Schedule reliability for deep-sea carriers has positively impacted their financial results, according to a statistical analysis conducted by SeaIntel Maritime Analysis.
SeaIntel tested the hypothesis on whether the relative profitability of a carrier is independent of their reliability relative to their competitors. The correlation coefficient between relative profitability and reliability across 14 quarters was calculated for all of the major carriers that publish their financial results on a quarterly basis.
Taking into consideration data in the period Q1 2014-Q1 to 2017-Q2, SeaIntel said that, from a statistical perspective, the hypothesis that there is no link between profitability and reliability can be rejected with 94.3% confidence.
In less statistical terms, this means that carriers that are more reliable than their competitors are also more profitable than their competitors. What the data does not show is precisely where the added profitability stems from.
“It could be from a commercial upside related to higher rate levels or more loyal customers. But it could also stem from lower operational costs as more reliable services lead to less exception handling. And finally it should be noted, that correlation does not imply causality, and what we may be witnessing is in fact the reverse, that more profitable carriers are more likely to be on time,” Alan Murphy, SeaIntel CEO, said.