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Container carrier cost cutting reduced reliability in 2013: Drewry
CONTAINER shipping reliability fell every quarter of 2013 with fourth quarter being the worst in two years, posting its lowest on-time rate of 64 per cent, 11.4 points down on 2012, says Drewry's Carrier Performance Insight.
The short-term outlook is not hopeful and services are likely to become less reliable into 2014 as operators cut costs creating a knock-on effect to service standards, said the London research house.
A focus on reliability seems to have been lost in current cost-cutting environment and shippers are now paying more for poorer service, said Drewry research manager Simon Heaney.
"Shippers know that lines are saving money, so they will be unwilling to accept further rate increases. This could provide an opportunity for more reliable carriers to secure better rates," he said.
Danish giant Maersk Line held its status as the most reliable carrier achieving an on-time score on all-trades of 80 per cent in the fourth quarter, improving by 0.8 points compared to most of its rivals.
Evergreen boosted its position from 11th to rank second at a 74 per cent on-time result, a three-point improvement. Yang Ming ranked third despite a four-point decline it held 74 per cent on-time.
Liners struggling were MSC and CSAV at 48 per cent and 51 per cent on-time reliability.
The short-term outlook is not hopeful and services are likely to become less reliable into 2014 as operators cut costs creating a knock-on effect to service standards, said the London research house.
A focus on reliability seems to have been lost in current cost-cutting environment and shippers are now paying more for poorer service, said Drewry research manager Simon Heaney.
"Shippers know that lines are saving money, so they will be unwilling to accept further rate increases. This could provide an opportunity for more reliable carriers to secure better rates," he said.
Danish giant Maersk Line held its status as the most reliable carrier achieving an on-time score on all-trades of 80 per cent in the fourth quarter, improving by 0.8 points compared to most of its rivals.
Evergreen boosted its position from 11th to rank second at a 74 per cent on-time result, a three-point improvement. Yang Ming ranked third despite a four-point decline it held 74 per cent on-time.
Liners struggling were MSC and CSAV at 48 per cent and 51 per cent on-time reliability.
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