Slow steaming. Initially adopted to accommodate the excess capacity in maritime
shipping as a result of the financial crisis of 2008, the practice of lowering
the operating speeds from about 22–24 knots to around 18–19 knots appears to
have become an enduring trend. This may entail several changes in freight
distribution; longer lead times for containerized supply chains and a greater
quantity of containerized assets tied in transit are of concern. Both for Europe
10 Containerized Freight Distribution in North America and Europe 243and North America, that may incite a growth in transloading activities at
gateways and greater difficulties to secure maritime containers inland. It remains
to be seen how transshipment activities will be impacted. An observed trend is
that shipping lines seem to shorten mainline European routes in with more
transshipment activity in Benelux ports instead of North German ports, and an
increase of interlining/relay operations near the Straits of Gibraltar (e.g. Tanger
Med, Valencia and Algeciras). Surprisingly, slow steaming has not improved
schedule reliability of liner services (Johnson 2010): on average about half of all
vessels still arrive late, i.e. not on the scheduled arrival day. This challenges
logistics planners and increases the costs of safety stock (see also Notteboom
2006; Vernimmen et al. 2007).
Slow steaming. Initially adopted to accommodate the excess capacity in maritimeshipping as a result of the financial crisis of 2008, the practice of loweringthe operating speeds from about 22–24 knots to around 18–19 knots appears tohave become an enduring trend. This may entail several changes in freightdistribution; longer lead times for containerized supply chains and a greaterquantity of containerized assets tied in transit are of concern. Both for Europe10 Containerized Freight Distribution in North America and Europe 243and North America, that may incite a growth in transloading activities atgateways and greater difficulties to secure maritime containers inland. It remainsto be seen how transshipment activities will be impacted. An observed trend isthat shipping lines seem to shorten mainline European routes in with moretransshipment activity in Benelux ports instead of North German ports, and anincrease of interlining/relay operations near the Straits of Gibraltar (e.g. TangerMed, Valencia and Algeciras). Surprisingly, slow steaming has not improvedschedule reliability of liner services (Johnson 2010): on average about half of allvessels still arrive late, i.e. not on the scheduled arrival day. This challengeslogistics planners and increases the costs of safety stock (see also Notteboom2006; Vernimmen et al. 2007).
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