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HOW CHANGES IN THE OCEAN CARGO INDUSTRY AFFECT SHIPPERS

2017-08-11 18:11:35

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HOW CHANGES IN THE OCEAN CARGO INDUSTRY AFFECT SHIPPERS

 

 

Editor’s Note: This article serves as a primer to explain the supply chain effects of changes in the ocean freight industry. For more detail on any of the issues presented, click on the numbered headers and you will be redirected to a full article.

 

COSCO-OOCL. K Line, NYK and MOL. It seems each quarter the shipping industry sees a new deal come to light, continually reducing shippers’ logistics options to but a half-a-dozen global carriers.

It’s tough to keep up with all the change, especially as these deals may take months to complete. Maersk-Hamburg Sud, you say? The deal has yet to close, really. So, when will the threatened rate hike come, as fewer global carriers set themselves up to dominate more than two-thirds of the market?

Truth is, change is on its way. It began in 2015, and now, two years, several deals, and a bankruptcy later, the market is poised to turn into a carriers’ market.

 

In Supply Chain Dive’s latest series, we explore how changes in the ocean cargo industry will affect shippers through the five articles linked below:

1. Big ship chronicles: How overcapacity disrupted the industry

The world of ocean cargo transport has seen new trade routes, shipping alliances and companies emerge in the last two years. Here's the story of how it happened. Read More >>

2. 4 charts explain how the shipping industry changed in 2 years

The shipping industry is beginning to look like an oligopoly, here's how consolidation has changed capacity and market share. Read More >>

3. What shippers should know about the state of ocean rates

Highly complex ocean rates may be moving away from private negotiating as some industry leaders push for transparency and fairer pricing. Read More >>

4. Round-up: How shifts in ocean alliances disrupted logistics

As a result of new alliances, the shipping industry at first struggled to adjust to heavy port congestion and higher prices. Read More >>

5. Supply chains benefit as ports adapt to freight industry shifts

As ports are often the first to feel the effects of market shifts, it takes great foresight to keep supply chains running. Read More >>