fbpx
DB Schenker - Now That's Logistics
  • English
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
DB Schenker - Now That's Logistics
No Result
View All Result
Home Shipping & Logistics Ocean Freight

Sailing Through Shipping Turbulence

August 27, 2015
Sailing Through Shipping Turbulence
Share on FacebookShare on Twitter

Coordinating and optimizing ocean freight transportation can be a balancing act. Today, companies shipping freight via ocean transport need to create whatever advantages they can. Rising costs, increasingly complex schedules, new rules and regulations, and a variety of other issues, not the least of which is congested, overburdened ports on both coasts.

Who were the winners coming out of the West Coast port problems? Houston, Savannah and other Gulf and East Coast ports were among the big winners as importers sought to avoid West Coast delays this year. Epic West Coast port congestion, aggravated by contentious and protracted negotiations between the dockworkers union and the port terminal operators earlier this year, drove many Asian ships to bypass the coast entirely and travel through the Panama Canal to other U.S. destinations. The ports of Houston and Savannah saw the highest increases in imports from all countries for this period, with Houston imports up 26% and Savannah up 32% year over year.

Some of the West Coast volume loss may be permanent as shippers become wary of recurring delays. With the opening of the Panama Canal in the not-too-distant future and the East Coast ports deepening their waterways to accommodate larger ships, there seems to be changes in sight.

For DB Schenker, alternative ports are key. If there was congestion in Los Angeles, then Seattle was looked at as an option. On the East Coast, containers coming to New York could be rerouted to Charleston. The further optimization of the smaller ports will be a helpful solution in years to come. But there are other solutions as well.

What about the large megaships that will be a mainstay once ports are upgraded and the Panama Canal’s expansion opens (expected in 2017)? The freight forwarders aren’t convinced that the megaships are the answer to increased speed and lower cost. The basic premise is to achieve lower costs with large vessels providing lower slot costs. This is coupled to the need to fill the ships, financial risk, loss of control and independence due the need to cooperate, resulting in a loss of competitive differentiation. And if the lead-time is compromised by port congestion and slower customs procedures, then the question of their benefit becomes a “mega” question.

But, there is no doubt that the megaships will change the shipping industry. Its massive size reflects equally massive changes that have reshaped the ocean shipping industry over the past decade as carriers build ever-bigger ships to capture economies of scale in fuel and crew costs. The capital-intensive strategy is squeezing out smaller players and triggering consolidation, while putting new demands on global shipping infrastructure. The shift to larger ships was pushed along by the global financial crisis and rising fuel costs. After record high rates for container shipping in the 1990s and early 2000s, prices collapsed along with global trade in 2008 and 2009. When the orders began again, it was mainly for megaships. They are much more efficient, consuming 50% of the fuel of traditional ships. They also have the same size crew with 3x the load. But the solutions just don’t stop at “bigger is better.”

As one of the world’s largest ocean freight forwarders, DB Schenker has developed flexible plans that recognize the need for both optimum cost and efficient lead times, customizing solutions for our clients. One of our most effective products, DB SCHENKERskybridge, is an intermodal transport system combining the advantages of air and ocean freight.

DB Schenker combines all the speed and economic benefits of air and ocean freight with DB SCHENKERskybridge. As a company we are able to shift the balance of cost and speed according to the client’s priorities. If the client wants speed, such as needed by the fashion industry, then airfreight would be the choice. But air freight comes at a price, counting every pound. If cost is a key factor in decision making, for heavy loads or high volumes, then ocean freight would be best, however lead-time is extended.

By creating a system using both air and ocean, DB SCHENKERskybridge creates a blend of both worlds. DB SCHENKERskybridge is available on all key routes, to South America, Europe, the Middle East, Africa and Asia. It is also a cost-effective alternative for shipments to Europe and the South Pacific region.

“We’re looking to stay ahead of logistic challenges. By constantly shifting our strategies, sometimes redirecting shipments, and suggesting intermodal transport solutions, we can keep our delivery schedules at an optimum cost.” says Richard Arndt, Head Of Ocean Business Development, Americas

DB Schenker Ocean Freight transports freight by sea to 130 countries, facilitating the global trading relationships of 700,000 customers. As one of the world’s leading ocean freight forwarders, DB Schenker moves 3,800 containers a day.

Source: Thank you to Richard Arndt, Head of Ocean Business Development, Americas
Next Post

Where are US Exports falling this year?¬ Falling is the operative word.

RECOMMENDED

Top 15 Ports in The Americas

Top 15 Ports in The Americas

March 16, 2018
5 Airfreight Trends to Keep On Your Radar Screen in 2023

5 Airfreight Trends to Keep On Your Radar Screen in 2023

December 27, 2022
Thought Leadership Updates with David Buss

Thought Leadership Updates with David Buss

January 30, 2022
Top 15 Ports in the Americas 2019

Top 15 Ports in the Americas 2019

June 24, 2019

TRENDING

What’s On Tap for Ocean Shipping in 2023?

What’s On Tap for Ocean Shipping in 2023?

November 29, 2022
3 Things You Need to Know about Importing Chocolate

Three Things You Need to Know about Importing Chocolate

February 2, 2017
The Top Air Cargo Airports in the US

The Top 10 Freight Airports in the US

March 12, 2019

5 Ways to Start Preparing Your Supply Chain for CNY 2023 Now

November 16, 2022
Six Contract Logistics Trends to Watch in 2023

Six Contract Logistics Trends to Watch in 2023

December 13, 2022
DB Schenker

DB Schenker is the world's leading global logistics provider, delivering over 150 years of premium performance and transportation solutions. One call gets our customers on the fast track to nearly 2,000 locations in all of the world's most important economic regions.

Contact Us

United States
+1 (800) 225-5229 (in USA)
+1 (602) 458-6200 (outside USA)
www.dbschenker.com/usa
Canada
+1 905 676 0676
www.dbschenker.ca

Categories

Visit Us

• DB Schenker Americas
• DB Schenker Canada
• DB Schenker Careers
• DB Schenker USA
• Trade Advisory Solutions

Follow Us

• LinkedIn
• Twitter USA
• Twitter Canada
• Facebook

© 2022 Schenker Americas, Inc. | Privacy Policy

No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
  • pt-br Português
  • fr Français
  • es Español
  • en English

© 2022 Schenker Americas, Inc. | Privacy Policy

We use cookies in order to optimize our website and continually improve it. By continuing to use this site, you are agreeing to our use of cookies. You can find further information on cookies in our privacy policy. Accept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT