Author: Serkan Kavas

The Month of Improvement

Continual improvement and trainings are very crucial, especially in the shipping and logistics industry, which is very dynamic and where change happens all the time. The learning curve is shortening day-by-day, and the technology is helping to improve the lives of many. As one of the oldest industries in the world, international shipping has been one of the industries that is adopting technology slower when compared to others, due to the complex procedures involved. However, change is now happening fast. It is not only about shipping from point A to B, but also about the follow ups when there...

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Airline Mergers vs. Ocean Carrier Alliances: Same Trend?

There has been a great number of mergers and consolidations in the ocean shipping industry. This is relatively new for ocean shipping, but it has almost reached a mature point for the airline industry. They have been through this, and there are some successful examples, and bad ones, which can be projected into the shipping industry. The potential downsides and the advantages from those consolidations might be learnt from the airline industry. A huge consolidation happened in the U.S. airline industry within the past 10 years. After the mergers between Delta-Northwest (2008), United-Continental (2010), Southwest-AirTran (2011), and American-US Airways...

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2017 Brief Outlook for Containerized Imports

After years of struggles, huge losses (12 of the top 25 operators lost $13 billion in the third quarter of 2016), and bankruptcies, 2017 kicked off with full speed for Asia containerized imports. One of the biggest contributors to this was the Chinese New Year falling on an earlier date this year. It almost combined with the Christmas season, and helped keep the volumes at higher levels in a traditionally slow season when many companies are busy with inventory, and most of the shipping plans used to be delayed for January. This was not the case in 2017. Importers were busy with...

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Container Shipping: Summary of 2016 and Brief Expectations for 2017

2016 has been a year with many challenges and surprises – some expected and some not. The consolidation of the carriers was expected and I stressed this in my article earlier this year. The financial stress has been going on for a while and it was expected that one or more carriers would go under. It was also suggested at my earlier articles and some of my colleagues mentioned the same later in the year. Overall when I look back, I see that we have guessed many things right. It is especially important during such turbulent times. At this...

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The Financial Distress Of The Container Shipping Industry

There has been a lot going on in the container shipping industry for the past few years and for the past year, dramatic changes occurred. Financially, most of the steamship lines have been suffering and especially small, niche carriers have suffered the most. In order to survive and keep competing in the market they had to form alliances. That’s why for the past year we saw many alliances were created .Starting with the rejection of P3 alliance attempt by CMA-CGM, MAERSK AND MSC now we have many different alliances in the market to increase the competitive advantage and cut...

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