealand’s leading and most innovative logistics companies, has commenced deployment of Promapp’s cloud-based business process management software (BPM) to streamline business operations and support a drive for efficiency across the entire organisation.
Coda Group was established two years ago as a joint venture between Port of Tauranga and freight and logistics company, Kotahi, to boost the efficiency of New Zealand’s nationwide supply chain, remove wasted capacity and reduce the costs of consolidating the cargo necessary for big ships.
The joint venture brought together four of New Zealand’s leading freight brands, including DTL, Tapper Transport, Priority Logistics and MetroPack, each with their own processes, many of which were paper-based and held in a variety of formats. Many of these processes couldn’t be shared, accessed and updated across the entire Coda Group business operation.
“In order to support the overall business in driving continuous improvement, optimising freight flows and creating a leaner, more efficient organisation we needed to ensure that our processes across the business could be easily aligned with business objectives,” said Wendy Mallowes, Business Process Improvement Lead, Coda Group.
Coda Group has company-wide processes, including those involving freight management, import-export procedures, and health and safety. These need to be consistently adhered to while individual customer requirements also add to the complexity of processes and procedures with specific legal and compliance requirements.
David Choong, Coda CFO, says, “As the business has grown and gained momentum, we concluded that we needed a central repository of business processes and documents on anything relating to operations, from staff induction and everyday warehouse operation to import and export procedures. We needed these processes to be universally followed and updated by our 310 staff at any time and from any location."
Promapp was selected to support Coda Group’s requirements based on its ease of use, friendly graphical user interface and its central repository which enables individuals in an organisation to store and update processes, supporting continuous business improvement.
“Being cloud-based also means that Promapp gives us the ability to share processes with our customers and provide staff with the comfort that they are always working with the latest information,” said Mallowes.
“Promapp’s feedback options will support Coda Group’s approach to continuous improvement which will enable customers to provide feedback and remove waste from the logistics network, boost efficiency and help streamline operations."
Coda Group has also set its sights on deploying Promapp’s Process Variant Management (PVM) software which will help the company manage or eliminate process variations.
Coda Group will be able to standardise processes across the entire company, while simply incorporating process variations to meet the requirements of a specific location, product, or customer.
PVM will also enable Coda Group to customise activities and manage service delivery for key customers helping to improve customer service.
“Ultimately, Promapp will support our strategy to remove wasted capacity, reduce the cost of consolidating freight and create real change in the logistics network. The end game is to provide greater value to our customers and logistics partners and to meet our target to handle more than five million metric tonnes of containerised cargo annually,” said Mallowes.
Promapp will be gradually rolled out across all Coda Group business units during 2018.
| About Promapp
Established in 2002, Promapp (https://www.promapp.com) works with hundreds of organisations worldwide to foster a thriving business improvement and process management culture. Promapp’s cloud-based business process management (BPM) software makes it easy to create, navigate, share and change business processes, enabling continuous improvement, risk management, quality assurance and business continuity. Providing an intuitive online process repository, an integrated process mapping tool, and a process improvement toolset, Promapp’s proprietary software supports the development of smarter and safer ways to work, while encouraging sharing of information by operational teams rather than limiting it to process analysts and technical specialists.
Promapp’s wide range of public and private sector customers includes: Coca-Cola Amatil, Air New Zealand, WesTrac, Lumo Energy, Toyota, Ricoh, McDonald's, Audi Australia, Department of Justice, Victoria, Adelaide City Council, Waikato District Council and Southland Regional Council. The company is headquartered in Auckland, New Zealand. www.promapp.com
Nov 20, 2017 - AirAsia is the best low-cost airline in the world and CEO Tony Fernandes wants to shift the airline’s business towards e-commerce launching a payments platform called BigPay. Fernandes also believes the first class cabin is going away within five years. Sixteen years ago, Tony Fernandes, with a small group of intrepid entrepreneurs, took over a failing Malaysian Government-owned airline for $US0.25 and the promise to assume its $US11 million in debt.
Since then, AirAsia has helped bring affordable flying to the masses in South East Asia. In the process, the Kuala Lumpur, Malaysia-based company has become one of the most disruptive forces in commercial aviation history while making the always affable Fernandes a rockstar in the business world.
