More evidence surfaces reflecting ocean cargo shipper’s dissatisfaction
Global shippers remain disappointed in the performance of container fleets in a world trade arena put under pressure by a number of critical issues.
Transportation in the News
U.S. rail carload and intermodal volumes are mixed, for week ending January 14, reports AAR Driving the Risk Out of Line Haul Fleet Management with AIoT Technologies 论坛流动性heralds $400M joint venture with CBRE IM and Series A funding round FTR Trucking Conditions Index improves but remains firmly in negative territory 2023 Rate Outlook Webcast: Will shippers catch a break? More Transportation NewsTransportation Resource
Driving the Risk Out of Line Haul Fleet Management with AIoT TechnologiesExplore how Hikvision’s Line Haul Management Solution boosts productivity, improves safety and minimizes transportation risks.All Resources
Global shippers remain disappointed in the performance of container fleets in a world trade arena put under pressure by a number of critical issues.
Container shipping lines’ ability to provide cargo space as needed showed a marginal improvement at the start of 2020 but this gain will have been dramatically reversed by the end of the first half of this year, according to the fourth annual shipper satisfaction survey ofDrewryand theEuropean Shippers’ Council (ESC).
The survey, run jointly by the ESC and Drewry, reveals that the 227 shippers and forwarders who took part rated the service of container shipping lines with an average score of 3.2 on a scale of 1 (very dissatisfied) to 5 (very satisfied).
“Drewry foresees that the next ESC-Drewry survey will show growing concerns among shippers for three specific areas of service quality: availability of space and equipment, reliability of bookings and carriers’ financial stability,” saysPhilip Damas, head of the logistics practice at Drewry.“These are key factors of carrier and forwarder selection particularly in today’s disrupted market, but also in the next year as and when ocean-borne volumes recover.”
16个不同航空公司的满意程度service and cost criteria reviewed in the survey has been found to be diverse among respondents. Satisfaction with clarity of prices and surcharges, transit times and quality of customer service in 2019 ranked lowest – with scores of 2.8 to 3.
Satisfaction with availability of cargo space provided in 2019 ranked higher, at 3.3, and improved from 3.2 in 2018.
Availability of cargo space is now seen by shippers and forwarders as the most important criterion of carrier service, meaning that an improvement in cargo space availability in 2019 was a welcome development for the industry.
Based on the service you received from carriers in 2019, please tell us how satisfied you are with the carriers on average for each of the service and cost criteria from 1 (very dissatisfied) to 5 (very satisfied).
[Based on the service you received from carriers in 2019, please tell us how satisfied you are with the carriers on average for each of the service and cost criteria from 1 (very dissatisfied) to 5 (very satisfied):]
However, following the Coronavirus outbreak since February 2020, some 281 Asia-Europe and Asia-North America sailings have been cancelled and availability of cargo space has decreased dramatically.
“This is a market with volatile capacity where liners remain price setters and keep freight rates high, despite very low fuel indexes, whilst they can only plan in the short term themselves. Our view is that shippers will benefit from shorter-term contracts, and either by diversifying their carriers' selection pool or by concentrating more on financially healthier or government supported carriers” says Godfried Smit, Secretary General of theEuropean Shippers’ Council.
Shippers and forwarders also said that carrier performance has deteriorated between 2018 and 2019 in four areas: the range of different available carriers, the range of different available services, the price of service and the overall carrier service quality. But carrier performance related to sustainability/green and carrier financial stability has improved since 2019, according to respondents.
Earlier this year, AlixPartners drew similar conclusions in its “2020 Global Container Shipping Outlook,” noting that the ocean carrier sector’s finances were made even more vulnerable by the current coronavirus epidemic.
“Carriers could see their hard-fought financial gains of recent years totally evaporate if they fail to control costs, including how they manage fuel costs and customer expectations around fuel costs,” saysEsben Christensen, global co-leader of the transportation and infrastructure practice atAlixPartnersand a managing director at the firm.
About the Author
Patrick Burnson, Executive EditorMr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office:[email protected]Subscribe to Logistics Management Magazine!
Subscribe today. It's FREE!Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
LM Viewpoint on the 2023 Rate Outlook: Will shippers catch a break? Global Labor Rates: China is no longer a low-cost country View More From this Issue