An April survey of 290 logistics executives around the world found nearly 70 percent felt it was incumbent upon ocean carriers to share the savings in fuel costs. Others said savings should be used to improve customer service or offset future rate increases.
The survey, conducted by Philadelphia-based logistics company BDP International, its Centrx consulting unit and Saint Joseph's University, found only half believe the economic and environmental benefits of slow steaming are worth the cost and inconvenience to shippers and their customers.
Ninety percent of respondents said slow steaming is having an effect on their company’s supply chain. Those effects include slower transit speeds affecting inventory levels (52 percent); customer service (50 percent; and production scheduling (45 percent).
About 85 percent of respondents indicated they already or are planning to adapt their supply chains to slow steaming. The most common strategies include synchronizing deliveries and production schedules, increasing inventory levels, and moving to multiple carriers for the best combination of rates and transit times.
Significant numbers of respondents also reported using air freight for smaller shipments, obtaining transit time commitments from carriers, and sourcing materials closer to where they are produced and consumed.
