Subscribe to our free, weekly email newsletter!

Can U.S. ports measure up to carrier promises?

By Patrick Burnson, Executive Editor
September 15, 2011

Daily Maersk, the Danish carrier’s new service on the Asia–North Europe trade lane, will dramatically change the way shipping is done overseas. But can the same be said for calls to the States?

As reported in LM, the engine behind Daily Maersk is 70 vessels operating a daily service between four ports in Asia (Ningbo, Shanghai, Yantian and Tanjung Pelepas) and three ports in Europe (Felixstowe, Rotterdam and Bremerhaven) in what amounts to a giant ocean conveyor belt for the world’s busiest trade lane.

Regardless of which of the four Asian ports the cargo is loaded at, the transportation time – from cut-off to cargo availability – is fixed. Daily cut-offs mean that cargo can be shipped immediately after production without the need for storage.

Maersk Line promises that cargo at the other end will be available for pick-up on the agreed date. To underline that Maersk Line means business and how firmly the company believes in Daily Maersk, the promise is backed up with monetary compensation, should customers’ containers not arrive on time. This promise is a first in the shipping industry.

But can such a pledge be made to shippers in the transpacific? Many analysts don’t think so. Given the relative inefficiency of U.S. ports (particularly at the strike-prone ocean cargo gateways on the West Coast), adhering to a fixed schedule represents a risk ocean carriers may wish to avoid.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

As was the case a month ago, the Global Port Tracker report from the National Retail Federation (NRF) and maritime consultancy Hackett Associates is calling for annual import cargo volume gains at United States ports, as retailers gear up for the holiday season.

More than nine months after saying it was not for sale, Long Beach Calif.-based non asset-based third-party logistics (3PL) services provider UTi Worldwide has apparently changed its tune, with the company saying it has entered into a definitive agreement to be acquired by Denmark-based global 3PL DSV for $1.35 billion and $7.10 per share.

September carloads—at 1,417,750—were down 4.9 percent—or 72,597 carloads— annually, and intermodal—at 1,365,980 trailers and containers—was up 1.2 percent—or 16,272 trailers and containers.

Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry.

The NRF is calling for 2015 holiday sales to see a 3.7 percent annual gain to $630.5 billion, which comfortably outpaces the ten-year average of 2.5 percent.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA