Maersk pledges to tighten its supply chain

"A daily service between Asia and North Europe with reliable on-time delivery will change liner shipping forever,” spokesmen in Copenhagen declared.
By Patrick Burnson, Executive Editor
September 13, 2011 - SCMR Editorial

Following its promise to be more collaborative with shippers, Maersk Line is introducing a time-definite service in the booming Asia-EU trade lane.

“A daily service between Asia and North Europe with reliable on-time delivery will change liner shipping forever,” spokesmen in Copenhagen declared. “Up until now, customers have had to adjust their production schedules and supply chains to accommodate shipping lines’ unreliability, as they have never been able to trust that their cargo would be on time.”

This will be thing of the past, Maersk promised, noting that the engine behind Daily Maersk is 70 vessels operating a daily sailings between four ports in Asia (Ningbo, Shanghai, Yantian and Tanjung Pelepas) and three ports in Europe (Felixstowe, Rotterdam and Bremerhaven) in what amounts to a giant “ocean conveyor belt” in the carrier’s busiest global service.

In a speech given last June at a major EU logistics event, Maersk Line CEO, Eivind Kolding said the container shipping industry stands on the brink of an “era-defining moment” as it faces fundamental challenges. He added that if container the shipping industry is to secure its right to operate in the future, the industry needs to change now.??

This latest announcement seems to reflect that attitude, said analysts. Zim Line has been ramping up its premium service in the trade lane, as well.


At the same time, however, Maersk and other carriers may soon be holding shippers accountable for freight that is promised, but does not appear. So-called “phantom bookings,” may be countered with a surcharge to compensate for lost revenue on any given voyage.

This, said one analyst, must be exercised with caution:

“Maersk has every right to demand such an arrangement,” said Charles Clowdis, Jr., managing director-transportation advisory services, at IHS Global Insight. “But until capacity is controlled or withdrawn, it’s going to be tough to enforce.”



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 · Global · Global Trade · Supply Chain · 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.