ASIA PACIFIC BUSINESSES AFFECTED BY SLOW SHIPS, SAYS SURVEY

KUALA LUMPUR, July 21 (Bernama) -- A good number of Asia Pacific
businesses involved in international trade are being impacted with delays in their supply chain by the "slow steaming" or the travelling by container ships at reduced speed to save fuel costs, a global survey conducted by BDP International has found.

BDP International is one of the leading freight logistics and transportation management firm based in the United States.

According to its survey, container ships which can travel at 25 knots are moving as slow as 14 knots and this has made the crossing of the Pacifc Ocean a 15 day trip, instead of the usual 11.

Of the 290 senior executives participating in the survey, 37 per cent were from Asia Pacific, with the chemical, consumer goods, retail, healthcare and electronics industries all represented.

Executive director of marketing and corporate communications, Arnie
Bornstein explained that the slow steaming of the ships had resulted in longer journey times and delays in the arrival of goods.

"Companies are experiencing problems such as an inability to deliver goodson time or difficulties meeting their commitments," Bornstein said during a media briefing here Thursday.

Their inventory levels are affected, either because they cannot get parts in time or they are forced to hold more inventory than in the past, he added.

In this situation, manufacturing sites are expected to move closer to supply chains, Bornstein said.

General manager of BDP International, Ng Kar Kit said the respondents of the survey meanwhile had indicated that ocean carriers should share the cost savings of slow steaming by reducing their rates.