Saturday, May 3, 2014

MEGA SHIPS AND SUPPLY CHAINS

When container lines build something that creates more supply that exceeds demand, where infrastructure at ports cannot efficiently handle in a game of playing ports against each other, where a further attempt/cut at hub and spoke may be the next operating maxim, in an industry where transport providers have abdicated power to contract negotiations, and where red is the annual color of P&L statements, that all can be construed as a failure to understand the business of customers-- be they MNCs, forwarders/3PLs/OTIs, or just many firms who dabble in import or export because they think they have no choice--, then the seeds have been set for something that has to change what is happening--to recreate transport providers and supply chain management as it was years ago and is now lost or perhaps make something all together new. This may be the dawn for carriers of "hoisted by their own petard".