George Goldman, President, Zim USA

https://www.zim.com
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George Goldman

While 2016 was overshadowed by the Hanjin affair, tectonic movements are expected to continue to dominate the global shipping landscape in 2017, with mergers, acquisitions, and new forming alliances creating new realities. For the carriers, it is an unavoidable development, an effort to stabilize the industry after years of overcapacity and plummeting freight rates.

But what will it mean for customers? Many shippers express concern, and with good reason, as the supremacy of the giant alliances may come at the expense of shippers. While they may offer new opportunities, these strong alliances also pose challenges. After all, the industry was forced to evolve in this direction under severe pressure, and the process was not carried out with the customers’ interests in mind.

One big question remains to be answered in this new reality: Moving forward, how can carriers differentiate themselves? This is true for both alliance members and independent carriers.

It goes without saying that efficiency and cost reductions will continue to be important factors, as well schedule reliability and service levels, in general. However, the new situation may well drive carriers to rethink the ways they interact with customers.

To stand out against the backdrop of companies offering similar products, carriers may, or rather should, strive to introduce innovative solutions, modernize systems to provide better and personalized customer service, and win customers by offering tailor-made and creative solutions. Market share is not everything; stable, long-standing customer relations is another key for enduring the challenges of the market. In short, differentiation through people, process, and systems.

There are still many challenges ahead, and while 2017 is not expected to mark the end of the prolonged crisis, it may bring about the beginning of better prospects.