2014 has been an eventful year in that numerous “corrections” occurred that, in the aggregate, did little to enhance the quality of what still should be paramount to all efforts: SERVICE.
As ships grow larger and carry more cargo to be handled through ports and adjoining infrastructure, shepherded by fewer humans who depend more on intricate computer software than their own brain power, one can easily recognize certain limitations to the supply chain.
Labor disruptions will always pose a problem, not only in U.S. ports but globally. Both labor and management must find a venue to deal with this when considering productivity and cost. There is no longer room for outrageous demands by unions used to generous compensation and guaranteed work. Most labor is already automated and does not require a backup gang to stand idly by.
Both liner and breakbulk operators are optimistic with regard to a reasonable uptick late in 2015. Ships need to be “full and down,” and freight rates must be commensurate with cost of financing, operating and manning ships. Shareholders demand returns, as otherwise they may be tempted to invest in real estate or the entertainment industry. Ship financing becomes thus a most important ingredient, and those at the helm must have a good sense of timing when ordering new tonnage.
It can be safely assumed that the shipping world will continue to face all sorts of adversities and 2015 will be no exception. While much has changed in this industry, and always will, the motto remains Navigare Necesse Est.
Peter Schauer, CEO, Orion Marine/ConFlo Lines