My colleague and I and a student recently published a new paper in the American Journal of Transportation and Logistics. You can see it below. The paper is based on a presentation made at the International Association of Maritime Economists’ 2017 annual meeting in Japan.
The paper is about Ocean Trading Intermediaries (OTI’s) and their distribution across the US. The data came from the Federal Maritime Commission’s lists of registered US and foreign OTIs, which includes Ocean Freight Forwarders and Non Vessel Owning Ocean Carriers. WE discuss the history, legal framework, and current conditions facing OTIs and make special reference to the Chicago area, in which a cluster of these businesses has arisen.
We used statistical cluster analysis to show that despite the belief that ocean freight forwarding is becoming more technology driven and thus able to locate anywhere, the businesses still choose to form clusters in major ports.
How to cite this article:
Christopher Clott. Built to Last? The Changing Role of Ocean Transportation Intermediaries: Disintermediation and Reintermediation. American
Journal of Transportation and Logistics, 2018,1:5.
I recently published a new paper in the journal Games. You can see it below.
It deals with a very important logistics problem. In a cold chain, different parcels require different conditions of temperature. A multiple compartment vehicle can be sued to consolidate loads with different temperature characteristics in one vehicle. But loading the vehicle at a low cost is a hard problem, requiring heuristics to solve. And even then, how do we divide the cost of loading among the different package owners in a fair way? ‘Fair’ here means that no group of owners will choose to leave the consolidation, because they cannot do better on their own than the cost they are charged.
The paper uses an inductive algorithm on top of a common heuristic to give a method for solution. There is a small example in the paper that shows how to apply the algorithm.
Ocean carriers need to worry big time. If they cannot fix the reliability problem they will soon be pre-empted by those who do.
Intra-Asia specialist MCC, a wholly owned subsidiary of Maersk Group, achieved a highly commendable monthly average on-time reliability of 75.2% in Q1
75% is not acceptable in supply chains, though it is called highly commendable. That means most are worse!!!
Anyone who offers premium service (like Amazon two-day) which is highly reliable will soon get all the business. Maybe bespoke services with premium standard delivery will steal all the business. It can work both ways, too. Some 3PLs may be moved to partner with the premium services to boost volumes and guarantee better reliability.