P&O NEDLLOYD GIVES AUTONOMY TO LOGISTICS ARM

P&O NEDLLOYD GIVES AUTONOMY TO LOGISTICS ARM    P&O Nedlloyd Container Line is moving its value-added services activities to a newly separate logistics division named P&O Nedlloyd Logistics, effective July 1.
   Previously, logistics was provided by P&O Nedlloyd staff who had either dual liner shipping/logistics responsibilities, or dedicated logistics responsibilities. The policy of the Anglo-Dutch shipping group was to provide logistics activities as an adjunct to liner shipping.
   Contracts with customers will now be signed by P&O Nedlloyd Logistics, a company that will have its headquarters in London. In some cases, affiliated companies will sign the contracts.
   “It is a clear distinction between logistics and shipping for our customers,” said Johan Nanninga, managing director of P&O Nedlloyd Logistics. Nanninga said that P&O Nedlloyd has experienced double-digit annual growth within its logistics business since 1999.
   The logistics division will have its own profit center, and a worldwide staff of 480 in some 390 offices. P&O Nedlloyd Logistics currently has annual revenues of over $200 million.
   P&O Nedlloyd Logistics will provide services to existing customers of P&O Nedlloyd, the company said. However, it said that P&O Nedlloyd Logistics will be a neutral fourth-party logistics provider that manages many subcontractors. Customers will also often use other shipping lines in addition to P&O Nedlloyd Container Line, Nanninga said. In many cases, customers negotiate freight rates with ocean carriers without the involvement of P&O Nedlloyd’s logistics business, he added.
   P&O Nedlloyd Logistics will focus on three industry sectors — retail, industrial/chemical, and fast-moving consumer goods — and serve companies that have maritime-intensive supply chains.
   The separate structure organization for logistics at P&O Nedlloyd will bring it closer to those of APL Liner/APL Logistics, Maersk Sealand/Maersk Logistics and other international container shipping-oriented groups.