The document discusses the challenges and transformations in the ocean freight industry as it faces high volatility and transparency issues. It highlights the impact of mega ships on freight rates and the need for carriers to form vessel sharing agreements to improve asset utilization. The overall sentiment remains uncertain regarding the industry's reliability and future, emphasizing the potential role of actionable metrics in driving improvements.

1. OCEAN FREIGHT | WHAT’S IN
STORE FOR 2017?

2. JOINTHE CONVERSATION
ONTWITTER
@XENETA_AS

3. ABOUT
XENETA
At Xeneta we believe there is an untapped potential
for everyone in the industry, to systematically learn
from our individual and collective efforts. We hold
true that "if you cannot measure it, you cannot
improve it". That’s why we think actionable metrics
is the key to continuously evolve for every business,
and ultimately the entire industry. Rethinking global
logistics is the vision of Xeneta.
With international experience from the logistics
industry, we have first-hand knowledge of the
challenges related to high volatility and lack of
transparency in the ocean freight market. By
combining logistics background and information
technology expertise, we found the solution to these
challenges.
WE ARE
TRANSFORMING
GLOBAL
LOGISTICS

4. ARE YOU PAYING THE
RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS
POTENTIAL IN REAL
TIME.
CONTACT US.

5. A GROWING CONCERN FORTHE
FREIGHT INDUSTRY, ISTHE LACK
OF RELIABILITY ON BEHALF OF
CARRIERS,WHICH IS MAKING
SHIPPERS MORETHAN A LITTLE
NERVOUS. CARRIERS HAVE BEEN
DOING EVERYTHING INTHEIR
POWER IN ORDER ACCLIMATETO
THE DROPPING FREIGHT RATES
AND DWINDLING DEMANDS.

6. HERE IS OUR EXTRACTION
OF LOGISTICS
MANAGEMENT'S
ROUNDTABLE DISCUSSION
ON WHAT IS IN STORE FOR
2017.

7. BIGGER SHIPS
MEANS BIGGER
PROBLEMS

8. AMONG THE FIRST
QUESTIONS ASKED
BY LOGISTICS
MANAGEMENT AT
THE ROUND TABLE
WAS HOW WILL
BOTH SHIPPERS
AND CARRIERS
ACCLIMATE TO THE
NEW MEGA SHIPS
BEING
INTRODUCED INTO
TRADE LANES?

9. THE MASSIVE ORDER BOOK AND THE
RELATIVELY FLAT TRADE GROWTH OUTLOOK
SUGGEST THAT CAPACITY GROWTH WILL
CONTINUE TO OUTSTRIP CARGO GROWTH ...
SHIPPERS ARE BENEFITING FROM RATE
WARS AS CARRIERS CUT RATES TO FILL THE
SEEMINGLY BOTTOMLESS PIT OF CAPACITY.
CARRIERS ARE NOT GETTING THE FULL
BENEFIT OF LOWER SLOT COSTS UNLESS
THEY CAN FILL THE SLOTS.
- DAN SMITH, PRINCIPAL WITHTHETIOGA GROUP

10. VSAS AND OTHER
SHUFFLING

11. THUS FAR, THE ONLY LONG TERM SOLUTION PROPOSED
WITHIN THE INDUSTRY THUS FAR IS THE ACCELERATION OF
MERGERS AND ACQUISITIONS, AS WELL AS VESSEL
SHARING AGREEMENTS, WHICH WILL ALLOW CARRIERS TO
SPLIT ASSET UTILIZATION TO BENEFIT MULTIPLE PARTIES.
LOGISTICS MANAGEMENT POSED THIS QUESTION TO THE
ROUND TABLE AS WELL: “SHOULD LOGISTICS MANAGERS
EXPECT TO SEE MORE VESSEL SHARING AGREEMENTS
[VSAS] AND CONSOLIDATION?”

12. KEEP IN MIND THAT IT’S LIKELY THAT
CARRIERS WILL LOOK TO MAXIMIZE EVERY
STRATEGIC OPTION AVAILABLE TO ENSURE
THEIR PROFITABILITY, WHICH OF COURSE
WILL INCLUDE MORE VSAS AND
CONSOLIDATION. THE REALITY IS THAT
SHIPPERS WANT STRONG, RELIABLE
PARTNERS IN THE SUPPLY CHAIN, AND THIS
WILL ALLOW FOR MORE PREDICTABILITY
AND LESS VOLATILITY,
- Don Pisano, ocean cargo chairman for (NITL)

13. BACK ONTRACK?

14. PERHAPS ONE OF THE BIGGEST SORES IN THE INDUSTRY
RIGHT NOW IS THAT RELIABILITY HAS BEEN GUTTERING OUT.
WITH GROWING DELAYS, SNARLS, AND OTHER OBSTACLES
THE QUESTION BEING ASKED IS WILL WE SEE A
TURNAROUND FOR 2016, OR ARE THINGS GOING TO GET
WORSE BEFORE THEY GET BETTER?
IN SHORT, THE JURY IS STILL OUT ON WHETHER OR NOT THE
MEGA SHIPS ARE A BLESSING OR A CURSE, BUT AS THEY
ARE HERE AND ON THE WATER, THE INDUSTRY HAS LITTLE
MORE OPTIONS THAN ADDRESSING THE MONSTER THEY
CREATED.

15. LEARN HOW XENETA CAN HELP
YOU GET INSIGHT AND
INTELLIGENCE INTOYOUR
GLOBAL OCEAN FREIGHT PRICES
AND CHANGEYOUR LOGISTICS
BUSINESS:
REQUEST
DEMO NOW