Subscribe to our free, weekly email newsletter!


Maersk promises on-time delivery

So-called “phantom bookings,” may be countered with a surcharge to compensate for lost revenue on any given voyage
By Patrick Burnson, Executive Editor
September 13, 2011

Following its promise to be more collaborative with shippers, Maersk Line is introducing a time-definite service in the booming Asia-EU trade lane.

“A daily service between Asia and North Europe with reliable on-time delivery will change liner shipping forever,” spokesmen in Copenhagen declared. “Up until now, customers have had to adjust their production schedules and supply chains to accommodate shipping lines’ unreliability, as they have never been able to trust that their cargo would be on time.”

This will be thing of the past, Maersk promised, noting that the engine behind Daily Maersk is 70 vessels operating a daily sailings 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” in the carrier’s busiest global service.

In a speech given last June at a major EU logistics event, Maersk Line CEO, Eivind Kolding said the container shipping industry stands on the brink of an “era-defining moment” as it faces fundamental challenges. He added that if container the shipping industry is to secure its right to operate in the future, the industry needs to change now.??

This latest announcement seems to reflect that attitude, said analysts. Zim Line has been ramping up its premium service in the trade lane, as well.


At the same time, however, Maersk and other carriers may soon be holding shippers accountable for freight that is promised, but does not appear. So-called “phantom bookings,” may be countered with a surcharge to compensate for lost revenue on any given voyage.

This, said one analyst, must be exercised with caution:

“Maersk has every right to demand such an arrangement,” said Charles Clowdis, Jr., managing director-transportation advisory services, at IHS Global Insight. “But until capacity is controlled or withdrawn, it’s going to be tough to enforce.”

About the Author

image
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

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Article Topics

News · Ocean Freight · Global · Ocean Cargo · All topics

Comments

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