Thursday, December 14, 2017

CONTAINER LINES--FRIEND OR FOE IN SUPPLY CHAINS?

Container lines are an important part of international logistics.  Yet they are a weak link/player in supply chains, especially with e-commerce supply chains that require velocity and dependability.  They create supply chain erosion and performance risk.  This situation is not new, but its impact has increased with e-commerce.

Lines prices around port pairs.  It is part of the commoditization of the service. 

What if they charged instead based on transit time and schedule reliability?  It would elevate ocean carriers' role.  Plus, it would create needed differentiation for them and help customers to manage inventory velocity.  And it would clarify customers/buyers who are rate chasers vs service chasers.  It could also provide an indirect assist for vessel planning and utilization.

Read more about supply chain erosion and container lines at--

 http://www.ltdmgmt.com/impact-from-logistics-partner-actions.php