Friday, July 09, 2010: 05:30:40 PM

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MAERSK LINE Retaining top slot

Details from a report on schedule reliability by Drewry Consultants

Maersk Line has reclaimed the position as number one on-time carrier, a position held by Maersk Line in six out of the last seven quarters, according to the latest Drewry Report on schedule reliability. However, the punctuality still leaves a lot to be desired as Maersk Line aims for 95% reliability over the next few years.

Drewry's report on schedule reliability in the fourth quarter of 2009 puts Maersk Line back in the lead as the most reliable carrier among the world's 20 largest shipping lines.

However, a reliability performance of 63% - a drop of 13 percentage points compared to the fourth quarter of 2008 - is not satisfactory. There are some reasonable explanations to this though, like tough weather conditions, a reliable partner.



For example, the adverse weather in the Atlantic and Pacific Oceans generated by the "el niño" meteorological system caused Maersk Line's schedule reliability to drop 8 percentage points to 63% in the fourth quarter of 2009, according to the Drewry Report.

Despite the fourth quarter drop, Maersk Line's reliability performance over the past two years outstrips all major rivals. Ironically, vessel sharing agreements and slot charters are hampering Maersk Line's schedule reliability score while helping their partners to improve theirs significantly.

Maersk Line launches unique product
MAERSK
Line has launched an innovative upgrade option that enables customers to get urgent cargo on board a ship and offers a slew of other benefits.

The new service known as 'Priority Product Upgrade', will help customers who simply can't afford to take "no" for an answer for certain key shipments. The Priority Product Upgrade was introduced on selected services from June 1 and will be implemented on majority of its services during the month.

The leading global shipping line is the first carrier to offer this service to its customers.

Priority Product Upgrade is a loading priority option offered to a customer. It is available only at the time of booking and only for vessels where the market demand is greater than the capacity available.

The option offers a number of significant business benefits, including loading priority of cargo, reducing the risk of costly delays, saving money and time. It will give a customer the choice to prioritise his cargo. It will also let him know instantly, whether there is a possibility of loading their cargo or not.

According to the leading shipping line, it has launched the new product keeping in view different needs of different customers at different times.

The upgrade option provides customers with the choice to adjust Maersk Line's service to their supply chain. So, when a booking rejection or a delayed shipment would normally be the only other alternatives, Maersk Line will now offer its customers the choice of upgrading their booking.

As part of this enhanced service, a limited space on the vessel for such cargo will be earmarked while anticipating high demand. However, there will be services where the company will not be offering the upgrade option due to local regulations such as FMC regulations. The service is not available for a fixed fee, but is priced dynamically and will vary depending on vessel space availability and market demand.

The Drewry Report also recognises the positive impact that super slow steaming has on reliability. The strings on which super slow steaming is deployed show the highest schedule reliability performance.

Despite adverse weather conditions and terminal congestion, Maersk Line was one of only three carriers able to improve schedule reliability performance during the first quarter of 2010, according to the report.

Measured against the top 20 carriers, Maersk Line's 6.5% improvement to 69.2% schedule reliability not only maintains its number one position but increases the gap to the nearest rival.

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Asger Lauritsen, head of operations execution, says the hightlight of the report is the low reliability performance of reputable alliances. "Overall, on our own strings, Maersk Line is a massive 36% better than the average.”

However, on the main Asia to Europe routes, where Maersk Line scores 88% (excluding the slot charter with CMA on the FAL1 service), both the Grand Alliance and New World Alliance manage just 57%," states Mr Lauritsen.

In order to meet Maersk Line's reliability ambitions, Mr Lauritsen says that charter agreements are now a priority: "We need to work together with our vessel-sharing partners in order to ensure our commitments to our customers are upheld," he says.

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