OceanGuaranteedSM is an industry first and responds to increasing customer demand for a premium ocean LCL/domestic LTL service that offers faster transit times and day-definite delivery that is more cost-effective than air freight.
The program will provide 'port-to-door' guaranteed service from Hong Kong, Shanghai and Shenzhen in China, to all continental US destinations served by Con-way Freight, over Los Angeles as the US port-of-call for customs clearance and deconsolidation.
Shipments that fail to meet the delivery-day commitment receive a 20% 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 ocean service with transit times and delivery reliability that far exceeds traditional LCL products,' said Brian Lutt, President, APL Logistics. 'By combining two of the most reliable transportation service organizations in the world, we are also able to deliver top-class performance in a package that represents a great value alternative to international airfreight.'
'In today's global marketplace, the majority of our customers are sourcing some aspect of their business in China,' noted David McClimon, President, 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. Combining our network with APL Logistics creates a new service that directly addresses this critical requirement.'
For C-TPAT certified customers, shipments tendered under OceanGuaranteedSM 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 US Customs and Border Protection.
Moreover, APL Logistics and Con-way Freight have established a simplified pricing structure for OceanGuaranteedSM. 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 US. OceanGuaranteedSM shipments also will 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.
APL Logistics serves as the overall program manager and the carrier of record for shipments tendered on APL Logistics through bills of lading. Operationally, APL Logistics will handle all in-country China shipment management services. Ocean carriage will be provided by APL Logistics' sister company, APL. Con-way will manage receipt of ocean containers and deconsolidation in Los Angeles, and delivery of cargo as LTL shipments to the customer's door in the US.
The two companies decided to establish the joint service following the results of a market study commissioned with MergeGlobal, an industry research and consulting service. The study examined current and emerging conditions for transportation service and capacity in the trans-Pacific, 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 OceanGuaranteedSM that offered faster transit coupled with higher consistency and reliability.
The companies are accepting bookings for the new service effective September 5, 2006.
