Stability and reliable forecasts and planning procedures are major prerequisites for a successful business partnership, especially in the complex world of shipping. In 2020, COVID-19 had a powerful impact on the logistics industry. Acknowledging this, Hapag-Lloyd is introducing measures in 2021 to significantly improve the stability of shipping processes. By launching its fifth Quality Promise, “Volume Agreements Honored”, Hapag-Lloyd has set itself the goal of confirming bookings in at least 90 percent of the volumes agreed with its mid- and long-term customers.
Going forward, Hapag-Lloyd and its customers will clearly commit themselves to volume agreements for a specific period of time linked to a specific geographical scope. Consequently, the carrier will be able to reduce the number of booking rejections, while customers need to fulfil their part of the agreement by placing bookings up to the agreed volume as scheduled beforehand. The mutual commitment on volume agreements will allow both parties to enjoy much more effective planning, which will result in significant cost savings.
Furthermore, having agreed on regular volumes, both sides will be able to rely on what Hapag-Lloyd already stated in its fourth Quality Promise: With its commitment to “Loaded as Booked”, the carrier is able to significantly lower the number of containers being rolled to later departures. With the addition of the new Quality Promise “Volume Agreements Honored”, customers will now have the high degree of confidence in planned cargo flows that they need to generate reliable forecasts.
“Our new Quality Promise enhances planning and booking efficiency. All of our Quality Promises interlock with each other. We are changing our service processes step by step to reach our ambitious goal of becoming the ‘Number One for Quality’. In 2021, we are continuing on our path to get there,” says Juan Carlos Duk, Managing Director Global Commercial Development at Hapag-Lloyd. “‘Volume Agreements Honored’ marks another milestone in increasing our customers’ confidence in their cargo flow with us. Now we can proudly say that we are at the halfway point on this journey!”
A dialogue on performance
Since January 2020, Hapag-Lloyd has launched five of its 10 Quality Promises as well as a Quality Promises Customer Dashboard, which provides full transparency on how it has delivered on each of its Quality Promises. Confident that it will reach its ambitious targets, Hapag-Lloyd invites its customers to track the progress it is making in its ongoing efforts to enhance all of its services and products. To this end, Hapag-Lloyd has given its customers access to all performance data at both a global and individual level.
By providing this performance data, Hapag-Lloyd also offers a solid basis for regular monthly, quarterly and/or annual business reviews with its customers to facilitate their joint endeavours to fulfil the requirements of this mutual commitment.
“Developing a smoother way of doing business together will demand intense collaboration and continuous dialogue,” says Danny Smolders, Managing Director Global Sales. “2020 was quite an extraordinary year for all of us. In 2021, our goals will continue to be delivering high quality to our customers, ensuring the stability of their supply chains, and creating more transparency on our mutual commitments. With all the efforts we are making, we want to help to reduce their daily business concerns.”
Hapag-Lloyd’s Strategy 2023 is about differentiating ourselves from our competitors not only in terms of service and quality, but also through enhanced transparency and determination to cultivate close, resilient partnerships. By optimising the supply chain and ensuring business fulfilment, Hapag-Lloyd will further strengthen the long term business commitment with its customers.
The remaining five Quality Promises will be released between now and the end of 2021.
You can learn more about Hapag-Lloyd’s Strategy 2023, the concept of Quality Promises, and the Quality Promises Customer Dashboard here.
