Maersk’s newly-launched service Daily Maersk on the Asia-Europe route has given hope to large manufacturers such as Wuhan-based TPV Technology that their call for more reliable barge services on the Yangtze River will gain new momentum.
“This is an important development,” said Robert Hu, the plant’s logistics manager told Yangtze Business Services. “If we can have reliability in barge services, then our entire supply chain strategy will need to be re-examined.”
The Wuhan government is subsidising barge operators and shippers to make the Yangluo-Yangshan shuttle service reliable, but Mr Hu said that improvements have not been as fast as he had hoped. The quickest service between Yangluo and Yangshan is 48 hours but delays can mean that journey takes as long as nine days. On average, at least 20 per cent of TPV’s containers miss their scheduled ocean shipping connection in Yangshan. The computer monitor manufacturer is one of the largest users of the Yangtze in Wuhan.
TPV is a client of Maersk but there is very little the giant shipping line can do to help the company as China does not allow foreign shipping lines to operate services on inland waterways such as the Yangtze. Instead, it relies on the services of local barge operators. “This is an ongoing conversation between us, our partners [barge operators] and local governments,” said Jens Eskeland, Managing Director of Maersk China. “We hope that our new service will provide a new incentive for reliable barge services on the Yangtze, which is very important to our clients.”
Daily Maersk offers daily cut-off times from four origin ports in Asia − Shanghai, Ningbo, Yantian and Tanjung Pelepas − and a guaranteed delivery time to three destination ports in Europe − Felixstowe, Rotterdam and Bremerhaven. Compensation is also promised for late delivery. In a three-month trial run prior to the official launch in September, the service achieved a 95 per cent success rate, according to Ms Hanne Sørensen, Chief Commercial Officer at Maersk Line. Considering that the current reliability rate for ocean shipping across the world is only 50 per cent, analysts believe that Daily Maersk has set new standards and may revolutionise the entire shipping industry.
APM, Maersk’s investment arm in ports and terminals, has been in lengthy talks with Chongqing government to invest in Cuntan container terminal. The company has also started talks with Wuhan government. Shippers such TPV are hoping that Maersk will come up with some innovative ideas to make reliability on the Yangtze a reality.