Transport Leaders Honor APL Logistics, Con-way for LCL Innovation

The International Transport Forum – a gathering of the world’s transportation policymakers – have honored APL Logistics and Con-Way Freight for their containerized trade breakthrough, OceanGuaranteed.

Both active in supply chain management and long-haul trucking, the two companies received an innovation award as part of the forum’s week-long global summit. The recognition came as 50 transport ministers from around the world convened in Leipzig, Germany, with government and industry representatives to tackle transportation challenges brought on by the global recession.

“On behalf of my colleagues at APL Logistics and our partners at Con-Way, let me express our gratitude for this recognition,” said APL Logistics President Jim McAdam in receiving the award. “Our aim with OceanGuaranteed was to bring new thinking to the challenges of global trade and we’re honored that it has been so well received.”

OceanGuaranteed is the world’s first day-definite service for Less-Than-Containerload cargo shipped from Asia to North America. It was introduced in 2006 by APL Logistics and Con-Way as the only service promising delivery of Less-Than-Containerload (LCL) cargo on a specific date.

The service provides port-to-door guaranteed service from nine locations in Asia to all continental US destinations served by Con-way, through the Port of Los Angeles. It also serves major metropolitan markets in Canada. Cargo is carried on the ocean by APL, the world’s seventh largest container carrier.

Launched nearly three years ago, OceanGuaranteed was designed to bring dependability to LCL shipments by marrying the assets of APL and Con-way to ensure on-time performance.

According to APL, the combination has delivered a direct challenge to the air freight industry. Air cargo is considered the most reliable – albeit expensive – form of cargo shipment. But since its inception, OceanGuaranteed has a 98% on-time record. And rates for the service are up to 75% less than air freight.

OceanGuaranteed has also addressed the environmental impact of trade between Asia and North America. According to data from the Network for Transport and the Environment, containerships on average produce 97% less carbon emissions and use only 1.3 percent of the energy of an air freighter to transport one ton of cargo one kilometer. The corresponding figures for highway movement, likewise compared to air cargo, are 91% and 9% respectively.