Schedule reliability in liner shipping : current practice, causes and possible solutions

Abstract

Purpose- This report aims to study and analyze the current schedule reliability performance of major liner alliances (G6, New World Alliance and CMA CGM-MSC) in key east-west trade routes (Singapore-Rotterdam and Singapore-Los Angeles), and propose strategies from a supply chains’ perspective to improve liner schedule reliability or to minimize effects of schedule unreliability.

Research Methodology- The study collected primary data on actual vessel arrival time and vessel sailing schedule for the three alliances to conduct a statistical analysis by examining their schedule reliability performance in east-west trade, together with secondary data research, interviews and surveys conducted with professionals in the container shipping sectors, to validate the results in the primary data collection.

Key Findings- It was found that liner schedule reliability performance were different among the three alliances and among different trade routes. Factors such as seasonality, bad weather, port congestion, labor strike and maritime accidents negatively affect schedule reliability. Shipping lines internal operating management and strategies, fleet size and number of voyage execution could affect schedule reliability as well. Efforts need to drawn from shipping lines, shippers, terminal operators, transshipment and hinterland transportation to improve schedule reliability and to minimize effects of liner schedule unreliability.

Limitations and Future Research- In this report, only Singapore-Rotterdam and Singapore-Los Angeles trade routes and only few liner companies’ vessels were tracked, more trade routes and liner companies could be followed in future research to get full and thorough overview of current schedule reliability performance of liners. Strategies from a supply chain’s perspectives have been proposed to improve liner schedule reliability and to minimize the negative effects of liner schedule unreliability. However, the effectiveness of such strategies has to be further evaluated in an industrial environment.