Quest for Quality - OCEAN CARRIERS: Steadfast incumbents
-- Logistics Management, 8/1/2008
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For the past four years we’ve been reporting that ocean carriers have been working feverishly to differentiate themselves as ocean shippers have started to treat the mode as a mere commodity. Well, it appears that this steadfast group of incumbents has figured out a way to not only stand out in a crowd, but also deliver world-class service when they’re called into action.
According to this year’s survey, 15 carriers have undoubtedly met shipper needs on the various routes they served over the past year. In fact, we have an even dozen winners in 2008 that made the cut last year, signaling that shippers remain consistently pleased with the overall service and support they’ve been receiving in this critical sector of transportation.
We also found some subtle improvements in our overall averages for this category. The 2008 overall weighted average rang in at 32.21, almost a full point of improvement over our 2007 findings. Overall averages for three key attributes also improved by a few tenths of a point this year, with shippers saying they’ve are a bit happier with On-time Performance (9.71), Value (7.97), and Equipment & Operations (4.78) this year over last.
While every carrier on this long list has brought home the gold, it’s interesting to dig into which carriers have taken top honors across all of the key attributes in this hotly contested category. “K” Line, a perennial shipper favorite, led all winners by posting an impressive 35.61 weighted average score. However, “K” Line certainly did not sweep all the categories on the way to this top spot; in fact, the carrier only took top position in On-time Performance (10.83).
Yang Ming Line actually led all carriers in three of the key attribute categories, including Value (8.88), Customer Service (7.54), and Equipment & Operations (5.50). However, it was the carrier’s On-time Performance score of 9.20 that kept it out of the top spot. Wallenius Wilhelmsen scored the highest this year in Information Technology, posting a score of 4.20.
Crowley Liner Services tied with Yang Ming Line with a weighted average of 35.26. While Crowley did not post a top number in any of the key attribute categories, it’s a terrific example of a carrier that put up consistently high numbers in each of the categories—a sure sign that its customers have been quite satisfied with its service.
While “K” Line, Crowley, and Yang Ming took top three positions, they’re certainly joined by an impressive list of other repeat winners. This year we welcome Hyundai Merchant Marine, OOCL, Matson Navigation, APL, NYK Line, Italia Line, Hapag-Loyd, Hanjin Shipping, and MOL back to the winners circle.
And while we find 15 carriers on the podium this year, it’s not going to be easy for them to keep these scores so consistent over the next year. Today, we find ocean carriers using a variety of new deployment strategies to mitigate higher energy costs and better target emerging markets. Capacity exceeds demand, as usual, but that doesn’t mean shippers will get a break on rates—so that may end up putting a strain on carrier/shipper relations in 2009.
| Ocean Carriers | ||||||
| On-time Performance | Value | Information Technology | Customer Service | Equipment & Operations | Weighted Score | |
| “K” Line | 10.83 | 8.58 | 3.98 | 6.98 | 5.24 | 35.61 |
| Crowley Liner Services | 10.59 | 8.45 | 4.04 | 6.95 | 5.23 | 35.26 |
| Yang Ming Line | 9.20 | 8.88 | 4.14 | 7.54 | 5.50 | 35.26 |
| Wallenius Wilhelmsen | 10.12 | 8.63 | 4.20 | 6.77 | 5.13 | 34.85 |
| Zim Container Service | 10.56 | 8.14 | 3.96 | 6.67 | 5.28 | 34.61 |
| Hyundai Merchant Marine | 10.29 | 8.10 | 4.00 | 6.28 | 5.05 | 33.71 |
| OOCL | 10.20 | 8.24 | 4.04 | 6.29 | 4.79 | 33.56 |
| Matson Navigation | 10.52 | 7.76 | 3.92 | 6.45 | 4.88 | 33.54 |
| APL | 10.29 | 7.67 | 4.07 | 6.24 | 5.11 | 33.38 |
| NYK Line | 10.30 | 7.88 | 3.93 | 6.23 | 4.90 | 33.23 |
| Maersk Line | 10.21 | 7.51 | 4.21 | 5.98 | 5.05 | 32.97 |
| Italia Line | 9.46 | 8.14 | 3.98 | 6.21 | 4.70 | 32.49 |
| Hapag-Lloyd | 9.70 | 8.05 | 3.80 | 6.13 | 4.81 | 32.48 |
| Hanjin Shipping | 10.15 | 8.04 | 3.70 | 5.86 | 4.66 | 32.42 |
| MOL | 9.95 | 7.84 | 3.68 | 6.13 | 4.76 | 32.34 |
| AVERAGE | 9.71 | 7.97 | 3.72 | 6.03 | 4.78 | 32.21 |
| All scores are weighted. Weighted scores are determined by multiplying the average raw scores by the average importance of each attribute (1= least important; 5= most important). To find the attributed weights for this category, see the introduction to the Quest for Quality report. Logistics Management - 2008 Quest for Quality - International Ocean Carriers - Reed Business Information - June 2008 |
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