Maersk Line CEO unveils new manifesto at TOC Europe 2011
The CEO of Maersk Line , Eivind Kolding today unveiled the Line's new three-point manifesto for the future of its shipping operations at the TOC Europe conference, Antwerp.
In his keynote speech, Mr. Kolding outlined the three priciples that will revolutionise the way Maersk Line operates: reliability, ease of business and transparent environmental perfomance.
"[We] need to concentrate on what creates value, rather than have a narrow transitional focus," Mr Kolding told the audience.
Maersk Line, in the new manifesto entitled The New Normal, outlines that shippers should look at the total cost, and look at the supply chain as a whole.
"Reliability is the new rate war," Mr. Kolding said. Increasing reliability of shipping, he said, would ultimately bring down supply chain costs.
Maersk Line is also placing the onus on port terminals to step up and help shoulder responsibility in improving relability. Two thirds of all delays occur are caused at the port terminal, either by staff carelesness or inefficient port operations.
Currently, only 50% of all containers shipped arrive on time, which Mr. Kolding said was "simply appalling."
The Line has conducted extensive research among its customers, most of whom said that they'd prefer to pay a premium to use shipping lines that were consistently reliable.
Reliability will also be increased by penning longer term contracts with a more stable rate, making planning easier for both customers and shipping lines, Mr. Kolding said. "The volatility of freight rates do not create value for anyone."
In his keynote speech, Mr. Kolding also outlined the need for a convenient and fully automated interface for customers, who should be able to locate and track their container, and receive confirmation of its safe delivery.
Maersk Line also plans to penalise customers who book containers that never show up. Currently, 30% of all containers booked turn out to be no-shows.
Customers such as Adidas who were surveyed by Maersk Line also expressed an interest that each container should deliver not only its cargo but also a calculation of its carbon footprint.
"Container shipping is not a commodity and we must not treat it as if it was," Mr. Kolding said.
Maersk Line have launched a new website to promote discussion of the the new manifesto: http://www.changingthewaywethinkaboutshipping.com
- Check PTI Online tomorrow for Editor's one-on-one interivew with Eivind Kolding.