World Trade - March 2009 - (Page 38) STRATEGY their operations. According to the International Energy Outlook 2007 (IEO2007) report, total marketed world energy consumption is projected to increase 57% from 2004 to 2030. CO2 emissions are measured in tons of CO2. For transportation, the amount of CO2 emitted is directly attributed to weight, mode and distance travelled. For warehouse and store locations, the amount of CO2 emitted is directly attributed to the type of energy consumed to operate the facilities. Traffic congestion is a new measure that is being used by various governments and regulatory bodies as a disincentive for urban traffic congestion and pollution. Several cities of varying sizes have adopted programs where vehicles are taxed or entirely prohibited from entering urban geographic regions. For example, the London congestion charge is a fee for some motorists traveling within those parts of the city designated as the Congestion Charge Zone. And in Amsterdam, where 5,000 trucks per day enter the city centre, there are restrictions on truck length and weight and limited time slots for replenishment. Water consumption will be a big issue in the future. Access to drinking water will become increasingly scarce and environmental changes will occur as a result. Governments and non-governmental organizations have implemented awareness programs and policies to address the growing concern. Security compliance will also be a key focus in the coming years. Recovery action plans both for information and physical processes must be integrated into everyday procedures. Security requirements in warehousing and transport must be reinforced for the safety of people and the traceability of goods in compliance with regulations. Future supply chains will have to demonstrate their reliability even in larger and complex collaborative modes. Companies should monitor their level of compliance. Lastly, infrastructure simplification is a measure in cubic meters of a company’s physical footprint so that going forward a base case can be established and measured against. The goal would be to optimize the overall space occupied and relocate warehouses and distribution centers in more appropriate locations. This collaborative concept should impact the following KPIs: • Traffic congestion • CO2 emissions and energy reduction • Infrastructure simplification Collaborative non-urban distribution COSCO Delivers Prince Rupert 2 Weekly Sailings to Prince Rupert Direct calls from North China East Canada East China Prince Rupert South China Midwest US COSCO is the first carrier to provide two sailings weekly from China and Yokohama to Prince Rupert. COSCO has listened to the market feedback and based on the success of one weekly service, COSCO has introduced a second weekly service. COSCO will now ship Hong Kong, South China, East China and North China cargoes, including Yokohama to North America via Prince Rupert. Shorten your supply chain, reduce your overhead and experience the congestion-free port of Prince Rupert, COSCO and the CN Rail. Timothy E. Marsh Vice President North American Sales tmarsh@cosco-usa.com COSCO Container Lines Americas, Inc. 100 Lighting Way Secaucus, NJ 07094 Tel: 800-242-7354 Fax: 201-422-8928 www.cosco-usa.com SHIP WITH CONFIDENCE. SHIP WITH COSCO. For non-urban areas, the challenges, and therefore the solutions, are slightly different. The longer distances to the final store or home are such that transport optimization is the main objective. Full truckloads from collaborative warehouses can be moved in the most efficient way to the remote area, possibly using alternative modes of transport like trains. A regional consolidation centre can have a similar function as the city hubs, consolidating the store orders from various collaborative warehouses into dedicated store replenishment routes. At the same time, these consolidation centers are needed to merge 38 WORLD TRADE MARCH 2009 http://www.cosco-usa.com http://www.cosco-usa.com
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