WHAT’S IN THE CONTAINERDOESN’T MATTER

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ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

CONTACT US. ARE YOU PAYING THE

RIGHT CONTAINER FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

THE WORLD OF OCEAN SHIPPING HAS CHANGED.

AS THE COMBINATION OF MEGASHIPS, SUPPLY CHAIN MANAGEMENT, AND IMPLAUSIBLY LOW FUEL CHANGED THE ECONOMICS OF FREIGHT RATES.

CARGO COST VERSUS THE TYPES OF CARGO

?VS.

IT IS ACCURATE TO SAY THE RELATIONSHIP BETWEEN OCEAN CARGO RATES AND THE TYPES OF CARGO-CARRIED HAS DISAPPEARED AS TOO MANY BOXES ARE CHASING TOO-FEW CARGOS AND LOWER FUEL COSTS ALLOW INEFFICIENT SHIPS TO STAY EMPLOYED.

CARRIERS' RESPONSE TO THE DROP IN OCEAN

CARGO RATES.

IN 2014 THE CARRIERS RESPONDED TO THE DROP IN RATES BY ‘SLOW STEAMING’ IN ORDER TO CONSERVE FUEL AND CUT COSTS; A POLICY SHIPPERS ACCEPTED SO LONG AS THE RATES REMAINED LOW AND THE VESSEL SCHEDULES REMAINED ACCURATE.

ARE YOU PAYING THE RIGHT CONTAINER

FREIGHT RATES?

DISCOVER SAVINGS POTENTIAL IN REAL

TIME.

VS.

AT CONFERENCES THE SHIPPERS CLAIMED LOUDLY THAT RELIABILITY OF SERVICE WAS MORE IMPORTANT THAN RATES.

IN MARCH 2015 WHEN MAERSK LINE DROPPED ITS GROUNDBREAKING DAILY MAERSK SERVICE THAT WAS DESIGNED TO OFFER CUSTOMERS A PREMIUM PRODUCT FOR THEIR NON-COMMODITY CARGOS.

THE LAUNCH AND CANCELLATION OF DAILY

MAERSK

DAILY MAERSK WAS LAUNCHED IN SEPTEMBER 2011 AS PART OF AN EFFORT BY MAERSK TO PROVIDE A DIFFERENTIATED PRODUCT, WITH CUSTOMERS GIVEN GUARANTEED DELIVERY TIMES IN RETURN FOR HIGHER FREIGHT RATES.

SKOU SAID MAERSK HAD FOUND THAT CUSTOMERS WERE NOT WILLING TO PAY A HIGHER PRICE FOR BETTER SERVICE. THIS REFLECTS THE FACT THAT THE BIG EAST-WEST TRADES HAVE BECOME HIGHLY COMMODITIZED, WITH LINES FINDING IT ALMOST IMPOSSIBLE TO FINALIZE DIFFERENTIATED RATES ON THESE ROUTES.

OUR BIG CUSTOMERS TALK ABOUT THE PAYING MORE FOR BETTER QUALITY SERVICES, AND IN OUR CASE THE DAILY MAERSK ACHIEVING 95%

ON-TIME DELIVERY OF CARGO,” SAID SKOU, “OUR EXPERIENCE WAS THAT WE COULD

DELIVER ON OUR PROMISES, BUT THE CUSTOMERS WERE NOT WILLING TO PAY FOR IT.

- MAERSK’S CHIEF EXECUTIVE SØREN SKOU

SLOWDOWN IN THE CHINESE AND EU

ECONOMIES.

THE SLOWDOWN IN THE CHINESE AND EU ECONOMIES HAVE CUT CHINESE IMPORTS BY 19% AND EXPORTS 13%, WHILE 2015 BROUGHT 208 NEW SHIPS WITH A CAPACITY OF 1.67 MILLION TEU’S – OR A STUNNING 8.1% OVERSUPPLY OF TEU’S.

SHANGHAI-ROTTERDAM | 40' CONTAINER | JULY 1, 2014 - APRIL 25, 2016 | SHORT-TERM

CONTRACT. DATA SOURCE: XENETA PLATFORM

NEWLY-MERGED CHINESE OCEAN CARRIERS COSCO AND CSCL, TOGETHER WITH EVERGREEN, OOCL AND CMA CGM ARE SET TO FORM A NEW EAST-WEST MEGA-ALLIANCE. IF APPROVED BY CHINESE-EU-US AUTHORITIES, THE NEW GROUPING WOULD CHALLENGE THE MARKET DOMINANCE OF THE MAERSK AND MSC 2M VESSEL-SHARING AGREEMENT.

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

BUSINESS:

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