IBM Report Shows Record Growth in Container Shipping Markets

IBM Report Shows Record Growth in Container Shipping Markets

A new report released today by IBM Business Consulting Services shows that near-term profits in the market for container shipping services are at an all-time high and the market’s growing at 8 to 10 percent per year. However, increased market growth and continued customer demand for greater reliability at lower total cost are putting considerable strain on existing industry infrastructure, challenging companies to find new ways to remain competitive and responsive.

The report finds the greatest long-term challenge for container shipping lines in meeting and adapting to new market forces is the potential competition from package delivery providers like UPS, TNT and DHL. They possess the type of business cultures, systems and processes needed to offer the product reliability and visibility demanded by shippers. Compounding this is the existing business culture of many container shipping lines, which are simply not culturally predisposed to modify their mantra that asset utilization is king.

A decade from now, land-based providers will have acquired the capabilities needed to offer door-to-door services with parcel industry standards of reliability — largely in collaboration with some container shipping lines that are primarily port-to-port providers. Unless existing lines respond to meet customer demands, the package providers will redefine the structure of this industry.

More: 1.ibm.com