IMC Companies News

  • What opportunties exist in Asia for Memphis’ distribution and logistics firms?

    From the Memphis Business Journal –

    Jim Covington
    Vice president of logistics
    and aerotropolis development
    Greater Memphis Chamber

    FedEx has generated a three-hub strategy which is very enticing from the Asian standpoint because they’ve chosen Guangzhou as the hub for Asia. We’re working with Guangzhou to jointly look for leads for our businesses. If there is a business in Guangzhou which uses FedEx and doesn’t have an operation in Memphis, we’re trying to find out who they are and put them together with potential opportunities here. The same happens in reverse. If we have someone who’s interested in going to Asia, we would want to put them together with the Guangzhou people. It’s something we’ve been working on for some time. We did a similar formal agreement with Paris and we want to work out one with Guangzhou as well.

    Katie George Hooser
    Business development
    IMC Cos.

    Memphis’ infrastructure allows our city to have interconnectivity to Asia that provides important opportunities for our distribution and logistics firms. That interconnectivity is made possible by our unique ability to efficiently handle air freight shipments and our five Class 1 railroads. OOCL, a Hong Kong-based container shipping company, is Intermodal Cartage’s largest customer in the Memphis area. We transport hundreds of containers for OOCL a week. The majority of that freight is imports from Asia delivering to warehouses all over the Mid-South.

    Richard McDuffie
    Dunavant Enterprises Inc.

    There continues to be an opportunity to expand in logistics due to overall economic global growth. In the U.S., according to recent reports, the third- and fourth-party logistics (3PL and 4PL) markets continue to grow ahead of the overall global economy; however, the growth opportunities for international 3PL and 4PL companies are more robust. Wage pressures and fuel costs are beginning to have an impact, but with many products, there are still chances to source product and import into Europe and the U.S. At the same time, exports will continue to feed the growth in capitalism that is occurring in Asian markets. We feel some keys to delivering results in these areas include having the right business personnel to execute strategies; ensuring your customer contracts have limited liability exposure; and understanding all credit or currency risks involved.

    Tina Newman
    Mallory Alexander International Logistics

    Free Trade Agreement, a dollar favorable to exports, Japan’s devastation and the robust economic growth of many Asian countries contribute positively to the strength of the Memphis transportation community. As most are aware, U.S. cotton had a record year, and moving forward, we anticipate sustained growth in agricultural products, as well as plastics, chemicals, automotive and consumer goods. Key initiatives of near-product warehousing at both origin and destination, together with supply chain technology, will continue to provide the Asian continent increased visibility to the value of Memphis as a global logistics partner.

    Posted: June 14, 2011