
Our Take
The reality is that the current market promises far greater service than what is actually delivered. Service that falls short is often justified by carriers and customers because we all know it is 100% about the price, right? Our take is that carriers have a significant book of current customers that behave as if they are buying a commoditized product.
The result of these relationships is that asset based carriers focus their management and resources toward cost reduction programs at the expense of innovation and meeting client needs. We see this in the form of slow steaming, carriers not providing chassis, offshore customer service centers, and 18,000 TEU ships that are often far too large for the existing port and rail infrastructure to handle effectively.