In global trade, the container shipping industry is a game changer and is critical in facilitating cargo transport across regions. This is especially true with the expansion of supply chains, which are transforming into global logistics networks. Meanwhile, with globalization and competence, all parties in maritime trade have recognized the importance of logistics as a key part of corporate strategy. Shipping lines have recently been reshaping their services and operations to include more logistics integration.
Let's take a look at maritime logistics
Involves the planning, execution, and management of moving goods across oceans. It encompasses various shipping activities and the coordination of transport chains. As a critical component of global trade, maritime logistics enables the efficient and cost-effective transportation of large quantities of goods over long distances. This process also includes adherence to international regulations, route optimization, and risk management—key factors in maintaining sustainable supply chains.
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Container line logistics activities
- Container Management: broking - leasing - inventory management - transport routing - container tracking.
- Container Transportation: maritime shipping - container terminal operations - inland transportation.
- Container (cargo) Handling: loading - trans-loading - unloading
- Storage and Maintenance: empty stacking - inspection - cleaning - repair
- Documentation: bill of lading.
The development of shipping operators' services has now expanded to include end-to-end logistics solutions. It’s no longer just about maritime transportation; it now covers all aspects of maritime logistics, providing significant customer benefits.
What is the difference between maritime transportation and maritime logistics?
Maritime transportation:
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Definitions and concerns: The process of carrying and handling cargo across the ocean. Maritime transportation emphasizes individual functions relating to sea transportation; each function pursues its aim or competitiveness.
Maritime logistics:
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Definitions and concerns: Maritime logistics is the process of planning, implementing, and managing the movement of goods and information involved in ocean carriage. Moreover, maritime logistics is concerned with not only individual functions relating to sea transportation but also an effective logistics flow as a systematic entity of a logistics integration system.
Maritime Logistics and Container Development
One of the key strategies of maritime logistics companies has been the development of containers, leading to the emergence of new types such as:
- AQUAVIVA Container: Specialized containers designed for the efficient transportation of live seafood.
- CA Containers: They are refrigerated containers that utilize advanced systems to control the atmosphere inside, ensuring an ideal environment to preserve the quality of goods.
- Smart container tracking technology: such as the introduction of RCM technology provided by the Maersk Line, enables remote monitoring and managing refrigerated containers. It provides access to critical information such as temperature, humidity, oxygen levels, and carbon dioxide levels inside the container. This significantly contributes to improving operational efficiency and reducing costs.
The development of containers was not the only milestone; some shipping lines have also established Or acquired dedicated companies to provide integrated logistics services that cover all stages of supply chains, such as:
- Maersk Logistics, a subsidiary of the shipping line Maersk Line.
- Companies like Bolloré Logistics and CEVA Logistics, subsidiaries of the shipping line CMA CGM.
- AGL, a subsidiary of MSC.
Strategic groups based on logistics service provision
Global full-service carriers: These carriers offer a full range of logistics services, including freight forwarding, warehousing, customs clearance, distribution, and value-added services. They typically have a global network of offices and warehouses, and they can provide end-to-end logistics solutions for their customers. Examples of global full-service carriers include Maersk, MSC, and CMA CGM.
Regional full-service carriers: These carriers offer a full range of logistics services, but they are focused on a specific region of the world. They may not have a global network of offices and warehouses, but they may be able to provide end-to-end logistics solutions.
Limited service carriers: These carriers focus on a specific area of logistics, such as cold chain logistics or project cargo logistics. They may have specialized expertise and equipment in these areas, and they may be able to provide services that other carriers cannot. Examples of niche carriers include carriers such as PIL & HMM.
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The Conclusion
The container shipping industry is constantly evolving, as shipping lines face significant pressure to offer a wider range of services with higher efficiency and lower costs. As a result, we are expected to witness more development and innovation in the logistics services provided by shipping lines or logistics service providers in general. moreover The global logistics (3PL) market is expected to grow at a compound annual growth rate (CAGR) of 5.6%, reaching $1,240 million in 2027 after it was 805 million dollars in 2019, reflecting a significant increase in demand for flexible and integrated logistics solutions.
In addition, as mentioned in the article, we may see new types of strategic groups emerge. For example, shipping lines might focus more on offering sustainable logistics solutions or using new types of renewable fuels to reduce emissions and waste.
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