SeaIntel: Reliable Carriers Are More Profitable

Image Courtesy: Port of Rotterdam

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.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jan 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >