GES UAE discusses regional supply chain management potentials & challenges at ‘Leaders in Logistics Summit 2014’

Globe Express Services (GES), joined the Middle East’s foremost supply chain players during the ‘Leaders in Logistics Summit 2014’ at The Ritz Carlton, Dubai International Financial Centre today (Tuesday, September 30, 2014) to discuss industry potentials and key operational challenges. Mustapha Kawam, Managing Director-Gulf States of GES, presented the company’s best practices and key industry insights before high-profile attendees as one the featured speakers of this year’s one-day conference. He was part of a panel discussion held during the event as well along with other prominent logistics experts.

The ‘Leaders in Logistics Summit 2014’ enabled GES to step back and take a closer look at recent industry developments. This allowed the company to discuss long-term solutions to current challenges and ways to create more opportunities.

Thought leaders and decision makers who are shaping the sector’s future were among the participants of the summit’s latest edition. Attracting at least 170 attendees in 2013, this year’s event featured keynote addresses, panel discussions and interactive workshops.

Customer Service Excellence…Delivered by People Who Care

Charlotte, NC – August 22, 2014: According to a recent report published by, the number one criticism clients have of their third party logistics provider is that “…3PLs are not proactive enough in identifying continuous improvement opportunities.”

This means that in the global logistics industry, far too many providers focus on themselves and not necessarily the needs of their customers. They are content with maintaining the status quo. No growth. No challenge. No forward movement.

One respondent to the Logistics Viewpoints survey voiced a frustration running rampant in the logistics community regarding three things he believes are sorely lacking: Customer service, responsiveness, and flexibility.

Globe Express Service (GES) is breaking that mold.

In a 2013 survey initiative of our own, we set out to identify, among other things, the following key pieces of information:
1. Overall customer satisfaction for the year, compared to 2012 and 2011
2. Which products and services are most helpful to our clients
3. Specific client concerns to be addressed

We are committed to improving our service based on this valuable customer feedback. We are open to both praise and criticism, and have a willingness to act on it. A far cry from the common apathy that characterizes the 3PL industry.

In fact, we were pleased to find an overall customer satisfaction rating of 97%.  Digging deeper we learned that 75% of survey participants cited GES as more capable than other providers, with 35% of them claiming, “GES is among the best I’ve worked with.” While we’re pleased to hear this level of customer satisfaction, it reminds us we still have more work to do.An Exercise in Meaning
According to Logistics Viewpoints, the average 3PL customer in the U.S. utilizes three main logistics services. The most common is transportation management, with other top services including supply chain management and lead logistics provider roles. Such strategic 3PL engagements started in the automotive and technological industries, but are now more common amongst other verticals including retail, apparel/footwear, furniture and other segments. GES is leading the way in this respect, with a world class Cargo & Order Management service and system that supports our clients’ growth in a highly scalable and cost efficient manner.

When asked the question, “what are you looking for in a logistics provider?” GES client Minoud Saidi, Purchasing and Logistics Manager of Chesapeake Bay Candle responded, “I expect my 3PL to know as much about my business as I do.”

We take our continuous improvement role with clients very seriously, feeling it necessary to confirm Globe’s value at every quarterly business review (QBR). This means doing our homework, to understand each client’s business and how we might enhance it. Oliver Huber, GES President North America explains, “Each QBR is an opportunity to explore ideas for efficiency and cost saving measures that streamline the supply chain.  This is a win-win for both our customers and GES and we are committed to this important experience.”
With a growing number of people looking for more meaningful partnerships with their 3PL, unparalleled customer service and prompt, reliable communication is no longer just an option – it’s imperative. And at GES we don’t just plan on being a part of that shift; we intend to lead it.

We’ve dedicated our resources to create a culture brimming with people who care. We strive to stand out as the only logistics provider able to offer such a high caliber of personal service. Our associates are passionate about their work; synchronized seamlessly as One Company, One Global Team.

Carol Gregg, a GES customer and survey participant from Red Egg, offered “…high praise for [GES] communication skills and prompt response to my questions.”

Testimonials like this are a common reaction from over 90% of GES survey participants who rated GES “among the best customer service providers in the industry” for 2011, 2012, and 2013; including one satisfied patron who noted the peace of mind he feels knowing he can contact his account manager any time after being provided with her cell number.

