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Hapag-Lloyd Leads the Industry with Fleet-Wide Real-Time Container Tracking

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Hapag-Lloyd Leads the Industry with Fleet-Wide Real-Time Container Tracking

Hapag-Lloyd has taken a pioneering step in the container shipping industry by introducing real-time container tracking across the majority of its extensive fleet, encompassing nearly 3 million containers. With its innovative “Live Position” feature, customers can now monitor their shipments seamlessly from origin to destination. The company has made significant progress, equipping over two-thirds of its dry container fleet with tracking devices, with plans for complete coverage by summer.

Dr. Maximilian Rothkopf, Hapag-Lloyd’s COO, emphasized the transformative impact of real-time tracking, enabling swift decision-making and risk management for customers while enhancing fleet management efficiency. This milestone aligns with Hapag-Lloyd’s commitment declared in April 2022 to outfit all standard shipping containers with real-time monitoring, with installations commencing shortly thereafter.

Henrik Schilling, Head of Global Commercial Development, highlighted the company’s dedication to addressing customer concerns and enhancing operational capabilities. The Company aims to integrate tracking data seamlessly into customers’ systems via API and introduce Estimated Time of Arrival (ETA) Prediction as part of its ongoing product development.

This initiative builds upon Hapag-Lloyd’s previous success in real-time monitoring for its reefer container fleet and underscores its commitment to innovation and customer satisfaction. Collaborating with TradeTech company Nexxiot AG and leveraging devices from ORBCOMM, Hapag-Lloyd continues to lead the industry in providing cutting-edge solutions for enhanced supply chain visibility and efficiency.

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Hapag-Lloyd CEO is Bullish on the Second Half of 2024

Many continue to be bearish in 2024, but Hapag-Lloyd CEO Rolf Habben Jansen is bullish on demand in the second half of the year. In an interview with CNBC, Jansen notes that inventories are depleted and the recovery post-Chinese New Year, February 10th, has been positive. 

Hapag-Lloyd reported a significant drop in 2023 net profit. Shipping rates were at untenable levels during the last quarter of 2023, and the Red Sea crisis further exacerbated the entire industry. Trade continues to be diverted, and while rates are beginning to decline, Asia to West Coast port rates are up 155% year-to-date, and Asia to East Coast ports have increased 129% year-to-date.

Another issue Jansen touched on was the increase in carbon dioxide emissions as a result of Red Sea diversions. Hapag-Lloyd is aiming for net-zero carbon by 2045, but according to Sea-Intelligence, diversions will likely increase emissions by 260% – 354%. The industry at large has added nearly 5% in vessel capacity to neutralize delays, and sailing faster has also augmented capacity by an additional 8% – 10%. 

A big reason, however, why Jansen remains bullish is the new alliance Hapag-Lloyd has formed with Maersk. The two shipping giants announced the Gemini alliance earlier this year and once in place, the alliance is slated to achieve greater than 90% of schedule reliability. Compared with global reliability in the 51.6% range, the upgrade would be a noteworthy improvement. 

Jansen explained that the alliance rests on the use of a spoke and hub system. Common in the larger transportation sector, the spoke and hub system is a distribution network akin to a bicycle wheel. The hub rests in the middle, and the spokes are the carriers (trucks, planes, or ships). The network is more elastic than traditional end-to-end networks, and Hapag-Lloyd and Maersk believe this model will propel them to 90% schedule reliability. 

Speaking of reliability, the 2M alliance between Maersk and MSC will be discontinued in 2025, according to Maersk. Reliability was a driving factor in Maersk seeking out Hapag-Lloyd as a partner, where the efficient turning of containers ensures freight is moved in the most systematic manner possible. Delayed shipments slow the process, whereas increased efficiency would result in appreciable container utilization.

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Blume Global & Hapag-Lloyd Kick-off 2020 Partner Connectivity

This month marked the beginning of Blume Global’s support of Hapag-Lloyd’s global network of carrier partners. Hapag-Lloyd’s selection was confirmed earlier in December with a start date in January starting in North America to ensure that high-quality, door-to-door service capabilities were provided for its partners.

Known for being a global leader for shipping companies, Hapag-Lloyd boasts a fleet of 231 container ships, of which include competitively modern reefer containers that require expert handling and a level of visibility and partner connectivity that goes beyond the basics.

“Blume Logistics will help improve the quality of our door service for our customers including first and last-mile visibility while enhancing the efficiencies of our motor carrier partners”, said Uffe Ostergaard, President of Hapag-Lloyd North America Region. “Our North American customers are asking for enhanced end-to-end shipment visibility to better manage their supply chains and by implementing this integrated cloud-based solution we will be able to offer that value-added service.”

Blume Global will manage a streamlined connection for Hapag-Lloyd’s motor carrier partners, enabling digital and hassle-free capabilities for dispatch work orders, drayage rates, appointment scheduling, accessorial charges, live tracking, proof of delivery, invoicing and robust reporting.

“Blume Logistics helps companies successfully manage logistics execution across the supply chain network, and around the world, with first and last-mile shipment visibility and control over transportation spending. It also improves customer service quality and enhanced vendor relations,” said Pervinder Johar, CEO, Blume Global.