APL Logistics

{{Short description|Global logistics company}}

APL Logistics Ltd. (APLL) is a wholly owned subsidiary of Kintetsu World Express, Inc. (KWE), a Japan-based freight forwarding and transportation company.Hand, Marcus. Seatrade Maritime News. [http://www.seatrade-maritime.com/news/americas/nol-confirms-sale-of-apl-logistics-to-kintetsu-world-express-for-$12bn.html "NOL confirms sale of APL Logistics to Kintestsu World Express for $1.2bn"] {{Webarchive|url=https://web.archive.org/web/20150627205049/http://www.seatrade-maritime.com/news/americas/nol-confirms-sale-of-apl-logistics-to-kintetsu-world-express-for-$12bn.html |date=2015-06-27 }}, 17 February 2015. Retrieved 27 July 2015. As a global supply chain specialist, APL Logistics trades in more than 60 countries,Journal of Commerce. [http://www.joc.com/international-logistics/logistics-providers/apl-logistics "APL Logistics"]. Retrieved 27 July 2015. serving the automotive, consumer, industrials, and retail verticals.Bloomberg Business. [https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=675621 "Air Freight and Logistics Company Overview of APL Logistics Ltd"]. Retrieved 10 August 2015. Headquartered in Singapore and USA, APL Logistics has locations across the globe.

{{Infobox company

| name = APL Logistics

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| former_name = American Consolidation Services

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| hq_location_city = {{unbulleted list | Singapore | USA}}

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| key_people = {{unbulleted list | Thad Bedard, President | Fabio Duque, COO | Takayuki Maruyama, CFO}}

| industry = Global supply chain specialist

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| revenue = US $1.6b

| revenue_year = 2014

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| net_income = US $67m

| net_income_year = 2014

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| num_employees = 7,000

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| areas_served = Worldwide

| homepage = {{URL|http://www.apllogistics.com}}

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History

= Pre-merger =

In 1980, in response to the increasing importance of Asian imports, U.S.-based container transportation and shipping company APL created American Consolidation Services (ACS) to meet the needs of importers who wanted help in managing the flow of their Asian goods. As with similar such services, ACS was responsible for "monitoring the movement of goods to consolidation points and managing the consolidation of goods and shipping according to the specifications of buyers."Grammenos, Costas. (2010). The Handbook of Maritime Economics and Business, 2nd Edition. Lloyd's List. p. 464. Informa Law from Routledge. {{ISBN|1843118807}}. In 1996, ACS obtained a domestic distribution services license in China. Trying to take advantage of the burgeoning Internet, in 1999 it introduced one of the industry's first Web-based ordering and shipment tracking systems. It was during this period that APL rebranded the service as APL Logistics.

= Acquisition and incorporation =

In 1997, Singapore-based Neptune Orient Lines Ltd. (NOL) acquired APL in a merger for US$825 million, a move that placed it within the top five of its industry.Los Angeles Times. [https://www.latimes.com/archives/la-xpm-1997-04-14-fi-48586-story.html "Neptune Orient to Buy APL in $825-Million Deal"]. 14 April 1997. Retrieved 12 August 2015.Funding Universe. [http://www.fundinguniverse.com/company-histories/neptune-orient-lines-limited-history/ "Neptune Orient Lines Limited History."] Retrieved 13 August 2015. As the smaller and less established of the two entities, NOL adopted APL as its public brand name following the merger. Previously, NOL had been carrying out logistics services under its Orient Container & Warehousing Services (OCWS) brand. To better focus on managing global supply chains, in 2000 NOL rebranded and incorporated its logistics service as APL Logistics, and it commenced operations as a standalone sister company to APL.Office of Industries and the Office of Economics. United States International Trade Commission. (May 2005) [http://www.usitc.gov/publications/332/pub3770.pdf "Logistic Services: An Overview of the Global Market and Potential Effects of Removing Trade Impediments. Investigation, No. 332-463 USITC Publication 3770"]. p. F3. Retrieved 30 July 2015.

