Maersk promises on-time delivery

So-called “phantom bookings,” may be countered with a surcharge to compensate for lost revenue on any given voyage
By Patrick Burnson, Executive Editor
September 13, 2011 - LM 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 “But until capacity is controlled or withdrawn, it’s going to be tough to enforce.”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

Foreign direct investment has never been more important in catalyzing growth, whether in the developed or developing world. Although equity markets around the world have largely recovered since the financial crisis, global capital flows have contracted sharply.

When it comes to the chances of the December 31, 2015 Positive Train Control (PTC) deadline being extended, something which railroads say is badly needed, it appears they need to be prepared to be disappointed. That was the chief takeaway of a statement from Sarah Feinberg, acting administrator of the United States Department of Transportation’s Federal Railroad Administration (FRA).

It’s said that innovation will lead the economy out of its current funk. But how does an organization become a perpetually innovative company? That’s one of the questions Kai Engel and his co-authors at A.T. Kearney set out to answer in their new book Masters Of Innovation.

At $2.843, the average price per gallon was down 1.6 cents, following last week’s 1.1 cent drop and a cumulative 7.1 cent cumulative drop over the last five weeks.

LM Group News Editor Jeff Berman caught up with UPS Freight President Jack Holmes at the National Shippers Strategic Transportation Council’s (NASSTRAC) Annual Conference and Exhibition. Berman and Holmes spoke about various aspects of the less-than-truckload sector (LTL), as well as related freight transportation news and trends.

Article Topics

News · Ocean Freight · Global · Ocean Cargo · 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.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA