Subscribe to our free, weekly email newsletter!



The dark side of “Slow Steaming”

By Patrick Burnson, Executive Editor
January 09, 2011

Ocean carrier schedule integrity is in jeopardy now that “slow steaming” is in vogue, and shippers have every reason to be concerned.

That’s the conclusion of a recent report issued by London-based Drewry Shipping Consultants. In their latest issue of “Container Shipper Insight,” they state that more vessels arrived at their destinations behind schedule in the fourth quarter – down 7 percent from the reliability rate in the first three quarters of 2009.

Even more alarming, though, is the fact that each of the major east-west trade-lanes suffered a drop in on-time performance during this period.

Carriers have been lauded, and rightfully so, for saving fuel and anticipating regulatory reforms on emissions, but this should not mean a disruption of the supply chain.

Skeptics in the shipping community suggest that –
deliberate or not – this development will give vessel operators even more leverage in upcoming contract negotiations. With demand surging and capacity restrained, does this represent one more weapon in the carrier arsenal?

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

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

In a separate conference call following CP’s third quarter earnings release call yesterday, CP CEO Hunter Harrison make myriad convincing points for a merger between CP and CSX and offered up his take in general industry M&A as well.

Seasonally-adjusted (SA) for-hire truck tonnage in September checked in at 132.6 (2000=100) for the second straight month, remaining as the current all-time high level for the second month in a row, with November 2013’s 131.0 now the second best month recorded.

Ahead of its third quarter earnings call this Friday, freight transportation and logistics titan UPS rolled out rate increases for 2015 that are set to take effect on December 29, 2014.

Article Topics

Blogs · Supply Chain · Container · Trade · Shipping · All topics

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