Damco extends Hub-in-Transit programme

3PL provider Damco has extended its Hub in Transit programme at three new hubs in Morocco, Malaysia and the UAE. This system allows companies to delay decisions on final delivery date and final destination by using container transhipment hubs as decoupling points in the supply chain.

Anthony Elwine, Damco’s Global Head of Chemical & Industrial, explained the new offering: “Damco customers have used our Hub-in-Transit solution successfully to improve service to their customers while decreasing costs.

“We have now developed three additional hub locations to help them serve even more markets, and reap similar benefits. Chemical sector clients have been early users of the programme, but the service is also suitable for other products, such as steels and textiles, or FMCG/CPG.”

Companies with limited on-site storage capacity are most interested in this new service, particularly those with large scale continuous processes. The may be forced to ship their products based on assumptions about the best place and time of delivery.

The Hub in Transit scheme allows them to make full use of carrier free time by using transhipment hubs as virtual warehouses for their goods. In doing so they are able to reduce their costs to serve while increasing logistics flexibility toward their end customers.

Damco, one of the world’s leading third party logistics providers, specialises in delivering customised freight forwarding and supply chain solutions. The company provides services in 300+ locations across 100+ countries and employs 11,000+ people.

In 2015, Damco had a net turnover of USD 2.74 billion, managed 2.9 million TEU of ocean freight and supply chain management volumes, and air-freighted 180 thousand tonnes. Damco is part of the Maersk Group.