The first part of this journey required the cargo to be transported by road to Felixstowe Port where it would be loaded onto the vessel. The cargo (weighing 35000kgs with dimensions 155 x 37 x 35 meters) was to be shipped as break bulk to Veracruz for the Oil & Gas Industry.

Due to there being no break bulk services between UK and Mexico, Tuscor Lloyds had to use experience and knowledge to arrange shipment of this break bulk piece on a standard container vessel. This type of loading method, whilst available in the industry can prove to be an operational challenge for many container lines. In order to achieve such method of shipment, special attention and care must be paid to the safe loading of the cargo and the securing by on-board stevedores under the deck of the vessel.

The cargo was transported by sea into Veracruz Port where it was carefully discharged from the container vessel directly onto our customer’s truck waiting in the port.

Our customer used to spend a lot of money moving similar break bulk cargo to Mexico. They used to ship via a break bulk service from Belgium and the costs were high. Our customer was extremely happy with the smooth operation Tuscor Lloyds provided. Their cargo arrived Mexico earlier than expected, and most importantly of all at lower freight rate than they would normally pay.

Readers will remember that Tuscor Lloyds Spain was a key logistics supplier to the project. The company moved the huge cranes used during the construction of the structure. The cranes, some of the world’s tallest, were supplied by a specialist firm in Spain. Tuscor Lloyds moved them across the Atlantic in pieces and then they were moved into position by truck, ready for assembly by the construction company.

During the opening ceremony, the President spoke proudly of the engineering feat, highlighting the importance of linking the central part of the country with the west coast. The bridge has become symbolic of Mexico’s continuing provincial development and its opening is part of the celebrations to mark 200 years of the country’s independence from colonial Spain. The practical implications however are huge with the journey time from Mazatlan to Durango reduced by 6 hours. This makes the road journey across Mexico’s heavily populated central regions commercially viable, linking the Atlantic and Pacific coasts by road for the first time.

Read the previous article here: www.tuscorlloyds.com/shipping-news/the-bridge/ ]]> http://www.tuscorlloyds.com/shipping-news/building-bridges-baluarte-bridge-mexico/feed/ 0 http://www.tuscorlloyds.com/recent-projects/concrete-logistics-from-tuscor-lloyds/?utm_source=rss&utm_medium=rss&utm_campaign=concrete-logistics-from-tuscor-lloyds http://www.tuscorlloyds.com/recent-projects/concrete-logistics-from-tuscor-lloyds/#comments Thu, 29 Dec 2011 09:51:07 +0000 admin http://www.tuscorlloyds.com/?p=8890 Tuscor Lloyds was called in by the manufacturer of this 20 ton mobile concrete batching plant after they struggled to find an appropriate vessel which could reach the destination within the tight timeframe. The mobile concrete batching plant was to be delivered to one of the biggest cement companies in the world and the deadline could not be missed. Using our knowledge and local contacts we arranged for multimodal transport by road and sea which would deliver the cargo to Mexico City within the timeframe. Tuscor Lloyds picked up the cargo from the manufacturers in Mercia, Spain and loaded it on to a truck, from here it was transported by road to our warehouses in Valencia where it was then loaded onto a 40’ flat rack which we located specifically for this shipment. Due to the shape and size (13.8m x 2.85m x 4m) of the cargo the stevedores had to specially lash the cargo to ensure it was safe and secure for transport by road and sea. The cargo was safely transported and loaded at the Port of Valencia and shipped as out of gauge cargo to Veracruz, Mexico for unloading. The mobile concrete batching plant was unloaded without any problems and once ready the cargo was transported by road to Mexico City.]]> Tuscor Lloyds was called in by the manufacturer of this 20 ton mobile concrete batching plant after they struggled to find an appropriate vessel which could reach the destination within the tight timeframe.

The mobile concrete batching plant was to be delivered to one of the biggest cement companies in the world and the deadline could not be missed. Using our knowledge and local contacts we arranged for multimodal transport by road and sea which would deliver the cargo to Mexico City within the timeframe.

Tuscor Lloyds picked up the cargo from the manufacturers in Mercia, Spain and loaded it on to a truck, from here it was transported by road to our warehouses in Valencia where it was then loaded onto a 40’ flat rack which we located specifically for this shipment.

Due to the shape and size (13.8m x 2.85m x 4m) of the cargo the stevedores had to specially lash the cargo to ensure it was safe and secure for transport by road and sea.

