Effective hubs facilitate flexible solutions

Information management plays a crucial role SUCCESSFUL HUBBING involves a lot more than streamlined connections. The management of information plays a crucial role, particularly when things go wrong. “It’s important to remain flexible at all times,” says Safcor Panalpina marketing and sales director Bruce Thoresson. “This is particularly relevant when cargo arriving at a seafreight hub becomes urgent and has to be switched to airfreight – or when airfreight booked on a deferred service requires a quicker uplift. “An effective hubbing structure, supported by appropriate information systems, helps to streamline communication and provide flexible solutions.” Safcor Panalpina’s overseas network is structured into hubs and sub-hubs for sea and airfreight, all supported by a trucking network for feedering cargo. “Our major hubs are located close to air and sea ports, ensuring speedy and cost-effective consolidation and distribution,” says Thoresson. The company’s central hub in Luxembourg is the base of its own scheduled charter network to all parts of the world. “Europe to South Africa is connected by six scheduled flights a week,” he told FTW. Antwerp and Hamburg in Europe are the two major seafreight groupage hubs while Singapore and Hong Kong serve the East. “These hubs are mainly cross-docking facilities but also cater for more sophisticated warehouse needs.” The benefits of hubbing flow from the synergies achieved through streamlined volumes, says Thoresson, and this reflects in the costs. “By streamlining shipments we achieve far better control of cargo and communication flow and the supply chain becomes more reliable and sustainable. “For importers with more than one supplier in an area, shipments can be consolidated at the hub as a ‘buyer’s consol shipment’ which saves costs and improves the transparency of cargo flow.” While Thoresson believes that most customers still prefer the direct option – at the best possible price – it’s a question of ‘horses for courses’. “We have to make sure that our product offering achieves cost savings for the client and this is only possible through streamlining cargo and buying in bulk. “In the end we have to remain flexible and offer different cost versus leadtime scenarios which suit the customer needs at the time of shipping.” In general low value cargo where longer transit time is not a major concern is best suited to transhipment. “Sometimes the option of a direct service is not given at all. “If you look at the carrier schedules for seafreight out of the Far East, just a few main ports have a direct line. The rest is transhipped via Singapore or Hong Kong.”