Annual Conference 2012 - Group Conference in Bali
CWT Globelink Group Annual Conference 2012 was hosted in Bali, Indonesia – one of the country's 33 provinces renowned for its diverse and sophisticated art forms, such as painting, sculpture, woodcarving, handicrafts and performing arts.
As with previous years, many long-standing partners of Globelink have attended this year's conference along with a number of first time participants at the event. The conference provided an excellent platform for delegates to engage in strategic discussions and exploring new opportunities in the business.
The 5-days conference came to a close with a gala dinner by the beach with lively entertainment for everyone to let loose and have some fun.
Special thanks to our main coordinators of the Bali conference, Dahlia and Kris; and a big thank you to all who have contributed in one way or another in making the event a success. To all delegates, see you in 2013!
Globelink Singapore - Dangerous Goods (DG) Capability
Founded in Singapore in 1988, Globelink Singapore is the largest NVOCC in Singapore and the market leader in terms of service connectivity and trade routes.
Managing its own CFS in the FTZ, Globelink Singapore offers neutrality to freight forwarders; reliability and control over service quality with no further co-loading. Direct export consolidated service to more than 120 main ports and 1,200 inland points are offered.
There are regular weekly or twice weekly sailings to all major ports. Direct sailings into Central & Eastern Europe, Latin America (Central & South), Scandinavia in addition to all Intra-Asia and major European destinations are offered by Globelink Singapore. As the biggest and most efficient transshipment hub within the group, Globelink Singapore is able to accept DG
cargoes to be transshipped to other final destinations. Globelink Singapore works closely with PSA Chemcare and the Port Chemist for DG cargoes. The hub is capable of handling DG ex-Singapore to 95 destinations and receiving DG from 67 origins into Singapore.
Feature Story - Globelink Opens in Qatar
Following the establishment of Globelink office in Kuwait, CWT Globelink has yet again extended our footprint in the Arabian Gulf with the set up of a new Globelink office in Doha, Qatar.
Qatar ranks as a top economic performer in the region and will play host to the 2022 FIFA World Cup. With our new office, we will be in a strategic position to support the market in and out of Doha. This new office will strengthen Globelink's regional presence and boost our service network in the growing GCC market.
The office will be managed by Mr. Nanda Kumar, our newly appointed General Manager of the Doha office. Nanda has many years of experience in Qatar and is well connected with the local environment.
Doha, the Capital of Qatar is the largest city and also the economic centre of the country. The country's economy is built on the revenue made from its oil and gas industries and the government is trying to diversify the economy to lessen the dependence on oil. As a result, Doha is experiencing a boom and developing very rapidly.
Qatar sits on the Qatar Peninsula located on the northeast coast of the Arabian Peninsula. Its only land border is with Saudi Arabia on the South, with the rest of its territory surrounded by the Persian Gulf.
The Doha Port is the main seaport servicing Doha. However, it is fast reaching its maximum throughput capacity and its prime city centre location is no longer compatible with future developments planned for the capital. Plans for a new port are underway and the New Doha Port will be one of the largest of its kind in the Middle East. It is designed to attract transshipment and logistics traffic in the region.
The New Port, targeted to be operationally ready in 2016, is set to become an integral part of the multi-billion dollar project to develop the first integrated freight and passenger rail network in Qatar. Individual GCC countries are currently carrying out their own feasibility studies into the proposed 2,000km rail network, which would eventually link all six member states – Qatar, Oman, UAE, Saudi Arabia, Kuwait and Bahrain. This will eventually boost cross-border trade, cut freight costs and result in faster cargo movement.
Feature Story - CWT Globelink CEO Summit 2012
CWT Globelink group's annual CEO Summit was held in Singapore at Swissôtel, The Stamford on 15 & 16 May 2012.
CWT Globelink HQ took center stage and played host to over 28 delegates representing offices from Australia, China, Hong Kong, Korea, Indonesia, Malaysia, Singapore, Thailand, Vietnam, India, Pakistan, Sri Lanka, Egypt, Kuwait, United Arab Emirates, Morocco, Turkey, Portugal, Spain, Bulgaria, Romania, Croatia, Slovenia, the United Kingdom, Costa Rica and Guatemala.
The highlight of this year's Summit includes an interactive session amongst delegates in different groups to discuss current and forthcoming challenges in the industry. Each individual team presented and shared their ideas on the topics discussed, giving more insights into situations in different countries and regions. Globelink has also invited 2 of our important IFF customers to the Summit to share with us the role we play as one of their core service providers, their upcoming targets and the support to be rendered by Globelink/GCA. The lively Q&A sessions incorporated will help us better understand the needs of our customers and their expectations.
The 2012 Summit welcomes long time partners from Turkey, Morocco, Bulgaria and the United Kingdom who have become part of the Globelink family. They are all familiar faces for many years and are now contributing/value-adding to the network development and sharing their expertise with the group.
Some of the offices also presented and shared their various strategies on maintaining their leadership in their markets which will help the group to grow from strength to strength in the increasingly competitive environment.
Recognizing the huge potential of the Egyptian market, Globelink Egypt was established in 2006 to extend shipping & forwarding services through its offices in Alexandria, Cairo, Port Said and a presence at Sokhna Port to handle shipments.
Egypt is one of the most populous countries in Africa and the Middle East. The majority of its people live near the banks of the Nile River while the large areas of the Sahara Desert are sparsely inhabited.
Overlooking the Mediterranean and Red Sea, with the Suez Canal linking them, Egypt's geographic location adds a vital aspect to the maritime transport sector. Following the completion of the Suez Canal in 1869, Egypt became an important world transportation hub. The Egyptian government has over the years boost the infrastructure of the industry by building ports with high tech equipments for cargo handling.
Globelink WW India
Established in 2000, Globelink WW India is a collaboration with Globelink's partner who has more than 20 years of experience in the industry.
Headquartered in Chennai, Globelink WW is a reliable and leading NVOCC provider with 22 offices covering all major coastal gateways and inland presence at key ICD locations. A strong and capable team of 355 staff services clients throughout the country.
Globelink WW offers direct consolidation services in and out of most major ports in India. With ICDs well linked to gateway ports, Globelink WW is able to provide a seamless inland distribution and carriage of cargo from the hinterlands to the gateway port. Singapore, Port Klang, Colombo and Dubai are also utilized as transshipment hubs for India.
In addition, Globelink WW is able to offer FCL carriage to selected land locked countries like Afghanistan and the CIS; and carriage of over-dimension cargoes in specialized containers.
Located in Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Myanmar and Pakistan, India is one of the world's fastest growing economies and the second most populous country in the world.
Globelink Opens in United Kingdom
Consistent with our roadmap of expansion and more comprehensive coverage, CWT Globelink is glad to announce the extension of our reach in Europe.
The United Kingdom is a core market for CWT Globelink group and an established marketplace. We have been cooperating with our reliable long term partner - Fallow International Freight Limited for some 17 years. The cooperation had been such a success that it became quite natural that both parties decided to bring the relationship a step closer.
CWT Globelink has formed a joint operation with Fallow International as an equity partner. Fallow will be re-branded as Globelink Fallow Limited. Globelink Fallow will be headed by directors, Bob Andrews together with Elaine Fox. They will continue to be the key drivers in our partnership.
The re-branding was completed with the changing of office signs for the big changeover effective 1st March 2012.
This strategic investment in UK is of significant importance to the group given its strong traffic flow and competitive environment. As a group, we are now better positioned to thrive in this market.
Globelink Opens in Bulgaria
CWT Globelink has opened a new office in Bulgaria, strengthening the services offered in the Black Sea region and complementing the existing Romania, Slovenia and Croatia Globelink offices in Eastern Europe.
Sharing borders with Greece, Macedonia, Romania, Serbia and Turkey, Bulgaria is the largest producer of perfumery essential oils such as lavender and rose oil. Major industries include the extraction of metals and minerals, production of chemicals, machinery and vehicle components, petroleum refinement and steel.
