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

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

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? … and reviewing their approach to cost Q2. benchmarking? … and defining carrier performance and service Q3. level definitions and monitoring during the term of the contract? TPM: CASE STUDY – SERVICE CONTRACTS 2 www.drewry.co.uk

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? What role does the shipper/BCO’s reputation with Q6. the carrier play and to what extent is it important for the BCO to nurture this? TPM: CASE STUDY – SERVICE CONTRACTS 3 www.drewry.co.uk

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? How does a carrier’s alliance participation figure into Q9. negotiations? In what kinds of situations does it make sense to negotiate for ocean space with a 3PL? TPM: CASE STUDY – SERVICE CONTRACTS 4 www.drewry.co.uk