Is one out of two good enough?

As an industry we only deliver one out of two containers on time.
Name a supplier to your business that only delivers half the time, but is still able to count on your loyalty as a customer.
According to studies carried out by Maersk Line a significant amount of customers claim they would increase volumes with a carrier if its on-time delivery was significantly improved, and many of them say they even would pay a premium to get cargo delivered precisely to their doorstep.
29
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cAPT j.bRUNTON[NOT OF MAERSK THANK GOD] |
"kOLDING LIKE MANY PEOPLE IN MAERSK IS NUTS.aLSO LIKE ANOTHER CONTRIBUTOR[mELLISSA i THINK-good ON YOU lass] kolding never mentioned the crew or officers once.i do not think he understands seamen.
a ship with a non existent crew is lost.
aND mr kolding is a lost cause.worse he doen"t even care.
there"s too much of eho in maersk.and not enough common sense.
a bit OF HUMILITY PLEASE.."
working man |
"the problem is within the corporation asking for change. as we grow companies want to take more and more to turn a profit. never satisfied with mediocre earnings. 1% isn't good enough. then they want 2%,3%,5%,10% etc. they'll do whatever it takes to fill their pockets. even if it means hiring less workers to service their customers which in actuality takes longer which is the exact thing they say they want to make better. or not having the proper equipment to make the job run smoothly and efficiently. communication and transparency are key for growth but when companies want to be cheap and make it nearly impossible for the working man to run an operation properly, who is to blame? is putting a computer in the place of a man the answer? would that satisfy a customer? would that make a container gets to its origin faster? would that make things easier and more transparent? ill tell you what all those things will do in an nutshell. take jobs away from people so the mega corporation doesn't have to pay for the working man. no regular pay, no overtime, no benefits, no sick days or personal days needed. technology=less overhead. less overhead=more profit. more profit=big smile for company. corporations don't see the big picture, the real big picture. the more money they take out of consumers hands the less product that will be purchased which leads to less demand which leads to less container being rented which will lead to little to no profit for these shipping giants.
"
Master Mariner |
"On my last vessel (9200 TEU, chartered by a company whose name I will not disclose here), I was in competition for a berth in Fos sur Mer, France with the MV Maersk Santana. I came from La Spezia, Italy and had more distance to go than the MSK vessel from Genova, Italy.

Through simple skills and knowledge - without jeopardizing safety procedures - I was able to speed up port operations and outpaced the MSK vessel to the pilot boarding ground by approx. 4 hours. While my ship was being attended to in port, MSK Santana waited outside for 3 days. Definitely not on time customer satisfaction.

Lesson no. 1: It is worth investing in professional crew who identify themselves with their companies - and the customers their companies work for.

Lesson no. 2: Check with your chartered vessels what crew they have, and what quality and performance they bring.

Lesson no. 3: STCW 95 and total globalized crewing messed up the terms corporate identity and corporate values

Lesson no. 4: Not only Maersk - but also the entire shipping world - should treat their core production units much better: The crew on board.

- Filipinos and other nationalities are still working continously for 8 months on board on many ships in the world fleet. Many wish to join earlier after a short vacation - not because of the job, but because the money is not enough to stay longer ashore.

- Many decades ago, officers and ratings were away from home for over a year. And now, we have better conditions: 4 months away from home. You want to do change? 2 months should be max. - Worldwide, irregardless of nationality. Basta.

- More pay. Oh yes! How much is an E-Class vessel in South Korea? 150 Million USD is a good guess. Plus bunkers, spare parts, cargo and empty containers and the risks connected to it and, yes, the crew. We are not far away from 1 billion USD. A Ukrainian Master is paid 8000 USD/month, a German 6300 EUR - all before taxes. To manage this asset in Switzerland, how much would a financial manager get? Mr. Kolding, a revolution requires the truth on the table. Even if it hurts. Make shipping more transparent, make it more socially accepted and acceptable.

Human resources (knowledge) are resources that also deserve to be treated with sustainability. It is interesting that Mr. Kolding did not add this factor in his 3 issues that require change. Adding the human factor would be a true revolution in shipping."
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”Only 56% of customers live up to the volume commitments they make to Maersk Line”

Source:
Maersk Line data, if a customer delivers 90% of committed volume or more, the customer is considered having fulfilled the promise.