= Early expansion, acquisitions, and innovation =

The following year, in 2001, APL Logistics’ acquired GATX Logistics for US$210 million to add warehouse servicesPR Newswire. [http://www.prnewswire.com/news-releases/apl-logistics-purchase-of-gatx-logistics-completed-71171667.html "APL Logistics Purchase of GATX Logistics Completed"]. 1 Feb 2001. Retrieved 6 August 2015 to its offerings and increase its U.S. footprint in contract logistics, a move that it anticipated would increase its revenues by 70 percent, or approximately US$300 million.San Francisco Business Times. [http://www.bizjournals.com/eastbay/stories/2001/01/08/daily7.html "APL Logistics acquires GATX"]. 8 January 2001. Retrieved 8 August 2015. The acquisition gave it access to 21 million square feet of warehouse space in North and South America.

To expand its presence in Europe, later that year APL Logistics acquired 51 percent of German freight forwarding company Mare Logistik & Spedition GmbH, which gave it a retail logistics platform in the German market and access to the rapidly expanding Asia-Europe trade market.Song, Dong-Wook, Panayides, Photis (2004). Maritime Logistics: A Guide to Contemporary Shipping and Port Management, Second edition. p. 182. Kogan Page Limited. {{ISBN|978-0749472689}}.

In 2005, it formed Holistica Solutions,London, Paul B. Trade Winds. [https://www.tradewindsnews.com/weekly/w2005-12-22/194165/nol-teams-up-with-salvesen-in-logistics-venture "NOL teams up with Salvesen in logistics venture"]{{dead link|date=October 2016 |bot=InternetArchiveBot |fix-attempted=yes }} 21 December 2005. Retrieved 29 July 2015. a now defunct joint venture,Endole. [http://www.endole.co.uk/company/05622063/holistica-solutions-limited "Holistica Solutions Limited"]. Retrieved 8 August 2015. with UK-based distribution group Christian Salvesen to create an integrated supply chain with an end-to-end transport service using APL's sea-freight and Salvensen's land-transport assets.

In keeping with a philosophy of harnessing emerging technology for greater efficiency, in an attempt to find additional practical applications for radio-frequency identification (RFID) technology in logistics, NOL and APL Logistics teamed up with Sun Microsystems in 2005 to establish a test center in Singapore.O’Connor, Mary Catherine. RFID Journal. [https://web.archive.org/web/20150924092907/http://www.rfidjournal.com/articles/view?1473 "Sun to Build Korean RFID Test Center"]. 29 Mar 2005. Retrieved 11 August 2015. The center provided a live supply chain environment to evaluate RFID technology and application.

APL Logistics achieved two firsts in 2006 when it became the first foreign logistics firm to obtain a license to operate in Taiwan's Kaohsiung Free Trade Zone (FTZ)Neptune Orient Lines. [https://www.nol.com.sg/wps/wcm/connect/b594cf004903f3ad99a6bd1cbddaa51b/NOL_Annual_Report_2006.pdf?MOD=AJPERES "Neptune Orient Lines Annual Report 2006"]{{dead link|date=October 2016 |bot=InternetArchiveBot |fix-attempted=yes }}. (2006). Retrieved 3 August 2015. and when it teamed up with Con-way Freight and introduced OceanGuaranteed, the industry's first guaranteed less-than-container load (LCL) / less than truckload (LTL) service, offering door-to-door, day definite delivery from key ports in Asia to the U.S.Inbound Logistics. [http://www.inboundlogistics.com/cms/article/global-logistics-september-2006/ "Ocean Shippers Get Global Guarantee"]. September 2006. Retrieved 7 August 2015.

In 2006, APL Logistics opened offices in Spain and Turkey.Neptune Orient Lines. [https://www.nol.com.sg/wps/wcm/connect/b594cf004903f3ad99a6bd1cbddaa51b/NOL_Annual_Report_2006.pdf?MOD=AJPERES "Neptune Orient Lines Annual Report 2006"]{{dead link|date=October 2016 |bot=InternetArchiveBot |fix-attempted=yes }}. (2006). Retrieved 3 August 2015.

