Category Archives: Supply Chains

The terminal connections maze

In the post there is a link to an article from a Drewry analyst about the possibility that more firms will make close relationships with their terminal operators.

If ocean lines and terminal operators consolidate, this would have the effect of improving coordination between that line and the terminal, but would disrupt coordination with other lines. It’s as if American Airlines and O’Hare airport in Chicago made a deal that there would be preferential loading and unloading there for American flights.  Easy to pick up or unload passengers, get baggage, priority for landing and takeoff slots, de-icing (I was just there!), lines for tickets, baggage checking, TSA clearance, and so on.  It would be good for American passengers and cargo, presumably (Perhaps American would drop the unpleasant $25 fee for domestic checked bags!)

So coordination of all air traffic and passenger or cargo handling for the other airlines would be disrupted.  Delays would occur. Any issues that appeared would take longer to settle.  And it would take me longer to get in and out of the airport.

Would it make me choose American if I had to go to O’Hare? Just maybe– but rather unlikely that it alone would be enough to sway me. After all, someone else might still be cheaper.

Coordination has to be horizontal in logistics to be truly better for all customers.

Source: The terminal connections maze – The Loadstar

The Terminal Connections Maze

The Gurus Are Back! 2017 Supply Chain Predictions

Dan Gilmore’s Gurus are always interesting and provocative.  Omnichannel is dead! Dataengineering is in! The customer counts most! Transportation rates are going up!

Who knows, but it is great fun to see experts go out on a limb.  It’s also fun to see where they were right or wrong.  Let’s ask Dan to review last year’s predictions to see who homered and who struck out!

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Mike Regan, Gene Tyndall, Dr. Michael Watson and Jim Barnes Offer their Prognostications, More Guru Predictions Next Week

Source: The Gurus Are Back! 2017 Supply Chain Predictions

Red flag for Yang Ming

Yet another in the ocean carrier dominoes waiting to fall.

Following the bankruptcy of Hanjin, Taiwan’s Yang Ming is now the container line in the greatest financial danger, according to a research paper published today.

  Source: Red flag for Yang Ming as container line is weighed down by billion-dollar losses – The Loadstar