Alliances provide greater routing and transit time flexibility. Equipment is more readily available during peak periods. On-time performance has improved. Trans-Pacific lines are focused on putting their economic houses in order, as they add more contract logistics services to their transportation portfolios. Carriers have taken a fresh look at their operations and found that revenue gains are not keeping pace with costs.
Carriers collect just over half of their true per container fuel costs through special charges.
Trucking, intermodal rail and longshore labor costs are all expected to increase. Lines with enormous capital exposure and high fixed operating costs, in a highly volatile freight market, must press for rates and charges that fully cover costs, and that encourage long-term expansion and competition. Astute shippers will see offsetting productivity improvements and cost savings through customized service contracts. The system is working. The Journal of Commerce.