Maersk’s CEO Soren Skou commented recently on the state of container shipping noting that government subsidy helps to create over capacity and promotes competitive imbalance. Advocating a competitive approach, he stated that the market will sort out carriers with profitable business models.
Realizing the importance of protecting trade with Egypt, Pharaoh Ramses the Third built a shimmering port made of coral from the Red Sea. It stood on the island of Suakin in what is now Sudan. For 3,000 years, this port city was a powerful center of trade, welcoming Christians and Muslims alike. Ptolemy called it the “Port of Good Hope.”
As we spin towards the third decade or the Neo-Millennium as I call it; logistics professionals will see changes to the face of transportation un-conceived of 20 years ago. The way we physically handle cargo will go hand in hand with technology to further guide freight movement.
On September 20th Hurricane Maria slammed into Puerto Rico with Category 5 winds, knocking out power and devastating much of the island’s roads and infrastructure. Two weeks earlier, Hurricane Irma passing just north of the island also created significant damage. These storms dealt Puerto Rico a devastating blow. Fuel Oil and Natural Gas reserves were hardest hit, making it extremely difficult to restore power and electricity. As food, water and medical supplies become depleted, Puerto Rico faces a resupply problem. How to get the ports and infrastructure up and running so that relief can reach the people?
In 1960 America held 16.9 percent of the world’s tonnage with 2,926 cargo vessels and tankers, against a total capacity of 17,317 vessels worldwide. At the turn of the century that number had dropped to 282 vessels registered under the U.S. Flag.
Maersk's recent attack left a black mark on the reliability of global documentation. Working through the backlog of issues, the mega carrier admitted this attack took its toll not only on container operations but on customer confidence. If a transport giant like A.P. Moller could be hit with the Petya virus, what are the chances that your data can remain secure?