Abandoned Ships: The Mass Merging of the Ocean Freight Industry
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ABANDONED SHIPS: THE MASS MERGING OF THE OCEAN FREIGHT INDUSTRY
Transcript of Abandoned Ships: The Mass Merging of the Ocean Freight Industry
ABANDONED SHIPS: THE MASS MERGING OF THE
OCEAN FREIGHT INDUSTRY
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ABOUTXENETA
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
ARE YOU PAYING THE RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS POTENTIAL IN REAL
TIME.
CONTACT US.
RECENT NEWS OF HANJIN GOING UNDER CASTS A SEEMINGLY DARKER CLOUD UPON THE SHIPPING INDUSTRY. THE VERITABLE ARMS RACE BETWEEN OCEAN CARRIERS TO BUILD BIGGER AND SEEMINGLY MORE EFFICIENT SHIPS HAS BEEN MET WITH DEVASTATINGLY LOW DEMAND, CREATING A SERIOUS ISSUE FOR CARRIERS.
AS MORE AND MORE CAPACITY CONTINUED
TO HIT THE SEAS IN SPITE OF CONTINUALLY
DROPPING DEMAND, CARRIERS HAVE BEEN
SCRAMBLING TO FIND A SOLUTION.
MANY CARRIERS HAVE RESORTED TO
STOP GAP MEASURES AS A
MEANS OF COMBATING THE
FAILING PROFIT MARGINS. THESE
SHORT LIVED MEASURES HAVE
INCLUDED NUMEROUS BOUTS OF GENERAL RATE INCREASES (GRIS).
MERGERS & ACQUISITIONS
REACHING CRITICAL MASS, AND FORCED WITH MAKING A DECISION, CARRIERS HAVE FINALLY RESORTED TO WHAT MANY INDUSTRY ANALYSTS HAVE PREDICTED SINCE THE START OF THE CAPACITY / DEMAND IMBALANCE.
REACHING CRITICAL MASS, AND FORCED WITH MAKING A DECISION, CARRIERS HAVE FINALLY RESORTED TO WHAT MANY INDUSTRY ANALYSTS HAVE PREDICTED SINCE THE START OF THE CAPACITY / DEMAND IMBALANCE.
ARE YOU PAYING THE RIGHT CONTAINER
FREIGHT RATES?
DISCOVER SAVINGS POTENTIAL IN REAL
TIME.
WILL JOINING FORCES HELP?
HOT ON THE HEELS OF THIS DEVELOPMENT CAME THE GROUPING KNOWN AS THE OCEAN ALLIANCE, BRINGING TOGETHER FRANCE’S CMA CGM SA AND CHINA’S COSCO
GROUP, THE THIRD-LARGEST AND FOURTH-LARGEST SHIPPING LINES RESPECTIVELY. TAGGING ALONG BESIDE
THEM WERE HONG KONG’S ORIENT OVERSEAS CONTAINER LINE AND TAIWAN’S EVERGREEN MARINE CORP. ONCE THE OCEAN ALLIANCE BEGINS OPERATIONS NEXT FEBRUARY,
ANALYSTS BELIEVE THAT IT WILL CONTROL ABOUT 26% OF ASIA-EU SHARE,
- Patrick Burnson, executive editor for Logistics Management and Supply Chain Management Review
IN FACT, THE EVER GROWING ALLIANCES AND REORGANIZATION OF THE CARRIER HIERARCHY AS A WHOLE IS HAPPENING SO FAST THAT EVEN INDUSTRY ANALYSTS ARE FINDING IT DIFFICULT TO KEEP TRACK OF.
RATIONALIZING HINDSIGHT
WITH THE MARITIME INDUSTRY BECOMING A FEEDING FRENZY, AS BIGGER COMPANIES GOBBLE UP SMALLER ONES IN THE ATTEMPT TO CAPTURE AND HOLD ENOUGH OF THE MARKET SHARE TO STAY AFLOAT, THE INDUSTRY AS A WHOLE WILL NOW HAVE TO ANSWER TO THEIR DECISION FOR THE MASS MERGING AS WELL AS THE INVESTMENT IN LARGER SHIPS.
THE GSF IS LOOKING TO ESTABLISH A “MARITIME INDUSTRIES SUPPLY CHAIN FORUM” ON AN INTERNATIONAL LEVEL, TO BRING THE INDUSTRY AS A WHOLE TOGETHER TO EXPLORE, ADDRESS AND ULTIMATELY CORRECT THE ISSUES PLAGUING THE INDUSTRY.
HOWEVER, WHILE THE MARITIME INDUSTRY IS LOOKING AT STEPS FOR SELF PRESERVATION WILL THESE MERGERS BE ENOUGH TO SHELTER THE INDUSTRY FROM THE ABYSMAL PREDICTIONS FOR 2016, OR WILL THESE ALSO PROVE TO BE YET ANOTHER ARBITRARY ATTEMPT TO CIRCUMVENT THE COMING STORM?
LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND
INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS
BUSINESS:
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