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 Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

New Standard for LNG Cargo Containment Systems

Wilhelmsen Technical Solutions (WTS) said it has successfully completing the gas trial for the first LNG carrier built to a Boil Off Rate (BOR) of 0.08% per day.

Corvus Gains Support from WINN Initiative

Corvus Energy announced today the award of $1.3 million in repayable assistance from the Western Innovation (WINN) Initiative for its project to further develop the Corvus Energy Storage System.

Northrop Grumman Sponsors Maritime RobotX Challenge

Northrop Grumman Corporation is expanding its support for science, technology, engineering and math (STEM) education across the globe by sponsoring the Maritime RobotX Challenge in Singapore, Oct.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2769 sec (4 req/sec)