What started as a two-plane operation has now expanded to a fleet of more than 150 Airbus A320 jets with another 200 aircraft on order. And for the past nine years, AirAsia has been named the best low-cost airline in the world by Skytrax and its reviewers.
Recently, Fernandes spent a morning with the Business Insider at our headquarters in New York. Our conversation touched upon several topics including the company’s future endeavours in e-commerce, AirAsia’s move towards fintech, where the airline industry is going, and advice from his mentor Sir Richard Branson.
AirAsia is betting big on e-commerce For the airline’s next great adventure, Fernandes wants to move AirAsia’s revenue model beyond simply selling tickets and into the world of e-commerce. With an ample supply of customer data, AirAsia wants to anchor its new e-commerce operation around the sale of duty-free goods.
“So when you book your ticket (online), we’ll offer you the chance to buy duty-free and you can pick it up on the plane or at the airport,” Fernandes told us. “It gives our customers much more time to browse and potentially we can create a marketplace for shops to put content on our website.”
According to Fernandes, the average passenger has an hour to an hour and a half to shop at the airport. With the online shops, AirAsia passengers can shop 365 days a year with personalised recommendations.
Further, Fernandes wants to use the airline’s fleet to transport goods purchased to destinations throughout Asia, thereby creating a logistics business.
“If you take Amazon, they started with a website and great distribution, now they are buying planes,” Fernandes said. “We’ve got the planes and we’re working backward.”
Of course, AirAsia’s e-commerce revolution won’t get off the ground without retrofitting its fleet with high-speed Wifi, a process that’s currently underway. It’s an element of the passenger experience Fernandes admits had been lacking onboard his flights.
The airline is focused on getting rid of cash These days, cabin crew on board AirAsia flights wear several hats, among them salesperson. But due to the nature of AirAsia’s network that spans the entirety of Southeast Asia, cash poses a major problem. Which is why Fernandes is excited to jump into the financial technology (fintech) business.
“We’re so excited about the fintech revolution,” Fernandes said. “We hate cash. It’s a pain for our cabin crew. FX is a super pain. It leads to fraud. It tempts my crew to do things they shouldn’t do.”
As a result, AirAsia launched a new payment platform called BigPay that will allow the airline’s customers to buy products through their smartphones. According to Fernandes, the platform is built with group travel in mind. Which means it will allow people to share bills and transfer money to one another.
Initially, BigPay will also be available with a pre-paid card, but Fernandes and his team are working to make it more app-focused using QR codes and near-field-communications.
There will be a currency exchange feature as well.
“We think our customers are being ripped off by banks,” Fernandes said. “If you were travelling to Bali, [Indonesia] from Da Nang, Vietnam and wanted to exchange your Vietnamese Dong to Rupiah, we would facilitate that for you at a much lower rate.”
BigPay currently works with 10 currencies, but Fernandes expects to up that figure to 14.
Ultimately, the AirAsia boss believes BigPay will be able to expand beyond the airline ecosystem and into mainstream retail.
Where AirAsia and the airline industry are headed Even though AirAsia is thriving, the airline won’t be expanding beyond its bread and butter low-cost economy model. When asked if AirAsia is looking to offer a low-cost, long-haul business-class-only product like La Compagnie, Fernandes quickly shot down the idea.
“No, not while I’m at AirAsia,” he told us. “I think focus is key and we’re good at what we do and [long-haul business-class-only] is a different model.”
With that said, Fernandes understands the reasoning behind a dedicated business-class airline and is baffled by why airlines would offer so many different cabins on board a single aircraft.
“Airlines were crazy to have first class, business class, premium economy, and economy on one friggin plane,” Fernandes said. “That’s four business models on one plane.”
“You don’t have Four Seasons hotels with budget rooms and super suites, they basically have one standard, but with bigger rooms,” he added.
Instead, the AirAsia boss believes market segmentation in the future will see airlines specialize in one or two particular products.
“I’ve always said airlines will eventually become low-cost carriers and business class,” he proclaimed.