40 Years of Caring
This year marks our 40th anniversary as a global logistics company, and in accordance with our dedication to progress, our President and CEO, Michael Hughes, recently announced a big change that’s coming. In a recent email sent to all GES employees, Mr. Hughes wrote, “The New Year brings many exciting enhancements and opportunities for GES, our clients, our employees and our brand. I’m very excited to announce our corporate rebranding. This initiative pays homage to the best of Globe Express Services’ rich history and experience, and modernizes our look and feel with bold promises of a new direction: Forward.”

It’s no easy feat becoming best-in-class. As with any forward progress, there’s a constant cycle of testing, evaluation, and course-correction that needs to take place in order to maintain that position. So, rather than sit back and float by on our accolades, we roll up our sleeves and go to work every day.

Whether it’s responding to customer feedback, seeking out areas of improvement, or bringing our time-proven approach forward to a digital age, we’re a company of action.
As always, the cornerstone of our service offering is that we’re invested in our customers’ success. We’ve formalized our commitment to our clients by writing it into our new mission statement: “To create prosperity through global trade by providing logistics solutions delivered with excellence by people who care.”

More Than Words
We hold our mission statement to be far more than just words on a page. It’s a promise that we want to come alive with every interaction between GES and a client. It’s important that people feel how strongly we stand behind it.
In a follow-up to last year’s survey, we recently reached out to various GES clients, including Chesapeake Bay Candle and a leading manufacturer of audio equipment, to gain a deeper understanding of their logistics needs and how we can maintain that edge. During the conversations, a few words surfaced over and over again: Professional, personal, business partner, and experienced. According to our clients, these are the characteristics of a company who cares, and supply chains are seeking out that kind of service more than ever.

Chesapeake Bay Candle is what you might call an American success story. Created in 1994, the founders – two Chinese students who traveled to the United States to study – began importing accessories from China to sell at local trade shows. After seeing the interest in their goods and identifying a potential market, the two students began to manufacture their own candles. The first line was crafted out of empty cans of Campbell’s Tomato Soup. They soon sold a collection of premium candles to Target and started gaining exposure from big-time media players, Fox News and MSNBC.

It wasn’t long before Chesapeake Bay Candle opened its first factory in China and, as of three years ago, their first U.S. factory. They have created thousands of jobs along the way and care deeply about the products they offer and the heritage they represent.

Needless to say, finding a logistics partner to make sure their shipments get where they need to be, when they need to be there, is vital.

That’s why Mr. Saidi, who has been working with the GES Baltimore branch  for over a year now, says, “I trust GES. I feel like I’ve got my own shipping department when I work with them. Not only do they serve me, but they educate me and inform me.”

He recounts a story where, unbeknownst to him, there was an error on an ISF form and before anyone on his team caught the mistake, he received a call from one of our offices saying that the error had been discovered, fixed, and that the shipment was proceeding as intended. “They go above and beyond every day,” he adds. “It would be difficult to focus on just one story because they catch mistakes that even I don’t and just do what they need to do to fix them.”

Another customer working with the GES Boston office, who wished to remain anonymous, cited himself as “a very demanding customer whose shipping needs are always urgent.” When asked how he’d rate his satisfaction with GES, he states, “90%. Which is way above average.”

At Globe Express Services, we believe that partnership isn’t something you say, it’s something you do. And people aren’t just numbers on a page, they’re the lifeblood of a company that truly cares. We want to take this opportunity to thank the employees of GES, who truly make difference every day in the eyes of our customers.
Contributed by:  Bill Smith (GES), Justin Dye (ScopCity)
(8/22/14; GES Internal: Bill Smith)

GES Shenyang Launches China-Russia & China-Europe Sea-Rail Multi-modal Transport Service

Charlotte, NC – June 19, 2014:This multi-modal global logistics solution provides our Russian and European customers a highly efficient alternative for shipping goods from China that saves transit time. GES Shenyang is excited to offer an innovative sea-rail service from Chinese coastal ports to Russia and onward to Duisburg, Germany. With Yingkou Port in northern China as the hub, the new route yields a total transit time savings of 13-17 days vs. previous traditional routings. Expanding the scope of this service is other Chinese coastal ports of receipt including Shanghai, Tianjin, Guangzhou, Shenzhen, Xiamen, Quanzhou, Fuzhou and Ningbo. Moscow and St. Petersburg, Russia and Duisburg, Germany are the main destination ports.