The Capital of Sofia and the surrounding Yugozapaden planning region is the richest and most developed region of the country. Many major universities, cultural institutions and businesses of Bulgaria are concentrated in Sofia, the country's economic heart.
Bulgaria's developing infrastructure and strategic geographical location made Sofia a major hub for international railway, land and sea transport. Located near the Turkish Straits, Sofia controls the key routes from Europe to Middle East and Asia.
The Port of Varna is Bulgaria's largest container gateway with excellent road and rail access and is one of the important gateways into Central and Eastern Europe.
The port has modern facilties that operates year-round and is a suitable gateway into countries like Macedonia, Albania, Kosovo and certain parts of Serbia.
Similarly, Bulgaria is also a export gateway to America (via Hamburg), Africa and Middle East (via Istanbul) and Far East (via Singapore).
Opening Message for 2012
In my last New Year message in 2011, I touched on the recovery of world economy and most in the shipping community had made profits with increased volumes. The situation has changed again this year.
In the first 3 quarters of 2011, most of the shipping lines suffered losses due to overcapacity in supply and reduced trade volumes. The US recovery remains slow and the economic situation worsen in Europe.
Countries like Hungary are facing similar financial problem like PIIGS (Portugal, Italy, Ireland, Italy, Greece and Spain). The governments in Spain, Italy and Greece were changed and these countries are hoping the new ruling parties are able to come up with some solutions. Starting early 2011, the Arab Spring Revolution involving Egypt and also other North Africa/Middle East countries have overthrown a number of countries leaders and the unrest is still ongoing.
In Asia, we saw tell-tale signs of the slow growth in China's economy. This is a first in a long time for China that there is no rush in shipments prior to the golden holiday in October. The recent Canton fair also reported substantial reduction in transaction levels. The market is concerned that China's economy may have a hard landing. Natural disasters like earthquake in Japan and flood in Thailand also add uncertainty to the economic growth in the affected countries in Asia.
Shipping lines are also reacting to the new challenges. MISC is the first casualty announcing its exit from the containerized business after a loss of US$800 million. There were talks that the three main Japanese carriers – NYK, MOSK and K Line may merge to become the world 5th largest carrier. MSC and CGM are in discussion for further alliance.
Conversely, more carriers are adding on capacity. Today, only 6 carriers are operating vessel exceeding 12,000 TEUs. In the next 2 years, there will be at least 12 carriers operating such mega vessels. With the new built and new capacity, it will be more difficult for carriers to idle their ships in order to control capacity. It looks like the carriers will be back to the same problem in 2009 with huge losses but this time, the recession may be longer and harder which may force more carriers out of the game.
Despite the adverse market conditions in 2011, CWT Globelink group continues to strengthen and consolidate our LCL market position by expanding our network presence. We started new offices in Costa Rica, Guatemala, Turkey and Morocco making a total of 96 offices in 24 countries. We have also made good progress with the support from a number of big International Freight Forwarders (IFFs) where we are included in their list of approved global LCL vendors/partners. We will continue our efforts to gain more support from the IFFs in 2012. When the going gets tough, the tough get going. With clouds of uncertainty ahead, we need to focus our attention on keeping ourselves lean and strong. There remains more need to manage and watch our costs carefully and reduce it where possible. Our sales and marketing efforts have to be better tuned to meet our customers' needs and compete for every piece of cargo.
In every crisis there is an opportunity. We should leverage on our strength and fight for a bigger market share. The hunger for more business must be innate in us as we strive to capitalize on every opportunity. In conclusion, 2012 is going to be a more than challenging year. There could be a world recession with reduced cargo volume. The competition will be keener to fight for every cbm of cargo in the market. CWT Globelink group and GCA members, together with our network of agents must work even closer to weather through this challenging period.
I would like to take this opportunity to thank all of you for your continual support to GCA/Globelink group in 2011 and we look forward to a better year in 2012 despite the challenging environment. I wish all of you a Happy, Prosperous and Healthy 2012 – the year of the Dragon!