Tag Archives: alliances

Maersk Line to Pay $4 Billion for Hamburg Süd

More mergers in ocean carrier ranks. Payback out of savings in 8 years. And what does this do to alliances?  We’ll find out, won’t we?

Maersk has finalized its purchase of container shipping line Hamburg Süd from the Oetker Group after both boards approved a Sale and Purchase Agreement today.

Source: Maersk Line to Pay $4 Billion for Hamburg Süd – Supply Chain 24/7

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By Mike Wackett (The Loadstar) – “Organised chaos” – that’s how one carrier describes the Asia-Europe schedules of the Ocean and THE alliances, believing there’s very little hope of vessels hitting itineraries before June. The source, an alliance member, told The Loadstar the transition of ships and containers from previous schedules to their new alliance hubs […]

screenshot-gcaptain.com 2017-04-28 10-03-26Source: New Shipping Alliances Bringing Chaos to Asia-Europe Tradelanes – gCaptain

EC clears the way for Maersk takeover of Hamburg Süd – The Loadstar

Maersk is one step closer to its proposed merger with Hamburg Sud. It required an agreement for Hamburg Sud to drop out of five other alliances it was a part of when the deal closes, possibly by the end of 2017.  Radical reorganization of the alliances is going to play havoc with shippers’ plans, of course, and require new contracts all around.  The transaction costs to shippers will be substantial.  And no one will defray this burden, unless Maersk and the other alliances cut rates accordingly to help convince shippers to go through the change.

Long term it might benefit shippers.  But in the shorter run it’s hard to see how.

There are still four countries that need to approve the deal, so it will be a while before we learn all the fallout from the merger.

Source: EC clears the way for Maersk takeover of Hamburg Süd – The Loadstar

Customer experience & next-generation operations 

This McKinsey piece makes some of the best points I’ve heard about improving the customer experience.  These thoughts resonate with me concerning the import-export logistics experience for customers.

Especially useful are:

  • Exhibit 2, which makes the supply-chain point that you can locally optimize the individual steps, but flunk out on the whole process experience.

image exhibit 2

The journey stinks though the legs perform well. Put in the context of ocean logistics, If the ocean carrying segment has only 70% reliability, it really doesn’t matter how reliable the other steps are; you’re limited to 70% satisfaction overall.

  • Exhibit 3, which reports on a study of some real examples (it happens, in banking) that shows how firms can miss the point and concentrate on improving the experience for the wrong things.

image from article

Some touchpoints have high importance but give low customer satisfaction.

 

Here’s the link to the article:

  The benefits of improved customer experience can be fleeting unless changes to supporting back-end operations are made, as well.

Source: Putting customer experience at the heart of next-generation operating models | McKinsey & Company

Another article form the same source, cited above as reference 2:

 New research reveals that focus, simplicity, “digital first,” and perceptions matter most.

Source: The four pillars of distinctive customer journeys | McKinsey & Company