Out in front APL

OUT IN FRONT

APL is a globally operating provider of container transportation services and a wholly-owned subsidiary of the Singapore-based Neptune Orient Lines logistics company. Industry Europe looks at the company’s operations and its latest developments, including a complete organisational realignment.

Global container transportation services company APL was founded over 160 years ago as the first New York to Asia shipping company. Acquired by Neptune Orient Lines (NOL) Group, a global shipping transportation logistics company based in Singapore, APL has grown to become the world’s fourth largest container shipping business. Listed on the Singapore Stock Exchange in its two business units, APL and APL Logistics provide supply chain management, consolidation services, freight forwarding and international logistics services.

With a global staff of 11,000 based in 200 offices, APL provides seamless global connectivity by utilising its comprehensive fleet of modern vessels and commercially integrated routes. Range of services

APL’s container fleet offers services ranging from standard dry cargo containers to refrigerated and special containers. The service covers everything from equipment design to maintenance and repair. Containers can be refrigerated if need be, or adapted to contain hazardous materials, and APL also offers packing and loading services to ensure clients’ products will not be damaged during shipping. Oversized cargoes which pose unique challenges, such as military tanks or road-building machinery, can also be moved safely and efficiently by APL’s specially-trained professionals.

All the biggest modern shipping companies, if they want to remain competitive, must also offer E-business solutions whereby clients can have easy access to their shipment information and transaction over the internet. With APL clients can manage their bills and track shipments online. Meanwhile, Electronic Data Exchange systems allow them to communicate booking information and receive invoices etc without the need to send paper documents – a far more convenient and less time-consuming, not to mention environmentally friendly, method of document exchange.

Structural changes

In January this year (2014) APL announced an organisational realignment to its functional structure in order to drive the business forward. Through this, it will move from its previous geographically-organised structure

to a functional one. The functions will be in the areas of Trade, Commerce, Operations, Procurement and Planning & Strategy.

Company president Kenneth Glenn said of the move: “The container shipping industry is undergoing profound changes, characterised by low growth and intense competition. We recognise there is a need for APL to respond more quickly to the market and to our customers. We are pushing ahead with our strategy to sharpen our competitive edge through cost efficiency and organisational agility while building on our strong reputation for service quality.”

New cooperation

Also in January this year, APL announced a new strategic cooperation with Maersk and OOCL on three existing Far East to Indian Subcontinent services, starting in February 2014. In a slot sharing agreement that also includes partners CMA CGM, Emirates Shipping Line, Hamburg Süd and Regional Container Lines, 18 vessels with a total capacity of about 17,500 TEU will be deployed on the three Far East-Indian Subcontinent services.

The enhanced network will enable the carriers to offer three weekly sailings – covering China, Korea, Malaysia, Singapore, India, Pakistan and Sri Lanka – compared to one weekly sailing currently offered independently by each liner.

“Our multi-carrier cooperation will provide more frequent sailings between Asia’s major trading hubs, and at the same time eliminate unnecessary service duplications,” the partner carriers said in a joint statement. “With improved operational efficiency and a more comprehensive service structure, the enhanced Far East-Indian Subcontinent services will offer shippers flexible and competitive options best catered to their needs.”

Worldwide presence

APL serves more than 25,000 locations in 105 countries around the world. Its vessel routes cover Asia-Europe, Australia, Intra-Asia, Latin America, the Middle East, Europe-North America and Asia-North America. The main hubs for APL are Rotterdam for Europe, with the majority of its routes calling here for cargo to be loaded or unloaded and often discharged for feeder services on other transportation. In Asia, APL has a strong presence in its historic Singapore hub, as well as a number of Chinese ports, with its US coverage emanating from hubs on the west coast in LA and Seattle.

Currently operating a fleet of nearly 150 ships, APL has a mix of size and ownership, with both chartered and own ownership, although all ships in its fleet must meet the extraordinarily strict requirements of quality, environmental and maintenance standards that exceed international demands. As the majority of APL’s customer requirements are large, international intra-Asia, US or European logistics, the ships vary from 1500TU capacity to 9000TU capacity, giving APL the ability to delivery the largest loads worldwide.

The quality and standard of the fleet is taken for granted at APL – the company believes this is a non-negotiable aspect prior to any charter or sale and leaseback agreement when adding to its fleet. It is this reliability that truly adds value to the APL offer. n