A NEW BENCHMARK FOR THE SHIPPING INDUSTRY

Maersk offers compensation if cargo late One of Singapore's rival ports, Tanjung Pelepas in Johor, has received a boost after Danish container shipping giant Maersk Line offered a money-back guarantee to customers whose cargo does not arrive on time, reported Straits Times. Maersk is also running daily services between Asia and Europe as part of its aim to improve the reliability of its cargo shipments. This enhanced service is also offered at three other Asian ports: China's Shanghai, Yantian and Ningbo ports. Tanjung Pelepas emerged as a potential threat to Singapore's ports about a decade ago but its container traffic is still substantially lower. Thomas Knudsen, Maersk chief executive for the Asia-Pacific region, told The Straits Times the move will help improve supply chains. Maersk's ships that used to sail two to five times a week and arrive at various times will now sail every day at a fixed time, and arrive at a fixed time. This means customers will be able to reduce warehousing costs as cargo can be shipped right after production, Knudsen said. “For any company doing business in Asia to Europe, this has a relevance... Hopefully our customers can see that beyond just the price, there is value in this.’’ A pilot programme started three months ago achieved a 95 per cent success rate. In the industry, more than half of all container ships arrive late, and 11 per cent more than two days late, Maersk said. In Europe, the service will be offered at the three ports of Felixstowe in Britain, Rotterdam in the Netherlands, and Bremerhaven in Germany. Asia-Europe is Maersk's largest shipping route. The new service will cover about five per cent of its total volume shipped globally, said Knudsen. Singapore traders and shippers can still benefit by trucking or shipping their goods to nearby Tanjung Pelepas, or to other stops en route. Maersk will compensate customers US$100 to $300 per container, depending on whether it arrives a day late or more at its destination. Divay Goel, general manager of Siva Shipping, an Indian tanker and offshore firm, said this is a major step for the shipping industry. “Because shipping lines did not adhere to the schedule, shippers did not have reliable delivery. It is a good initiative, but not many have the power that Maersk has to put so many ships in the line.’’