= India =

That same year, 2006, parent company NOL won approval to operate freight rail services in India.Blazeland. [http://www.blazelead.com/India-Infrastructure-And-Logistics-Private-Limited/aboutus/ "India Infrastructure and Logistics Private Limited"] {{Webarchive|url=https://web.archive.org/web/20160304035754/http://www.blazelead.com/India-Infrastructure-And-Logistics-Private-Limited/aboutus/ |date=2016-03-04 }}. Retrieved 11 August 2015. In a move designed to tap into the vast potential of India's transportation market, sister company APL set up a joint venture between APL India and HIPE (Hindustan Infrastructure Projects & Engineering Private Limited), which was eventually placed under APL Logistics. Named India Infrastructure and Logistics Private Limited (IILPL), the joint venture provides rail-based container transportation and logistics services in India and is marketed under the APL IndiaLinx brand. To improve efficiency, APL IndiaLinx introduced its first double-stack container train service in India in 2011.World Cargo News. [http://www.worldcargonews.com/htm/w20110713.784659.htm "APL launches Indian double stack service"] {{Webarchive|url=https://web.archive.org/web/20140713030342/http://www.worldcargonews.com/htm/w20110713.784659.htm |date=2014-07-13 }}. 13 July 2011. Retrieved 14 August 2015. In 2014, IILPL became a wholly owned subsidiary of APL Logistics when the latter acquired the remaining 24 percent of HIPE's shares for US$10 million.RailNews. [http://www.railnews.co.in/apl-logistics-buys-out-partner-hipe-transportation-in-india-rail-freight-jv/ "APL Logistics buys out partner HIPE Transportation in India Rail Freight JV"]. 27 January 2015. Retrieved 13 August 2015.

In 2012, to take advantage of favorable changes made by the Indian government regarding private rail transportation,First Post. [http://www.firstpost.com/india/govt-allows-private-companies-to-work-on-railway-projects-532748.html "Government allows private companies to work on railway projects"]. 23 November 2012. Retrieved 12 August 2015. APL Logistics formed a joint venture with VASCOR called APL Logistics VASCOR Automotive.Journal of Commerce. [http://www.joc.com/international-logistics/logistics-providers/apl-logistics/apl-logistics-vascor-joint-venture-serve-india%E2%80%99s-automotive-sector_20121205.html "APL Logistics, VASCOR in Joint Venture to Serve India’s Automotive Sector"]. 5 December 2012. Retrieved 3 August 2015. It was formed to support the need for improved domestic transportation of finished vehicles within India, which had been dependent on less-efficient and more damage prone road-based vehicle haulers navigating India's problematic road system.

= North America =

In 2008, APL Logistics began guaranteeing day-definite delivery of full container loads (FCL) to the U.S.Shipping Online.CN. [https://web.archive.org/web/20150924101334/http://www.shippingonline.cn/news/newsContent.asp?id=4426 "APL Logistics starts guaranteed delivery of full container loads"]. Retrieved 4 August 2015. It also introduced the first 1,000 containers dedicated to U.S. domestic transportation in 2011, becoming an asset-based player in the logistics space for the first time.Global Logistics Media. [http://www.globallogisticsmedia.com/articles/view/apl-logistics-debuts-53-foot-containers-in-north-america---images "APL Logistics debuts 53-foot containers in North America"] {{Webarchive|url=https://web.archive.org/web/20150715182535/http://www.globallogisticsmedia.com/articles/view/apl-logistics-debuts-53-foot-containers-in-north-america---images |date=2015-07-15 }}. 16 June 2011. Retrieved 5 August 2015.

In a move that linked origin ports in Asia to every major North American market, APL Logistics and its trucking partner, Con-way Freight, introduced its OceanGuaranteed service to Mexico in 2009.Neptune Orient Lines. [http://nolinfo.nol.com.sg/investor/ar2009/r_or_logistics.html "Neptune Orient Lines Annual Report 2009"] {{Webarchive|url=https://web.archive.org/web/20141110124253/http://nolinfo.nol.com.sg/investor/ar2009/r_or_logistics.html |date=2014-11-10 }} (2009). Retrieved 10 August 1915.