Located in northern China, GES Shenyang benefits from various geographic advantages and is well positioned to capitalize on such market trends. Now GES is capable of operating sea-rail combined transport along the whole route (ocean shipping lanes from Pearl River & Yangtze River Delta to Yingkou Port, then railway line from Yingkou Port to Russia and/or Europe). This efficient routing offers superior timeliness and security, along with the full-service package of the GES Shenyang office (customs clearance, documentation, etc.).  For more information, please contact:


Contributed by Rachel Sun, Branch Manager, GES Shenyang (China)

GES Establishes Three Main Air Freight Gateways to Link China to the World

Charlotte, N.C. – May 14, 2014:In order to further enhance the GES China air freight product, we have established three main regional gateways in North China, Central China and Southern China to integrate our air freight capacity and improve our regional market service competitiveness. According to data from Airports Council International, Hong Kong ranked as the number one cargo airport in terms of metric tons (over 3 million tons), with Shanghai at 3 (2.93 million tons) and Beijing at 13 (1.78 million tons).  Our three main gateways are:

• GES Beijing is set as Northern China regional center to served PEK, TSN, DLC, TAO, HRB, XIY,
CGO and SJW airports.
• GES Shanghai is set as Central China regional center to served PVG, NGB, HGH, NKG, CTU and CKG airports.
• GES Hong Kong is set as South China regional center to served HKG, SZX, CAN and XMN airports.
(5/14/14; Source: GES Internal)

Maersk Honors Globe Express Services

Charlotte, N.C. – May 7, 2014: Globe Express Services (GES) has been awarded the prestigious Platinum Award by world leading container shipping company Maersk Line.  This marks the third consecutive year that our UAE office has received the award, which recognizes the best performing logistics providers and top customers of Maersk Line.


The award was presented to Mustapha Kawam, Managing Director-Gulf States (GES) and John C. George, Jebel Ali Branch Manager during a ceremony held at The Shangri – La Hotel, Dubai. Senior officials from other freight forwarding and logistics companies also attended the awarding ceremony.


Commenting on the award, Kawam said: “We are grateful to Maersk Line for bestowing yet again on our company the Platinum Award as recognition of our commitment to consistently provide world-class logistics solutions to our clients. Being recognized for the third time in a row by Maersk Line only reflects the uncompromising values and principles of both companies in terms of delivering the highest quality of service. Rest assured that we will remain steadfast in this commitment as we continuously strengthen and improve our services for the satisfaction of our customers.”  (5/7/14; Source:

GES Appoints Mr. Fulvio Moletti as Managing Director, Asia Pacific

Charlotte, N.C. – April 10, 2014:

***Accomplished Asia 3PL veteran tapped to lead company’s growth strategy in its largest region***

SHANGHAI, CHINA, (April 10, 2014) – Globe Express Services® (GES), a top 100 global logistics provider with a total market presence in over 80 countries, proudly announces the appointment of Mr. Fulvio Moletti to Managing Director, Asia Pacific.  Mr. Moletti joined GES in 2012, leading its Southeast & South Asia region, with increasing levels of responsibility.  In his new role, Mr. Moletti will focus on leading the company’s growth throughout Asia, an area of historical strength for GES, employing over 30% of its total workforce and operating 26 offices in the region.  He will be based at the company’s Shanghai office and report directly to President and CEO Michael C. Hughes.

Mr. Hughes describes this in saying, “Promoting Fulvio is a natural progression for GES, given his extensive operations and sales experience in Asia (since 1993), working for various reputable major 3PLs including Panalpina, DHL Global Forwarding and SDV.  In addition to his leadership skills, Fulvio employs a ‘team player’ approach and is deeply committed to our people and customers, qualities that align well with our desire to build a One Company–One Global Team culture that makes GES such a great place to work.”

China represents the company’s largest operation, where it operates 19 offices and holds a Class A forwarding license.  Mr. Moletti expressed confidence in this next step, “We are well positioned in Asia with an established network and flexible business model that allows us to develop unique 3PL solutions that differentiate the company and provide quantifiable value for our customers.  Our talented people are passionate about global logistics and take pride in providing outstanding customer service.  We have a bullish outlook in Asia centered on providing innovative supply chain solutions to our valued customers, in alignment with the company’s overall growth strategy.”


