BEGIN ARTICLE PREVIEW:
Hanne Johansson and Ben Haaland
Capacity utilization and lack of transparency are major challenges for ocean carriers and truckers alike, and that comes at a cost to both consumers and the environment. New transparent marketplaces powered by advanced technology from the capital markets could pave the way for greater efficiency and much needed digital transformation.
When it comes to ocean shipping containers, there is often a mismatch between ship capacity and available cargo. A relatively straightforward supply and demand issue has become an industry-wide nuisance, resulting in lost revenue, unpredictable costs and unnecessary emissions. Goods end up being delayed, companies are forced to carry extra inventory, and entire supply chains are affected. Service failures like these should incur a penalty, but the current nature of the business makes it difficult to enforce contracts. These problems tend to worsen during disruptions, which can cause equipment dislocation and a build-up in cargo sitting idle, causing distress to the entire supply chain.
Similarly, the trucking industry is striving to cut down on the number of empty trucks or “deadhead miles”, which occurs when a trucker drives an empty trailer during the trip to pick up a load. Another …
END ARTICLE PREVIEW