Schedule reliability has been an ongoing issue for the container liner shipping sector. Picking the right carrier with relatively low-risk service is key to designing and maintaining a reliable supply chain. This article outlines the possible impact of a carrier’s network design on schedule reliability. We also look at some possible ways to mitigating this risk.
What is schedule reliability?
While there are many detailed definitions on schedule reliability and network efficiency, schedule reliability can loosely be defined as the probability that vessels arrive and depart on time as compared to the pro forma schedule published by the carrier.
Why is schedule reliability important?
Schedule reliability is an essential factor for operational planning and execution. Having a reliable schedule ensures merchandise to be available at the destination as per the agreed delivery dates between the shipper and consignee.
It is estimated that the absence of reliable schedules can lead to an addition of more than 60% to the cost of inter-modal transport. The real cost of the total supply chain for simple supply chains may also more than double1.
Causes affecting schedule reliability
According to Notteboom (2006), the critical factor for schedule reliability was to do with the performance levels at ports, which accounted for 93.8% of the total source explanations for schedule unreliability2.
Notteboom (2006) also provided a list of tactics2, which carriers can employ to get back on schedule in case of delays. They include:
- To reshuffle the order of ports;
- To skip a port completely;
- To employ cut and run tactics;
- To deploy other vessels to take over in combination with a delivery to a hub;
- To look to speed up future port turnaround times; or
- To increase vessel speed between port, especially on inter-continental legs.
Impact of service rotations on schedule reliability
Based on this research, it is clear that the service rotation of a carrier, that is, the amount and sequence of port vessels are calling within a given service loop have a high impact on the vulnerability of the network. This translates to a possible network failure.
In other words, fewer ports in a rotation reduce the number of variables that the carrier’s network is subject to, herewith increasing the likelihood of schedule reliability.
Selecting the right string to ship your export cargo on is, therefore, a vital component of your supply chain strategy. Sounds like a lot of work, doesn’t it? That is why we developed eShipAsia.com: to help you evaluate your options and make the decision that best fits your business needs.
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You will be shown the available carrier options, rates and ocean schedules, allowing you to compare Intra-Asia ocean freight rates and schedules across various shipping lines instantly. You can build a customised ocean freight quotation by fine-tuning your search with our advanced filter features to find the best-suited departure date, transit time and price.
Our platform allows you to make improvements to your search based on the following criteria:
- Transit time;
- CY Closing Date;
- ETD;
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- Service Type: Direct or Indirect
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Once you find a product that meets your business needs, you can either proceed to book right away or save your quote and return to make the booking at a more convenient time.
eShipAsia.com quotations not only provide you with the ocean freight rates, but also gives you a detailed breakdown of the applicable local charges. This allows you to calculate your total landed costs (excluding tax and levies) instantly and avoid unpleasant surprises down the line.
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Our super-simplified booking form means you will need less than a minute to complete it. The booking platform will interface directly with most carrier systems to minimise delays in obtaining your booking confirmation.
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Shipment information is instantly available through our online track and trace – anytime and anywhere. Conveniently track your shipments, view their details and stay updated from pick-up to delivery.
Depending on your preference, you can easily set up push notifications or share your shipment information with customers or colleagues via e-mail, SMS, WhatsApp, WeChat and many other channels. Now, this is convenience!
Interested?
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