Transport experts call for “fast track” ocean cargo services
Two freight transport experts are calling for the creation of “fast track” ocean cargo services that can offer shippers faster and more reliable delivery of Asian imports.
Brian Clancy and David Hoppin, managing directors at Arlington-based MergeGlobal have issued a research paper concluding that innovative concepts are required to eliminate the variability from international supply chains caught up in a congested US freight transport system.
Their report - “Coping With Uncertainty” - urges transportation providers to use existing technology and business models to create a “fast track” for LCL shipments that receive expedited processing at both load and discharge ports, and are then injected directly into an LTL network for delivery to consignees.
The research paper identified transit time variability as one of the “hidden costs” of international supply chains, since unexpected delivery delays can result in lost sales and inventory write-downs.
To counteract longer and variable transit times, shippers are increasingly obliged to increase stock levels or turn to airfreight.
According to Clancy and Hoppin, a partnership between an ocean carrier’s ships and terminals with a large LTL carrier’s dedicated fleet and distribution network would offer relatively fast, reliable service from origin ports in China to consignee doors in the US.
“Such a service could shave multiple days from average port-to-door transit times,” the researchers said, “and, if operated to a rigid schedule, could offer guaranteed delivery on the promised day,”
Clancy and Hoppin said that while such a service would be priced higher than traditional ocean LCL products, it could reduce total distribution costs by reducing inventory-related expenses and other expenses associated with transit delays.
The research project was sponsored by APL Logistics and Con-way Freight, who jointly launched OceanGuaranteed in 2006 - a day-definite guaranteed LCL product for shipments from Asia to the US.
Brian Clancy and David Hoppin, managing directors at Arlington-based MergeGlobal have issued a research paper concluding that innovative concepts are required to eliminate the variability from international supply chains caught up in a congested US freight transport system.
Their report - “Coping With Uncertainty” - urges transportation providers to use existing technology and business models to create a “fast track” for LCL shipments that receive expedited processing at both load and discharge ports, and are then injected directly into an LTL network for delivery to consignees.
The research paper identified transit time variability as one of the “hidden costs” of international supply chains, since unexpected delivery delays can result in lost sales and inventory write-downs.
To counteract longer and variable transit times, shippers are increasingly obliged to increase stock levels or turn to airfreight.
According to Clancy and Hoppin, a partnership between an ocean carrier’s ships and terminals with a large LTL carrier’s dedicated fleet and distribution network would offer relatively fast, reliable service from origin ports in China to consignee doors in the US.
“Such a service could shave multiple days from average port-to-door transit times,” the researchers said, “and, if operated to a rigid schedule, could offer guaranteed delivery on the promised day,”
Clancy and Hoppin said that while such a service would be priced higher than traditional ocean LCL products, it could reduce total distribution costs by reducing inventory-related expenses and other expenses associated with transit delays.
The research project was sponsored by APL Logistics and Con-way Freight, who jointly launched OceanGuaranteed in 2006 - a day-definite guaranteed LCL product for shipments from Asia to the US.