Vision - May/June 2008 - (Page 19)

H ave to get your latest CE product from Vietnam to India to California? And now your customers also demand that hot device in Vancouver? What’s a quick-thinking CE executive to do? It’s time to call your shipper and its competitors and weigh in on the options. The shipping industry is getting more competitive as it adds vessels and routes, particularly in Asia, and is providing CE companies and other customers with new services to help capitalize on those burgeoning economies and speed time to market. But competition in the shipping sector isn’t necessarily making it any easier on the wallets of customers—rate increases are looming to help shippers offset their skyrocketing fuel costs. Shipping companies are hoping to cushion the blow of those rate hikes with enhanced offerings like guaranteed deliveries that they say make doing business more flexible. Beginning last month, Maersk Line, the world’s largest steamship company, added new service to provide coverage of South China to Colombo in Sri Lanka, South East India, and Persian Gulf markets, among other routes. The shipping company also has put additional ships on its Asia-Europe routes. In addition, while China continues to attract attention, shipping routes are expanding both beyond and within it as parts of the country, particularly South China, become more expensive, says Chica Wang, director of global accounts for APL, the container shipping arm of Singapore-based Neptune Orient Lines. More CE assembly and production has been migrating during the past two years to lower cost centers such as Vietnam, India and the western and northern parts of China, Wang says. Wang predicts that the migration to other Asian markets, however, is “going to be very slow because China still has the advantage of know-how and experience that has developed over the last 10 years. It’s going to be the major manufacturing floor for the next few years, but slowly it’s migrating to other countries.” Among other emerging CE markets that shipping companies recognize are Mexico and Brazil, Wang adds.

Table of Contents Feed for the Digital Edition of Vision - May/June 2008

Vision - May/June 2008 Contents Shapiro's Spectrum In This Issue The Economist C4 Trends Visionary Making the Smartphone Truly Intelligent Shipping Strategies for CE Companies IP in BRIC Countries CEA Newsline Tech Speak Eye on Business Tech Policy Market Insider Just the Stats

Vision - May/June 2008

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