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Impacts of Schedule Reliability and Sailing Frequency on the Liner Shipping and Port Industry: A Study of Daily Maersk
Abraham Zhang and Jasmine Siu Lee Lam
Vol. 53, No. 2 (Spring 2014), pp. 235-253
Published by: Penn State University Press
Stable URL: http://www.jstor.org/stable/10.5325/transportationj.53.2.0235
Page Count: 19
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Improving schedule reliability and sailing frequency as triggered by the launch of Daily Maersk by Maersk Line has profoundly influenced the liner shipping industry since late 2011. In contrast to a standard weekly service, Daily Maersk offers daily departures. It also guarantees transportation times in an industry that has long had a notorious reputation of schedule unreliability. This article first quantifies that Daily Maersk substantially reduces a shipper's supply chain inventories, including cycle stock, pipeline stock, and safety stock. It then systematically analyzes the Daily Maersk effect on the liner shipping industry and its long-term implications for the supporting port industry. Recommendations are given to shipping lines and ports for their strategic planning in an increasingly competitive business environment.
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