Sunday, January 23, 2011

Slow Steaming (SS) or Super Slow Steaming (SSS) for Container Shipping Part II

Although slow steaming or super slow steaming saves shipping lines’ fuel cost, it does not benefit certain exporters who consider transit time is their enemy.

According to Stuff.com.nz, New Zealand meat exports, a $1 billion business per year, worries about slower speed shortening their meat’s shelf life when delivering to major companies in Europe, such as such as Marks & Spencer, Tesco and Waitrose.

Take chilled lamb as an example, the shelf life is approximately 70 days. The transit time from New Zealand to major cities in Europe takes:

~ 7 days preparation in New Zealand & to its port.

slow steaming, export, imports, economy, trade

~ 32 days normal speed service from Maersk

OR

~ 40 days slow steaming service from other shipping lines.

(New Zealand ---> Southeast Asia ---> Europe)

slow steaming, export, imports, economy




~ 10 - 14 days from distribution networks in Europe to consumer markets.

From quickest 49 days to slowest 61 days transit time, chilled exporters only have about 10 to 20 days of shelf-life before selling the chilled lamb.

While exporters cannot control the new “normal” transit time on waters, they can manage shorter preparation and distribution time on your supply chain at origin and destination, including an experienced and efficient freight forwarder and customs broker. We believe Universal Cargo Management can be one of your supply chain partners and give you an edge on a fast-paced logistics world.

1 comment:

  1. I had no idea that shipping companies can vary their speed on purpose to affect cost. Does this cost savings go down to the consumer as well?

    I am currently researching how to import from China which is how I came about your blog. Another useful article I have found so far in my search is about how to import from China specifically regarding sample fees.

    Thank you for your post!

    ReplyDelete