Category Archives: Strategy

Rethinking pricing at container terminals

McKinsey has a new scheme for container pricing. They hope it will save the industry.  To be sure, segmented pricing is always good for incumbents, and port terminals often have a kind of monopoly, since once you’ve chosen a shipping carrier there are only certain ports and terminals it calls at.  But for customers (shippers of goods)? And will they really put up with it in the very competitive transport marketplace.  I think they have the bargaining power today.

McKinsey Logo

An innovative approach that creates incentives for efficiency could generate up to $3 billion in value for operators and their customers. A McKinsey & Company article.

Source: How to rethink pricing at container terminals | McKinsey & Company

 Braced for long and hard storm

TTelegraph Logohe Telegraph article paints a dim picture for the shipping business.

 

The global maritime industry is enduring hardships likely to affect it for ever

Source: Shipping industry braced for storm to blow long and hard – Telegraph

Four fundamentals of workplace automation

An excellent article on automation. It will be specific activities in jobs that will be automated. So each of us will see large pieces of our jobs go away, not just low income work.  and much dangerous or low skill work will not go away since it cannot be automated well.   It has many ramifications for industries like ocean shipping. Will the captain’s and mate’s job disappear? No, but many of the things they do will, and jobs will need to be consolidated.

McKinsey Logo

As the automation of physical and knowledge work advances, many jobs will be redefined rather than eliminated—at least in the short term. A McKinsey Quarterly article.

Source: Four fundamentals of workplace automation