L O G I S T I C S
THE SOURCE FOR FOODTECHNOLOGY INFORMATION
BEARING360 AIMED AT SHAKING
UP SHIPPING SOLUTIONS
A new joint venture
aims to provide Kiwi
SME exporters a
greater presence
and an improved
representation at the
negotiation table with
the world’s largest
international shipping
companies in the
wake of changing
global trends.
Bearing360 is a shipping
solutions company, set
to launch early this year.
It is a joint venture between
logistics service
provider Netlogix and pulp, paper
& packaging manufacturer Oji Fibre
Solutions. It will, from inception,
manage more than 70,000 twenty
foot equivalent (TEU) of containerised
export cargo volumes from New
Zealand.
Oji’s logistics arm Lodestar general
manager Murray Horne says the joint
venture is of strategic importance
to Oji Fibre Solutions as it moves to
strengthen reliability across its export
supply chain. “Due to the global
over- supply of shipping capacity,
there has been significant downward
pressure on ocean freight rates to
a point where some rates are at
historic lows. This is not a sustainable
position for the industry, and
it is already impacting on shipping
services across New Zealand.”
Horne says that whereas three years
ago there were around 12 or more
separately owned and operated
shipping lines servicing the New
Zealand market, there are now only
seven due to recent merger and
acquisition activity. “Through this
joint venture we want to ensure
that a range of shipping services
continue to support the New Zealand
market, and we will use our scale
and market presence to help drive
that outcome.”
The newly appointed general manager
of Bearing360 Dritan Ramohitaj
says the intention is to help keep
the market sustainable for shipping
lines by levelling out cargo flows to
improve predictability. “The shipping
lines fix their schedules and vessel
sizes in advance, largely in anticipation
of expected cargo volumes. We
will be relatively consistent with our
cargo by levelling out the large upsand
downs to provide a more reliable
base of container volumes.
“Ultimately, shipping lines can then
get better utilisation of their vessels,
which should reflect more sustainable
pricing for our customers. Ramohitaj
says the new service is also about
reversing the trend towards the ‘commoditisation’
of container shipping.
“We have the expertise to provide a
comprehensive service offering. We
take responsibility for the cargo, manage
our own warehouses, pack our
own containers, coordinate the transport,
and operate our own fleet of
break bulk vessels, providing visibility
throughout the whole process. That is
somewhat unique in the New Zealand
market. We are the freight company
with dirt under our fingernails.”
The innovative model has been
enabled through technology provided
by Netlogix which has successfully
built a freight service business in the
domestic market. The technology is
34 FEBRUARY 2019