Determined to strengthen the integration of its supply chain services, in 2012 the company acquired U.S.-based customs broker and freight forwarder Carmichael International Services for US$37 million. The acquisition gave APL Logistics expanded customs brokerage, trade compliance, and consultation capabilities.Las Marias, Stephen. Logistics Insight Asia. [http://www.logasiamag.com/article/apl-logistics-acquires-carmichael-international-service/3041 "APL Logistics Acquires Carmichael International Service"]{{Dead link|date=September 2019 |bot=InternetArchiveBot |fix-attempted=yes }}. 21 November 2012. Retrieved 11 August 2015.

Further activity in North America included the 2013 launch of an online sales channel for Walmart in MexicoJournal of Commerce. [http://www.joc.com/international-logistics/logistics-providers/apl-logistics/apl-logistics-supports-wal-mart-online-sales-mexico_20130708.html "APL Logistics Supports Wal-Mart Online Sales in Mexico"]. 8 July 2013. Retrieved 13 August 2015. and the opening of a customs brokerage office in Laredo, Texas.JCtrains.net. [http://info.jctrans.com/jcnet/news/iln/2014131997530.shtml "APL Logistics Opens Brokerage Office in Laredo, Texas"]. 3 January 2014. Retrieved 14 August 2015.

In early 2015, APL Logistics and APL Logistics Americas incorporated a new company called APL Logistics de Mexico, S.A. DE C.V. to carry out transportation logistics operations in Mexico, with APLL owning 99.9 percent of the stock.Bloomberg Business. [https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=217722214 "APL Logistics Ltd and APL Logistics Americas, Ltd Announce Incorporation of New Company in Mexico"]. 29 April 2015. Retrieved 12 August 2015.

= Asia =

With an eye on the emerging Chinese automotive logistics market, in 2011 APL Logistics formed CMA Logistics (CMAL), a joint venture with Changan Minsheng.Zhengzheng Gong. [https://web.archive.org/web/20150924201735/http://www.highbeam.com/doc/1P2-8812622.html "Logistics company seeks IPO this year"] 17 March 2004. Retrieved 14 August 2015. A year later, APL Logistics established APLL-Zhiqin, a joint venture partnership with China's Legend Holdings Ltd. and Beijing Willway Information Technology Co. Ltd. With offices and hub facilities in 30 Chinese locations, the joint venture had a transportation and distribution network spanning over 2,000 cities and access to a wide range of multinational and local companies. In 2012, APL Logistics signed an agreement to acquire all the shares of APLL-Zhiqin from its partners.simic.net.cn [http://www.simic.net.cn/news_show.php?lan=en&id=112869 "APL Logistics dives into Chinese interior with Beijing APLL-Zhiqin buyout"] {{Webarchive|url=https://web.archive.org/web/20150924101919/http://www.simic.net.cn/news_show.php?lan=en&id=112869 |date=2015-09-24 }}. October 11, 2012. Retrieved 14 August 2015.

In 2009, APL Logistics launched flow center operations in Dubai Logistics City's (DLC) international free trade zone; the new center was intended to accelerate reliable cargo movement across the Middle East and reduce costs.3PLNews.com. [http://www.3plnews.com/3pl/apl-logistics-launches-first-flow-center-concept-in-dubai-logistics-city.html “APL Logistics Launches First Flow Center in Dubai Logistics City”]. 26 August 2009. Retrieved 13 August 2015.

In 2010, APL Logistics and Japan's Sumitomo Warehouse Co. agreed on a joint marketing arrangement that allowed them to take advantage of a broad international client base to support each other through business leads and joint sales efforts. The deal called for APL Logistics to make its global services available to Sumitomo customers, and in return, Osaka-based Sumitomo offered its warehousing and other logistical capabilities in Japan to APL Logistics’ customers.Canadian Shipper [http://www.canadianshipper.com/transportation-and-logistics/apl-forms-alliance-with-japanese-logistics-firm/1000378636/ “APL forms alliance with Japanese logistics firm”]. 14 July 2010. 14 August 2015.

