Box shipping lines globally see schedule reliability drop by 8.4 ppt in 2017

    The schedule reliability of container shipping lines in 2017 globally declined by 8.4 percentage points compared to the previous year to 74.5 per cent, according to data compiled by Sealntel Maritime Analysis.

    Overall, Wan Hai was the most reliable carrier in 2017, with schedule reliability of 81 per cent. Hamburg Sud and Evergreen followed close behind with on-time performance of 79.7 per cent and 79.1 per cent respectively.

    None of the top 18 carriers improved on their 2016 schedule reliability scores. Evergreen and HMM recorded the lowest decreases of 4.7 and 5.0 percentage points respectively. On the other hand, MOL, PIL and Yang Ming recorded the largest year-on-year declines at 12.7, 11.2, and 10.2 percentage points, respectively.

    Looking at the major east-west trade lanes, Asia to North America west coast saw a 9.3 percentage point decline in schedule reliability to 72.1 per cent in 2017. Matson was the most reliable carrier on this trade lane with on-time performance of 93.3 per cent, followed by Evergreen with 81 per cent.

    Asia to North America east coast saw a significant drop in on-time performance, from 80.4 per cent in 2016 to 66.3 per cent in 2017. Evergreen was the most reliable carrier on this trade route in 2017, with schedule reliability of 72.3 per cent, followed by Maersk Line and MSC with 70.5 per cent.

    Schedule reliability on Asia to North Europe and Asia to Mediterranean dropped by 3.0 and 9.3 percentage points to 76.4 per cent and 74.6 per cent respectively. Evergreen was the most reliable carrier on the Asia to North Europe trade lane with on-time performance of 82.6 per cent, followed by Cosco with 82.5 per cent.

    On the Asia to Mediterranean trades, Safmarine was the most reliable carrier with on-time performance of 95.5 per cent, followed by Evergreen with 79.8 per cent.

    Both trans-Atlantic trades saw decreases in on-time performance of above 10 percentage points, with trans-Atlantic westbound declining by 10.5 percentage points to 67.4 per cent, and trans-Atlantic eastbound dropping by 10.6 percentage points to 70.2 per cent year on year in 2017.

    Niche carriers ICL and Marfret had the highest schedule reliability on the trans-Atlantic westbound and eastbound trade lanes, recording on-time scores of 97.5 per cent and 98.7 per cent respectively.

NY-NJ examines extended gate hours and studies rail efficiency

    The Port of New York and New Jersey is to study whether its marine terminals should open longer and how to improve efficiency at the port's rail terminals. It'll also examine how to react if the port is hit with a crisis in a new series of analyses aimed at improving port efficiency as the number of mega vessel visits rises.

    The study subjects are among six new priorities compiled by the port's Port Performance Council, a stakeholder group sponsored by the Port Authority of New York and New Jersey. Another priority will be to look at how to improve efficiency in the handling of cargo at the port rail terminals as rail cargo volumes rise, and the related opportunity for creating more inland ports.

    Other priorities on the list include the creation of a crisis management plan, a renewed look at the port's chassis supply system, and the possible creation of an "integrated dashboard" that would broaden the existing range of port metrics available to include chassis availability, railroad schedules and other information, IHS Media reported.

    The list, unveiled to about 200 port stakeholders in a closed meeting in Newark, New Jersey recently, represents a retooling of the committee, which the port has touted as one of its most effective innovations of recent years. The announcement marks the conclusion of a previous plan focused on 23 previous recommendations from 2013, and is a recognition that the port needs to adapt to new challenges to remain competitive, said Bethann Rooney, assistant director of the authority's port commerce department, who is also coordinator of the council.

    As shown by the council's past work, the priorities "help ensure that nobody loses sight of some of the initiatives that are important," Mr Rooney said. "So that we can keep talking about it, and not lose sight and God forbid, down the road, get caught off guard."

    The renewed focus on gate hours under the new priorities is included in a supply chain analysis, which a committee outline says is designed to evaluate the efficiency of each link in the chain as the port "strives to maintain its competitive position."

    This will include determining at which point extended terminal hours are necessary, a look at how "terminals offset additional operating costs incurred," and a study of whether there are "sufficient truckers to support a second or third shift."

    The outline also says the committee must look at how technology can be used to improve "planning and predictability, visibility and efficiency to enhance cargo velocity".

    "The study must also address the lack of transparency of critical information within certain parts of the supply chain," the outline says. "BCOs often describe the time between a container's arrival at a terminal and its dray out of the port as a 'black box' that inhibits their ability to track the whereabouts of their cargo."

Agility joins IBM-Maersk blockchain platform for supply chain industry

    Agility, a third-party logistics provider, has announced that it will join a platform being developed by Maersk and IBM using Blockchain technology to manage, track and streamline container shipping in a way that would dramatically increase transparency across the entire supply chain.

    Agility said it has agreed to identify events associated with individual shipments and to share and receive information concerning these and other related events using blockchain, a distributed ledger or decentralised database that keeps continuously updated digital and permanent records of events, including transactions.

    "In addition to showing the location of containers in transit, blockchain can show the status of customs documents, bills of lading and other documentation," Agility Global Integrated Logistics chief executive officer Essa Al-Saleh was quoted as saying in a report by American Shipper.

    "It can improve workflow, cut processing costs and enhance visibility by integrating shipping processes and partners. Customs and border authorities can use the technology to improve the information available for risk analysis, leading to increased safety and security as well as greater efficiency in border inspection clearance."

    IBM and Maersk announced their initiative in January, with an aim of attract other parties to use their platform, including freight forwarders, shippers and other shipping lines.

    "Blockchain technology is going to make shipping cheaper, safer and more reliable," said Mr Al-Saleh. "As early adopters, companies like Agility can help Maersk and IBM understand the needs of shippers and develop standards that will make trade more efficient.

    "We can help customers understand how to use blockchain to improve shipment visibility, eliminate paperwork, reduce errors, and shorten transit and clearance times."

    Agility noted that documentation and administration are estimated to account for one-fifth of the US$1.8 trillion spent annually to move goods across borders.

    There are a host of technology providers aiming to introduce blockchain-based solutions into the international shipping industry across a number of areas such as product provenance and trade finance.

    Additionally, standards organisations, including the Blockchain in Transport Alliance (BITA), aim to bring a wide cross-section of freight entities across transportation modes together to develop blockchain standards so that individual formats don't emerge.

(Source:HKSG-GROUP)

Asia Pacific Shipping