Friday, July 25, 2014

FUTURE FOR CONTAINER LINES

The big ships bring lower operating costs.  Maersk dominates this topic while other carriers have done little or nothing to buy these vessels.  Maersk has also done much as to customer analysis and not pursuing no/little profit accounts, just for the sake of volume.  Many others essentially pursue volume, not margins.  Trade volumes are not robust.

All this is heading to a potential blood bath.  How many carriers will not survive? What will shippers/BCOs do, if anything, to avoid the impact?  Will they continue to shop for cheap rates and then deal with the crisis results afterward?  But what happens to their supply chains and to their companies?