Liner shipping reliability is set for a steady decline in 2014 as operators cut corners says Drewry’s newest Carrier Performance Insight report.
Released on February 6th 2014, Drewry’s latest report has found that liner shipping has become less and less reliable.
In 2013 there was a steady decline in containership reliability as the year went on.
This worsened in every quarter with the on-time average in the fourth quarter dropping below 64 percent, the lowest for two years.
This is all the more shocking when compared against the same quarter in 2012 when the all-trades average reached highs of 75.2 percent.
Such poor performance has coincided with a number of skipped voyages.
With even more skipped voyages planned for the first months of 2014, the short-term outlook for reliability is not great.
Simon Heaney, senior manager of supply chain research at Drewry, put the failings down to a lack of focus “in the current cost-cutting environment. Shippers are now paying more for poorer services.”
“Shippers know that lines are saving money, so they will be unwilling to accept further rate increases. This could provide an opportunity for more reliable carriers to secure better rates.”
Whilst industrial giant Maersk held the top spot as most reliable carrier in the industry, it did so in a quarter where most of its competitors suffered a free-fall in on-time ship arrivals.
Maersk was one of only eight carriers to improve upon their third quarter performance, improving all trade reliability by 0.8 points and achieving 80 percent on-time reliability.
Evergreen rose from 11th place to 2nd with a three point improvement and a 74 percent on-time result.
Despite a four point decline, Yang Ming ranked third with an average of 73 percent.
At the other end of the spectrum, MSC and CSAV were ranked as the two worst providers, scoring 48 percent and 51 percent respectively.