Ocean freight may be faster than a decade ago, but when it comes to getting goods quickly and efficiently to and from the geographically remote Australasian region, airfreight is often the only viable option.
“We are a long way away from most of the world,” says CEVA Logistics’ director of air and ocean services in Australia and New Zealand, Grant Lowe. “Whilst technology is improving and shipping goods by ocean freight is getting faster, the distance to and from Australia and New Zealand can be a tipping point for many customers wanting short lead times for deliveries. In these instances, airfreight often becomes the only option.”
With changing economic, political and technological dynamics, he tells Air Cargo Week, that companies are continuing to re-evaluate their supply chain needs. Lowe adds that CEVA is helping customers by providing, “secure, resilient and well managed,” supply chains to, “ensure competitiveness”.
CEVA offers a package of premium, value added services and specialist products to the Australian and New Zealand market. “Our direct, into store, solution sees us partnering with airlines to deliver a cost effective method of distributing products, sourced and packaged from overseas vendors or suppliers, directly to store; and in some cases directly to the end consumer.” Lowe explains this can include consolidating small shipments to reduce transportation, warehouse and overhead costs as well as the lead time distribution process.
“We see a trend for using this service from consumer and retail, automotive and energy and mining and technology customers who are looking to engage with a global partner with strong local expertise and a network to ensure that any issues or problems, including trade regulations and compliance, are solved quickly,” he explains.
Lowe adds that evolving scalable, flexible and innovative solutions to improve the efficiency of customer supply chains is a key driver of business in Australia and New Zealand.
“CEVA is always looking to optimise its customer supply chains by leveraging our transportation and logistics network capabilities,” says Lowe.
One example he gives is the company’s decision to boost investment in property in Australia and New Zealand by constructing multi-user sites. These are designed to bring various business units, such as contract logistics, air and ocean, transport and car carrying services, together on the one site.
“This move represents a real point of difference within the industry and our property investment activity includes building a new super multi-user warehouse site in Melbourne, which will become CEVA’s largest in Australia.”