Quest for Quality 2024: Ocean Carriers

As our ocean cargo correspondent Karen Thuermer reported last month as part of our Annual State of Logistics Report, even though negative, year-over-year financial reports kept filing in for some of the globe’s biggest players, ocean carrier executives feel confident that there’s a return to normalization not too far off the horizon.

“First quarter 2024 financial results show steamship lines losing money two quarters in a row,” reports Thuermer. “That’s something that hasn’t happened in five years.” The reason was lower-average freight rates in an environment that saw stronger-than-expected world merchandise trade and demand for cargo shipping due to a rebound in consumption and inventory rebuilding following 2023 lows.

“Characterizing the first quarter of 2024 was a rebound in spot freight rates caused primarily by disruptions in the Red Sea region,” says Thuermer. “Attacks on ships by the Houthis have resulted in many ships taking the long route around the Horn of Africa, thereby increasing shipping times and costs.” In fact, S&P Global Market Intelligence reports that 79% of container ships now transit around Africa’s Horn.

In the midst of this continued disruption on the high seas, Thuermer reports that carrier executives are steadfast in their belief that “by staying on course with strategic investment, whether in decarbonization or AI, as well as the continued alliance building,” we’ll see the market through the storm.

Despite these challenging operating conditions, LM readers tell us that the 17 carriers taking home Quest for Quality gold in 2024 have gone above and beyond in their commitment to keep meeting global customer expectations.

This year, Trailer Bridge (53.35) and TOTE Maritime Alaska (53.06) put up the top two weighted scores in this always-competitive category. Trailer Bridge led the way in On-time Performance (11.98), and in Information Technology, the carrier tied with Crowley Liner Service and NYK Line with an impressive 9.63 attribute score.

TOTE Maritime Alaska put up top attribute marks in Value (11.92) and Customer Service (11.73), and tied with Atlantic Container Line in the Equipment & Operations attribute category with a 10.21 score.

Ocean Carriers

(Bold indicates leader in attribute category)

Source: Logistics Management, Peerless Research Group (PRG)