Mr. Moletti holds a Doctorate in Political & Economic Sciences from the University of Bologna, Italy.  His studies also include Supply Chain Management certifications from the Cranfield University, Bedford, England.  As well as a “Diplomado” in Logistics and Supply Chain Management at Universidad Catolica, Santiago de Chile, Chile.

GES Delegation at TPM Conference Yields Insight on 5 Hot Button Global Logistics Issues

Charlotte, N.C. – March 13, 2014: GES recently sent a sizable delegation to the TPM conference. Hosted by the JOC and recognized as the preeminent forum on Trans-Pacific trade, TPM is a very important event for all supply chain stakeholders. Oliver Huber, GES President North America comments: “GES is pleased to be well represented at TPM and capitalized on a number of opportunities including various customer and carrier meetings. We look forward to advising clients with the latest industry information and are also planning a feature story on 5 Hot Button Issues in Global Logistics in our upcoming Around the Globe magazine. New Ocean Carrier Alliances, ILWU Contract Negotiations, The Chassis Evolution, Port Congestion and Fuel Trends are all on the agenda this ocean contracting season, and we welcome client collaboration and dialogue on these important topics as we plan for 2014.” (Source: GES Internal)

Special GES Report From TPM conference: How Do New Ocean Carrier Alliances Impact My Supply Chain?

Charlotte, N.C. – March 13, 2014: It’s no news that of the 25 major carriers in the marketplace, many have opted to work together in alliances over the years via vessel sharing agreements (VSAs). There are many benefits for both carriers and shippers in this arrangement including economies of scale, pooling of assets, lower per unit (slot) costs and a general broadening of service scope, capability and coverage. Said another way, the shipping industry is no stranger to competitive collaboration.

But what happens when three of the largest carriers, cumulatively controlling over 40% of the market, decide to work together? That’s a question we may soon know the answer to.
Maersk Lines, Mediterranean Shipping Co., and CMA CGM have announced that they plan to launch the P3 Network in the second quarter of 2014, pending regulatory approval. These companies are seen as strange bedfellows to say the least. As the top three carriers globally in terms of market share, each has a history of fierce competition with each other. For example, as vessel sizes pushed the envelope in the Asia/Europe trade in the past few years, with the average vessel size of the P3 in Europe averaging 13K TEUs, all members have been fighting to retain share. The net effect has been a commoditization of the markets where those big ships sail. And with more capacity slated to come in 2014, the question on many shippers’ minds is whether the cascading effect of redeploying this excess tonnage will affect other trade lanes around the world. At the recent Trans-Pacific Maritime (TPM) conference in Long Beach, CA, a carrier executive was asked, “How do you balance the desire for profits vs. the desire to grab market share?” He responded, “It comes down to disciplined P&L management,” which is essentially at the heart of the P3 and other alliances. By working together, carriers are better able to keep their rates stable in an environment where supply outstrips demand. It is important to note that members of the P3 have been working together via VSAs in select trades for over 5 years now, but this new (global) collaboration is certainly a new paradigm.
Currently, between the three fleets in the P3, the total number of ships in circulation is 346. Through the alliance, that number would be reduced to 252; utilizing ships with larger cargo space and more fuel efficiency, lowering operating costs for the three companies. Larger ships means more supply, with Drewry Maritime estimating global capacity growth of 5.7% in 2014 and 6% in 2015.  And most of that is in the larger ship category, with a fleet size growth rate of 2% for ships smaller than 8K TEUs, while ships >8K TEUs are becoming saturated with 19% growth. And it is those 8K-10K TEU ships that will cascade from Europe into the U.S. Transpacific or Suez trades. Mario Moreno, an economist at the JOC, projects a CAGR of 5.6% over the next 5 years for Eastbound Transpac trade, following more modest growth in recent years (3.3% in 2013). And while that may sound healthy, there could some headwinds in 2014 as the economy struggles to gain traction in an environment of modest GDP growth (3.25% projected). And while U.S. imports are expected to modestly recover in 2014, the U.S. trade deficit is still 2.5X our services surplus, and exports are still expected to lag (CAGR of 2.5% from 2014-2018). Alphaliner wraps this up in saying that total fleet capacity will grow by 7.6% while demand is only growing at 5%, on the heels of 1.6M TEUs of new capacity being introduced in 2014. A supply / demand equilibrium is not expected until 2016.
Other ocean carriers are not standing on the sidelines waiting for the P3’s competitive advantage to take root. They’re also realigning. In December, the G6 (an existing alliance between APL, Hapag-Lloyd, HMM, MOL, NYK, and OOCL) announced their plan to compete with the P3 by expanding into the trans-Atlantic and Asia-U.S. West Coast trade lanes. What’s more, with the recent addition of Evergreen to the already massive CKYH alliance (Cosco, K-Line, Yang Ming & Hanjin), the new CKYH+E network plans to begin operating in April, also expanding into the Asia-North Europe and Asia-Mediterranean trades. And a major wildcard at play is the question of what China Shipping will do, with rumors circulating that they’re talking to COSCO about an agreement. Even with increased collaboration within the G6 and CKYHE alliances, it is still expected that the P3 will have the lowest per unit cost given their size advantage and the mega ships they’ve deployed.
Is there a down side for carriers?  If the P3 does get approval, there is stark concern that it will only serve to worsen already poor market conditions. With oversupply and volatile competition a current reality, speculators believe that an increased fight for market share could have crippling effects on the ocean shipping industry which has struggled during the past decade with an overall (industry) ROI of 1-2%.
But before the P3 Network, a 10 year agreement, is allowed to operate in the open seas, it has to go through a scrupulous approval process by the U.S. Federal Maritime Commission (FMC) and regulatory authorities in Europe and China. There’s no certainty whether the alliance will be approved at all. Word is expected anytime from early April to mid-May, which makes it difficult for shippers to plan, given we’re currently in the midst of ocean shipping contracting period.
In December, the FMC requested detailed information from Maersk, MSC, and CMA which delayed the regulatory review period by 45 days. There is now speculation that the union could be delayed even further should the FMC request even more information about the network’s agreement to operate in cooperation throughout Asia, Europe and the U.S.
This begs the question, does this new model of mega-alliances actually create the discipline it intends, ultimately fostering stability and lessening the volatility between shipping lines? Or does it actually just move the war to a larger battlefield – a macro version of the familiar market share driven competition – now fought between giant networks instead of individual lines? The basic goal for each alliance remains the same and probably always will. Competing entities, whether independent or partnered, will always want more market share. And shippers, in an effort to keep costs as low as possible, will always try to take advantage of the competition, hoping for volatility to drive rates down.
Ultimately, an alliance of the three largest carriers – and the chain reaction it creates – could ignite an unprecedented race for survival among competitors. With the rise of new alliances between competing carriers, the current industry model could change drastically within the next several years. The carriers are planning for the inevitable commoditization that mega ships bring, and are looking for other differentiating factors to compete, particularly on landside options (rail service, etc.). There are many side effects that shippers need to carefully consider, including:
• Reduced number of services in favor of larger vessels
• Increased blank sailings and more intense winter deployments / capacity rationalization
• Fewer differentiated products…a more homogenized ocean service (possible service  erosion for historical Tier 1 carriers)
• Increasing price transparency (commoditization of port to port freight)
• No market entry possible for new carriers
• Significant operational requirements placed on ports & terminals, causing delays
• Limited options for individualized service
But with these tradeoffs may come lower rates, given the expected economies of scale. Some analysts are predicting that 2014 Trans-Pac contracts will take a $300 increase to the West Coast and $400 on the East; carriers must increase rates given losses in recent years. But temper that with the $350/container (round trip) slot cost reduction (efficiency) that bigger ships are expected to bring over the longer term, and shippers are left wondering what is the true path forward? Only the market will determine that…and time will tell. (Source: GES Internal)

GES Delegation at TPM Conference Yields Insight on 5 Hot Button Global Logistics Issues

GES recently sent a sizable delegation to the TPM conference. Hosted by the JOC and recognized as the preeminent forum on Trans-Pacific trade, TPM is a very important event for all supply chain stakeholders. Oliver Huber, GES President North America comments: “GES is pleased to be well represented at TPM and capitalized on a number of opportunities including various customer and carrier meetings. We look forward to advising clients with the latest industry information and are also planning a feature story on 5 Hot Button Issues in Global Logistics in our upcoming Around the Globe magazine. New Ocean Carrier Alliances, ILWU Contract Negotiations, The Chassis Evolution, Port Congestion and Fuel Trends are all on the agenda this ocean contracting season, and we welcome client collaboration and dialogue on these important topics as we plan for 2014.” (Source: GES Internal)