Subscribe to our free, weekly email newsletter!


Ocean Carriers: Keeping service high despite rough seas

By Logistics Management Staff
August 01, 2014

Earlier in the year, Executive Editor Patrick Burnson issued the forecast that 2014 would be the year ocean cargo carriers finally return to profitability.

He reported that pent-up demand, depleted inventories, and a greater overall sense of economic security are converging on the high seas. In the meantime, ocean cargo carriers will be determined not to miss this opportunity to make rate hikes stick.

Now that we’re more than halfway through the year, industry analysts still agree with Burnson—and logistics managers are scrambling to readjust forecasts and budgets accordingly.

As we reported in the spring, trans-Pacific cargo demand posted steady growth coming off a healthy holiday season in the first quarter, and container lines serving the Asia-U.S. trade lane say that the gains are so far reflected in freight rates. Based off the recent news, it certainly appears that momentum will continue to build.

At press time, many shippers were still concerned about the progress—or lack thereof—in West Coast labor relations; however, ocean carriers have expressed optimism by announcing a proposed rate hike.

On July 15, container lines in the Transpacific Stabilization Agreement (TSA) moved ahead with a second phase of the revenue recovery plan by implementing a previously announced $200 per 40-foot container (FEU) general rate increase and peak season surcharge for cargo moving to Pacific Southwest ports in California. The bump follows a similar increase taken on July 1.

Now, the world’s largest ocean carriers are looking to reorganize and improve global services while working toward recovering revenue to remain vital. And according to the readers of LM, the following 15 carriers have done a terrific job of balancing this delicate task.

Pulling into port with the highest weighted score among our winners this year is Matson Navigation (49.52). Matson put up top marks in On-time Performance (11.99) and Information Technology (9.16). Wallenius Wilhelmsen had an impressive performance this year, posting high scores in Value (10.54), Customer Service (10.05), and Equipment & Operations (10.15).

Repeat winners from 2013 include Maersk Line (47.69), Atlantic Container Line (47.12), Hanjin Shipping (46.67), OOCL (46.44), Hamburg-Sud (46.44), Hapag-Lloyd (45.75), and Seaboard Marine (45.41).


2014 Quest for Quality Winners Categories

NATIONAL LTL | REGIONAL LTL | TRUCKLOAD | RAIL/INTERMODAL | OCEAN CARRIERS | PORTS | 3PL | AIR CARRIERS and FREIGHT FORWARDERS


home page

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

With an eye on capitalizing on future trade and commerce growth in South Asia, express delivery and logistics services provider DHL today rolled out its plans to build an $85 million EUR ($93 million USD) DHL Express South Asia Hub, which will be a 24-hour express hub facility within the Changi Airfreight Center at the Singapore Changi Airport.

While the Federal Railroad Administration (FRA) has long stated its goal of having Positive Train Control (PTC) technology installed on 40 percent of its network by December 31, 2015, railroad industry stakeholders have repeatedly stated that reaching that deadline would be a stretch. It now appears that the railroad sector has some members of Congress sharing the same line of thought with legislation rolled out this week that pledges to extend the PTC deadline to 2020.

West Coast port authorities may be overstating the obvious when they decry “business as usual.” But it’s refreshing to see them finally coming around.

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

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