Financial evidence has been revealed that suggests the most reliable container carriers are also the most profitable.
SeaIntel Maritime Analysis has analysed carriers’ quarterly financial results from Q1 2014 to Q2 2017, comparing them with the schedule reliability each carrier delivered in each quarter. The results suggest shippers are willing to pay for reliability.
SeaIntel posits that if a carrier is more reliable than its competition in a given quarter, then the same carrier will also be slightly more profitable than the same competitors. The analysts did add however that whether this is driven by commercial considerations such as higher freight rates or more loyal customers, or whether it is driven by operational efficiency stemming from having less exception management when vessels are on time, cannot be determined from the dataset.
SeaIntelligence Consulting partner Lars Jensen, a regular Splash contributor, commented on LinkedIn: “Of course reliability is only one small portion of the drivers of profitability for the carriers, however from a statistical viewpoint, the numbers are clear. There is a link between carrier reliability and carrier profitability.”
Jensen suggested that among the global carriers: “[R]eliability might become a new competitive battleground.” However, he conceded that presently this battle starts from a “very low base” with global reliability only being 75% in August 2017.