“Triple E”… efficiency, economy of scale, environmentally improved? The great concept continues to shape the marine industry, but is so last year!
2016 is rapidly shaping up to be the year of the “Cs”. The impending onslaught of increased Container Capacity has already sparked the race to Construct new port facilities, deepen Channels, raise bridges and add larger Capacity Cranes.
The expansion of key Canals will allow the extension of larger vessel networks to new markets, resulting in Consultants reworking strategies for Coastal gateways, and interior transport schemes.
Prospects for Continued Capacity underutilization will force Carriers to implement even more aggressive Cost Containment policies, which will Continue the trend for Carriers to outsource, and Computerize many Customer services.
With Climate Change becoming more of an accepted political reality, Compliance with an onslaught of air quality and water quality Constraints will see Carriers taking Costly steps to address ballast water, emissions, and incidental discharge issues.
As throughput increases in space-Constrained terminal facilities with restricted gate hours, Carriers will Continue their slow Crawl toward fully rationalized Chassis ownership and operational models.
The rampant excess Capacity driven by the need for all major Carriers to have a Triple E competitive fleet, has Crushed the ability of Carriers to realize Compensatory rate structures. With too much Capacity Chasing and too little Cargo, Carriers cannot expect to achieve profitability for several years. Not all Carriers will be able to survive that long.
With most major Carriers already operating in Consortia networks, the only solution may be for industry Consolidation, in what many Critics Claim is an already dangerously Concentrated global industry. Naturally, any Change in Consortia partners may create a Chaotic scramble to realign with new partners with Compatible fleet and operating philosophies.
The Calculus of Change is increasing, and Changes are Coming.
“C” what I mean?