Yield Management News

Container line Ocean Network Express (ONE) is adding another 6,000 refrigerated containers (reefers) to its fleet as the trade continues to outperform that for conventional boxes.The new Reefer would expand its current refrigerated container (reefer) fleet of 240,000 TEU. Reefers include 500 units equipped with advanced Controlled Atmosphere (CA) technology which slows down the respiration and ripening process to maximize the shelf life of fruits and vegetables.These reefer containers will be made available for accepting new bookings towards end of the year to meet reefer peak season global demand around the world.ONE has one of the largest…

Orient Overseas International (OOI) has announced a profit attributable to equity holders for 2017 of US$137.7 million, compared to a loss of US$219.2 million in 2016. Earnings per ordinary share in 2017 was US22.0 cents, whereas loss per ordinary share in 2016 was US35.0 cents. The Chairman of OOIL, C C Tung, said, “The economic backdrop for 2017 was more robust than forecasters had expected. Following a decade of low growth, we saw healthier performance in both GDP and trade volumes across most of the world’s major economies. “This synchronicity of growth, a rare phenomenon in recent memory, may bode well for the sustainability of the recovery,” noted Tung. “However, growth on the supply side continues across the trade lanes.

Orient Overseas International (OOIL) said it reported a profit attributable to equity holders of US$138 million for the year ended 31 December 2017, as compared to the loss of US$219 million for the previous financial year. Earnings per ordinary share in 2017 was US22.0 cents, whereas loss per ordinary share in 2016 was US35.0 cents. The Chairman of OOIL, C C Tung, said, “The economic backdrop for 2017 was more robust than forecasters had expected. Following a decade of low growth, we saw healthier performance in both GDP and trade volumes across most of the world’s major economies. “This synchronicity of growth, a rare phenomenon in recent memory, may bode well for the sustainability of the recovery,” noted Tung. “However, growth on the supply side continues across the trade lanes.

Crowley Maritime Corp.’s solutions group announced that it is reorganizing and establishing new leadership to better serve customers in need of engineering, project management and government services. Solutions is the company’s dedicated, full-service engineering, project management and government services team, reporting to Crowley’s Todd Busch, senior vice president and general manager, technical services. Jay Edgar, who is new to Crowley, has been appointed vice president and leader of the company’s newly formed engineering services team…

Orient Overseas (International) (OOIL), the parent company of Orient Overseas Container Line (OOCL), said its profit had risen 32 percent year on year (y/y) to $238.6 million in the first six months of 2015, due cheaper fuel costs helped it tide over a slump in freight rates. However, revenue declined 6 percent to US$3 billion during the same period as overcapacity and weak demand continued to plague the container shipping industry, a stock filing of OOIL said on 10 August. “The volatility of freight rates indicates how competitive the industry is. The theme of the industry this year is carriers’ efforts in cost-efficiency and yield management amid a weak market,” said acting chief financial officer Alan Tung Lieh-sing.

Carnival Corporation & plc announced that Michael Ungerer, currently President of Germany-based AIDA Cruises, has been appointed Chief Operations Officer-Shared Services for Carnival Asia, effective September 1, 2015. Ungerer will relocate to Shanghai, China, and directly support each of the Carnival Corporation brands operating in the region to leverage the company's industry-leading presence and scale in the region. Ungerer will jointly report to Michael Thamm, CEO of the Costa Group, which includes AIDA Cruises and Costa Cruises, and to a China steering committee comprising the Carnival Corporation brands operating in the region. In addition, longtime AIDA senior executive Felix Eichhorn has been named president of AIDA Cruises. He will also report to Thamm.

Dave Hoppes, Matson’s senior vice president, ocean services, will retire March 31, 2015, the company announced. John Lauer, currently vice president, Transpacific services at the company's wholly-owned subsidiary, Matson Navigation Company, Inc., will succeed Hoppes as senior vice president, ocean services, effective March 31, 2015. The company also announced that Chris Scott, currently director, Asia at Matson Navigation Company, will succeed Lauer as vice president, Transpacific services at Matson Navigation Company, effective March 31, 2015, as part of the transition plan.

MOL (America) Inc. issued a release announcing several changes to its North American sales management, including the promotion of Richard Craig to the position of executive vice president, sales and operations. Additionally, Richard Jung, who currently assistant vice president of sales, central region, has been appointed to assume the duties of vice president of sales in replacing Dennis Sheehan, vice president of sales, who has decided to leave MOL (America) Inc. to pursue other opportunities.

