Question 01: The "Daily Maersk" concept-

Maersk line is the biggest cargo shipping industry in the world among three most successful
cargo shipping industry capturing one third of the total sea- transportation services with 2.62
million TEUs (twenty foot equivalent units- the mostly used cargo unit in container shipping)
They are the pioneer of The concept "Daily Maersk" which Comes with the concept of setting
the cut-off on daily basis rather than the traditional weekly basis to minimize the loss of the
customer due to late transportation, make steps for reducing the carbon emissions around
13% per container they shipped. And they implemented the "Daily Maersk" concept to make
sure that every container is arriving at time to the destination where the traditional weekly
system can only ensure one out of two containers reaching destination within time. The
"Daily Maersk" so can be addressed as the key step to move out from the traditional sea
transportation system to modern mostly needed transportation system that customer need.

Question 02: the reasons for the "Daily Maersk" concept and problems that
the concept solved.
The "Daily Maersk" concept was invented to provide better and reliable sea transportation
services to the customer. Maersk line had faced that customer are not satisfied with the
service they get from the transportation services as their product losses retail value for late
arrival. In some cases the retail value for the product can be reduced up to 25%. For reasons
most of the shipping industry pre-book for transportation around 180% of the capacity to
ensure full efficiency though some customer fail to reach their product for shipping. And if
more than 100% of capacity of product arrive, they need to wait for next shipment. So the
customer also pre-book more than one shipping company and the shipping company for this
also book more than the capacity thus the circle continues. After facing the problems for
several years, the Maersk line with collaboration with it's customer and university, try to
figure out the problem and to solve the problem and to make the sea transportation service
more reliable,they introduce the concept of "Daily Maersk".

By introducing the concept the Maersk line has solved many of sea transportation
related problems. Mainly-

Cut-off: rather than weekly cut-off the "Daily Maersk" concept introduce daily cut-off, so the
customer can operate their production and transportation of how they find it suitable not by
the shipping schedule. So it increase their overall productivity function.

Anticipated loss- reduced the chance of losses in retail price for many products, which lost
their retail price for late arrival.

Reliability issues- the concept increase the reliability among the customer as most of the
cargo reach right location at right time, where most of the customer was unsatisfied about
the service they were getting before the implementation of the concept.
Environmental impact-Only from the cargo ships about 3-4 percentage of total carbon
emission of the world happens, the ships under this concept maintain a fuel efficient speed
which ensure lower carbon emission.

This are generally the problems that the "Daily Maersk" concept has solved by the Maersk line.

Question 03: Result of the "Daily Maersk" concept.

After taking initiative and implementing the concept the Maersk line has changed the shape
of the sea transportation industry. Now they are the world's top sea transportation company
with a massive unit of TEUs and a strong IT base for supporting their transportation with
cargo tracking, shipment in right location within committed time.the results are mainly-

Increased customer loyalty- by timely arrival and low cost the Maersk line gains the
competitive advantages and become successful to increase the customer loyalty.

Added benefits- Maersk line has include some benefits in this concept like no warehousing
needed, better staff utilization, a strong IT base that can't be easily substituted by competitor.

Reduction of losses- losses from late arrival of products has been successfully reduced by
timely delivery and also support the production planning of vendors that they don't need to
work as per shipping schedule.

Brand value- by reducing carbon emissions around 13% per container, with a timely arrival
of 98%, and a guaranteed compensation for late arrival introduced first time by any shipping
company, the Maersk line has create an impactful brand value for the organization.

Question 04: predicted outlook-

In this case we can see the "timeliness" is one of the most impactful character of any
transportation organization. Though the Maersk line take bit longer time for slow steam but
their arrival at committed time helps the customer to design their other facilities as per the
schedule, ultimately save the losses and hazards. Most importantly the accuracy is important
in case of transportation. A strong internal communication within the organization,
determined employees and strong IT based support and enough logistics support together
can build a competitive advantage for the organization that can't be easily imitable. Along
with all of this, innovation like "Daily Maersk" concept and collaboration to solve the
traditional problems is the key impact to the successfulness of any transportation
organization.