Steering the industry from Push to Pull, adopting the 3PL pricing model.

The migration from the manufacturing-based PUSH logistics system to direct-placement or PULL network has appeared as an emerging trend in physical supply and demand coordination.

The Shipping industry is a long way off from being adapted to this type of service. Fleet capacity that cannot easily be reduced or increased according to market demand presently only delivers the value of transportation.

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Can collaboration cut shipping costs?

Thanks to the invention of Malcom McLean, containerization has been able to reduce shipping costs for shippers since cargo is now shipped into these metal boxes providing a faster and more secure package for goods transportation. However, the costs of maintenance, repairing and empty positioning of containers are left to container shipping lines. In 2008, the container fleet will pass the 20 million teus line, so keeping containers over half of their lifetime in an empty status will dramatically affect carriers' bottom line profitability as well as the capacity to serve carriers' cargoes by ports and depots.

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To the right place - Right away.

Every year several billion dollars are spent, by Shipping Lines, on empty container repositioning.
Worldwide there is an on-going network challenges to supply the right equipment type to the right port at the right time, particularly into deficits regions like China. Surplus remains in the typical regions, including Africa, East Coast North America, Central America, and South America.

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