In a bid to improve transit time efficiency for shippers and improve costs, in 2010 APL Logistics opened a 114,000 square foot container freight station located near two special economics zones in Chittagong, Bangladesh's largest and busiest port.Logistics Insight Asia. [http://www.logasiamag.com/article/apl-logistics-opens-bangladesh-container-freight-station/1963 “APL Logistics Opens Bangladesh Container Freight Station”]{{Dead link|date=September 2019 |bot=InternetArchiveBot |fix-attempted=yes }}. 14 June 2010. Retrieved 13 August 2015. The next year, to further broaden service offerings to customers in the apparel sector, the company opened two quality assurance centers in Bangladesh. Located in the cities of Dhaka and Chittagong, both centers are located near the majority of the country's garment manufactures.American Shipper. [http://www.americanshipper.com/Main/News/APL_Logistics_opens_Bangladesh_quality_centers_51404.aspx “APL Logistics opens Bangladesh quality centers”]. 2 October 2012. Retrieved 13 August 2015.

Further expanding its services in Southeast Asia, in 2011 APL Logistics introduced containerized cross-border trucking between Cambodia and Vietnam to offer shippers a later cutoff time to reduce transit times by several days when production ran late.Leach, Peter T. Journal of Commerce. [http://www.joc.com/maritime-news/apl-logistics-starts-cambodia-vietnam-truck-service_20101122.html “APL Logistics Starts Cambodia-Vietnam Truck Service”]. 22 November 2010. Retrieved 13 August 2015.

In 2015, to expand its footprint in Indonesia, APL Logistics announced that it had opened a new container freight station (CFS) at the Tungya Collins Terminal in Cakung, North Jakarta to handle export consolidation and warehousing services. The facility is a 120,000 square foot storage and distribution facility with yard space with cross-docking capabilities, and it has an annual handling capacity of 21 million cubic meters. APL Logistics has five warehousing services in Indonesia that coordinate with 280 factories.Knowler, Greg. Journal of Commerce. [http://www.joc.com/international-logistics/logistics-providers/apl-logistics/apl-logistics-expansion-trail-while-sale-sewn_20150507.html “APL Logistics on the expansion trail while sale is sewn up”]. 7 May 2015. Retrieved August 10 2015.

The company also announced in 2015 that, together with a local investor, it had incorporated a new company in Vietnam named APL Logistics Vietnam Company Limited to handle the provision of goods warehousing, storage services, and freight transport agency services. APLL has a 98 percent stake in the new company.Chua, Trinity. The Edge Markets. [http://www.theedgemarkets.com/sg/article/nol-incorporates-apl-logistics-vietnam “NOL incorporates APL Logistics Vietnam”] {{Webarchive|url=https://web.archive.org/web/20160304053729/http://www.theedgemarkets.com/sg/article/nol-incorporates-apl-logistics-vietnam |date=2016-03-04 }}. 25 May 2015. Retrieved 14 August 2015.

= Sale to KWE =

In 2015, after parent company NOL suffered four consecutive years of loss, it sold APL Logistics to KWE for US$1.2 billion in order to strengthen its balance sheet and focus on returning APL, its container transportation and shipping operation, to profitability. The sale was finalized on May 29 after the parties secured all the necessary legal, regulatory, and shareholder approvals in Singapore and Japan.International Transport Journal. [http://www.transportjournal.com/en/home/news/artikeldetail/apll-and-kintetsu-world-express-deal-complete.html “APLL and Kintetsu World Express deal complete”] 6 June 2015. Retrieved 7 August 2015.

Current Joint Ventures

= VASCOR Ltd =

Created in 1987, VASCOR is a joint venture between APL Logistics and Fujitrans Corporation of Japan. VASCOR Ltd. is a third-party logistics (3PL) specialist dedicated to servicing the specific needs of the global automotive industry.Klier, Thomas and Rubenstein, James (2008). Who Really Made Your Car? Restructuring and Geographic Change in the Auto Industry. p.195. W.E. Upjohn Institute for Employment Research.

