Oil is a mentality.
CEVA Logistics in Houston puts a special focus on the energy sector. Lufthansa Cargo helps it to reliably supply equipment to oil and gas companies worldwide.
If you’re trying to get a good share in the Houston market, you’d better talk service first and price second,” says Bruce Hulings, Vice President Energy Services from CEVA Logistics. That’s how the oil and gas industry had always worked here. Houston is the energy capital of the U.S. as well as one of the most important centers of the American economy: 28 of the country’s 500 biggest companies have their headquarters here – only New York has more.
And with a turnover of 6.8 billion euros, CEVA is also on the famous Fortune list. “Our customers include four of the six biggest oil and gas companies,” says Hulings. “On top of that, we supply to 400 of the world’s 700 oil platforms. The energy sector accounts for a total of six percent of our turnover.”
The industry is still a strong growth driver for the U.S. economy. Lufthansa Cargo has also recognized the potential of the Texas capital and started services with AeroLogic to Houston Bush Intercontinental Airport in April this year.
An MD-11 connection was added in June. This market entry has had a very positive impact on the business of CEVA. “Now that Lufthansa Cargo also operates directly from Houston, we save time,” explains Bonnie Martin, Senior Logistics Manager. “Trucking to Dallas, for example, is no longer absolutely necessary.” And the time factor plays a tremendously important role.
“When you look at the size and the value of the cargo that is needed by the industry, it’s obvious that this cannot be kept in stock at the required destinations,” says Greg Weigel, Executive Vice President Global Airfreight at CEVA.
“If a customer says he has to have something within 24 hours at a certain location, it just has to be there at that point in time. Otherwise, his company could lose several hundreds of thousands of dollars a day.”
Somewhat out-of-the-ordinary destinations are the special challenge here. As a rule, equipment for the oil and gas industry is not destined for the big hubs, but much more often for South America or West Africa.
“We need the reliability of Lufthansa Cargo that our freight is not only arriving punctually in Frankfurt, but that it also makes the connection on time to, for example, Ghana or Equatorial Guinea,” Weigel emphasizes.
Bruce Hulings adds: “We need a partner who lives the service idea, who listens and always tries to make everything possible. The oil business is a mentality. It’s not as if I’m going into a store to buy some jeans, and, if they don’t happen to be in stock, I simply come back next week. Lufthansa Cargo and CEVA share the same principles of service and excellence – all over the world.”
CEVA Logistics in figures.
Turnover: 6.8 billion euros (2010)
Employees: over 46,000
Logistics service provider ranking: Number 4 (worldwide)
Ranking IATA: Number 6 (worldwide)
Business locations: 1,200 in over 170 countries
Warehousing capacity: 10 million square meters
CEVA Logistics in figures.
|Turnover:||6.8 billion euros (2010)|
|Logistics service provider ranking:||Number 4 (worldwide)|
|Ranking IATA:||Number 6 (worldwide)|
|Business locations:||1,200 in over 170 countries|
|Warehousing capacity:||10 million square meters|