This past year was the most challenging year our industry has faced in decades. A number of lessons were learned during this period that will impact the course of 2010 for all involved. Companies that were gearing up for continued growth learned the importance of agility. Those expecting to gain economies of scale through volumes alone discovered cost leadership and process improvement are continuous journeys. With a number of signs indicating the worst is behind us, 2010 should bring improvement, although likely at a gradual pace.
For liner shipping, business fundamentals will necessitate a significant increase in freight rates to ensure the viability of services. Bunker cost volatility will dictate fully floating surcharges, and carriers will be compelled to develop new efficiencies, through improved technology and expansion of slow steaming.
All companies involved in container transportation must to focus on cost improvements. The fragile recovery and uncertainty of its duration will call for all to review historical assumptions to find better solutions to industrywide problems impacting asset turnover. This will help drive improvements in ship, terminal, truck, rail and chassis utilization leading to stronger and more efficient supply chains that will help the U.S. economy recover and prosper for years.
Companies strong enough to make the necessary changes, wise enough to listen to the voice of their customers, and committed enough to consistently deliver reliable service will reap the rewards of customer loyalty that will buoy them through the rough seas ahead, and prepare them for the voyage beyond.