According to Fernandes, we will see the end of the first class cabin within the next five years. In addition, the economy cabin on full-service airlines could disappear altogether with dedicated low-cost carriers taking over that segment of the market. This means traditional, full-service airlines could be left operating flights with only business and premium-economy cabins.
The best advice Sir Richard Branson told him during the early days of AirAsia During the mid-1980s, Fernandes spent several years as the financial controller for Virgin Communications. Through the years, he’s become known for his close friendship with Virgin Group founder Sir Richard Branson.
But Fernandes makes it clear that he has no ambitions to become Asia’s Branson.
“Everyone thinks I want to be Richard, but I can confirm to Business Insider that I don’t,” he said. “I have no preconception of going on a balloon at 36,000 feet nor do I have any intention of going to the moon.”
While at Virgin Group during the early days of Virgin Atlantic Airways, Fernandes told Branson that his decision to go into the airline industry was crazy and advised him to sell Virgin Records. It’s something Branson remembered during the early days of AirAsia.
“One of the first people to call me up when I started AirAsia was Richard who said, ‘I thought it was really stupid to start an airline’,” Fernandes said jokingly.
As far as advice goes, it was pretty simple, yet profound.
“He just said have fun and make it a fun place which we’ve tried to do,” the AirAsia Group CEO added. “But we would have done that anyway.”
“Virgin was very informative in my whole cultural experience in that it was a fun place, it was a place where there were no suits, it was informal and ideas and innovation are encouraged,” Fernandes said.”That rubbed off on me.”
According to Fernandes, this open and innovative culture has defined the company’s success. For example, AirAsia encourages its employees to design their own uniform choices and to show off their personality as individuals.
“If they’re comfortable coming to work, they will be happier and more themselves,” he said.
16 Nov 2017 - The launch of Virgin Australia’s daily Melbourne-Hong Kong services on 12 November was designed to meet growing demand for cargo capacity on the route, according to Virgin Atlantic Cargo, which provides long-haul international cargo sales and management for Virgin Australia.
Volumes have been increasing steadily in both directions since Virgin Australia commenced five Airbus A330-200 flights a week in July. The extra capacity provided by the new daily service will support the peak perishables season ex Australia as well as thriving e-commerce and courier business from Hong Kong.
Virgin Atlantic Cargo has generated over 1,200 tonnes of freight and courier traffic since the route began. Regular shipments have included garments, shoes, electronics goods, vitamins, milk powder and meat. The appointment in August of Jarrod Paterson as account manager in Melbourne has also helped the airline develop other lines of business, such as shipments of fresh lobster, Abalone and chilled salmon from Tasmania to Hong Kong.
Continued inward business investment in Melbourne is also expected to help sustain long-term cargo demand. Amazon is one of the latest global brands to announce fresh investment in the state of Victoria with its plans for a 24,000 square metre e-commerce distribution centre in Melbourne.
Pip Palmer, Virgin Atlantic’s Regional Sales Manager, Australia and New Zealand, said: “Cargo volumes to and from Melbourne have exceeded our expectations so far. There are a series of positive business indicators that show not only a consistent level of demand from our current customers but also opportunities for new traffic like we have started to generate from Tasmania.”
Virgin Atlantic, which has provided long-haul international sales for Virgin Australia since 2009, also sells capacity on Virgin Australia’s operations from Sydney, Brisbane and Melbourne to Los Angeles. Shipments to and from Australia can also connect with its global network over both Los Angeles and Hong Kong.
Freight volumes have been increasing steadily in both directions since Virgin Australia commenced five Airbus A330-200 flights a week in July.
14 Nov 2017 - Port Taranaki is withdrawing from the container sector, including closing its container transfer site. Port Taranaki chief executive Guy Roper said changes to the New Zealand supply chain had prompted the decision, particularly the introduction of larger international container vessels, the development of inland ports for the containerisation of products, and the increased use of rail transport linking regions to ports with international departures. With coastal shipping impacted by these changes, there was now reduced incentive for shipping lines to call at Port Taranaki.
“We have not had a full container service at Port Taranaki for three years – the last container ship to call was in October 2014,” Mr Roper said. “Since then we have worked hard with potential customers and shipping lines to make it viable to call at the port.
