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


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

Companies used to compete on price and service. The future of supply chain, according to Steve Melnyk, is culture. In fact, innovators like Apple, Google, and Unilever are already leading because of their cultures. Your company can too.

As evidenced by the widening gap in the United States trade deficit, which has seen imports far outpacing exports for years on end, the September edition of the “Global Trade Pulse” from global maritime and trade consultancy Hackett Associates paints a similar picture for trade activity in North America, with some overlapping themes apparent in the report’s European data, too.

Kurt Nagle, president and CEO of the American Association of Port Authorities recently voiced his endorsement of this trade legislation

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Purolator white paper highlights common Canadian shipping mistakes. From failing to appreciate the complexity of the customs clearance process to not realizing that Canada recognizes both French and English as its official languages, U.S. businesses frequently misjudge the complexity of shipping to the Canadian market. This often results in mistakes - mistakes that can come with hefty penalties and border clearance delays, and that can result in lingering negative perceptions among Canadian consumers.


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