Container Asset Management

Introduction
Since the portents for liner shipping during the second half of 2011 and beyond, would suggest that many of the top 20 container carriers will again return negative financial performances, it becomes imperative to focus on both achievable and sustainable cost savings in order to minimise operational losses. One method which has been successfully implemented by IMS in previous cyclical downturns has involved the reorganisation of carrier’s container fleets and the modelling of these into in-house asset management profit centres. This had the effect of increasing productivity levels, improving efficiency and significantly reducing the levels of operating costs. The review is based on any of the world’s top 20 top container carriers with major global and domestic trading patterns that operate both owned and leased containers and having a fleet replacement value in excess of US$ 1 billion. When annualised and added to such associated expenses as repositioning, M&amp;R, storage and handling expenses, the annual operating costs for container asset management alone will probably be in the order of US$ 240/260 million. Achievable annual cost savings of 20 to 25% would therefore go some way toward minimising any potential operating losses incurred as a result of the prevailing economic conditions. However, to effectively transform cost centres into profit centres necessitates a cultural change within the Line, especially for the trade and operations divisions and a general acceptance that financial benefits when accrued will be for the common good. As the potential rewards are high, it would seem appropriate to further examine the concept of Asset Management for your carrier’s container fleet.

Links
Container Asset Management Audit