The dark side of “Slow Steaming”

By Patrick Burnson, Executive Editor
January 09, 2011 - LM Editorial

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

The U.S. Customs & Border Protection announced earlier this week that it will delay the implementation of some parts of its Automated Commercial Environment (ACE) electronic document single window platform beyond the current February 28th deadline.

In the new white paper "The Race for Supply Chain Management Excellence," Howard W. Coleman of the management consulting firm MCA Associate explores this question with a focus on wholesale distribution.

As the pull of shopping online via mobile devices becomes ever more prevalent, recent research from transportation and logistics bellwether UPS shows that as more consumers shop online, they also bring with them specific preferences and guidelines, too.

In an 8-K filing with the Securities Exchange Commission this week, third-party logistics and freight transportation services provider XPO Logistics said it plans to retain the truckload business it acquired through its $3 billion October 2015 acquisition of freight transportation and logistics services provider Con-way Inc.

In this webcast we'll explore how successful companies use strategies such as cross-client load consolidation, zone skipping, pooling, etc. to minimize freight cost. You’ll hear how transportation optimization is used to generate cost savings and where the ROI comes from.

Article Topics

Blogs · Supply Chain · Container · Trade · Shipping · 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 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA