CEVA rolls out three new less-than-container-load lanes

Global third-party logistics (3PL) services provider CEVA Logistics took another step in expanding its less-than-container load (LCL) service offerings, opening three new LCL lanes into Australia.

The new lanes are from Shanghai, China and Singapore to three Australia-based locations, Sydney, Melbourne, and Fremantle, according to CEVA. Company officials said that these new lanes are already operational, with:
-transit times from Shanghai to Sydney 16 days, which also serves the Brisbane area and with expedited cargo clearance at CEVA’s Container Freight Station (CFS) upon arrival delivery to final stations in Sydney is three-to-five days after the vessel arrives in port and to Brisbane within two more days and benefits from faster freight availability through CEVA’s CFS in Melbourne;
-CEVA delivers locally in Melburne within 3-5 days of vessel arrival and has guaranteed service to Adelaide, with the Brisbane and Adelaide moves both managed by CEVA Ground, the company’s integrated road linehaul service; and
-the Singapore to Fremantle transit time is about seven days, with faster freight availability at CEVA’s Perth CFS.

Company officials said that the Shanghai and Singapore strategic locations are ideal regional hubs to connect Asia with the rest of the world, with CEVA’s integrated network providing direct access to more than 100 trans-shipment destinations in Southeast Asia and the Indian sub-continent.

“The continued expansion of our global LCL offering is very much focused on the needs of our customers and our desire to offer them world class Oceanfreight solutions,” said Greg Scott, Global LCL Director for CEVA, in an interview. “With Shanghai and Singapore recognized as two of the world’s busiest ports, these new routes provide our customers with much needed services into Australia, and they are safe in the knowledge that their goods are safely in CEVA’s control, from start to finish.”

In mid-February, CEVA opened up two new LCL lanes from Houston, Texas to Singapore and Jebal Ali, United Arab Emirates which are part of the company’s strategy to increase its share of its own consolidated boxes over the use of co-loaded lanes.

LCL services have been a focus for CEVA for years, and last November the company added a new LCL service from Hamburg, Germany to New York. At the time of this announcement, CEVA stated that LCL offerings provide faster cargo availability and a lower risk of U.S. custom holds and other related expenses. By having more control over cargo, CEVA has been able to dedicate LCL service internally and in turn support direct consolidations.

“There is no one single—or right—way to move LCL cargo,” said Scottin a recent interview with LM. “We decided that we wanted to start taking control of our cargo and have the steering capabilities for cargo by controlling and loading our own boxes. From the top down, to be viewed as an ocean carrier, LCL carrier or as a company that plays the game with a product, if you are giving your cargo away to a consolidator you are not necessarily viewed as a player in the market. Our goal was to own and close our own boxes.”

CEVA CEO John Pattullo said in a recent interview that the company’s ocean business 17 percent annually in 2011 and is “way ahead of market.”  He added that in the past, CEVA has been a very modest player in ocean forwarding and has moved from number 35 five years ago to number 12 now and has its sights set on getting into the top five.