Management of empty containers is an integral task of the global shipping industry. So, the cost involved in transporting empty containers is included in a company’s expenditure total, and thus it burdens the overall profit margin. The challenge is to achieve cost-effectiveness in empty container transportation and therefore the industry leaders need to identify the best possible solution under the prevalent circumstances. So far, this industry leadership could not frame the long-term solutions, mostly due to the fragmentation of the industry, lack of coordination and avoidance of long-term thinking.

Leadership challenges faced by business executives can take many forms. Sometimes these are industry-specific, and sometimes they are the result of economic changes. For the leader, problem-solving and decision-making skills are then in high demand. One such example may be seen in the global shipping industry. One of the most important branches of this business is container shipping, whereby 20-foot and 40-foot metal storage containers are delivered by sea on behalf of shippers.

Since the worldwide economic meltdown in 2008, many shipping companies and container-owners are encountering problems of transporting empty containers back to their homeports from where they originated. This has become a major challenge in the shipping industry as a whole. This is one of the consequences of the trade imbalance between Europe and North America and the Far East (China, Indian Subcontinent and South Korea). More goods are being imported into the EU, USA and Canada than are exported out from these countries to the Far East. The consequence is the accumulation of thousands of empty containers in EU and North America. The containers are coming to these regions full of merchandize but there is little or no cargo to take back where they originated.

Leadership Challenges, Shipping Industry