CASE STUDY: SERVICE CONTRACT STRATEGY AMID A CHANGING CARRIER - - PowerPoint PPT Presentation

www.drewry.co.uk 1 TPM: CASE STUDY – SERVICE CONTRACTS

CASE STUDY: SERVICE CONTRACT STRATEGY AMID A CHANGING CARRIER LANDSCAPE

• INTRODUCED BY PETER TIRSCHWELL

SENIOR DIRECTOR, CONTENT, IHS MARITIME & TRADE

• PHILIP DAMAS

DIRECTOR, DREWRY SUPPLY CHAIN ADVISORS

• SIMON PREISLER

DIRECTOR OF LOGISTICS, CENTRAL NATIONAL-GOTTESMAN INC.

• ANDREW GILLESPIE

DIRECTOR OF GLOBAL LOGISTICS, ANSELL LIMITED

www.drewry.co.uk 2 TPM: CASE STUDY – SERVICE CONTRACTS

Questions 1, 2 and 3

Q1. The landscape for shippers that negotiate direct carrier contracts is shifting as consolidation gathers steam and alliances are thrown into question amid chronic overcapacity. As this occurs, should shippers be reviewing their approach to tendering? Q2. … and reviewing their approach to cost benchmarking? Q3. … and defining carrier performance and service level definitions and monitoring during the term of the contract?

www.drewry.co.uk 3 TPM: CASE STUDY – SERVICE CONTRACTS

Questions 4, 5 and 6

Q4. Other issues worth considering are: How do strategies change or evolve at a time of consolidation?

• Q5. What role do relationships play, even given

greater emphasis on metrics? Q6. What role does the shipper/BCO’s reputation with the carrier play and to what extent is it important for the BCO to nurture this?

www.drewry.co.uk 4 TPM: CASE STUDY – SERVICE CONTRACTS

Questions 7, 8 and 9

Q7. What danger is there for a BCO in asking for post- contract rate reductions later in the year once the spot rate has tanked?

• Q8. Is there a concern about capacity availability

anywhere on the horizon and does this play into the picture at all? Q9. How does a carrier’s alliance participation figure into negotiations? In what kinds of situations does it make sense to negotiate for ocean space with a 3PL?