The cargo was safely transported and loaded at the Port of Valencia and shipped as out of gauge cargo to Veracruz, Mexico for unloading. The mobile concrete batching plant was unloaded without any problems and once ready the cargo was transported by road to Mexico City.

The Middle East and North Africa both look very exciting especially the Energy Sector. Now that the political situation appears to be calming down we are anticipating invigorated regional markets and some bounce back over the next 12 months. Libya especially is seeing strong growth since the fall of the regime.

We are seeing increasing activity in Brazil right now as infrastructure and development gathers pace for the World Cup and Olympics. We expect the market there to grow further over the next 2 years. We are seeing a great deal of project cargo to Brazil, especially from the continent.

Have customers changed the way they choose service providers?

The market is becoming cost driven – more than ever. Our customers move very high value cargo and they used to demand service before price. The demand for service is still there but the customers seem to be going out to the market and tendering jobs more nowadays. The problem with this approach is that they may drift towards inexperienced suppliers who look like they’re cheaper but the shipper will find costs increasing through the job.

Where are customers cutting costs and how does this affect the way you operate?

There seems to be a desire for shippers to deal directly with the shipping lines at the moment. The perception is that they will save some money by ‘cutting out the middle man’ but often this leads to headaches and mistakes. We are constantly improving our service offering, as this is the primary draw for our customers and one that the shipping lines can’t compete with.

We do find ourselves being squeezed on price because others claim to offer the same service for less. Customers find they are hit by surprise costs and this is where unscrupulous operators are making their money. Much of our cargo is time sensitive so another common trick is to offer earlier sailings to win the job, and then once the cargo is safely in hand the customer finds the vessel is delayed. We have maintained our high standards and always tell the truth. You try and educate the customer – as the saying goes: if something is too good to be true, it usually is.

Is the industry facing any equipment constraints?

Apart from the usual seasonal problems with haulage and road coverage, there seems to be a shortage of special equipment in the UK and Europe right now. Most shipping lines are claiming they will not be able to find equipment until the New Year. Furthermore the depots are struggling to find time and space to handle loading jobs. Fortunately our supplier contacts are well placed. They are finding equipment and space for our customers. Long standing relationships based on trust is the key to getting things done. Ours is still a people business.

What’s the situation at the moment with availability of charter vessels and lease costs?

In contrast there seems to be ample space and availability in port and on conventional vessels at the moment. Our chartering desk has been able to secure some very interesting cargos lately. There is certainly some good capacity available, especially short sea and inter-European trades. Cargo handling in port and on board vessel stevedoring is also easy to organize right now.

What changes in the shipping industry have most affected your business this year?

There appears to be more forwarders and shipping lines who claim they know how to ship heavy and abnormal project cargoes. They are attracted to the market because margins are better than their native container-based businesses. Many of these companies actually lack the expertise or ability to do a good job. Their service levels are poor and they make frequent and costly mistakes.

Some customers have been seduced by their promises, probably by pushy sales staff and heavy marketing campaigns. Almost all these customers returned with grim stories of big problems on relatively simple projects. Experience and integrity are important in todays’ market. We primarily sell knowledge to our customers. They use us as a ‘safe pair of hands’ for jobs which are rarely straightforward such as complicated multi-modal and cross trade movements.

What political changes have most affected your business this year?

Due to the global economic crisis, we feel there is over capacity and pent-up demand at the moment in the heavy lift market. Many exporters seem to be waiting for something bad to happen but we have thrived in this challenging environment. Our reputation as a reliable partner has allowed us to retain our key accounts and instil greater loyalty in our customer base.

Many companies are being squeezed by lack of cargo and falling revenues. Operators must be financially secure and able to handle problems if they occur. Too many shippers go purely on rate and fail to understand the implications of corporate failure and how close some firms are to going out of business.

What do you see as the single biggest challenge for your sector in the year to come?

The economic environment continues to challenge everyone in the freight industry. I think we will see many of the weaker firms falling by the wayside. The ones who remain will be all the stronger for it. Thankfully at Tuscor Lloyds we are seeing an increase in profit year on year. Not many in the industry can say that right now and this is down to the hard work and determination of our staff.

What was your growth strategy this year and how will you approach the next 12 months?

