Category Archives: Strategy

Secondary services suffer as carriers eye ‘container gold rush’ to the US

Posted on September 15, 2021 by | 1 comment

Oean carriers are redeploying ships from lower-paying to higher-paying routes, leaving some with no way to transport their goods. The article explains how ships are being reassigned, leaving too few ships on a route to keep the schedule going. Give it a look!

Currently, they are adding ships to the Asia-US routes which charge over $10,000 per container. They are leaving routes that charge on the order of $2000 per container.

You can see why they are doing it. They can get away with it because ships are only bound by the laws of the country they are flagged in. Most of these laws are weak. Port countries do have some say, but only the major world port countries can do much to change the behavior of the liners. And they would favor more ships for their key routes.

By Mike Wackett 15/09/2021

Secondary services suffer as carriers eye ‘container gold rush’ to the US – The Loadstar

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Posted in Logistics, Managerial Econ, Ports, Shipping, Strategy, Supply Chains, Uncategorized

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CMA CGM startles rivals by vowing to stop spot rate increases for coming five months

Posted on September 10, 2021 by | 2 comments

The third largest liner firm just one-upped other container lines by announcing a freeze in spot rates.

Of course they are at an all-time high. And Hapag-Lloyd, a smaller liner firm, said they had ‘already frozen rates’. But it’s a great piece of publicity.

It is a bit like a car manufacturer saying they will freeze the price of a car at the MSRP (sticker price). No one tries to pay that anyway.

Sam Chambers September 10, 2021

CMA CGM startles rivals by vowing to stop spot rate increases for coming five months – Splash247

Some responses:

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Posted in Logistics, Shipping, Strategy, Supply Chains

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NITL claims alliances create ‘super-carrier distortion’ to liner shipping market

Posted on September 6, 2021 by | 2 comments

Liner shipping alliances were created years ago when there wasn’t enough containerized cargo for many competing ocean container carriers (sometimes called liners). They have evolved through time, a bit, but still allow several ocean carriers to band together to serve a particular route.

For instance, from Shanghai to LA and return, an alliance might provide weekly service. The companies then rotate in providing that ship for the service. If you book with one of thecompanies, you don’t know whose ship will be carrying the cargo, but it will be one of the members of the alliance. If everything goes smoothly and there are no delays, it should notmatter to the shipper whose ship they are on.

Alliances go by clever names such as THE Alliance (Hapag-Lloyd, ONE, & Yang Ming). Here’s a summary of facts about alliances, including who’s in each.

But when disruptions occur, as now, and ships don’t sail on schedule either because they are postponed by the line, or because of congestion in either the loading port or the unloading port, it becomes a problem.

The article outlines some of the complaints. Alliances have to be authorized by the specific counbtry they dock in. There is actually a bill in the US Congress to suggest that the FMC (Federal Maritime Commission) be given stronger powers to investigate problems and push the alliances to provide fair service to all customers.

By Nick Savvides 06/09/2021

NITL claims alliances create ‘super-carrier distortion’ to liner shipping market – The Loadstar

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Posted in Logistics, Ports, Shipping, Strategy, Supply Chains

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