Changing direction

By Staff -- Logistics Management, 8/1/2000

U.S. deregulation of the maritime industry last year has put new wind in the sails of the nation's ocean shippers. The Ocean Shipping Reform Act (OSRA), which took effect in May 1999, allows shippers and carriers to sign confidential contracts and individually negotiate rates and service.

Now that shippers have more freedom to contract with individual carriers for their services, the liner companies are expected to begin emphasizing their distinct service capabilities. Based on our survey, a number of ocean carriers have risen to that challenge. Fifteen carriers earned gold medals this year, compared with eight last year. Cited for topnotch service this year are: Australia New Zealand Direct Line, Cast North America, Canada Maritime, Hapag-Lloyd, K Line, Mitsui O.S.K. Lines, Yang Ming Line, Atlantic Container Line, NYK Line, APL Ltd., Zim Container Service, OOCL, Columbus Line, Hamburg Süd, and P & O Nedlloyd.

Although more carriers made the grade this year, the overall weighted score for the industry dropped from 32.23 in 1999 to 31.05 this year. But the carriers as a group did show improvement in the key area of customer service; that ranking rose from 5.26 to 6.04 this year.

Still, the carriers' overall ratings in the four other categories foundered. The on-time performance rate sank from 10.33 last year to 9.68 this year. The value quotient also fell from 8.21 to 7.29. The information-technology ranking dropped from 3.32 to 3.05, while equipment and operations declined from 5.12 to 4.99.

The increase in the number of winners, in conjunction with the drop in overall scores, suggests that though liner companies may have improved their relationships with shippers overall, they still have work to do when it comes to the quality of specific service categories.

2000 Readers' Choice

International Ocean Carriers

• Australia New Zealand