Subscribe to our free, weekly email newsletter!


Ocean cargo shippers to be given new performance measurement tool

In an effort to help importers and exporters benchmark their carriers’ service levels, Drewry and CargoSmart have agreed to introduce a wider range of container Key Performance Indicators
By Patrick Burnson, Executive Editor
April 17, 2012

In an effort to help importers and exporters benchmark their carriers’ service levels, Drewry and CargoSmart have agreed to introduce a wider range of container Key Performance Indicators (KPIs).

Drewry will incorporate the additional KPIs into a new quarterly report, the details of which will be announced later this month.

“The new container KPIs will add value as they will measure performance at the box-level, which is more important for shippers than at the ship-level,” said Philip Damas, director at Drewry.

Spokesmen added that Drewry has chosen CargoSmart for its “high quality data,” which is necessary for KPIs to be effective for decision-making.

“Measuring KPIs is critical for shippers to optimize their business operations,” said Kim Le, director of CargoSmart North America.

Le said that the complementary data and analysis will provide a perspective analysis for shippers to make informed decisions about their carriers, ports, and routes.

The new KPIs will monitor not only the performance of the physical port-to-port shipping operation, but also the performance of commercial processes, as well as regional inland transport performance and port dwell times.

Drewry was the first company to introduce, in 2006, independent schedule reliability KPIs and spot container freight rate benchmarks. Six years on, Drewry intends to bring more transparency, accountability and comparability in other key aspects of container carrier performance, through its partnership with CargoSmart, providing like-for-like, regular assessments of carrier industry performance and quality over time.

“Drewry’s reporting over recent years has indicated that only 60 percent to 70 percent of containership sailings arrived on time, with carriers only recently deciding to provide a guaranteed standard of service with compensations for delays,” Damas said. “In a service industry, we believe that it is important that buyers know what standards of service and performance they can expect from the carrier industry – whether good or bad - and what it means in terms of value-for-money and the cost of failed performance.”

Many large importers and exporters today already measure various performance metrics for the carriers they use. The Agriculture Transportation Coalition (AgTC), for example, conducts an Ocean Carrier Performance Survey every year.

AgTC’s executive director, Peter Friedmann, told LM that the 2012 Survey will rank the following carriers: APL, China Shipping, CMA-CGM, Cosco, Evergreen, Hamburg Sud, Hanjin, Hapag-Lloyd, Hyundai, K-Line, Maersk, MOL, MSC, NYK, OOCL, U.S. Lines, United Arab, Yang Ming, and ZIM.

The new industry KPIs provided by Drewry and supported by CargoSmart will provide a comparative, standard assessment of the performance of the carrier industry as a whole and of carriers unknown to shippers, which is not otherwise available even to large shippers.

Drewry will disclose information on the new industry KPIs later this month, once the first phase of analysis has been completed.?

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

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU, and POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU.

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

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