Tag Archives: ports

Shanghai port, world’s busiest, grapples with traffic congestion

Fog is causing massive congestion at the Port of Shanghai.  Over 100 ships are waiting to berth.  Not fun.  Will shippers stop using Shanghai?

Source: Shanghai port, world’s busiest, grapples with traffic congestion

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

The terminal connections maze

In the post there is a link to an article from a Drewry analyst about the possibility that more firms will make close relationships with their terminal operators.

If ocean lines and terminal operators consolidate, this would have the effect of improving coordination between that line and the terminal, but would disrupt coordination with other lines. It’s as if American Airlines and O’Hare airport in Chicago made a deal that there would be preferential loading and unloading there for American flights.  Easy to pick up or unload passengers, get baggage, priority for landing and takeoff slots, de-icing (I was just there!), lines for tickets, baggage checking, TSA clearance, and so on.  It would be good for American passengers and cargo, presumably (Perhaps American would drop the unpleasant $25 fee for domestic checked bags!)

So coordination of all air traffic and passenger or cargo handling for the other airlines would be disrupted.  Delays would occur. Any issues that appeared would take longer to settle.  And it would take me longer to get in and out of the airport.

Would it make me choose American if I had to go to O’Hare? Just maybe– but rather unlikely that it alone would be enough to sway me. After all, someone else might still be cheaper.

Coordination has to be horizontal in logistics to be truly better for all customers.

Source: The terminal connections maze – The Loadstar

The Terminal Connections Maze