“However, container services rely on scale and throughput, and with the changes to the national supply chain, we have been unable to secure sufficient trade to attract shipping lines. As a result we will no longer seek to recommence a container shipping service.”
Mr Roper said the decision would result in the closure of the container transfer site.
“As a service to Taranaki companies, through an arrangement with shipping lines we have maintained a container transfer site, making containers available to local importers and exporters,” Mr Roper said. “However, with Port Taranaki’s decision to withdraw fully from the container sector, the container transfer site will close.”
Mr Roper said the port was in consultation with two staff who would potentially be affected by the closure of the container transfer operation.
The site is expected to close at the end of January. From 1 December the site will operate from 7am to 3pm weekdays.
In addition, Port Taranaki has closed the cold store on the Blyde Wharf, which stored chilled and frozen products for the dairy and poultry industries. The closure, which was effective from 1 November, resulted in the loss of one position at Port Taranaki.
“Because of the halt in container trade in the past three years, the cold store has been under-utilised, which is why we decided to close it,” Mr Roper said.
The decision to withdraw from the container business has been made following a strategic review of the container sector by the Port Taranaki Board.
Board chairman Peter Dryden said the changes occurring within the New Zealand supply chain and the need to operate a sustainable and successful business for the benefit of the Taranaki community, had brought about the review and subsequent decision.
“After examining our position in the container sector and what we believe are permanent changes to the New Zealand supply chain, investing in future capability to be competitive, such as machinery and systems, was not viable,” Mr Dryden said.
“Port Taranaki will now focus on growth in other areas of the business, such as our burgeoning log business, as well as concentrating on our core business of bulk liquids, bulk dry products and support of the offshore oil and gas sector,” he said.
Mr Dryden said the port would retain its mobile harbour cranes in support of other work, including Port Taranaki’s offshore business.
“We will be working with local logistics providers to ensure continuity for Taranaki importers and exporters,” he said.
10 Nov 2017 - International port logistics company ISO Limited has been selected as the preferred operator for Kawerau's planned container terminal. This selection is a vital step towards the container terminal's completion. Kawerau District Council economic and community development manager Glenn Sutton said the decision was not easy.
"It was an extremely close choice between ISO and the other candidate, C3, as both companies were of high calibre and would have easily met the requirements for the role.
"ISO has high values and an emphasis on community involvement and development that Industrial Symbiosis Kawerau believes will complement and benefit the district."
ISO Limited is an international port logistics company, providing stevedoring, marshalling, warehousing, container-packing, IT and total supply chain solutions to exporters and importers throughout New Zealand, Australia and America.
Its New Zealand operations include Marsden Point, Auckland, Tauranga, Kaingaroa, Murupara, New Plymouth, Gisborne, Napier, Wellington, Lyttelton, Bluff, Nelson and Timaru.
"Consequently, the company brings a wealth of experience and skills to the operation of the Kawerau container terminal and is well supported by its parent company, QUBE," Sutton said.
Industrial Symbiosis Kawerau initiated the container terminal concept in 2012.
"Once completed, the terminal will provide a cost-effective logistics system for Eastern Bay of Plenty value-added exporters to transport their products to port."
Toi-EDA general manager Francis Pauwels said the terminal would support the Eastern Bay for current and predicted growth.
"This project is positive for the entire Bay of Plenty as business and industry work together to better the region.
"The overarching strategy is to achieve cost-effective and efficient logistics solutions for current businesses to grow, and to attract new businesses into the region.
"Moving freight is a key component of that, but also extends to UFB coverage, airport links, wharf facilities and safe roading networks.
"The terminal site is owned by the Putauaki Trust and represents fantastic partnerships between Eastern Bay businesses and communities."
The next step in the project will see Industrial Symbiosis Kawerau and involved partners working with ISO on the terminal's design.
9 Nov 2017 - Air New Zealand is rolling out new tracking technology which will allow the airline to more easily track and analyse the movements of cargo shipments and its cargo equipment worldwide. The airline is currently installing more than 5,500 Bluetooth® tags on its cargo containers, pallets and unit load devices as well as more than 100 readers at 29 airports it provides cargo services to around the world. When a tagged item passes the reader it automatically updates an online application providing real time information to the team.
