New direct Vietnam-US service boosts Transpacific offering

June 3, 2009: NOL’s container shipping arm APL has given its Transpacific service offering a boost with the launch of a weekly direct Vietnam-US container shipping service and extension of its 53-foot containers to shippers sourcing goods in Vietnam. The new service from Vietnam to the US West Coast offers the industry’s fastest transit times.

The APL Denver, which is deployed on the PS1 service, made its first call at the new Saigon Port-PSA (SP-PSA) facility located along the Cai Mep River in Vietnam’s Ba Ria Vung Tau province. SP-PSA is Vietnam’s first operational deepwater container terminal serving Ho Chi Minh City.

Speaking at the launch ceremony at SP-PSA, APL’s Senior Vice President for Pan American Trade Bob Sappio said: “At a time when trade is contracting across the world, Vietnam is among a select few countries that expects to record growth in 2009. The new PS1 service will help Vietnam grow as a vibrant manufacturing and export centre with an increasingly vital role to play in global trade.”

The new service will offer the industry’s fastest transit time from Vietnam to the US West Coast – taking just 15 days to reach Seattle, and 16 days to Los Angeles.

The APL Denver was also loaded with 53-foot containers that included products shipped by global sportswear maker Nike, Inc.

Nike will reduce transit times by an average of two to four days using the new service. The reduction in transit days, as well as consolidating more product into fewer containers, will also reduce the company’s carbon footprint.

APL’s 53-footers have 60% more capacity than standard 40-foot containers. This extra space enables importers and exporters to consolidate more cargo into fewer containers.

Vietnam’s shippers can now take advantage of the potential for significant cost reductions and improved transit times that our 53-foot equipment provides.

For shippers, the new service also offers a first opportunity to utilise other APL innovations, including:

• APL Guaranteed™ Direct - the industry’s first day-definite, money-back-guaranteed ocean service for full containerloads.
• APL LinerTrain™ - dedicated APL cargo trains which are scheduled to meet APL vessels, departing from on-dock rail facilities operated by APL in Seattle and Los Angeles to major US inland markets

The new service is stimulating interest from shippers – particularly in the footwear and apparel sectors, which supply the major exports from Vietnam. Refrigerated cargo is also another key outbound commodity.

Major imports include machinery and equipment, petroleum products, fertiliser, steel products and raw cotton.

This latest offering makes APL’s Vietnam services among the industry’s most comprehensive. APL already makes weekly calls covering the entire country – from Ho Chi Minh City in the south, Da Nang in the centre and Haiphong in the north. These services connect via feeder ships to strategic hubs and then into APL’s global network, which calls at all major locations within Asia, the Middle East, Europe and the US.

NOL