European Shippers Support Maersk CEO's Call for Change

European shippers are endorsing the call for radical changes in the container industry by Maersk Line CEO Eivind Kolding, but the European Shippers Council said Maersk has a heavy legacy to overcome and that shippers were impatient for change.

The ESC said Wednesday it agrees with Kolding’s speech earlier this week, that reliability “is not good enough”; that container shipping is “too difficult” and complicated for customers; and for shipping to be more environmentally sustainable it must display greater “transparency,” and to follow the adage “what
gets measured gets done.”

Kolding urged broad changes in the industry’s practices on Tuesday, saying the business must embrace radical changes to “assure itself of a license to operate in the future.”

Athough the ESC said it agreed with Kolding’s position, its secretary general, Nicolette can der Jagt, said that although the “radical change of mind” called for by Kolding appeared to echo the council’s view, “Kolding faces a heavy legacy to try and overcome. Schedule reliability has been getting worse in recent years; slow steaming has been introduced without discussion with customers and extended lead times have caused real problems for many shippers.”

Van der Jagt said equipment shortages and changes in services, often without warning, and often at times of rising
demand have created difficult conditions for shippers and consignees.

“It will not be surprising that many shippers have become cynical about the true intentions of the liner shipping operators when they speak of improving customer service and reliability,” she said.

“Maersk will no-doubt bear the brunt of this cynicism from many shippers as it finally espouses the sentiments shippers have been crying out for decades. But can they practice what they
preach?” van der Jagt said.