Jul. 24, 2019 Yangon:
Shipping Sector in Myanmar will quickly be influenced by the news that "UPS is joining FedEx in the 7-day shipping rush— and it is a sign that both shipping giants are taking the logistics build-up of Amazon seriously." Myanmarshipping.com is learning it. Shipping ordinary deliveries and e-commerce internet orders in Myanmar is comparatively small compared to that of U.S. counterparts, but the news UPS announced on July 23 that the logistics giant will deliver your packages on Sundays and FedEx announced seven-day delivery in May will also shape the stuff to come for Delivery Service in Myanmar. As both supply businesses are under threat from Amazon, which is rapidly building its own supply network. In Myanmar, Alibaba's Shop.com.mm and MyanmarMart.com subcontract 2 distribution tech start-ups for delivery using the recent fleet management technology according to one of the supply service founder's close relatives. MyanmarShipping.com has been updating and forecasting Myanmar's shipping and delivery company since February 2006.
UPS joins FedEx in the hurry for 7-day shipping — and it is a sign that both shipping giants take the logistics buildup of Amazon seriously
Rachel Premack Jul. 24, 2019, 12:37 PM
ups UPS. Scott Olson/Getty Images UPS announced on July 23 that your packages will be delivered by the logistics giant on Sundays from January 1, 2020. In May, FedEx announced delivery for seven days. Analysts say both supply businesses are under threat from Amazon, which is constructing its own supply network rapidly. For more tales, visit the homepage of Business Insider. UPS will be delivering packages on Sundays starting in 2020. Ahead of its recent income report, the shipping giant produced the announcement on July 23. FedEx announced the shipment of seven days in May, which will also start in January 2020. Both movements point to increasing consumer expectations for quick, convenient deliveries and the rise in parcels of e-commerce that UPS and FedEx need to manage. Notice: FedEx stopped flying your Amazon Prime packages in June because the partnership wasn't lucrative enough — and UPS has the same issue. It also highlights Amazon's danger as the retail giant starts building up its network of aircraft, trains, trucks and shipping vans. Amazon said it was investing $800 million in its own delivery network in April to make one day of its two-day shipping guarantee for Prime customers. Earlier this year, UPS CEO David Abney informed Business Insider that the business regards Amazon as both a rival and a client. (Approximately 10% of UPS income is estimated from its relationship with Amazon.) In its most latest annual report, FedEx, which dropped the retailer as an air cargo partner in June, highlighted Amazon as a rival. However, as Amazon continues to deliver on its own and create a third-party logistics network, both FedEx and UPS have said that their businesses are focused on promoting small and medium-sized businesses and other upstarts in e-commerce. UPS also invests strongly in global industries as well as medical deliveries— especially its drone delivery network for hospitals in need of rapid blood and organ samples movements. "SMB (tiny and medium-sized enterprises) is the main priority of our strategic growth imperatives and is going well," Kate Gutmann, Chief Sales and Solutions Officer of UPS, told investors in an earnings call on July 24. "We're doing more SMB company than anyone else and we're continuing to innovate." Increased investment in technology (and USPS) will support seven-day shipping UPS presently provides six days a week. The seven-day shipping move will be partially backed by enhanced technology investments in the UPS network, Business Insider said Juan Perez, Chief Information and Engineering Officer. UPS has invested strongly in automated technology sortation equipment to accommodate the uptick in e-commerce delivery. By the end of 2019, UPS will be adding 20 fresh or retrofitted automated equipment to its network and will be able to sort 400,000 extra packages per hour. Its air cargo sector has also started to gobble up market share in the next-day air delivery industry. Next-day air package volume increased in second quarter of 2019 by 30.3% from the same period in 2018. CVS Pharmacy, Michaels and Advance Auto Parts also join the UPS Access Point network, enabling clients to pick up or drop off packages at these retail outlets. Sunday delivery service from UPS will be supported by the US Postal Service. That's component of the Sunday shipping announcement on the earning call on July 24 that worried transport analysts. "I can tell you that I personally have a commitment from the top USPS to know our needs and our customers ' needs and their outflows are dedicated to working with us to make sure this is a very good offer," Abney informed investors. "So I couldn't trust our shipping capacities on Sunday anymore, all three parts of the plan, including USPS ' engagement to perform at the level we need." Reference from: www.businessinsider.com
