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The East African : June 2nd 2014
The EastAfrican MAY 31-JUNE 6, 2014 STATE OF SHIPPING INDUSTRY IN EA Special advertising section 35 A containerised cargo ship. Picture: File Industry’s now offers complete logistic chain This involves managing the transfer of goods and produce from their origin to their final destinations been a substantial p≥og≥ess on the f≥ee movement of goods in the ≥egion, and this development has opened up new ma≥kets and expanded old ones, leading to new oppo≥tunities in the shipping and logistics secto≥ as companies set up offices in mo≥e count≥ies. In addition, the opening up F of new ma≥kets in the hinte≥land has p≥omoted the g≥owth of impo≥ts and expo≥ts t≥ade globally, calling fo≥ mo≥e and e∞cient se≥vices in the shipping and logistics indust≥y. Logistics and shipping in- dust≥y involves managing the t≥ansfe≥ of goods and p≥oduce f≥om the place of thei≥ o≥igin to thei≥ final destinations. DOWN SIDE HOWEVER THE INDUSTRY IS HIGHLY AFFECTED BY CHANGES IN THE INTERNATIONAL ECONOMIC AND POLITICAL ENVIRONMENT. INCREASING REGULATION, VOLATILITY IN FINANCIAL MARKETS, PIRACY, TECHNOLOGY AND AND ENVIRONMENTAL CONCERNS ou≥ yea≥s since the East Af≥ican Common Ma≥ket P≥otocol came into fo≥ce, the≥e has This management includes se≥vices such as mate≥ial handling, wa≥ehousing, packaging, t≥anspo≥tation, shipping secu≥ity, invento≥y management, supply chain management, p≥ocu≥ement, and Customs se≥vice. The logistics and shipping indust≥y in East Af≥ica is highly competitive. By investing in this secto≥, multinational fi≥ms position themselves to bette≥ facilitate the flow of goods th≥oughout the wo≥ld’s g≥owing consume≥ ma≥ket. Inte≥national and domes- tic companies in this indust≥y benefit f≥om a highly skilled wo≥kfo≥ce and ≥elatively low costs and ≥egulato≥y bu≥dens. A highly integ≥ated supply chain netwo≥k in East Af≥ica links p≥oduce≥s and consum- e≥s th≥ough multiple t≥anspo≥tation modes, including ai≥ and exp≥ess delive≥y se≥vices, f≥eight ≥ail, ma≥itime t≥anspo≥t, and t≥uck t≥anspo≥t. To se≥ve custome≥s e∞cient- ly, multinational and domestic fi≥ms p≥ovide tailo≥ed logistics and t≥anspo≥tation solutions that ensu≥e co-o≥dinated goods movement f≥om o≥igin to end use≥ th≥ough each supply chain netwo≥k segment. The logistics and shipping indust≥y has an undisputed, majo≥ cont≥ibution to global t≥anspo≥tation and logistics. The shipping indust≥y has histo≥ically been highly cyclical, expe≥iencing significant volatility in vessel values, f≥eight ≥ates and sha≥eholde≥ ≥etu≥ns. It is a pa≥t of the supply chain and value chain in most Supply chain network To serve customers efficiently, multinational and domestic firms provide tailored logistics and transportation solutions that ensure co-ordinated goods movement from origin to end user through each supply chain network segment. The logistics and shipping indust≥ies. It is an essential component of the supply chain and value chain fo≥ any successful business. All manufactu≥ing companies need logistics and shipping activities fo≥ the dist≥ibution of thei≥ p≥oducts. Howeve≥ the indust≥y is highly a≠ected by changes in the inte≥national economic and political envi≥onment. Inc≥easing ≥egulation, volatility in financial ma≥kets, ≥isk of pi≥acy, technological b≥eakth≥oughs and envi≥onmental conce≥ns have added to a ve≥y challenging business envi≥onment that puts even expe≥ienced shipping executives to the test. In East Af≥ica, inf≥ast≥uc- tu≥e development (≥ailway, ≥oad t≥anspo≥t, wate≥ t≥anspo≥t, and ai≥ t≥anspo≥t netwo≥ks) plays a vital ≥ole in the economic g≥owth and development of the count≥ies. These t≥anspo≥tation net- wo≥ks also play a vital ≥ole in the Logistics and Shipping indust≥y; and a≥e the segments of the Logistics and Shipping indust≥y inf≥ast≥uctu≥e in the TURN TO PAGE 36 industry has an undisputed, major contribution to global transportation and logistics. The shipping industry has historically been highly cyclical, experiencing significant volatility in vessel values, freight rates and shareholder returns.
May 26th 2014
June 9th 2014