At its meeting today, the Supervisory Board of Hapag-Lloyd AG has set the course at an early stage for maintaining continuity in the Executive Board of Germany’s largest liner shipping company. Rolf Habben-Jansen will succeed Chief Executive Officer Michael Behrendt, who is set to leave in the middle of next year. Habben-Jansen has been appointed to the Executive Board of the company with effect from April 1, 2014 and will assume the position of Chairman of the Executive Board on July 1, 2014. Habben-Jansen is a successful and experienced manager in the logistics sector. Having held positions at the Royal Nedlloyd Group and at DHL, he became CEO of the freight forwarding group Damco NV in The Hague in 2009.

Ports America announced that Paul Birnbaum has joined Ports America Stevedoring as vice president-sales and marketing. Reporting to Ports America Stevedoring President Tom Perdue, Birnbaum responsibilities include coordinating and driving corporate revenue and growth as well as structuring pricing and yield management processes. Prior to joining Ports America, Birnbaum led the strategic accounts team at Yusen Logistics, a global services provider within the third party logistics industry. Birnbaum also has leadership and industry experience that includes regional vice president sales and vice president intermodal at NYK Logistics (Americas), and operating management positions at Maersk and Conrail. portsamerica.com

MOL has announced the following organizational changes which will take effect in August 2013. These changes will further build the MOL organization as one that customers and employees can continue to count on. Calvin Duffaut, assistant vice president, yield management and corporate communications for MOL (America) Inc. has been promoted to vice president, yield management of MOL Liner and will relocate to Hong Kong. Duffaut joined MOL in 2007 after many years of management experience in trade management, pricing and logistics with Pacer Stacktrain Ltd., American President Lines, and Lykes Bros. Steamship Inc. Duffaut holds an undergraduate degree from Yale University. He will report to Jotaro Tamura, senior vice president, liner yield management, equipment management and network operation.

Freight rate up 3.2% on last year / Transport volume increases by 1.1%. Revenue rises by 12.1% to EUR 6.84 billion / Absence of peak season and persistently high energy costs weigh on business / Positive operating result of EUR 26 million / EBITDA of EUR 335 million. Hapag-Lloyd was able to increase the freight rate, transport volume and revenue in the past financial year. Despite the challenging economic environment, Hapag-Lloyd achieved an EBITDA of EUR 335 million and an EBIT of EUR 26 million in 2012, allowing it to once again do well compared with its industry peers. The average freight rate in 2012 saw a year-on-year increase of 3.2% to USD 1,581/TEU. Transport volume rose by 1.1% to approximately 5.3 million TEU.

The recent successful implementation of significant rate restoration initiatives by carriers in the core east-west trade lanes means that most are now operating above break-even. Carriers took sufficient capacity out in the winter months to ensure that recently re-activated services have not caused too much damage to the supply/demand balance and load factors on the eastbound transpacific remain strong. However, with the worsening situation in Europe, we do not foresee a strong peak season this year and carriers will experience some rate erosion during the summer months. Evergreen’s decision to launch another weekly loop this month is not a positive and the Asia-Europe trade is most at risk because of the need to fill more 12,000+ teu ships every week.

In the traditionally weak first quarter Hapag-Lloyd managed to boost revenues by comparison with the same period of the previous year by 16.5 percent to 1.483 million euros. The main reason for this achievement was a ten percent rise to 1,563 USD/TEU in the average freight rate. Transport volume was two percent up on the 2010 first quarter at 1.2 million TEU. Active yield management enabled Hapag-Lloyd to concentrate successfully on profitable cargo, foregoing transports of inferior price quality.

Crowley Maritime Corp. announced that Carl Fox will assume the role of senior vice president of corporate services on June 1. Fox will continue to work out of the company's Jacksonville office while reporting to Bill Pennella, Crowley's vice chairman and executive vice president. In his new position, Fox joins the company's senior leadership team and will manage several departments, including Information Technology; Corporate Communications; Human Resources; Safety, Security, Quality and Environmental (SSQE)…

“With the European Union’s abolition of liner anti-trust immunity, it has become extremely difficult to align the business processes of our entire organization when its regional divisions must operate to differing standards. Having done a thorough analysis of marketplace dynamics and the roles of TSA/CTSA relative to our unique ability to differentiate, we concluded MOL and its customers would be better served by conducting business independently from transpacific liner agreements,” stated Masakazu Yakushiji, Executive Vice President in charge of MOL’s Liner Division. MOL has been a member of TSA and CTSA since their inceptions in 1989, but resigned from the westbound discussion agreements in June 2005. Yakushiji explained, “MOL has several capabilities that move us ahead of the pack.

