Demand will have hard time catching up with supply in Transpacific

In an exclusive interview with Supply Chain Management Review, a prominent analyst shared his views before making his formal presentation
By Patrick Burnson, Executive Editor
February 29, 2012 - SCMR Editorial

The impact made by the new generation of huge container vessels and the Panama Canal expansion will be addressed next week at a major industry event examining Asia Pacific maritime trade.

In an exclusive interview with Supply Chain Management Review, a prominent analyst shared his views before making his formal presentation.

Lars Jensen, CEO and Partner of SeaIntel Maritime Analysis in Copenhagen took issue with a number of widely-held assumptions, including the “game changing” impact of the Panama Canal expansion.

“Quite frankly, I don’t expect the Canal Authority will meet its deadline of 2014,” he said. “It will probably be closer to 2015.”

Furthermore, noted Jensen, most U.S. east coast ports will not be ready to accommodate the next generation of “mega-vessels” coming on line in the coming years.

“The harbors are not deep enough, and the rail and bridge infrastructure will need to be addressed before that’s going to happen,” he said. “But there’s no hurry. Supply has far outstripped demand for the time being, and carriers are faced with the ongoing problem of too much capacity.”

What the industry lacks, however, is sufficient market intelligence to solve the problem now,” said Jensen. His company, SeaIntel Maritime, is one of the few think tanks providing analytics and measurement tools for the creation of “value” in the supply chain.

“For us to do this,” he said, “we need to identify the decision which the information is supposed to improve, and then make the information and analysis available to the right people at the right time in the right format.”
SeaIntel Maritime Analysis has also mapped the eCommerce offerings provided by the 51 largest global container carriers. These carriers control 92 percent of the global container trade.

“This overview is a good foundation for carriers seeking to develop a competitive eCommerce strategy,” he said. “It is also good for shippers seeking to optimize their carrier portfolio vis-à-vis eCommerce capabilities and for IT and eCommerce service providers seeking to bring additional services and functionalities to market.”



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

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

Article Topics

News · Ocean Cargo · Transpacific · Maritime · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

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