APL Logistics, Con-way Freight start new LCL service from China
APL Logistics and Con-way Freight will start a new less-than-containerload service from China to the United States, effective Sept. 5.
The service, “OceanGuaranteed,” offers shippers “port-to-door” guaranteed service from the Chinese ports of Hong Kong, Shanghai and Shenzhen to all U.S. destinations served by Con-way Freight. In Los Angeles, the cargo will clear customs and be deconsolidated.
According to a joint statement released by the companies this morning, shipments that fail to meet the delivery-day commitment receive a 20 percent discount, subject to the terms of the service guarantee.
“We have created an entirely new service category for our customers that responds to their demands for a premium, day-definite service with transit times and delivery reliability that far exceeds traditional LCL products,” said Brian Lutt, president of APL Logistics, in a statement.
“In today’s global marketplace, the majority of our customers are sourcing some aspect of their business from China,” said David McClimon, president of Con-way Freight. “They are managing longer supply chains and more import volumes, yet they still remain under pressure to accelerate product through their domestic distribution networks as rapidly and cost efficiently as possible.”
APL Logistics serves as the overall program manager and the carrier of record for shipments tendered on APL Logistics through bills of lading. APL Logistics will handle all in-country China shipment management services. Ocean carriage will be provided by APL. Con-way will manage receipt of ocean containers and deconsolidation in Los Angeles, and delivery of cargo as less-than-trailerload shipments to customers throughout the United States.
The companies said that for Customs-Trade Partnership Against Terrorism (C-TPAT) certified importers, shipments tendered under the new LCL service will be segregated in dedicated C-TPAT-only containers, “minimizing the chance of potential delay from non-C-TPAT shippers, and allowing these cargoes to be ‘green laned’ by U.S. Customs and Border Protection.”
In addition, APL Logistics and Con-way Freight have set up a simplified pricing structure for OceanGuaranteed. Shipment pricing will be calculated on a per-kilo rate, based on delivery from the origin ports in China to 11 delivery zones in the United States. The shipments will also receive “expedited handling, including late-gate privileges at origin, ‘last on, first off,’ loading/unloading, and priority shipboard stowage for rapid discharge at the destination port,” the companies said.
The companies said they decided to start the service after reviewing the results of a market study by MergeGlobal, an industry research and consulting firm. The study examined current and emerging conditions for transportation service and capacity in the transpacific, as well as shipping patterns, outsourcing practices, business economics and customer supply chain issues.
“The study revealed a clear opportunity for a premium service such as OceanGuaranteed that offered faster transit coupled with higher consistency and reliability,” the companies said.