Supply Chain World - Fall 2017 - 126

solutions höegh autoliners

Terminal Services, a wholly owned subsidiary of Höegh
Autoliners based in Jacksonville, Fla., started two years
ago and specializes in terminal and logistics solutions.
"We created a solution for one of our customers down
in Freeport, Texas, who was shipping product to the
Middle East from the East Coast," Warren explains. "Because of the supply chain cost to get cars halfway across
the country by rail and then ship to the Middle East, we
created a solution which reduced cost and lowered their
lead times. This also opened for the opportunity for imports to access the South and Central states West of the
Mississippi more cost effectively than by rail across the
Rocky Mountains or from U.S. East Coast ports.
"There is a tremendous push from OEMs to lower
supply chain cost and that is difficult by just squeezing
margins and taking out unit cost," Warren adds. "We
rather try to look at the entire supply chain and look for
inefficiencies and improvements. The Freeport terminal
is a typical example of that. "

OEMs need transparency and visibility into their product
from the moment it rolls off the plant to the discharge
port and finally when it is delivered to the dealer, Warren
adds. "How can you tie that together for complete transparency and visibility?" he says.

Deep-Seated Relationships
Today, Höegh Autoliners main focus is still on ocean
transport and expanding into terminals, but the company is also offering supply chain management services
through its daughter company Autotrans in France.
There are usually four to six entities involved from the
time a product rolls off the plant floor through to delivery, Warren says.
"Allowing one entity to manage the entire process
can be a positive for the OEMs," he adds. "It's all about
systems and gaining efficiency and who can give full
visibility to the OEMs."
Unlike its daughter company in Europe, however,
Höegh Autoliners does not yet offer end-to-end logistics in North America. "The competence and technology is there, but it's about selling it to the OEMs,
making them see the benefit and it has to be cost-effective," Warren says. "For us today, it's about having
a deep-seated relationship with our customers that we
have been working with for 15 to 20 years, sitting down
with them and understanding their needs, challenges
and how can we integrate."

Short-Sea Shipments
Today's global economy has changed Höegh Autoliners'
business from predominately deep-sea to also include
short-sea shipments. "The biggest market change in our
business is globalization, meaning we are seeing a lot of
car manufacturers building closer to where they sell,"
Warren explains.
"Historically, the main deep sea volumes were moving
from Asia. Now OEMs are increasingly building on fewer
platforms, which means they can start building a car in
Spain today, stop and start building it in Russia tomorrow due to common platforms," he continues. "Lead
time for major shifts in production is much less and
we've seen a decline in the need for deep-sea and more
need for short-sea shipments."
About 2.1 million vehicles come to the United States
from Mexico today and Warren says that production is
expected to increase over the next 18 months. "Mov126

Supply Chain World FALL 2017



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
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