Joel Klenck has been promoted to vice president, pricing and yield management with overall pricing responsibilities for Crowley Liner Services’ Puerto Rico/Caribbean Group. Based in Jacksonville, Fla., Klenck will report to John Douglass, senior vice president and general manager. Klenck joined Crowley as a marketing analyst in February 1999. He was later promoted to manager, yield management, and then to manager of Puerto Rico pricing. Klenck served most recently as director, pricing and yield management, for the Puerto Rico and Caribbean service. The pricing and yield management department focuses on expanding Crowley’s revenue base, analyzing cost variables, and reducing company expenses.

Rinus Schepen, Senior Vice President and General Manager of Crowley's Latin America services announced that Rob Clapp has been promoted to Director of Pricing and Yield Management and Brad Brown has been promoted to Director of Finance for the Latin America liner services group. Both will remain domiciled in Jacksonville and report to Schepen. In his new position, Clapp is responsible for all contract administration, pricing and yield management activities. He joined Crowley in 1988 as an accountant in the company's financial reporting department. Since then he has held positions of increasing responsibility within the Latin America liner services group, including Manager of Management Reporting, Manager of Planning and Director of Finance.

Manager, Products, for transportation management solutions. Mr. manufacturers, importers and exporters. Systems¹ Morristown, N.J., headquarters. team,² said Michael Simon, Americas Systems President. Mr. logistics industry for 10 years. transportation management IT company NeoModal. Mr. procurement and NeoYield yield management software tools.

Crowley announced that Rob Clapp has been promoted from director to vice president of pricing and yield management for the company's Latin America liner services group. He will continue to remain domiciled in Jacksonville and report to John Hourihan, senior vice president and general manager, Latin America. "Rob has done an excellent job managing our pricing and yield management strategies," said Hourihan. Clapp joined Crowley in 1988 in the corporate accounting department and has held positions of increasing responsibility with Jacksonville-based liner subsidiary, Crowley Liner Services, including manager of management reporting and manager of strategic planning. In 1999, he assumed the position of director of finance for Latin America, and in Feb.

Charlie Dominguez, vice president of sales and marketing, Latin America, for Crowley Maritime Corporation's liner services group in Jacksonville, and Jerry Dowd, vice president of labor relations in Seattle, were awarded 2006 Thomas Crowley trophies, the company's highest honor, at ceremonies Friday in Jacksonville. Created 20 years ago, the Thomas Crowley Trophy award honors employees with outstanding performance, whose dedication, leadership, initiative and productivity most clearly reflect those of the company's founder. The trophy, a limited edition, bronze sculpture depicting young Thomas Crowley as he ferried goods to and from ships on San Francisco Bay in the early 1890s, is a tribute to the founder of the company as well as the winners of the award.

John P. Lauer has joined Matson Navigation Company as director, Transpacific services, for Matson's China - Long Beach Express. Lauer will lead Matson's U.S. sales efforts for its burgeoning China - Long Beach Express service and will focus on trade lane yield management and revenue enhancement strategies in conjunction with other Matson operations. He will report to Dave Hoppes, senior vice president, ocean services. Lauer comes to Matson with 20 years of sales experience, including a number of senior level executive positions encompassing maritime and logistics activities. Most recently, he was managing director, eastern region, for APL and APL Logistics at the NOL Group level. Lauer led these companies in reaching key performance sales and profit benchmarks.

Neptune Orient Lines (NOL) reported a net profit of $187m for the first half of 2006, down 52% from the same period of 2005. The company posted a second quarter net profit of $67 million, 66% lower than in 2005. NOL Chairman Mr Cheng Wai Keung, said: “After record financial performances in the past three years, we are now in a more challenging business environment, which is reflected in reduced earnings for the first half of 2006. “Business conditions for both our liner and logistics segments have become more difficult. 1H 2006 total Group revenues rose slightly year-on-year to $3.52b, while the Group’s Core Earnings Before Gross Interest Expense, Tax and Non-Recurring Items (EBIT) of $227m was down 47% from the corresponding period of 2005.