Supply Chain and Logistics

Well, who would have guessed! Once Maersk built out its systems for booking shipments, it’s natural they would be cutting out forwarders. It’s what forwarders have been saying was going to happen for a while. and with Tradelens, Maersk can offer tracking, but also without involving forwarders.

This upstream cannibalism of customers may work for Maersk. They have worked very hard building their systems to make booking happen. And they are large enough to have a bit of market power over some forwarders.

But so much of all container lines’ traffic comes from forwarders. That part will go down, and more than it might, because forwarders will be bent out of shape and angry at having customers pirated.

I think it most hurts the littler guys, though, both forwarders and shippers.

But doesn’t Maersk have to focus on getting the ships to run on time? Blanking sailings and ships piling up outside ports are indicators of serious supply chain flaws. It would be more important for Maersk and other liner firms to do something about those issues.

Prices cannot continue to be through the roof as they are now, with containers not available or in the wrong place for cargo, or not being able to be moved, without crippling ocean container shipping in the long run.

By Nick Savvides 20/10/2021

Maersk looks set to cut out freight forwarders to attract larger BCOs – The Loadstar