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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
Transportation Journal
Vol. 53, No. 2 (Spring 2014), pp. 235-253
DOI: 10.5325/transportationj.53.2.0235
Stable URL: http://www.jstor.org/stable/10.5325/transportationj.53.2.0235
Page Count: 19
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Impacts of Schedule Reliability and Sailing Frequency on the Liner Shipping and Port Industry:
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Abstract

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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