Myanmar Shipping, Myanmar (Burma) Myanmar Shipping 2007 Future for 2008
Due to the inner sand band Ocean linear vessals are getting difficult to come alongside to the port
The place where Yangon river , Pegu river and Puzuntaung creek meet has a sand band called Inner bar , so big vessals can not come in and alongside to the port all the time,said Myanmar Port Authority. The shallowest place of the sea vessal route is about 13m at the low tide, that is why 15000 tons vessal can go through at the highest tide, but the authority has not given the permission yet. "At the right now, sand band is being digged up everyday.In july and august when mud contain in water is low, digged up four times everyday. When mud water is very thick in February and March,MPA digged up eight times everyday, each time digs up 500 sqm, said the authority. There is no plan to break down the" inner bar" sand band at now, if the plan is carried out , the river route will get mo;re curve at someplace,and it is more dangerous to travel at bad weather. Before the world war II English engineers led the plan to destroy the sand band,but when WWII broke out, the plan was stopped.Until now the plan to destroy had not been carried out yet, but just to dig up the sand band.
Shipping Companies in High Demand due to Economic Boom.
he sky high oil price made the transportation cost expensive around the world in 2007. Meanwhile , the booms of the China and India's economies demand the need of the transportation sector at the critical point. Similarly, Myanmar Shipping Industry got a new boost from the government as it paved the way for private shipping companies. Following is the review of the Interview with Hapag Lloyd agent (Aquamarine Shipping) by Mai Nyein Moe Kyi Aung in eTrade Myanmar web site.
Myanmar presence of Hapag Lloyd was established in March 2007 operating around 100 own containers under its principle Hapag-Lloyd South East Asia - Mayalysia. Although the principle company is based in Germany and most of its shipments headed to Europe (United Kingdom, Germany, Italy, France), shipments from Myanmar is more for Asia market due to economic embergo. Normally Buyers instruct corresponding agents in Malaysia and Singapore and shippers in Myanmar just follow the instructions. Orders from Europe tend to transship via Singapore and China and Taiwan are major countries for the shipment in Asia and India ranked third. Items that top the list of shipment are garments on CMP basis, Timber, and agricultural produce. Import items are Chinese machinery and tyres, machineries from Europe and construction material from various countries. Comparision with 2006, about 40 container less was handled in 2007. There were 40 to 50 containers shipped to Asian Countries. Trends in shipment is more to the Asian countries as major items are Timber, Agri products and Garments which are normally shipped to other Asian Countries regardless of the trade embergo which only affected Timber. ACL and Five Star are Lines of choice which mostly uses Asia World and Bo Aung Kyaw Port.
When asked if there were any difficulties in shipment, Weather,
timing schedule (in the contract) and paperworks are major points
and Hapag Lloyd facilitate to the best of its abilities. Guarantee
on timing schedule, however, is not applicable.
Recent Internet interruption affected shipping industry heavily as they rely on internet from booking space to tracking schedule and B.L issue. The whole industry came to a grinding halt during the connection interruption due to September unrest in Myanmar. Much less cargo bookings were received aftermath of the crack down on protesters. In 2006 Novermber and December, the price of 20 ft. container was around 450 USD but fewer were willing to pay 300 USD for the same container due to lots and lots of empty containers sitting idle incurring storage charge. It was also due to lesser demand. High Season for the shipping lines are in January to May -the peak export season of Myanmar. Timber, however is all year round.
Forecast for 2008 will be much better than 2007 but 2007 fared badly compared to 2006. Based on the fact that China and India are eyeing Myanmar as business partner and the tendacy of those emerging Asian economies to back Myanmar in the foreseeable future, cargo shipment demand will rise in 2008 and beyond. Sanctions might be a threat but the major trading partners would care less for American Sanctions. Therefore shipping industry has to presume wait-and-see stance as in all other business frontiers.