Fabio Santucci, President, Mediterranean Shipping Co. (USA)

https://www.mscgva.ch
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Fabio Santucci

With the industry keeping a sweeping eye on the forthcoming implementation of the 2M Alliance, along with activities of other major vessel-sharing agreements, there is much to be excited about in 2015.

Stability in our industry is still far from reached, mainly because of low ocean freight rates on the main east-west routes. Thus, there is no doubt that the main focus of every carrier will center on improving efficiencies and reducing operational costs, while still striving to provide an excellent customer service to all clients.

Despite some setbacks, a modest global recovery continues, but there seems to be a general consent about the steady improvement of the U.S. economy during 2015-16, which might translate into a moderate boost in U.S. trade, predominantly driven by robust imports.

Regrettably, threatening these prospects are both “internal” and “external” factors. Among the latter, we can certainly list a worsening of geopolitical tensions around the world, possibly leading to additional trade sanctions, along with a weak growth in some advanced economies and a tinted decline in key emerging markets.

Internally, one factor that at times can truly hamper cargo flows is the limited availability of Intermodal capacity. Such constraint, coupled with terminal congestion intermittently popping up around the country, appear to be more common than ever before. Today, the delicate balance needed to swiftly move cargo between ports and inland locations can easily be altered on any given day.

Last but not least, nowadays one cannot ignore the issues at hand with labor disputes that hinder port operations and raise costs for all parties involved. Increased productivity and automation must become centerpieces of an essential evolution the U.S. dock labor force must desperately seek.

Fabio Santucci, President, Mediterranean Shipping Co. (USA)