[ APL Coverage of Latin America Spans 34 Ports; ]

Carrier Says It Is Ready for Deregulation

Global container-transportation and logistics provider APL says it has
built a Latin America service network that now includes 34 ports in C
entral and South America and the Caribbean-- in order to meet market d
emand and to prepare for a deregulated shipping environment under the
Ocean Shipping Reform Act of 1998(OSRA), which becomes effective May 1
.
APL also says it has made the network more flexible and resilient to e
conomic swings, and has introduced for Latin American exporters and im
porters the highest level of information support available anywhere in
the region.
Under OSRA, APL expects many of its global customers to begin asking f
or customized service packages that will cover multiple trade lanes, i
ncluding Latin America.
“Latin America has become an integral part of the global trade and di
stribution patterns of many of ourt customers,” says John Urban, APL
’s vice president for the Latin America market. “These customers do
business globally-- in North and South America, Asia, Europe, and othe
r markets. We’ll be well positioned to help them source or market in
all these regions as part of their global operations.”
In the face of industry deregulation and changing trade patterns trigg
ered by currency shifts, APL’s strategy for Latin America includes si
x key elements that APL expects will help make Latin American exporter
s and importers more competitive. “Taken together, these strategies m
ake APL unique among all its competitors in the Latin American market,
”Uban says.
First, APL’s services are geographically comprehensive, currently inc
luding 25 points in South America, four in Central America and 5 in th
e Caribbean.
Second, APL services multiple Latin America trade lanes. This means AP
L has been building not only its north-south routes, but also very com
petitive trans-Pacific capabilities that link Latin America with more
points in Asia and the Middle East than any other carrier. APL is also
serving the intra-regional market.
Third, APL is committed to offering a higher level of customer service
and information support in Latin America than most competitors, says
Urban. “We believe that offering our Latin America customers the most
advanced Urban. Specifically, he refers to the company’s award-winn
ing Inernet-based booking and shipment-tracing capabilities, which are
helping manufacturers and retailers keep better control of their ship
ments and their costs.
Fourth, APL is restructuring its alliance relationships with other car
riers in the Latin America trades in order to increase its operating f
lexibility and reduce costs. “These efforts have no impact on our hig
h service standards, but enable APL to remain competitive and viable e
ven in the face of a sharply declining southbound trade,”says Urban.
“Sudden shifts in demand such as we have seen in the north-south trad
es can sharply affect service by some carriers in the market. But by a
djusting our alliance structure, APL has positioned itself with a capa
city and high service level that best meets its customers’ needs in a
rapidly changing market.”
For example, last month the company combined sailings to Colombia and
Venezuela with serveral alliance partners instead of just one partner.
As a result, APL’s service frequencies and port rotations will remai
n high, even though southbound volumes are largely flat or contracting
.
Fifth, the company provides extensive intermodal distribution capabili
ties throughout the United States, Canada and Mexico to support shipme
nts moving to or from Latin America. Freight moves via the most extens
ive “double-stack” container train network in North America, with el
ectronic shipment-monitoring both on land and at sea.
And finally, APL offers customers in Latin America virtually any other
types of logistical support they might require. These include such se
rvices as bar-cording, freight consolidation, logistics consulting, an
d even contract logistics services.