MAERSK moves roughly 20 per cent of the global ocean capacity, yet it has less than 1 per cent of trucking capacity of the $770 billion US trucking and drayage services market. That is about to change as Maersk continues to sign contracts with both large- and me-diumsized retailers to provide Destination Cargo Management (DCM) services, already doubling customers’ use of DCM services this year, it highlighted in a communiqué.
For Maersk, the success of this growth is about asking the right questions. According to Mr Matthew Koivisto, Head of Transportation in North America, “If you asked any of the top 1,000 importers if they are having problems managing their destination deliveries in say, the LA port complex, most would say ‘Yes’. By offering this solution as a joint service together with other container logistics products from Maersk, we’ve had a lot of success winning business with some of the largest retailers.”
The easiest way to understand Des-tination Cargo Management is to think in reverse. For years, Maersk (previously under the Damco brand) has provided a robust supply chain management solution focusing primarily at origin for US importers while still managing everything from land to sea. DCM is essentially a complementary service to Maersk’s Supply Chain Management services, but for US importers at destination.
From the time a shipment is loaded on board the vessel, the DCM team takes over and starts to track it on the water and prepare for its arrival. This includes forecasting discharge dates, managing the allocations between dray providers, and issuing work orders to the truckers well in advance of the vessel arrival so they know what they must deliver.
The real value of DCM lies in transparency. “We provide full visibility to the customer on an end-to-end basis from the time we handle the container at origin to the time it gets delivered to their distribution centre in the United States,” said Mr Koivisto. “The DCM team acts as the destination logistics manager for the customer, which means we hold performance meetings with trucking companies and other vendors to ensure everything goes as planned—and if it doesn’t, that we find ways to minimise disruption or delays,” he added.
performance reporting taking place down to the individual trucker and lane on a weekly basis. This is powerful data for the importer as it allows clients to manage their vendors up to a very high level of performance. “There is no ambiguity in the data. It’s black and white,” Mr Koivisto added. “The way clients look at this is I would have to employ one, two, or a team of people to do this my-self. Or I can subcontract it out to Maersk.”
