DC Velocity - November 2011

inbound

Here’s something you don’t see every day: photos of a foundering containership. Not to make light of the resulting oil spill and its tragic consequences or rub salt into vessel operator Mediterranean Shipping Co.’s wounds, but some of the photos of the Rena aground on Astrolabe Reef off the coast of New Zealand are interesting indeed. (Full disclosure: This writer worked for Med Shipping back in the 1980s.)

A collection of 32 photos can be seen on The Atlantic’s website at www.theatlantic.com/infocus/2011/10/oil-spill-disaster-on- new-zealand-shoreline/100169/.

Dozens of containers have fallen overboard and hundreds of gallons of bunker fuel have leaked from the cracked hull since the Oct. 5 accident, fouling the shore and reportedly killing more than 1,000 seabirds. What’s intriguing to importers, exporters, and others with an interest in maritime goings-on are the photos showing a stack of containers coming loose from the deck lashings and toppling overboard and 40-foot containers floating in the water like giant bath toys. Also of interest: photos of local residents exercising their ancient and completely legal right of salvage, opening containers and scooping up merchandise that washed up on the beach. ;

Hope those weren’t your containers …

Orders for material handling equipment grew 17. 1 percent in the first half of 2011—a statistic borne out by recent reports that equipment manufacturers are hiring as fast as they can in both engineering and on the production line. That steep rise is unlikely to last, however.

Overall, orders for material handling equipment of all types are forecast to grow 11 percent in 2011 but will then drop to a 7-per- cent growth rate in 2012, according to the latest Material Handling Equipment Manufacturing (MHEM) forecast released by the Material Handling Industry of America (MHIA).

Forecasts for U.S. gross domestic product (GDP), investment, and consumption have been downgraded to reflect the growing sentiment that the U.S. and global economies are fragile, said Hal Vandiver, MHIA executive consultant, in a statement. Accordingly, MHIA has reduced its forecast for new orders, shipments, and domestic demand for 2012. “Industrial production activity appears to be softening, and factory operating rates [uti-lization] are forecast to improve only modestly,” he added.

Actual shipments of material handling equipment, which often lag behind orders, are forecast to grow 14 percent in 2011 and 7 to 8 percent in 2012. Domestic demand (shipments plus imports less exports) grew 13. 1 percent in the first half of 2011 and is expected to grow 5. 5 percent in 2012.

Released each quarter by MHIA, the MHEM forecast looks 12 to 18 months ahead to anticipate changes in the material handling and logistics marketplace. ;

MHIA: Red-hot market won’t last

Chiquita CEO gives
a-peeling presentation

When he showed up for his presentation at CSCMP’s Annual Global Conference in Philadelphia, Fernando Aguirre arrived with more than the usual speak- er’s notes. Aguirre, who is chairman and CEO of Chiquita Brands International, strode onto the stage pulling a pallet jack loaded with boxes of bananas. He then proceeded to demonstrate, to appreciative laughter, that he knew how to operate the equipment.

That set the tone for an interesting, and at times inspiring, speech by the executive, who rose from modest circumstances in Mexico to head the giant produce grower and seller. Aguirre recounted his life story, including anecdotes showing how his parents, mentors, and managers influenced the course of his career. He also peppered the presentation with scenes from his experience on the TV show “Undercover Boss,” including stints harvesting lettuce, driving a forklift in a warehouse, and working with an import coordinator at one of Chiquita’s offices. Aguirre’s personal experience with supply chain operations and the people who make them work proved to be “life-changing and inspirational” and influenced some of the changes he has implemented at the company, he said.

Aguirre arrived at Chiquita six years ago, tasked with rescuing the company from bankruptcy. He quickly recognized that company employees lacked a sense of purpose and commitment. In response, he instituted programs to recognize individual and team contributions, improve productivity, and open up direct communication between employees at all levels on a worldwide basis. ;