Internet Can Help Shipping Companies Cut Costs, Say IT Firms

Friday, September 03, 1999
Shipping companies, criticized for being slow to modernize, are being targeted by information technology (IT) companies seeking a slice of a container management business estimated to be worth up to $14 billion. IT companies say they see the Internet as a way for shipping companies to cut the annual cost of handling containers. The problem mainly arises when companies ship cargo from point A to point B, only to find they have no return cargo. They either have to pay storage costs or ship them back empty. Greybox Logistics Services territory manager, Far East and North Pacific, Dana Lee, said that in 1994, 24.6 million TEU were handled empty in 1994 - about 19.5 percent of the total handled by ports that year. However, despite obvious inefficiencies involved in shipping empty containers, IT companies said they sometimes had difficulty persuading shippers to adapt. "I walk into one office and the guy says, 'The only way I do business to cut container management cost is pick up the phone,'" said Sean Downes, far east director for SynchronNet Marine Inc., which has set up a database to allow shipping companies to share information to make it easier to fill containers. Downes said one study estimated that the total cost of managing containers annually was about $14 billion, a significant amount of which was just moving empty containers. "You're earning no revenue on an empty box," said Mark Hulme, Asia-Pacific area coordinator for Greybox, which also helps shipping companies manage containers. Greybox estimates that shipping companies spent about $10 billion on empty containers annually, much of which could be saved if they shared information to fill empty containers. "The cost-saving is phenomenal. It's between $280 and $400 per unit," said Lee.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

IOMAXIS Awarded $245 Mln Contract to Support NRL

Contract will allow IOMAXIS to provide research, development and technical support to initiatives at the Naval Research Lab   IOMAXIS, provider of technologies

Broadband Upgrade for MSC Cruises

Intelsat S.A. has been selected by Marlink to deliver fast, high quality Intelsat EpicNG broadband connectivity to Mediterranean Shipping Company’s (MSC) cruise ships.

Delgado Fire and Industrial School Deploys Transas Technology

In a brand new 19,000 square foot Maritime and Industrial Training Center in New Orleans, the Delgado Fire and Industrial School offers training via a combination

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0526 sec (19 req/sec)