Consolidation and New Efficiencies Emerge in the Shipping Industry

STG Holdings, LLC pic
STG Holdings, LLC
Image: stgusa.com

Chris Jamroz guides STG Holdings, LLC, and coordinates North America’s largest independent container freight station (CFS) facilities network. Chris Jamroz’ team maintains more than 4 million square feet of dedicated US warehousing space to provide distribution and time-sensitive inventory management solutions.

Trends impacting the shipping industry in 2017 include increased consolidation amidst a landscape of falling rates for freight shipments and a renewed focus on the bottom line. With seven major companies controlling nearly two-thirds of the world capacity, the focus is on synergies that enable costs to be kept to an absolute minimum and developing new efficiencies.

Vessel-sharing agreements that involve major partnerships between players such as Transport High Efficiency, 2M Alliance + HMM group, and Ocean are underway. These agreements will engender changes in vessel routing and terminal location while also highlighting a need for flexibility in all aspects of the shipment process. One key readjustment already underway is for capacity growth that is more closely tied to traffic and demand, in ways that improve responsiveness to the actual flow of goods.