How do port authorities measure and benchmark their container shipping performance and competitiveness?
Port performance and competitiveness are crucial factors for the success of container shipping, which is the backbone of global trade. Container shipping connects different regions and markets, and enables the efficient and reliable movement of goods across the world. But how do port authorities measure and benchmark their container shipping performance and competitiveness? In this article, we will explore some of the key indicators and methods that port authorities use to assess and improve their container shipping operations.
One of the most basic and important indicators of port performance and competitiveness is the volume of container traffic that a port can handle in a given period of time. This is also known as throughput, and it reflects the demand and supply of container shipping services in a port. Throughput can be measured in terms of the number of containers, the weight of cargo, or the value of trade that passes through a port. However, throughput alone is not enough to measure port performance and competitiveness. A port also needs to achieve high levels of productivity, which means the efficient use of resources and assets to handle container traffic. Productivity can be measured in terms of the average time that a container spends in a port, the number of moves per crane per hour, or the utilization rate of berths, yards, and equipment.
-
Peter Adams
General Manager - operations cost analysis
Another key productivity metric is the total cost to move a container from ship's rail to port gates. This will by default include factors such as demurrage and detention charges, as well as the throughput costs.
-
Gerry L.
Retired. I covered mainly the third-party accounts in South Florida. I did cover BCO accounts in the territory as well
I agree but a best measure is cargo value. Measuring total throughput is deceiving . Tampa for example moves a great deal of phosphate which is very low value but high tonnage
-
Nils ROCHE
Human Being | Shipping Savant | AI Enthusiast | Senior Corporate Career Rider | Ask me about Decarbonization
Throughput is the north star, as it is the foundation of the pricing model - so how to achieve it ? 1. KYC, know your customers, and the customers of your customers: do shippers export cacao, EV, or chemicals ? To whom geographies ? What are the latest commodity trends ? How valuable is the cargo for the Liners ? What share of the ship's capacity do they offer for the port imports/exports ? 2. Match making: quay must be occupied & cranes must be working, protect Ships having a great Length vs Container Moves ratio, as much as possible. 3. Balance in everything: educate your stakeholders that an empty container will be full one day, load must equal discharge, or Liners will pile up in depots or yards, and wreak havoc at some point.
Another important indicator of port performance and competitiveness is the quality and reliability of container shipping services that a port can offer to its customers. Quality and reliability refer to the ability of a port to meet the expectations and requirements of shippers, carriers, and other stakeholders in terms of speed, accuracy, safety, security, and flexibility. Quality and reliability can be measured in terms of the frequency and punctuality of container shipping services, the accuracy and timeliness of information and documentation, the incidence and resolution of delays, damages, and losses, and the availability and diversity of options and alternatives for container shipping.
-
Nils ROCHE
Human Being | Shipping Savant | AI Enthusiast | Senior Corporate Career Rider | Ask me about Decarbonization
Your ability to deliver is as good as your stakeholders ability to do so. Set dual-ways commitment contracts, with clear expectations on what each party shall deliver. If a Liner deviate from it, but still asks to be operated on-arrival, mark it up $. Keep some room for flexibility, yes it reduces efficiency thus increasing cost, but nothing cost more than a missed sale (Liner arriving out of window and seeking an alternative). It is paramount to value Quality & Reliability in the Liner business, and to generate a value from it - if you think otherwise, you can work as a tramper (no judgment, just a different world altogether).
-
Peter Adams
General Manager - operations cost analysis
This should include the length of time a vessel waits outside the port before being unloaded, which is a cost that is borne by the shipping lines and not the port itself.
A third important indicator of port performance and competitiveness is the cost and price of container shipping services that a port can provide to its customers. Cost and price refer to the amount of money that a port charges or spends to handle container traffic. Cost and price can affect the profitability and attractiveness of a port for both shippers and carriers, as well as the competitiveness of the regions and markets that a port serves. Cost and price can be measured in terms of the tariffs and fees that a port levies or pays for container shipping services, the operating and capital expenses that a port incurs or invests to maintain and improve its infrastructure and equipment, and the externalities and subsidies that a port generates or receives to support its container shipping activities.
-
Peter Adams
General Manager - operations cost analysis
This paragraph is a bit wooly - port competitiveness (ie its attractiveness compared to its competitors) is determined by its selling price for its services. Port internal costs have no bearing on its competitiveness provided the ports prices are higher than its costs.
A fourth important indicator of port performance and competitiveness is the innovation and sustainability of container shipping services that a port can deliver to its customers. Innovation and sustainability refer to the ability of a port to adapt and respond to the changing needs and expectations of shippers, carriers, and other stakeholders in terms of environmental, social, and economic impacts. Innovation and sustainability can be measured in terms of the adoption and implementation of new technologies, processes, and practices that enhance the efficiency, quality, and reliability of container shipping services, reduce the cost and price of container shipping services, and minimize the negative externalities and maximize the positive externalities of container shipping activities.
-
Peter Adams
General Manager - operations cost analysis
In an idea world yes, however containers and their transport is highly commoditised and capital intensive. Consequently innovation will be linked to the capital cycle and therefore ports may not be fast followers of new technology.
-
Nils ROCHE
Human Being | Shipping Savant | AI Enthusiast | Senior Corporate Career Rider | Ask me about Decarbonization
Depending on the Line, port time can weight from 10 (Asia Europe) to 80% (Algeria feeder) of the voyage time: innovation & offering solutions are key to Decarbonization. Regulations are gearing up, and to be able to offer cold-ironing (plug in your ship), solar panel powered reefer stations, are becoming sales differentiators - don't miss the (e)train !
Rate this article
More relevant reading
-
Transportation ManagementWhat is the best way to handle disruptions in container shipping routes?
-
Logistics ManagementWhat causes port congestion in container shipping?
-
Import/Export OperationsHow can you reduce port congestion delays in international shipping?
-
Transportation ManagementHow can you negotiate container shipping rates?