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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Additional Information

ISSN
2157-328X
Print ISSN
0041-1612
Pages
pp. 235-253
Launched on MUSE
2014-04-17
Open Access
No
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