While considering a few topics for this article, I initially planned to focus on a more technical and industry-specific issue. However, the daily challenges we face led me to reflect on the struggles of white-collar logistics workers.
The Impact of Recent Changes in Shipping Alliances
As the industry recovers from the aftermath of the recent strikes, new challenges are emerging, adding to the existing issues of vessel scheduling, equipment shortages, and space constraints. Based on feedback from our team and customer representatives we work with, the effects of the new Hapag-Lloyd and Maersk alliance appear to be far more disruptive than initially anticipated.
Since 2015, Maersk and MSC had been operating under the 2M Alliance, which has now been terminated, causing a major shift in global shipping operations. Meanwhile, Maersk and Hapag-Lloyd have formed the Gemini Cooperation, which is expected to increase competition and introduce new service opportunities to the market. At the same time, MSC continues to expand its fleet operations. Notably, all three major shipping companies are heavily investing in digital tools and automation.
Challenges for Operational and Customer Service Teams
While these strategic and large-scale changes take place, how are the operational departments and customer service teams—who manage daily logistics—being affected?
From my observations, these departments are experiencing significant burnout. The quality of service has declined, turnaround times have increased, and resolving operational challenges has become more difficult. This raises an important question: To what extent did senior management anticipate the challenges and service disruptions these changes would cause for frontline employees? And if they did anticipate them, how realistic were their expectations?
As an NVOCC company, my team and I have unfortunately experienced many difficulties firsthand. The core issue lies in the fact that these major changes were implemented without adequately preparing the service teams. A lack of preparedness and insufficient workforce have led to serious inefficiencies. While we believe these teams are doing their best, the increased frequency of schedule changes, port omissions, last-minute cargo cancellations, and split shipments have doubled the workload, making it nearly impossible for white-collar staff to keep up. As a result, service quality has significantly deteriorated.
The Domino Effect on the Logistics Chain
Being in the middle of the logistics chain—both as a service provider and recipient—these disruptions create a domino effect that severely impacts our ability to deliver quality services. The additional effort, overtime, and resources we allocate to minimize the impact on our customers are not sustainable. Consequently, we have been forced to take measures to adapt to these challenges.
Future Outlook
Having worked in this industry for nearly 18 years, I know that this is neither the first nor the last major transformation we will witness. My biggest hope is that, in the future, such significant changes will be accompanied by better preparation for the workforce and more human-centered strategic planning.
While artificial intelligence has advanced significantly and assists with routine tasks, the logistics sector still relies heavily on human expertise. Therefore, investments in technology should be complemented by investments in skilled employees, as both are crucial for sustaining a high-quality service standard.