Air New Zealand General Manager of Cargo Rick Nelson says the technology is expected to drive enormous efficiencies for the airline.
“This technology has been introduced as a result of direct feedback from our cargo and airport staff who saw an opportunity to enhance our handling processes. These Bluetooth® tags and readers will not only allow us to speed up cargo handling but also improve our accuracy and inventory management and help to locate any missing items,” says Mr Nelson.
The airline has been working with Core Transport Technologies Inc on the technology which has been designed and manufactured in New Zealand.
“We believe this to be the first time this type of technology has been deployed at this large scale anywhere in the world. It’s great to see our technology benefitting Air New Zealand and its many cargo customers and we look forward to continuing to work with the airline to further drive efficiencies,” says Core Transport Technologies Inc Managing Director Ian Craig.
While the technology is only being used internally at this stage, the airline hopes to make it customer-facing in the future.
“We see significant potential for this technology – it could be rolled out at airports to monitor ground service equipment, or used to manage mail shipments and eventually we would like to see it become customer facing so our cargo customers can more easily track their shipments,” says Mr Nelson.
Air New Zealand Cargo plays an important role in growing New Zealand’s high value exports, processing the majority of the country’s air freighted imports. The airline operates an average of 3,566 cargo flights per week and exports a total of 42,000 tonnes of goods from New Zealand annually.
Click here to download broadcast quality footage on Air New Zealand’s new cargo tracking solution.
4 Nov _ As blockchain and IoT converge, the push to commercialize applications leveraging both technologies grows. The latest industry to embrace this confluence is the transportation and logistics industry. In late August, the Blockchain in Trucking Alliance (BITA) launched with 150 or so member organizations — including transportation management companies, brokers, carriers, shippers and technology vendors. BITA’s stated goal is to create standards and educate industry stakeholders about the promise of blockchain. And at last week’s Connected Fleets USA event in Atlanta, BITA co-founder Craig Fuller, CEO for TransRisk, stressed that the combination of IoT and blockchain in logistics and transportation will be a formidable one.
Blockchain “has the power to transform almost every element of this industry,” said Fuller, whose company develops products to help stakeholders in the transportation industry manage price risk. In the future, blockchain systems will work in tandem with data from IoT devices used in transportation and logistics. Business transactions surrounding the shipment of freight will be automated using blockchain-based “smart contracts,” which improve upon traditional contracts by enforcing the rules controlling the transfer of currency or assets under specific conditions. In simplified terms, blockchain systems use a chain of cryptographically protected records to expose the details of transactions to all participants and distribute records across the network of participating “nodes,” or computers, thereby eliminating the need for a central authority to maintain records, which makes processes more efficient and cuts costs.
The benefits according to Sandeep Kar, chief strategy officer for Fleet Complete, include:
Accelerated payment, better security and reduction of fraud.
Simplified claims settlement.
Improved traceability and trackability.
Elimination of the middleman, which cuts costs, reduces paperwork and shortens the supply chain.
Reduction in the cost of regulations and compliance.
Increased transparency of price, ownership and the entire process.
But there are, of course, challenges to blockchain in logistics and transportation, which Kar summarized as:
Lack of initial knowledge, skills, expertise and trust in the technology.
Limited easy availability of cryptocurrencies, which may or may not be coupled with a blockchain system.
A bias toward the established infrastructure.
Lack of a central authority to mitigate risk.
Potential cryptocurrency volatility because no central authority governs cryptocurrencies.
To help the industry get past the obstacles and reap the rewards of blockchain, BITA is attempting to address the education gap, as well as help develop standards that are specific to the transport industry. Education is critical, Fuller said: “People don’t understand the use cases for it. They know the buzzwords, but they don’t know how it’s actually used in the market.” Fuller said he’s been on the receiving end of a number of questions about how to create commercial uses of blockchain in logistics and trucking. Questions like those are what led to the formation of BITA. “We’re bringing disparate, sometimes competitive parties together to create a common framework to solve problems. … We’re trying to bring together the folks [who] can actually have an impact,” he said.
