Category Archives: Logistics

 Should Maersk invest in more Ultra Large Container Ships?

Jan Hoffman, President of the International Association of Maritime Economists and Chief, Trade Facilitation Section at UNCTAD, published these reflections on large container ships.  they’re on Linkedin Pulse.   Everyone’s talking about whether big ships should be built or not.  But he asks a good question, whether the conventional arguments are relevant.  Anyway, do we have any institutions capable of doing anything about the perfect competition in ocean shipping? He correctly points out that eliminating big ships and consolidation will lead to higher prices for delivered goods throughout the world, and consumers of these products will pay more.

Jan Hoffmann   Linkedin Logo

Containerships have never been bigger than today, container freight rates have never been lower, and never has so much container carrying capacity been idle. Not a trilemma, but three sides of the

Source: Three irrelevant reasons why Maersk & Co should not invest in more Ultra Large Container Ships | Jan Hoffmann | LinkedIn

Expanded Panama Canal operational by early July

ACP, the Panama Canal Authority, says the expansion will be operational by early July.  I have not heard rates yet.  The article gives explicit sizes for vessels that can transit the new digs.

Platts

Source: Expanded Panama Canal to operational by early July: ACP official – Shipping | Platts News Article & Story

Container shipping: untapped value of customer engagement

McKinsey is talking more about the ailments of the container shipping industry.  It’s about customer service.  But will customers pay for it? Shipping on its own is a business with very low margins.  And there is tremendous price pressure.  But as the authors point out, improving service quality also can save money.  That is standard operations and service management doctrine, and has been shown many times in real businesses.  So it is time for ocean carriers to pay attention to how they provide service, and to learn how to manage or cooperate with the rest of folks’ supply chains. while the voyage is the longest stage, the balance of a journey is very complex in movements and information flows, and it cannot be ignored any longer.

mckinsey-logo

Despite challenging market dynamics and rising operational complexity, container lines can both increase profitability and improve their customers’ experience.

Source: Container shipping: The untapped value of customer engagement | McKinsey & Company