Author: Aytac Akgul

What Should Be the Ideal Currency in the International Shipping Industry?

For years, the worldwide container shipping industry has been in a crisis. Low demand and an overcapacity on the global market have been holding freight rates at a low level. In addition, doing business in U.S. dollars is an industry-specific risk that also scares investors. Over the years, steamship lines worldwide have been struggling with a lasting crisis in the container shipping industry. While the market keeps stagnating, a clear surplus can be seen on the supplier’s side. Freight ships with ever increasing load capacities, and the merging of shipping lines into alliances, have been steadily pushing the container...

Read More

After Forming the Alliances, the Global Container Shipping Industry Decreased to 3 Carrier Options

An unsteady year in the container-shipping industry, which included one big operator going under, and others bundling together to stay afloat, ended with three major alliances arranged to dominate ocean trade for years to come. Overcapacity and weak global trade forced the largest players to merge or form alliances, allowing them to cut operating costs by hundreds of millions of dollars by sharing ships and port calls. The three major groupings, called 2M, Ocean Alliance and THE Alliance, have cleared most regulatory hurdles over the past two years. Customers should know that there are no longer are over 15 carrier...

Read More

Importance of Logistics for Valentine’s Day

Valentine’s Day is a holiday dedicated to the expression of love. This year, billions of Americans will celebrate by purchasing flowers, cards, candy and other gifts.  Though they may have suffered over the perfect way to express their feelings, many have not considered the essential role the transportation industry plays in the execution of their special day. With millions of flowers bought by consumers every Valentine’s Day, there is little doubt that colorful, fragrant blooms are a hallmark of the holiday. Before anyone can say, “Be mine,” with a dozen flowers, months of detailed logistics go into the planning...

Read More

Why Do Ocean Container Carriers Lose Money?

It’s an essential principle in Finance that every company when they start in any business, aims to make profit from their services or products. However, as we take a look at the current situation of the shipping industry, this principle has been ignored and resulted in huge financial losses over the past several years. We all know that Ocean container carriers aware of the losses before they occurred just because their business strategy or budget for the upcoming years to be volume-oriented in order to get more market share from the competitors. We understand this simple strategy, however can’t they make...

Read More

What is Going to Happen to the Ocean Alliances After Things are Back to Normal in the Ocean Container Shipping Industry?

First, it’s important to understand the idea behind the creation of the ocean alliances. Over the past couple of years, ocean container carriers have formed into four mega-alliances, largely to create economies of scale. By sharing space on mega-vessels, carriers benefit from lowered operating costs due to their large volume. After the alliances were created, some carriers wanted to benefit from other carriers’ services based on their flagship trade. You can see these changes in the below table: Back in 2014, the first questions from exporters/importers were asking “Will the mega-alliances mean lower freight rates, or higher ones? More sailing...

Read More
  • 1
  • 2


Send this to a friend