1.
What’s In The Container
Doesn’t Matter

2.
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3.
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4.
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5.
The world of ocean shipping
has changed.
As the combination of
megaships, supply chain
management, and implausibly
low fuel changed the
economics of freight rates.

6.
Cargo Cost Versus The Types
Of Cargo
VS.

7.
It is accurate to say the relationship between ocean cargo rates
and the types of cargo-carried has disappeared as too many
boxes are chasing too-few cargos and lower fuel costs allow
inefficient ships to stay employed.

8.
Carriers' Response To The
Drop In Ocean Cargo Rates.

9.
In 2014 the carriers responded to the drop in rates by ‘slow
steaming’ in order to conserve fuel and cut costs; a policy
shippers accepted so long as the rates remained low and
the vessel schedules remained accurate.

10.
At conferences the shippers
claimed loudly that reliability of
service was more important than
rates.
In March 2015 when Maersk line
dropped its groundbreaking daily
Maersk service that was designed
to offer customers a premium
product for their non-commodity
cargos.

11.
The Launch And Cancellation
Of Daily Maersk

12.
Daily Maersk was launched in september 2011 as part of an
effort by Maersk to provide a differentiated product, with
customers given guaranteed delivery times in return for
higher freight rates.
SKOU said Maersk had found that customers were not
willing to pay a higher price for better service. This reflects
the fact that the big east-west trades have become highly
commoditized, with lines finding it almost impossible to
finalize differentiated rates on these routes.

13.
Our big customers talk about the paying more for
better quality services, and in our case the daily
maersk achieving 95% on-time delivery of cargo,”
said SKOU, “our experience was that we could
deliver on our promises, but the customers were not
willing to pay for it.
- Maersk’s Chief Executive Søren Skou

14.
Slowdown In The Chinese And
EU Economies.

15.
The slowdown in the Chinese and EU economies have cut
Chinese imports by 19% and exports 13%, while 2015
brought 208 new ships with a capacity of 1.67 million TEU’s
– or a stunning 8.1% oversupply of TEU’s.

16.
Shanghai-Rotterdam | 40' container | July 1, 2014 -
April 25, 2016 | short-term contract. Data source:
Xeneta platform

17.
Newly-merged Chinese ocean carriers
COSCO and CSCL, together with
evergreen, OOCL and CMA-CGM are
set to form a new East-West
Mega-Alliance. If approved by
Chinese-EU-US authorities, the new
grouping would challenge the market
dominance of the Maersk and MSC
2m vessel-sharing agreement.

18.
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