Container lines and the cargo owners that ship products on their vessels are getting new tools to measure both performance and schedule reliability through a new report that will enable them to analyze exactly where a shipment is delayed in transit from point of origin to point of destination, whether on land or sea.
INTTRA and SeaIntel on Tuesday unveiled the initial publication of a report that combines on-time performance with schedule reliability measures. The partners say it will give carriers and shippers standard performance measurements at both the vessel and container level that will create unprecedented visibility into actual shipping performance.
“We are going to be comparing actual container delivery information from our database in an actionable way with SeaIntel so that we have methods of analysis that are precise, rigorous and repeatable, INTTRA CEO Ken Bloom said in an interview with the JOC. “A vessel can arrive on time, and that’s a good thing, but until now, no one has been able to provide information on the actual delivery of the container at its ultimate destination.”
With ocean container lines providing a global schedule reliability average of 81 percent, previously available measurements enabled the industry to identify only vessel performance.
The new metrics will be available on INTTRA’s Web site to its OceanMetrics users. SeaIntel will make the report available to subscribers at the end of every month. “We take all of the data that INTTRA has and aggregate it on trade lane levels and country-to-country levels to provide a picture of what we see in container delivery changes from one month to the next and also what we see in container delivery reliability versus the vessel reliability that we are already tracking,” SeaIntel Maritime CEO Lars Jensen said in the interview. “We do it from the perspective of analyzing market trends, while INTTRA does it at the main customer level.”
The key to the new metrics is the identification of the gaps that exist in a supply chain between vessel arrival and container delivery reliability .With an average of 900,000-1,000,000 container status messages processed daily supporting transactions that represent over 18 percent of the world’s total container shipments, INTTRA’s data provides visibility into the most comprehensive on-time performance measurements.
The results of trade lane analysis, which compared vessel arrival reliability based on SeaIntel’s measurements with the actual container delivery reliability based on INTTRA’s data, identified a significant gap between these performance measures.
“With this tool, we can provide to Shipper X or Forwarder Y his specific on-time delivery for whatever time period at whatever port for each and every one of his carriers, and we’re providing to a carrier how he is doing for each and every customer against that carrier’s competition,” Bloom said.
The Asia to Europe and Asia to North America trades are both characterized by the container delivery being 8 to 10 percentage points lower than the vessel reliability. However, the highest variability is seen from Europe to Australia/New Zealand where vessel reliability on the direct service is 88 percent, but container delivery is only 36 percent, a difference of 52 percentage points.
Bloom said delivery time is more a function of data quality rather than it is about schedule reliability. “A carrier can now get information on this trade lane that says ‘you are consistently three days late, so why don’t you adjust your schedule to provide a delivery time that gives you those three days?’ ” he said.