Container Shipping Companies Seen Facing New Opportunities and Threats

Record growth in container shipping markets seen pressuring carriers to transform business, IBM reports

Long-term Challenges

Customers Seek "Supply Chain Partners"

  • Shipper's strategies The container shipping companies expect to achieve greater reliability at lower total cost through more tightly integrated technology systems. These systems will drive down costs and increase the integrity and reliability of container shipping data.

  • More concentrated industry structure In 2004, the top 10 industry players held only 53 percent of the market. As the industry becomes more consolidated, the authors predict that the top 10 players will control about 80 percent of the market.

  • Sharply differentiated customer relationships Shipping lines will segment the market more accurately, adjusting pricing to reflect average longer run costs and making relationship investments to optimize customer profitability. Better relationships with customers will result in improved booking forecasts and capacity planning.

Additional Articles of Interest

last mile The Last Mile Is the Longest Mile

redesign the supply and service chains Leveraging Supply Chain Logistics: Get Physical and Agile

lower your less-than-truckload costs LTL Sourcing: Success for Buyers in A Seller's Market