Friday, June 27, 2025
Home Most Visited - Newsletter Container shipping on the cusp of integration

Container shipping on the cusp of integration

Ship operators in the container shipping sector have a five-year window in which to develop their integrated systems that will allow them to compete with the online freight forwarders and the likes of Amazon, said a former Maersk Line chief information officer.

Speaking exclusively to Container News Adam Banks said that the container shipping sector now has the technology to develop its online systems that will allow them to meet the challenge from the online companies that have evolved over the last 10 years.

According to Banks the three elements that will allow the type of integration necessary for the carriers are the development of reliable sensors that have a battery life of six to 12 months with the global connectivity that will allow the carriers to gain a competitive advantage.

“Being an asset owner gives the carriers a potential advantage over competitors, in the past that wasn’t the case, but now technology has caught up and that makes joined up integrated systems operating in real time a possibility,” explained Banks.

Essentially, as the lines own the assets on which the cargo is transported, the ships, ports/terminals, and trucks and trains to a lesser extent, they will be able to offer services that non-vessel operating companies will not be capable of.

An example is that the carriers can now offer an express service where the carrier can say to a car manufacturer that it will not allow its plant in Mexico to run out of gearboxes.

“Such a deal is worth much more than the cost of carriage to the shipper, because delays on the production line would cost far more, around US$100,000/hour, so if you can guarantee the delivery this becomes a premium product to sell to customers,” said Banks.

Shipping lines will be able to make these offers because the connectivity offers the carrier an unprecedented visibility of the supply chain, and because it has control of the transportation if there are problems they can be solved on the way, Banks said.

Premium and express services would be just one or two of the many possible differentiated services offered to customers whose cargo will most likely be on the same ship.

“It’s a bit like having first class, business class, economy and premium economy on an aircraft,” Banks explained.

He went on to say that in the past Amazon and others were able to turn asset owners into utilities and they could vertically integrate into asset ownership. “Now the asset owners have the weaponry to fight back against the tech giants,” claimed Banks.

However, he estimated that the lines had around five years to make their advantage pay, after that the tech giants will catch up, “Virtual freight forwarders are already renting planes,” he said.

Nick Savvides
Managing Editor





Latest Posts

Shipping alliances carriers and MSC control over 80% of market

As the container shipping industry continues its transformation, strategic cooperation among carriers remains a key force shaping global trade. According to updated Alphaliner data,...

Konecranes delivers crane package for BAE Systems’ in Scotland

Konecranes has completed a turnkey crane project for BAE Systems’ brand-new shipbuilding hall in Govan, Scotland. The installation, finished in June 2025, includes two electric...

Kalmar launches digital tool to streamline equipment inspections

Kalmar has introduced Inspector, a new digital application designed to streamline daily inspections of material handling equipment. Inspector enhances the efficiency of routine equipment checks...

Tariff fever fuels shipping surge, hangover looms

Global merchandise trade is enjoying a sudden growth spurt, but shipping executives warn the boom could prove as short-lived as a sugar rush. As Bloomberg...

Matson raises quarterly dividend

Matson has announced an increase to its quarterly dividend, with the Board of Directors declaring a third-quarter dividend of US$0.36 per common share. This represents...
error: Content is protected !!