Ocean cargo carriers can take nothing for granted

The container shipping industry stands on the brink of an “era-defining moment” as it faces fundamental challenges, said Maersk Line CEO, Eivind Kolding

By ·

The tired old cliché, “thinking outside the box,” takes on new meaning when invoked by the world’s leading container shipping company.

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

While Kolding, no doubt, holds his own political and religious convictions, he only shares his views on the business of shipping with his constituents. For this, he is to be applauded.

He noted that containerization – often referred to as the engine of globalization – revolutionized world trade. The potential it unlocked by connecting producers and consumers across the world enabled both shipping lines and their customers to develop their businesses in ways that previously had seemed impossible.

“However, container shipping, is also the story of an established business model that often disappoints customers: one in every two containers is late, shipping lines are complex to do business with, and the industry, even while being the most environmentally-friendly transportation mode, still lacks transparency and common goals,” he said.?

With examples from the automotive, aviation, portable music players and mobile phone industries, Eivind Kolding told the conference that just because an industry is established it may only be a “few years from being completely overtaken” by new technology. And, that market and customer behavior is forcing companies to “never lose sight of what customers really want” - including the needs that they are not even aware of.

“Why not see these as fantastic opportunities?” he asked. “What if we could guarantee that cargo would be on time, every time? What if placing a shipping order was as easy as buying an airline ticket? What if the shipping industry was known for beating environmental expectations – not struggling to meet them?”

For related articles click here.


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 [email protected]

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!

Latest Whitepaper
Six Ways Cloud ERP Supports Rapid Innovation
Kenandy is a new approach to ERP that lets you and your team focus on driving innovation, creating new product lines, and expanding your customer base even as you improve your business operations.
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Best Practices: How to Efficiently Leverage APIs to Increase Your Net Income
Both legacy and modern technology leaders agree that leveraging API connectivity is critical in keeping up with the pace of a world that demands not only speed and agility, but also a deep level of visibility. During this session a panel of technology and industry experts discuss impact APIs can have on annual net income and market capitalization.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...