Subscribe to our free, weekly email newsletter!



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 Patrick Burnson, Executive Editor
June 07, 2011

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

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

Intermodal units, at 278,767 containers and trailers were up 6.7 percent compared to the same week last year and marks the third best week for intermodal ever recorded based on AAR’s data.

LM Group News Editor Jeff Berman recently conducted a wide-ranging interview with Bobby Harris, President and CEO of non asset-based 3PL BlueGrace Logistics about various aspects of the freight transportation market.

It’s small, but senior brass at YRC Worldwide will take it. After nearly seven years of continuing losses in excess of $2.6 billion, the parent of the nation’s second-largest LTL carrier posted a narrow net profit in the third quarter ended Sept. 30.

As was the case for the second quarter, third quarter earnings results for publicly-traded less-than-truckload (LTL) carriers are again strong. Signs of solid earnings results from carriers that have posted earnings to date include tonnage increases, gains in weight per shipment and average daily shipments, higher yield, and revenue per hundredweight.

While the holiday season is known to bring good tidings and cheer to all, it may also come with another thing that is not so pleasant: higher rate freights. That was the thesis of a commentary written by Mark Montague, industry pricing analyst and chief market-watcher for DAT, a Portland, Ore.-based subsidiary of TransCore.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA