The Digital Imperative in Container Shipping
Carriers that approach a digital transformation with the right ambition, resources, and scale can achieve a step change in their digital capabilities within 18 months.
Nearly every shipping segment is facing significant challenges that require immediate action.
Nearly every large shipping segment experiences significant challenges at this time. Flattening demand growth and a high volatility of financial results are common challenges. Overcapacities drive freight and charter rates down across container, dry-bulk, and tanker segments. Terminal operators in many locations face increasing competition and operational challenges related to ever-increasing vessel sizes particularly in container shipping. Winning companies in this environment have implemented bold transformation programs to address strategic, commercial, cost, and organizational differentiators.
Many of the toughest business challenges encountered by the container shipping industry today can be addressed only through organizational transformation. Here are four interconnected steps required for transformation projects in container shipping:
Optimizing bunker cost is a key improvement opportunity for many shipping companies, given the magnitude of the cost category. Shipping companies wanting to optimize bunker costs aim for a holistic approach to improve planning, procurement, voyage execution, charter value, technical efficiency, and fleet optimization.
To build a competitive edge for the future, shipping companies need to decide which marine fuel option will provide the highest return in the coming years and how they will comply with the increasingly stringent rules and regulations imposed by regulators. The challenge is finding the best choice based on the relative benefits and drawbacks of each alternative.
Bottom line: companies that take action now to evaluate their fuel options will be better positioned to reap the benefits of wise investments in the future.
Carriers that approach a digital transformation with the right ambition, resources, and scale can achieve a step change in their digital capabilities within 18 months.
The global container-shipping industry faces stiffening headwinds. To survive, carriers must continue to drive change aimed at boosting performance. Six moves can help.
Ports must adopt connected technologies that help stakeholders coordinate and collaborate to boost productivity, cut costs, and gain a competitive edge.
Overcapacity, transshipment, and lagging port productivity threaten to slow or even reverse the upward trajectory of the region’s ports.