APL Disrupts Shipping Service Standards Again

APL Introduces 53 foot Ocean Containers

Back in 2001, I joined APL in their logistics group. During the interview I was asked why I wanted to join APL.   Man, that list was long but my knowledge was deep. I knew what to say.  Lets see... first to market with 45 ft containers....first to market with double stack trains....first to market with sophisticated track and trace. First to market with internet booking and internet released bills of lading.   

Those were just some of the reasons why APL was the leader in disruptive technology in the late 90's and into the early 2000's. I sat on industry committees to develop EDI standards for ocean shipping.  I knew APL people and I knew how smart they were!

Unfortunately, a rising tide raises all boats.  Competition caught up. APL had formerly positioned themselves as a macdaddy premium carrier.   By 2003, APL was average.  Not even a market leader. I sat through a global sales meeting in Singapore, where it seemed that senior management had no clue as to why they were getting beat.   APL management was still under the impression that they were something special, but the market didn't see it that way.

Now APL is back with more disruptive technology.  It seems low tech, but in fact its a big time deal.  Volumetric products coming from Asia appreciate extra capacity.   53 ft also matches road legal capacity on US roads.   APL has been bringing 53 ft containers from China to the US for some years.  These were boxes that CSX among others would then use for domestic intermodal traffic.  I remember situations where American railroads would order 53 ft containers from China, and APL would bring them to the US.  As APL sales, we had the chance to book these on a one way trip and use the extra cube.

What has happened now is that APL has decided to offer 53 ft boxes to the general shipping public. Customers who will be impacted by this are Asian import customers, particularly in the consumer electronics market.

53 ft containers are "green".  Because you can fit more cargo into a single trailer, it takes only one truck to haul it.  That is beneficial to pollution control and the environment.

APL is a carrier heavily focused on the Asian inbound trade. They also are main movers in the US DST market.  I would not be surprised if some deal with Pacer Stacktrain was not also involved.  Pacer is run by former APL execs and they operate APL's container backhaul and repositioning programs.

I'm proud to have once had the Red Eagle Tattoo.

clipped from www.apl.com APL taking delivery of the world's first 'ocean-capable' 53-foot containers          Latest innovation from shipping leader a new step in evolution of global trade Singapore, Oct. 30, 2007 – Container shipping leader APL today announced its latest innovation: 53-foot ocean containers that could significantly alter the U.S. import market. The Singapore-based carrier said it will take delivery of the world’s first ‘ocean-capable’ 53-foot boxes November 7. The first units will be deployed as a weekly service on APL’s premier South China to Los Angeles service. The creator of outsize containers in the 1980s, APL said its latest innovation – premium big-box service on a regular, weekly basis - has the potential to make a significant difference to the economics of Transpacific trade.

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