= Changan Minsheng APLL Logistics (CMAL) =

Established in 2001, Changan Minsheng APLL Logistics (CMAL) is a joint venture between Changan Minsheng and APL Logistics Co., Ltd. CMAL is a third-party automobile logistics provider and comprehensive logistics provider in the Chinese market.Bookbinder, James H. (2012). Global Logistics. p.19. Springer Science & Business Media.CMAL. [http://www.camsl.com/en/category.php?id=3&sid=1 “Profile”] {{webarchive|url=https://web.archive.org/web/20150426113633/http://www.camsl.com/en/category.php?id=3&sid=1 |date=2015-04-26 }}. Retrieved 14 August 2015.

= APL Logistics VASCOR Automotive =

APL Logistics VASCOR Automotive is a Delhi-based 3PL provider serving the automotive sector in India. Incorporated in 2012, the company is a joint venture of APL Logistics and VASCOR.Automotive Logistics. [http://www.automotivelogisticsmagazine.com/news/apl-and-vascor-launch-auto-lsp-in-india “APL and Vascor launch auto LSP in India”]. 8 August 2012. Retrieved 14 August 2015. It handles end-to-end bulk transportation of vehicles and parts from the assembly line to destination utilizing specialized railcars with additional services including tracking, inspection, repair, and final mile delivery. In 2014, it invested in high-capacity rail rakes to gear up for expanded service through its AutoLinx service.Journal of Commerce. [http://www.joc.com/international-logistics/logistics-providers/apl-logistics/apl-logistics-vascor-automotive-invests-high-capacity-rakes-gears-new-rail-based-offering-finished “APL Logistics VASCOR Automotive invests in high-capacity rakes, gears up new rail-based offering for finished vehicles in India”]. 25 March 2014. Retrieved 13 August 2015.

Global infrastructure

Operating in more than 110 locations in 60 countries, APL Logistics manages 200 logistics facilities covering over 20 million square feet globally. It employs more than 6,000 people across the world. APL Logistics is organized in the following seven geographical divisions:

  • Europe (based in Hamburg, Germany)
  • Latin America (based in Miami, FL)
  • Middle East and Africa (based in Dubai, UAE)
  • North America (based in Scottsdale, AZ)
  • North Asia (based in Shanghai, China)
  • South Asia (based in Mumbai, India)
  • South East Asia (based in Singapore)

Major industries served

APL Logistics operates worldwide within the following key industry sectors:

  • Automotive
  • Consumer
  • Industrials
  • Retail

Services

APL Logistics provides services for the four verticals it serves (automotive, industrials, consumer, and retail) as well as supply chain engineering, supply chain services, technology services, and customer service.

{{col-begin}}

{{col-break}}

= Automotive =

  • Inbound-to-manufacturing
  • Aftermarket parts
  • Finished vehicles
  • Intercontinental supply chain

= Industrials =

  • Inbound and outbound freight
  • Process and program management
  • Aftermarket spare part support
  • Supply chain collaboration, optimization, and analysis
  • Warehousing and distribution

{{col-break}}

= Consumer =

  • Consolidation and deconsolidation
  • In-country distribution
  • High-touch value added services
  • Lean warehousing

= Retail =

  • Supply chain visibility, flexibility, and control
  • Omni channel
  • Order management
  • Consolidation
  • E-fulfillment

{{col-break}}

= Other Products and Services =

  • Consolidation
  • Deconsolidation
  • Customs brokerage
  • Air and ocean freight management
  • Warehousing
  • Distribution
  • Supply chain consulting
  • Transportation management
  • Value-added services

{{col-end}}

Leadership

  • Thad Bedard, President
  • Kevin Hideo Kosaka, Executive Vice President
  • Takayuki Maruyama, CFO
  • Fabio Duque, CCO & COO for the Americas and EMEA Regions
  • Waldo Basilla, CCO & COO for the Greater Asia Region
  • Maggie Barnard, CHRO
  • Hakan Yaren, CIO
  • David Glauber, General Counsel
  • Michael C. Pilver Jr., Vice President, Automotive

References