”1/3 of container delays are caused by vessel operations and weather conditions at sea, 2/3 are due to terminal operations, hereof 50% are caused by carriers’ renominatinos, etc.
The other 50% are caused by inefficiencies in terminal operations”

Source:
Maersk Line data

The quality of the product lost importance, innovation was resisted and, most importantly, attention to changing customer wants and needs were ignored.

CASE: US car industry

What happens when we forget delivering what our customers really want?

The car business dominated American industry in the post-war boom years. By the late 1950s the car industry hosted the largest private employers in the world and contributed significantly to America's economy – the biggest consumer market in the world. It was the engine of US industry; everybody knew that 'Americans buy American'.

And then from 1960 something happened. Customers started buying Japanese. The pattern continued through the 1970s and 1980s leading to bankruptcies and the demise of household names like Cadillac, Chevy, Pontiac and Buick.

The customer dynamic changed, but the companies didn't

Management teams in car companies kept operating as if normal rules of the free market were suspended. The quality of the product lost importance, innovation was resisted and, most importantly, attention to changing customer wants and needs were ignored. They lost touch with their customers.

Instead, consumers chose a better way. Once companies like Toyota broke out of the traditional auto playbook offering consumers a better product and better service, customers flocked like bees to honey.


Is shipping different?

The containerisation of world trade has over time served players in our industry and our customers very well, but aren't we also faced with changed needs among our customers? Are we listening enough to their wants and ideas to improve their supply chains? If we had a more dedicated focus on what our customers want – plus what they didn't even think of yet – then imagine the potential for our industry.

Do you believe that what happened to the American car industry could happen to the shipping industry?

Total number of votes: 521
70% Agrees
30% Disagrees

”Customers indicate USD 200-800/FFE value of 95% on-time-delivery”

Source:
Customer interviews, value varies from customer to customer
due to differing cargo values, transit times and supply chain configurations.

What if we could guarantee
that cargo would be on time,
every time?

Today, we deliver one out of two pieces of cargo on time. We need to revolutionise the industry and get up to 95% instead – or even higher.

 

If customers increase their trust in the shipping industry as a supplier ...

... then we would get more repeat business – the most reliable operators in any logistics sector will always attract customers.

If customers save significant inventory costs by minimising risk in their supply chains ...

... then we will build better relationships because customers will be more satisfied with our service deliveries.

If we improve our own processes and operate with fewer defects, meaningless waste and lower costs ...

... then customers would be able to improve their processes and be enabled to deliver even better products to their customers. We will be providing them what every business wants: helping them do business better.


JOIN THE DISCUSSION

Is it realistic to speak of consistently achieving 95% on-time delivery in the shipping industry?

10
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Capt J.Brunton,now retired |
"There are no guaruntees in shipping.Especially about the weather.Your executive who thinks he has this under control, is so tptally up himself, that he needs an enema.And a frontal lobotimy.Like may Maersk bullshitters, he's away with the fairies.Sea-farers ought to be led by sea-farers.Not opportunistic pretenders.Get stuffed-you are full of shit. J.Brunton,30 yrs in command.I would not be a maersk 'Yes Man' in a fit.I owe it to my industry to speak out against such fairy stories."
Bhalchandra Balshetwar |
"To achieve the 95% on time delivery is not a realistic in shipping industry, but it's good to hope for that and plan your moves accordingly. So that we could reach nearby atleast above 90%.

Achieving is not a realistic but again not a nightmare which is impossible to achieve."
Saleem Sadruddin - Pakistan |
"Being in fruit business for over 2 decades, I understand how delay in transits could effect seller - buyer relations. Commitments which comes from Shipping Lines are communicated by us to our customers and if shipping lines fail to deliver their promise than this mean that we as a supplier fail to fulfill our commitments.

On time and fast transit time are 2 different things. I believe in reefers, faster transit time are more beneficial in terms of economics and also to environment emitting less co2.

While focusing on a "change" why not considering a "faster transit" over a subject of "on time"

Billions of dollars of cargo stays on terminals and vessels waiting for their ships and ports to come which is in turn a great loss to global economics.

"
Lorrie Rutledge |
"Why not strive to reach 100% on-time delivery. By striving to achieve perfection, the industry will possibly learn the details of its imperfections and begin the process of how to correct them."
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the manifesto

Maersk Line has written a manifesto about the need for change in the shipping industry.

Download the manifesto here

 
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