The quantum leap in container vessel sizes over the last decade has left the logistics industry searching for answers about who really wins with the introduction of mega-vessels, mega-alliances and their much-lauded economies of scale.
As the supply chain is being re-shaped to accommodate 18,000teu vessels and the world’s largest shipping lines stretch, the paradigm of what is considered “normal” on every trade lane, port operators and shippers are set to feel the pressure and pick up the cheque for a new set of “disadvantages of scale” being faced throughout the supply chain, delegates heard at the recent TOC Americas conference in Cartagena.
“Economies of scale are beneficial for some actors but it creates a whole array of other problems for others,” said Dr Jean-Paul Rodrigues, head of global studies and geography at Hofstra University. “Economies of scale work well for the shipping companies but the bigger the ships the less flexibility you have in terms of port calls, so that is an issue and this has put pressure on the ports,” he says.
