The Growth Sector Port Logistics and the decisive Role of Tires

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Background
The Growth Sector Port Logistics and the decisive
Role of Tires
Rotterdam, 25 June, 2013. In recent years, port logistics have shown a steady market growth
of seven percent per year. According to recent estimates, the global port business will double
its capacity from 600 Million TEU to 1.2 billion TEU in 2024 (TEU: twenty-foot equivalent
units: standard unit for describing a ship’s cargo carrying capacity). The market is
characterized by intensive competition and the constant need to optimize operating costs
and efficiency.
This prospect reflects an immense growth potential for the port operators and for their
suppliers, such as tire and equipment manufacturers. But it also indicates big operational
challenges. Ports are the chokepoints of world trade and international logistic chains. Limited
space often restrains additional growth potential. Constantly increasing cargo volumes have
to be handled in tighter and tighter schedules.
Reliable tires a key factor for efficient port operation
Port fleets are a decisive factor for the smooth operation of harbors. And reliable tires are
essential for their safety and operating stability. Especially tire failures frequently cause
problems in the logistics chain. A tire puncture on an oversized heavy-duty vehicle such as a
rubber tire gantry crane or a reach stacker can lead to severe accidents involving injuries and
human fatalities and it can cause tremendous difficulties in the logistics chain. Even a simple
tire related downtime of a vehicle can cost a lot of money and coordination efforts.
Even though, tire related downtimes are an ongoing issue in the harbor business, a vast
number of tires used on harbor vehicles simply are not designed for these challenging
conditions. As a result, only a fraction of the tires used on harbor vehicles reach the end of
their projected service life in the challenging working environment a harbor represents for
commercial vehicles and for tires in particular: Heavy freight has to be moved and high
stacks have to be reached. Constant turns and direction changes have to be performed.
Your contact:
Ute Weiss, Phone: +49 511 938-2131
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Background
Uneven surfaces with different and sometimes highly abrasive grounds, potholes, bumps and
foreign objects increase tire wear as well as the risk of tire failure.
Aside from the fact that tire related downtimes can be costly, tire replacement costs are an
important item for managers of harbor fleets. Tires are cost factor number two, second only
to fuel costs. In addition, tires have a significant influence on the fuel costs, as about
20 percent of a vehicle’s fuel consumption originates in the rolling resistance of tires.
For these reasons, safety, reliability, strong performance and cost efficiency are the most
significant priorities for harbor fleet operators when making a decision for their vehicles’ tires.
The challenge to suppliers is to offer customized products and systems that are optimized for
port operators, avoiding downtimes, offering better safety, reliability, lower rolling resistance
and better performance that allows for faster loading times.
Improvement of environmental sustainability through state-of-the-art tires
In addition to costs and positive economic effects, tires can also contribute a great deal to
optimize the environmental performance of port fleets and logistics businesses.
As many other businesses, ports have an enormous potential to reduce CO2 emissions and
waste accumulation. In future, ports will look to optimize their environmental performance
through continuous process optimization and resource efficiency, and they will increasingly
often be asked for triple bottom line figures by customers, politics and other stakeholders.
Those port operators, who anticipate future customer demands properly and commit
themselves to meet rising environmental standards, will achieve mid- to long-term cost
savings by reducing fuel consumption and save energy, resources and waste.
To sum up, sustainability is a key influencer for corporate reputation and a key influencer for
future business opportunities. More and more businesses are forced to monitor their
environmental and social performance across their supply-chains. As tires can have a
significant impact on enhancing the environmental performance of port fleets, it is one of the
major responsibilities of the tire industry today, to support their customers in reaching
sustainability commitments.
Your contact:
Ute Weiss, Phone: +49 511 938-2131
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