Moore on Pricing: The New Silk Road and other ocean challenges | Logistics Management

As previously reported in Logistics Management, vessels are being equipped with new power units, directional thrusters, as well as fuel and labor saving devices. The idea of an autonomous ship sailing continuously around the globe with self-repairing artificial intelligence is moving from science fiction to a port near you.

When you roll up the facts, the consolidation of the ocean industry mirrors what’s happening on the rails, in the air, and in the trucking and barge industries. Every attempt will be made by carrier owners to gain leverage over major freight lanes so that prices can be “stabilized” by slow steaming, capacity limitations and lane balancing without fear of a serious competitor pushing down rates.

Shippers saw the effect of this in the relentless increases in less-than-truckload, parcel and rail rates in the United States as those industries were reduced to a few players. Today, shippers should be paying attention to consolidations in the EU and Asia as investments in expensive technology, regulatory compliance costs and skilled labor continues to marginalize smaller service providers.

Read complete article here:

Moore on Pricing: The New Silk Road and other ocean challenges – Logistics Management.