A new report has been released by IBM Business Consulting Services focused on the container shipping sector. The authors of the report conclude that the greatest long-term challenge in meeting and adapting to new market forces is the potential competition from package delivery providers such as UPS, TNT, FedEx and DHL.

According to the report, the forces for change come from the demand by customers for greater reliability at lower total cost. This combined with the high levels of growth which the market is currently experiencing is placing considerable strain on existing infrastructure, challenging companies to find new ways to remain competitive and responsive.

The report believes that the integrators have a major opportunity to extend their services into the shipping sector as they possess the type of business cultures, systems and processes needed to offer the product reliability and visibility presently demanded by shippers. The authors go on to state that the asset focused business culture which pervades the shipping industry could act as a hindrance to its future competitiveness.

The report predicts that over the next ten years shippers will seek more integrated providers above and beyond simple point-to-point transportation providers. These customers will demand a high level of visibility and reliability similar to that provided by packaged delivery producers. As a result, significant opportunity exists for shipping container companies and packaged delivery providers to redefine the industry. Unless existing shipping lines respond to meet customer demands, IBM believes that the express parcels integrators will redefine the structure of this industry.

Source: Transport Intelligence

To request a full version of the report ‘Setting a new course in the container shipping industry’, please e-mail:
Americas Deborah Obendorf drobend @ us.ibm.com
Asia Pacific Henrik Anker Olesen hao @ cn.ibm.com
Europe, Middle East and Africa Nils Ole Klejnstrup nok @ dk.ibm.com

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