July 18, 2010

MIS is set to improve equipment utilization rates

Maxx Intermodal Systems is working closely together with leasing companies, general container dealers and other logistics providers to reposition containers to and from Russia. Today, the company is sending around 600 TEU per month in cabotage to address the increasing equipment imbalance in the region.

Equipment imbalances are a major issue for most of the shipping lines and leasing companies. In 2001, for instance, it was reportedly estimated that nearly 20% of all the containers at sea, were shipped without cargo from consumption to production areas.

“It is generally known that transport and container flows are defined by global economic developments,” says Mr Raf De Schutter. "These developments also have an impact on the volumes of empty transport. By giving containers in cabotage to inland transport operators, companies can reduce the costs for empty repositioning.”

The company is now applying the same strategy in Russia and Central Asia. Several partnerships with local transport companies have been established to move the empty containers to the locations where they require them.

Mr De Schutter believes that cabotage is a rather complex and diverse market. “It only works with certain strategic partners and when a win-win situation can be achieved. Empty containers are mostly shipped from surplus to shortage areas but these areas can change at different times and for different container types. It is our job to monitor the market and to avoid overstock or potential imbalances.”

Besides offering cabotage services, the company is also providing containerized domestic transport within Russia.

According to Mr De Schutter, the local production in Russia is gaining importance. “More and more foreign producers are moving their facilities to Russia in order to streamline the delivery of their products and to avoid paying import taxes. Demand for domestic transportation, therefore, is likely to increase.”

Since the railway market in Russia is quite monopolized, Mr De Schutter expects the market to be open for alternatives. “In most of the cases, rail transport is the only viable mode for domestic transportation. By offering alternative solutions to the customers, we can obtain a serious share of this market.”

Maxx Intermodal Systems is an established and well-known freight forwarding company. As part of the Rhenus Group, it employs more than 100 people in different parts of Europe and Asia. The company combines all modes of transport (road, rail and sea) and is committed to offering optimal logistical solutions.