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Who Pays for the ‘Disadvantages of Scale’ from Mega-Vessels and Mega-Alliances?

(Rainbow Nelson – The Loadstar)

The quantum leap in container vessel sizes over the last decade has left the logistics industry searching for answers about who really wins with the introduction of mega-vessels, mega-alliances and their much-lauded economies of scale.

As the supply chain is being re-shaped to accommodate 18,000teu vessels and the world’s largest shipping lines stretch, the paradigm of what is considered “normal” on every trade lane, port operators and shippers are set to feel the pressure and pick up the cheque for a new set of “disadvantages of scale” being faced throughout the supply chain, delegates heard at the recent TOC Americas conference in Cartagena.

Shippers, port operators and industry observers were perplexed by moves by the world’s largest shipping lines to pull up the drawbridge to new entrants to one of the world’s most confounding and consistently unprofitable industries. Read more here.