Insights - January/February 2018 - 18

Coast ports are familiar with post-Panamax containerships, their
implementation on the East Coast increases surges in volumes,
which put pressures on intermodal services."
In addition, Michalski said CMA CGM is watching the U.S.
economy for signs of consumer spending increases.
Finkel, whose company also has been active in making acquisitions, believes the ocean carrier industry is being transformed
more by structural adjustments in the industry, such as the
Hanjin bankruptcy and consolidation, than it is by the year-to-year
changes in the global economy.
Experts offered a range of perspectives about the global
economy and the 2018 freight market.
The Global Port Tracker report, issued Jan. 8 by the National
Retail Federation and Hackett Associates, showed a 7 percent
increase in imports through the nation's 10 largest ports last year
above 2016 levels, a performance that boosted optimism for
2018.
"On a percentage basis, 2017 was one of the strongest
increases we've seen since the end of great recession," Hackett
Associates founder Ben Hackett said in a statement. "That's no
minor achievement at a time when many are trying to talk down
the economy. The rate is expected to slow down some, but with
2017's performance and continued high consumer confidence,
our models show continued growth in the coming year."

'Growth is Growth'
Rodrigue was less optimistic, saying that the rate of growth
of container volumes in excess of global gross domestic product
has slowed in recent years. "Demand has picked up, but growth
prospects are limited," Rodrigue said. "Still, growth is growth, and

additional volumes are always welcome."
British shipping consultancy Drewry identified a different
concern in a report. There may not be enough containers
available to meet demand after the 2018 Chinese New Year,
when demand surges before holiday shutdowns can result in
equipment dislocation.
"For the shippers that fill the steel boxes with their cargoes,
the prospect of equipment shortages, even if only temporary, will
be particularly scary," the Drewry report said.
Technology also is a 2018 watchword.
"Digital also plays a key role in consolidation and we are
at the cusp of a digital transformation where customers are
demanding more from an ocean carrier," Nielsen said.
The Maersk Line official believes digitalization can radically
improve productivity, visibility and overall a better customer
experience.
He cited several digital pilots in process at Maersk to improve
the way trucking services are procured. An online e-auction
application called Spotlanes is one example. Maersk Line also is
launching products such as Remote Container Management to
ensure that its 270,000 refrigerated containers are monitored via
satellite so that changes in product condition can be addressed
before a ship's arrival in a port, Nielsen said.
Rodrigue also said that the changing global freight
market has increased interest in automation at port terminals
and intermodal yards as well as more efficient information
technologies. This does not generate more volumes, but
improves the efficiency and visibility of container flows, he
noted.

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18 Intermodal Insights | January/February 2018

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