Performance history records. Potential use cases for blockchain in trucking include maintaining accurate performance history records. When a truck enters the secondary market (that is, gets sold as a used vehicle), questions come up around how the vehicle was maintained. “In a blockchain environment, you can have a trustless record” of that maintenance, Fuller said. Because blockchain transaction records are considered immutable and transparent, parties in a transaction don’t need to have established trust with one another beforehand. “The beautiful part is, I don’t have to trust the other party, the seller or an intermediary. The data is flawless.”
“The analog [to the performance history use case] in the consumer car industry is Carfax,” Fuller said. “Except [with blockchain], there’s no reporting agency. [The records] are distributed [across the nodes in the blockchain system built for this purpose].” All records pertaining to the truck would be recorded to the blockchain, from the moment it rolled off the assembly line until it entered the market as a used vehicle — using IoT sensor data as well as other transactional data related to the vehicle. A potential buyer of the truck therefore would be able to make a purchase decision with full knowledge of the vehicle’s history.
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Capacity monitoring. Another potential use of blockchain in the trucking industry is capacity monitoring. One of the factors determining the cost of shipping freight relates to cargo volume. IoT sensors can be used to detect the amount of space a particular party uses; that info is used in determining cost associated with shipment. In the future, pouring that data into a blockchain-based system, enabled by a smart contract, will mean self-executing payments against the amount of space used by the freight, as measured by the IoT sensors. In other words, a much more efficient process than what exists today.
Gray trailers. Blockchain also could level the playing field between truck owners and third-party logistics companies when it comes to “gray trailer pools.” Today, Fuller said, truck owners have an advantage over third-party logistics companies because they own access to freight trailers. Blockchain could enable a business model whereby “the trailers will be owned by a third-party entity and shared collectively with fleets. … You can have a fleet of gray trailers and use blockchain to not only know who had access to that equipment but also charge for it. And you can tie a contract to it and settle it in real time so there is no collection process,” Fuller said.
Dispute resolution. Blockchain will also have a role resolving disputes, he said. “Every single day, there’s $140 billion tied up in disputes for payment,” Fuller said. “The shipper says, ‘You didn’t send me a proper bill. … Your rate is $1.90, but [the bill] says $1.89.” And guess what? The shipper … doesn’t pay it until that price is exact.” Such wrangling creates a strain on the trucking payments environment, he said. With a blockchain system and a smart contract, the transaction would be handled according to the smart contract terms and the contract would be executed and the transaction cleared at the same time, eliminating the current back and forth between parties as they hash out the finer points of their agreement. “In a blockchain environment, you have a transaction standardized and anonymized, and [it’s subject to] what we call smart arbitration,” in which disputes or controversy related to the contract are settled immediately according to the blockchain system’s arbitration rules. And because the facts of the transaction are viewable by all parties, fewer disputes are likely to occur.
Fraud detection. Blockchain will also be useful for fraud detection. The example Fuller cited was the practice of “factoring” in trucking, or assigning unpaid freight bills to a third-party company for less than — perhaps 60% to 90% of — the value of the bill. Trucking companies use factoring to improve their cash flow since it gives them access to the money right away, but it costs them a percentage of the bill. “One of the reasons factoring companies charge so much [is because a significant portion of] factoring receivables end up getting duplicated, [when trucking companies] send multiple bills of lading to multiple factoring companies, or [a company might] create a false bill of lading.” Factoring companies charge a very high rate because a portion, which Fuller said was likely low, of transactions it engages in is fraudulent. With blockchain, as long as the sensor data itself is not falsified, the transactions represent what actually happened as opposed to what someone says happened. But perhaps more importantly, factoring itself would become less necessary since a blockchain system with smart contracts would govern the payment for transactions in an automated way.
Making all these use cases a reality, of course, will require the various stakeholders in the process to work together. “True implementation of blockchain involves both the shipper and carrier using this platform and so far what we have seen is a few shipping companies using it,” Kar said. “The real market pull, not push, will start … once the shippers start demanding carriers to start using this platform.”
When will that happen? At this point, it seems too soon to tell. Kar said, “I believe we’re at least two to five years out, or maybe sooner.”