Daily Maersk’s impacts on shipper’s supply chain inventories and implications for the liner shipping industry

Zhang, Abraham; Lam, Jasmine Siu Lee

doi:10.1080/03088839.2013.869364

Cited by 23 publications

(13 citation statements)

References 41 publications

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“…Similar comments could be made with respect to the Maersk efforts with their 'Daily Maersk' business model that sought a premium for a high reliability service (Zhang and Lam, 2015).…”

Section: Discussionmentioning

confidence: 90%

Revisiting history: Can shipping achieve a second socio-technical transition for carbon emissions reduction?

Pettit

Wells

Haider

et al. 2018

Transportation Research Part D: Transport and Environment

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This paper draws on socio-technical transitions theory to contextualise recent developments in the technological and operational eco-efficiency of ships, which may ameliorate but not resolve sustainability challenges in shipping. Taking an historical perspective, the paper argues that shipping is fundamentally a derived demand arising out of, but also enabling, the spatial separation of production and consumption that are integrated through global value chains. It is argued that the twin processes of innovation-enabled specialisation (into e.g. container ships; bulk carriers etc.) and increased scale both of ships and of shipping operations have embedded shipping into logistics systems of increasing complexity and reach. The objective of the paper is to demonstrate, using secondary data, the long-run trends in the growth of shipping carbon emissions for bulkers and tankers, as well as the impact of increased scale and vessel speed on such emissions. A fuel-based, top-down, methodology, based on fuel consumption estimates derived from secondary source industry data that are suitable for a macro-level analysis, is used to estimate global shipping carbon emissions. It is argued that technologies or operational innovations that reduce the environmental burdens of shipping, while useful, do not represent the socio-technical system 'regime' shift that international maritime logistics requires in order to contribute to improved sustainability. Rather, in the relative absence of strong governance mechanisms in the maritime field, it is underlying 'landscape' shifts in production and consumption that are likely to act to reduce the demand for shipping and hence to be more significant in the longer run.

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“…Similar comments could be made with respect to the Maersk efforts with their 'Daily Maersk' business model that sought a premium for a high reliability service (Zhang and Lam, 2015).…”

Section: Discussionmentioning

confidence: 90%

Revisiting history: Can shipping achieve a second socio-technical transition for carbon emissions reduction?

Pettit

Wells

Haider

et al. 2018

Transportation Research Part D: Transport and Environment

View full text Add to dashboard Cite

show abstract

“…They conclude that the highest inventory reduction potential arises from a combination of high reliability and improved frequency of the ocean services. Zhang and Lam (2015) present an analysis of the Daily Maersk's program and its impacts on a shipper's supply chain inventories. They show that more frequent sailings result very significant on a shipper's cycle stock and improving schedule reliability reduces safety stock and pipeline stock.…”

Section: Port Competitiveness and Service Time Variability Reduction Studiesmentioning

confidence: 99%

“…With respect to the work presented by Zhang and Lam (2015), their focus is on a program implemented by the shipping line Maersk and the impacts on the supply chain costs of the shippers. The methodology employed also differ as they compare different scenarios with different levels of schedule reliability, but it is similar to the one presented here in the fact that they analyze a voyage between an exporting country in Asia and importing country in Europe (in our case, in United States and Mexico).…”

Section: Port Competitiveness and Service Time Variability Reduction Studiesmentioning

confidence: 99%

The strategic design of port services based on a total landed cost approach

González-Ramírez

Villalobos

Meneses³

2020

IJLM

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PurposeThis paper explores the effect of port's service time, particularly the mean and variability, on shippers' total landed costs to determine the competitive position of the port and derive recommendations for the strategic design of port services.Design/methodology/approachThe competitive position of a port is estimated considering the service level offered to the end-users of the port such as port service time, its variability and its effect on the total landed costs observed by the port users. The proposed methodology is meant to help ports to determine the required service time levels to maintain or gain a competitive advantage against other ports, in terms of attracting common hinterland's customers.FindingsResults show the advantages of considering service levels factors to determine the competitive position of a port, and what are the minimum characteristics required to capture more traffic volumes, that can help port managers to take strategic design decisions to better position the port in the current fierce market.Research limitations/implicationsThe proposed methodology is illustrated by considering a case study, which is the Port of Guaymas in Mexico. Data was not directly collected by the port, but based on interviews with shippers and public information, a representative case is presented. Due to a confidentiality agreement with the Port, specific references for most of the data used to estimate the model's parameters are not provided. The analysis is intended to show the potential value of this mechanism and can be used for evaluating the competitive position, from a high-level perspective, of any port to determine potential hinterland by improving the service level of the port.Originality/valueThe existing literature on port choice and port competition has not previously considered the effect of port service levels under the perspective of total landed costs of the users, being this paper a contribution to fulfill this gap.

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“…The company's “Daily Maersk” was introduced in 2011 and includes departures on a daily basis, connecting Asia and Europe (Maersk, 2015–2019; Maersk Post, ; Wright, , ). This was a major part of Maersk's global strategy that brought credibility and good name to the shipping industry (Zhang & Lam, ). The company continues to have the physical and financial resources to operationalize Daily Maersk.…”

Section: Future Developments and Growth Prospectsmentioning

confidence: 99%

Global strategy gone astray: Maersk's big box boats and the world shipping industry

Anwar

2019

Thunderbird Intl Bus Rev

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A.P. Moller-Maersk Group (A.P. Moller-Maersk AS in Danish), commonly known as Maersk, is the world's largest global shipping conglomerate from Denmark and carries a rich history and corporate heritage in the industry. The company operates large container ships which are mostly known as "big box boats" in the industry. By using interdisciplinary literature and the shipping industry's operational routes and corporate developments, this case-based research analyzes and discusses Maersk's internationalization and its global strategies. Although Maersk aggressively sought internationalization and company-specific expansion, its global strategy and international expansion areas have encountered problems because of the slowdown of the global economy, de-globalization, and the U.S.-China trade tussle. The case-based research analyzes and discusses these issues within the areas of international business and the company's global strategies and industry-specific competition. Analystsand industry observers believe that Maersk will continue to be a major shipping and logistics firm and will thrive in global markets. At the same time, the company will be impacted by the changing competition, regulatory forces, and new technologies in logistics and global shipping. This case study also provides future developments and growth prospects of Maersk and the shipping industry. K E Y W O R D Scontainerization, containers, global strategy, Maersk, shipping industry

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Daily Maersk’s impacts on shipper’s supply chain inventories and implications for the liner shipping industry

Cited by 23 publications

References 41 publications

Revisiting history: Can shipping achieve a second socio-technical transition for carbon emissions reduction?

Revisiting history: Can shipping achieve a second socio-technical transition for carbon emissions reduction?

The strategic design of port services based on a total landed cost approach

Global strategy gone astray: Maersk's big box boats and the world shipping industry

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