Our business model works well, but it is based on knowledge. We are gaining expertise by making a point of training the right people in house to think like us. The aim is to expand our project management staff numbers further. The more people we have who know how to handle project cargo intelligently, the better placed we will be to secure an even larger market share.

North Africa is really taking off for us right now and we’re looking at expanding our market share in the region. Much of the work is oil and gas industry related and as this sector is our specialty, we are finding a great deal of business out there. We are also expanding our offer in Brazil. We are working with some fantastic people over there and we’ve got some very big plans for our South American offer next year.

For all their undoubted cruelty, the secular dictators of North Africa oversaw important investment programs in port infrastructure. As recently as January 2011, the Mubarak-led Egyptian government agreed capital expenditure of over $16 billion for new equipment and upgrades across the country’s port facilities. More investment is needed however and while democracy is good for trade, the newly elected North African governments must not be tempted to cancel the more astute decisions of their predecessors – no matter how hated their regimes were.

A key industry for UK exporters to the region in the future will be the energy sector. According to The International Energy Agency’s 2011 World Energy Outlook, global demand for oil (currently at 88 million barrels per day) is likely to increase to 99 mb/d by 2035. The report claims productivity will fall for many oil producers over the same period and more importantly, production costs will increase for almost all suppliers. The outlook for the North African fossil fuel industry however looks bright, with almost the entire shortfall in productivity (nine tenths, according to the IEA) to be taken up by the Middle East and North Africa combined.

The IEA estimates investment to the tune of $2.7 trillion is required across the North African region in the energy sector to achieve this goal. This level of commitment cannot be exclusively provided by local business, and it is likely much of this assistance will come from established oil companies with the expertise and resources to reach productivity targets. We can be sure that UK business will be at the forefront of the development and the all-important logistics services will be offered to British forwarders.

Monica Herandez, General Manager of Tuscor Lloyds in Veracruz, comments: “We are really excited about the new premises. The previous office space was far too small for us and after taking on several new employees this year it was becoming harder to operate efficiently. This new office will allow us to continue our plans to expand further next year with more staff joining us in early 2012.”

Like many countries, particularly those with close ties to the United States, we suffered a deep recession in 2008. Since then however, economic output has recovered and the World Bank estimates strong 2011 results after an overall expansion of 5.5% in 2010. Trade with Europe has grown steadily in the past 10 years, largely due to the Free trade Agreement with the EU and policies which encourage Mexican firms to seek a wide supplier market. A recent spike in violent crime in Mexico has raised concerns about the security situation, particularly in provincial cities. Despite this however the country has enjoyed a relatively stable political environment and this has fed through to steady growth and development of the economy.

Tuscor Lloyds will be moving into the new premises on the 5th December 2011.

Phone numbers for the new office will remain the same as before but obviously there is a change of location, the new address is as follows:
ALACIO PEREZ #25, 4to piso, COL. FLORES MAGON, C.P.91900
VERACRUZ, VER. EDIFICIO “JOSTER”.

For full contact details and a map showing the location of our new office please visit the Veracruz Office page.

Outsized, heavy and abnormal cargo would normally be booked as conventional shipments. Often the vessels are geared and properly configured to receive consignments of various types and sizes. It is widely acknowledged however that conventional vessels are inconsistent in terms of schedules and transit times. They often omit port calls and large volume bookings are required to ensure a measure of reliability.

Container lines provide a highly attractive alternative, with their regular as clockwork sailings (by comparison), wider coverage of port calls and faster sailing times. Container vessels, with their tight schedules, require a slick and efficient port operation in order to off-load. The ports are now set up for this, with equipment and cables on hand to adapt gantry cranes and even mobile heavy duty cranes available to execute heavy and awkward lifts. This provides a good substitute for the conventional vessel’s gears and reduces handling time and risk to the cargo.

Whilst the ports have the expertise on the ground, the process is all too often scuppered by a lack of operational knowledge in the office. Expertise is required to make the whole process work and the customer needs to feel confident the job is being done correctly. Often the shipper will not even get to a quotation so will assume that break bulk cannot be carried, but it can be as simple as speaking to the right person within the liner organisation to assist with the enquiry. If the container lines are really serious about becoming a substitute to conventional services then they need to train their office staff to better handle the enquiries. For container lines to become an attractive alternative to a different type of shipper the industry generally needs to wise up. There are far too few lines capable of handling conventional cargo yet far too many who claim a stake in the market.