Ocean cargo carriers can take nothing for granted

The container shipping industry stands on the brink of an “era-defining moment” as it faces fundamental challenges, said Maersk Line CEO, Eivind Kolding

By ·

The tired old cliché, “thinking outside the box,” takes on new meaning when invoked by the world’s leading container shipping company.

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

While Kolding, no doubt, holds his own political and religious convictions, he only shares his views on the business of shipping with his constituents. For this, he is to be applauded.

He noted that containerization – often referred to as the engine of globalization – revolutionized world trade. The potential it unlocked by connecting producers and consumers across the world enabled both shipping lines and their customers to develop their businesses in ways that previously had seemed impossible.

“However, container shipping, is also the story of an established business model that often disappoints customers: one in every two containers is late, shipping lines are complex to do business with, and the industry, even while being the most environmentally-friendly transportation mode, still lacks transparency and common goals,” he said.?

With examples from the automotive, aviation, portable music players and mobile phone industries, Eivind Kolding told the conference that just because an industry is established it may only be a “few years from being completely overtaken” by new technology. And, that market and customer behavior is forcing companies to “never lose sight of what customers really want” - including the needs that they are not even aware of.

“Why not see these as fantastic opportunities?” he asked. “What if we could guarantee that cargo would be on time, every time? What if placing a shipping order was as easy as buying an airline ticket? What if the shipping industry was known for beating environmental expectations – not struggling to meet them?”

For related articles click here.


About the Author

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 [email protected]

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!

Latest Whitepaper
Leveraging Florida Ports to Expand Two-Way Trade with Asia
Florida’s geography is convenient to global markets and serves as the perfect conduit for Asia-focused container trade. Florida Ports, seaport white papers, Benefits of using florida ports
Download Today!
From the April 2018 Logistics Management Magazine
As companies continue to search for the next generation of logistics management talent, the existing workforce is being asked to deliver more than ever before. While our survey respondents aren’t griping about the workload, they maintain that new challenges require more resources.
LM Viewpoint: 2018 Salary Survey, delivering more than ever
Smoother execution through S&OP
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Reshaping the Restaurant Supply Chain in the Digital Age
Get an inside look at how a leading restaurant group Bloomin’ Brands Inc (BBI), coordinates its complex supply chain to deliver an exceptional restaurant experience at the lowest cost to serve.
Register Today!
EDITORS' PICKS
34th Annual Salary Survey: Salary growth slows, tasks soar
As companies continue to search for the next generation of logistics management talent, the existing...
Evolution of E-commerce: The possibilities of tomorrow
We know e-commerce is reshaping logistics, but what are the technologies savvy managers can leverage...

State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...