What is port-centric logistics?
Port-centric logistics describes the...
Supply Chain Digital takes a look at why port-centric logistics is becoming increasingly popular in the industry.
Port-centric logistics describes the location of logistics and distribution services when goods arrive. It is considered an alternative to inland depots and centrally located national distribution centres. It allows you to store your shipment at the port and decrease the number of handling stages throughout your storage and distribution process, saving time and money.
Port-centric logistics is increasingly being considered as a way for businesses to streamline their supply chains and reduce their impact on the environment. For lots of organisations, port-centric logistics aims to remove unnecessary freight miles.
For example, if goods arrive at a port in the south, then travel to the distribution centre in the north, the goods essentially go back the same way again if they are distributed to a customer based in the south. However, if the goods remain in the port that they arrived in, it will avoid wasted freight miles and mean better results for a company’s bottom line as well as helping the environment too.
In addition to the cost benefits, port-centric logistics can streamline operations and enhance customer service because containers are loaded, checked, stored, picked and distributed from a single location. This will lead to shorter lead times, a more efficient supply chain and cost-effective logistics and distribution.
Port Technology International is hosting a webinar centred around to port-centric logistics. It is set to zone in on how ports are decreasing supply chain links by bringing warehousing closer to the port land. The webinar will take place on Thursday, April 30 at 2pm (BST). For more information, click here!
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Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.