DB Schenker to AP Møller-Mærsk: Welcome to the junglepermalink

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Alesssandro: It didn’t take long for feedback in my marketplace to explode at the end of last week, when I went after the status of relations between Germany’s DB Schenker and Denmark’s AP Møller-Mærsk as the former, shamelessly, tries to poach Damco customers in what appears to be the epitome of a strained forwarder-carrier connection.

When these carriers are off waters into a 3PL territory, they are just like everyone else. they can’t keep their boat afloat on the land period.

Alesssandro: please spell it out for me: FF/logistics is a people business (I think we agree), they are hiring some of the best from the FF industry (I think we agree), and still they cannot compete? While it remains to be seen to what extent they truly want to compete with the major GLSPs, and I get the capacity-best-quotes-from-3rd-party issue – what else is there not to like? Carriers are carriers and aren’t smart enough to be as good as FFs doesn’t sound a very compelling argument to me…

What I have figured, steamship carriers are ‘genetically’ too much bureaucratic, and with their freight forwarding divisions, I am sure, their DNA is ultimately inherited by them, also freight forwarders are willing to get their hands dirty where they do not, handling SMEs etc .. they definitely can compete, I wasn’t implying that, but I just don’t see the ‘devotion, and dedication of a freight forwarder in them’.

Also it ain’t gonna help them IMO, because all carriers now have their FF divisions, so they would end up competing with each other, just like they compete in the box ship market. I should be wrong though when suggesting it, but I still don’t see it happening; on the paper, It just looks too good, and their FF divisions should knock the ball out of the park.

Alesssandro: …so APMM changing to change nothing at all?

APMM isn’t like any other steamship line, they are ‘PRO’, however it all boils down to basics, theoretically, Nestle or Coke, should have retail outlets too, rather than 3rd party distributors and retailers, to drive their bottomline as high as they can. But that scheme quickly falls apart, when you consider the operational costs., even apart from operational costs, it’s a huge administrational effort, to make retail sales at your own being a large producer of the goods.

September 11, 2020 General 1,538 views
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