Everything changes. Take tennis, which has been around for nearly 1,000 years. The last 50 years of tennis play at Wimbledon showcases how much the underlying tools we use to perform a task change the nature of the task itself. And no, this wasn’t just an excuse to watch tennis at work; hear me out. Not to ruin the ending, but just as tennis evolved, the global shipping industry must adapt to the new demands, new capabilities and, frankly, the new requirements of the market.
In the ‘70s, wooden rackets and serve-and-volley tactics dominated tennis. It was a closely played game, frequently close to the net. Take a look at the picture below to see how worn away the net area of Wimbledon courts were by the end of the tournament. But as lighter, more powerful carbon fiber and graphite rackets emerged in the late 80s and 90s, it slowly transformed the fundamentals of the game. Tennis shifted to the baseline, with the volley area barely showing signs of play by the finals.
This doesn’t necessarily need to only be about the tools. Sticking with the sports metaphor, take a look at the Steph Curry three point shift
Source: Imgur
The underlying basketball tools might not have changed but the way people played the game certainly did. Similarly, today’s global ocean carriers are still playing with “wooden rackets” and layups —relying on outdated tools for rate and capacity management in an era demanding agility, real-time data integration and changing customer expectations.
What’s Behind The Gradual Shift?
However, unlike a world-class tennis player who will quickly discover how left behind they are when attempting to compete with outdated equipment, ocean carriers somewhat benefit from supply concentration in the market, offering them some protection.
But here’s the catch – the comparison is still right there, it just doesn’t have a scoreboard (yet).As a matter of fact, carriers that embrace holistic digital distribution via APIs find themselves in a stronger position. It’s no coincidence that 3 of the top 5 global ocean carriers recently promised their clients API connectivity for spot and contract rates and bookings during H2 2024. This could finally mean the race is on for all ocean carriers to provide a fully digitalized experience, much like airlines have already widely embraced with eBooking. Customers, increasingly valuing speed, transparency, and flexibility (geopolitics anyone?), will shift towards these digitalized carriers, leaving those clinging to old methods scrambling to keep up.
Shipping from the Baseline
In today’s global logistics landscape staying competitive means embracing digital tools (ie modern rackets) to work with modernizing customers. Ocean carriers who recognize and implement this will see their customer base grow, while those who don’t may find themselves with fewer customers or committed bookings, even if they’re not entirely out of the game. The market has evolved, and so must the carriers’ distribution strategies—because while the game has changed, the winners will be those who play it with the right tools.
