Is global trade in rough water?

From August to October, America’s three biggest ports’ (Los Angeles, Long Beach, and New York harbor) imports fell by 10% during what is usually their peak shipping month. Global merchandise trade value also decreased by 13% in the first half of this year.

In past years as retailers flog their wares to hordes of holiday shoppers in December, ports have been equally as busy working to replenish merchandise. But ports are relatively quiet this year.

Although most economists are confident these statistics don’t translate as the demise of the global economy, they do tend to create nervousness within the port industry. Every terminal operator is aware that less demand results in increased competitiveness among ports and logistics companies.

However, during this sort of circumstance pressure can often lead to progress. The need to increase efficiency and decrease resource wastage has the potential to result in smart, innovative new ways of increasing competitiveness.

According to the DP World November 2015 report, investing in ICT innovation is one of the key principles ports should be following to increase competitiveness and level the playing field.

Ports may have the opportunity to invest in new ICT systems to help automate and increase operation systems’ efficiency. However, during uncertain economic times it is imperative to know for certain that any ICT investments will bring about a profitable return.

As part of an overall terminal transformation process, implementing a new terminal operating system (TOS) plays a core role in the upgrade. In order to successfully initiate a TOS, planning and processes are key.

There is little use investing in this kind of technology if the project causes more problems than it solves. In a busy, non-stop port, you can’t afford to implement a new TOS unless it goes smoothly.

Having implemented the Master Terminal TOS at ports all over the world facing all kinds of challenges, at Jade we’ve learnt a lot about what it takes to get this process right. It’s as much about people as it is about technology, and getting some of the small things right can make a huge difference to your implementation success.

To learn more about TOS implementation strategies, download our white paper Smoothing Your TOS Implementation.

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[1] http://www.wsj.com/articles/quiet-u-s-ports-spark-slowdown-fears-1447583406

[2] A turning point: The potential role of ICT innovations in ports and logistics. A report for DP World
Prepared by The Economist Intelligence Unit. November 2015

CICE

Mexican port CICE strengthen their niche​ ​position​ ​in Gulf of Mexico

In a container-centric region, Mexican logistics firm CICE have managed to find an attractive niche. As the only company in Veracruz port that can handle mixed cargo, including bulk, break bulk, vehicles, machinery, project cargo, as well as containers, CICE have found a defendable position in the market.

With a selection of underperforming legacy systems that lacked integration, CICE required a software upgrade and was in search of a terminal operating system (TOS) that could manage a diverse range of cargo types.

After surveying the available options, CICE ultimately opted for Master Terminal. Genaro Mendez, Director of Information Technology at CICE stating “Master Terminal offered us one system for all our requirements and has a very large list of useful features.”

By providing a clear and simple implementation methodology, Jade were able to work with CICE to get Master Terminal up and running quickly, to allow the port to start realizing the software’s benefits.

Read the full CICE case study, to find out how the port’s innovative approach has helped it to survive in a demanding global economy.

Record roll-out of Master Terminal TOS at Abu Dhabi Ports

Jade has recently implemented three of seven all-new Master Terminal terminal operating systems for Abu Dhabi Ports. Zayed Port went live first on July 1 after a six month implementation phase, a record for a general cargo terminal of its size.

The configuration and training delivered at Zayed Port laid the foundation for the speedy delivery of the next two projects; Khalifa Port going live on August 1 and Musaffah Port following soon after on September 16, 2015.

Read the full article on the Port Technology website: Jade Brings ‘Master Terminal’ to Abu Dhabi ​

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The Rise and Rise of Terminal Operating Systems

For growing and ambitious ports, challenging bigger competitors often requires investment in new information technology like terminal operating systems, but the potential risks of moving away from established systems can be a barrier. What are these perceived risks and how can they be addressed?

Kaustubh Dalvi, Jade Logistics’ President of Global Sales, spoke to the Logistics and Materials Handling magazine about the benefits of upgrading to a new TOS over an in-house solution, what to evaluate when selecting a TOS, the importance of selecting a TOS that fits your business model, functional requirements you should consider, and how migrating to a new TOS is about people not just technology.

Read the full article on the Logistics and Materials Handling website.

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Master Terminal helps Abu Dhabi Ports increase cargo volumes by 19% in just 9 months

Abu Dhabi Ports – the master developer, operator and manager of ports and industrial zones in the emirate ― handled 19 per cent more general and bulk cargo in the first nine months of 2015 compared to the same period in 2014.

The volumes increased to 11.28 million tonnes in the first three quarters of 2015 from 9.49 million tonnes in the same period last year.

Implementation of new technologies like Jade Logistics’ terminal operating system Master Terminal as part of an ongoing upgrade have helped Abu Dhabi Ports optimize its productivity across the ports.

View the full Emirates 24/7 article.

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Jade Master Terminal’s record growth makes headlines

Jade Master Terminal won 19 new terminals in a record quarter. International expansion makes news for the terminal operating system around the world.

From July to September, the Jade Master Terminal team secured 19 new terminals across Europe, the Middle East, and Africa. In terms of winning new customers, that’s easily our best quarter yet.

Competitive pressures are increasing on mixed-cargo ports all around the globe. Efficiently managing a range of cargo requires world-class systems, and that’s where Jade Master Terminal comes in. Master Terminal creates a single view of the entire operation, from the gates, over the yard, and even out to ships yet to arrive. Operations improve, and smart decision-making gets easier.

As more ports choose Master Terminal, we’re getting closer to our goal of having the world’s number one mixed-cargo operating system. We’re investing in international growth, and looking forward to more good news to come.

This week our recent success has been reported in local and international media. Here’s some of the coverage:

How safe is your port?

Ports are under constant pressure to compete, they need to work faster, turn ships around quicker, load and unload trucks faster, and generally do everything at speed. However while they need to work faster, they also need to work safely. Hazards are everywhere on a port, and accidents can happen at any time. Operators must take every step possible to ensure the health and safety of people on their port, both staff and visitors.

There are many ways a port can ensure the safety of its staff and contractors, such as having sound practices and policies in place, educating staff, and using protective equipment, another is by keeping people and machinery separated as much as possible through the use of technology.

When implementing such a health and safety solution a port should consider its technology, people, and processes and ensure they are aligned and that any technology-backed processes put in place are followed by a safety conscious workforce.

Read about Master Terminal’s yard safety features in our Yard Safety Fact Sheet.

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Can Break-Bulk Terminals Avoid the “Perfect Storm”?

Break-bulk focused ports need to find ways of improving performance in an economic way.

In a recent Wall Street Journal article, maritime economist John Martin said US ports were facing a ‘perfect storm’ of under-investment in infrastructure while facing the need to cope with rising cargo volumes. This storm had “…surging cargo volumes slam ports ill-prepared to handle them.”

Retail strategist Frank Layo forecast in the same article that shipping delay costs to the US economic could reach $7 billion in 2015 and climb as high as $37 billion in 2016.

The struggles of the West Coast ports have been well documented. Investment expert Jonathan Rosenthal, managing partner of Saybrook Capital, expressed this in an article in the September edition of Logistics Management magazine about Los Angeles/Long Beach terminals, “In my business, we follow the money, and we see that the port ecosystem here is a little bit broken.”

Figures quoted in the Wall Street Journal put the world’s most efficient port, Jebel Ali in the United Arab Emirates, as turning container cargo 70% faster than the USA’s best performing terminal – the Port of Los Angeles.

In this perfect storm of rising demand and overcapitalized infrastructure, break-bulk focused ports need to find ways of improving performance in an economic way.

Less traditional terminals like those at the Port of Houston are stepping into the breach, offering services to shippers frustrated by congestion and delays. According to Logistics Management, Houston’s terminals experienced 20% growth in container cargo and 26% in break-bulk like steel in the year to June 2015.

“As a specialty break-bulk port, the types of cargoes we handle vary based on the current economic condition of the U.S.,” said Les Reardanz, CEO of WA-based Port of Everett, a user of Jade Logistics’ Master Terminal product, in a recent press statement. “The best way we can prepare for these market shifts is to have adequate infrastructure and a national freight strategy.”

Mr Reardanz was joining other ports in a call to the US government to put more focus on port infrastructure, particularly the landside connections.

Where break-bulk terminals can make their own quick gains in performance is upgrading their terminal operating system, to ensure every possible piece of capacity is extracted from existing infrastructure, delaying the need for costly investment.

Download our white paper Message in a Bottle: The challenges (and hidden opportunities) of managing mixed cargo.