Ocean cargo: Getting ready for “super-slow” steaming

The short-term repercussions are already being felt, and given the short peak season, not insignificant.
By Patrick Burnson, Executive Editor
October 11, 2010 - SCMR Editorial

While “slow steaming” is unquestionably good for the environment, many analysts are questioning whether it is beneficial to shippers.

By cutting the knot speed to save money, vessel operators are also contributing to the global container shortage. The short-term repercussions are already being felt, and given the short peak season, not insignificant.

But we wonder what the long-term strategic impact will be. Does this mean a cultural shift that will result in a sudden escalation of rates? Coming at a time when the Federal Maritime Commission is planning on dismantling price-fixing cartels, the paradox could not be more profound.

At the same time, transportation fuel prices continue to rise. With more than 10 percent of the world’s box fleets idle this year, the revival will also be slowed, say industry sources.

How does 12 knots sound? Not particularly appealing to shippers hoping to regain some velocity in the supply chain. Yet, that’s what we may be in for in 2011: “super-slow steaming.”



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

The American Association of Port Authorities (AAPA) had nothing but praise for the Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015).

While there are apparent benefits to switching from diesel fuel to natural gas in terms of promised climate benefits, they come with a catch according to a research paper recently researched by the Environmental Defense Fund (EDF).

The popularity of cloud computing has consumed headlines ranging from fear and doubt, to claims of being the ultimate answer to all software applications in the enterprise. You may be asking yourself, what's the real story? Download the white paper, WMS in the Cloud, today to find out if cloud computing is right for your business.

A well-designed driver wellness program could make the job more attractive and help alleviate driver turnover.

Download this new white paper to understand vital (and complex) customs requirements and competitive strategies for business shipping through the US/Canada border.

Article Topics

Blogs · Global · Supply Chain · Transportation · Source · 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.