The cost of unreliability in ocean shipping – and how to mitigate it

With more than 80% of the world’s traded goods transported by sea, ocean shipping is widely considered the cornerstone of global trade. But numerous disruptions – a global pandemic, extreme weather events, geopolitical tensions, labour disputes, trade barriers, and more – have affected ocean shipping in recent years. In fact, according to data from shipping analyst firm Sea-Intelligence, 2024 ocean schedule reliability was just 50-55%, putting supply chain resilience and the need for reliability at the top of shippers’ priority lists.

But what does unreliability cost ocean shippers – and how can they mitigate the impact?

What is ocean shipping reliability?

In ocean shipping, reliability means maintaining a consistent, dependable fixed-day schedule and deliver the end-to-end service customers require. It includes:

• Providing high-quality equipment
• Timely departures and arrivals
• Error-free documentation
• Safety, ensuring that goods are transported without damage or loss to any person, plant, or machinery
• Consistent communication and transparency throughout the transport plan

These key factors lead to smoother operations, lower costs and enhanced customer satisfaction. But if any one aspect fails, there can be significant implications for a shipper’s business.

The business impact and cost of ocean delays

According to a survey of 570 global logistics decision makers for The Logistics Trend Map, 76% said that financial resilience in logistics is relevant to their company, making it one of the top industry trends today. Yet even a single delay at one port can trigger a domino effect across the supply chain, significantly increasing costs for both shippers and terminal operators. The financial, operational and reputational consequences of unreliable ocean shipping can put a shipper’s financial resilience (i.e., their ability to weather economic volatility and maintain profitability in an increasingly dynamic global environment) at risk.

Those impacts at a glance:

Financial impacts

• Increased operational and inventory costs: Unreliable shipping schedules necessitate higher buffer stocks and longer lead times, driving up inventory carrying costs. The average delay for the industry as reported by Sea-Intelligence for March 2025 was 5.02 days, meaning importers may be carrying at least 1-2 weeks’ more inventory than they require due to poor reliability of the industry ocean networks. If most companies aim for 45 days of inventory, adding an extra week represents significant added cost.
• Lost sales: Delays in shipping can disrupt manufacturing processes and result in missed sales opportunities, particularly for time-sensitive products.
• Penalties and extra costs: Businesses may incur penalties for missed delivery deadlines and face additional costs for deploying contingencies, such as expedited shipping or alternative transportation modes.
• Higher working capital costs: Poor reliability forces businesses to maintain higher inventory levels to mitigate the risk of delays, increasing working capital requirements.

Operational impacts

• Disruptions to production lines: Delays in shipping can cause interruptions in manufacturing processes, leading to reduced productivity and operational inefficiencies.
• Increased complexity and costs for contingencies: Unreliable shipping can require expensive solutions, such as expedited transportation or alternative transportation methods, to avoid delays.
• Stress across the supply chain: Any link in the supply chain that fails to function as expected causes stress and inefficiencies across other parts of the supply chain, impacting overall operational performance.
• Storage and handling challenges: Seasonal or time-sensitive goods may require additional storage and handling if shipping delays occur, leading to increased operational costs and potential spoilage.

Reputational and customer service impacts

• Lost sales and market share: Customers may turn to competitors who can provide a more reliable service.
• Deterioration of margin performance: Extra logistics costs incurred due to unreliability can deteriorate margins or be passed on to consumers, potentially making products less attractive.
• Customer satisfaction and loyalty: The ability to get products on shelves when and where they are needed is critical for maintaining customer satisfaction and loyalty.
• Damage to reputation: If a business cannot deliver products as promised, it risks damaging its reputation and losing long-term customer trust.

How to mitigate the risk of ocean delays and boost adaptability

Nearly half of business executives in a recent Disruption Index survey by AlixPartners said they believe supply chain disruptions will be an even greater challenge this year than last year. Fortunately, there are strategies shippers can consider to mitigate the risk of disruption—and be ready to adapt if reliability is compromised:

1. Leverage data when evaluating logistics partners. Building strong relationships with the right providers – those with best-in-class networks, routings, processes, technology, customer service and sustainability options – is crucial in the logistics industry. When evaluating providers, it can help to base the decision on data. Data analysis firms like Sea-Intelligence provide visibility on carrier alliances’ (e.g., Gemini’s) ocean transit times and other performance metrics, enabling businesses to make informed choices.
2. Partner with integrated logistics providers who manage multiple areas of the supply chain. Providers with integrated logistics capabilities, such as ocean shipping, inland transportation and warehousing, can help keep shippers’ cargo moving when one area of the supply chain is disrupted. Plus – it can reduce handoffs in the supply chain, leading to higher reliability, additional savings and greater overall value.
3. Establish clear expectations on service reliability. Setting expectations with the logistics partner will strengthen the relationship and help ensure the required service is provided. Set up performance reviews to discuss how things are measuring up against those expectations and identify areas for improvement.
4. Plan in advance to eliminate risks posed by controllable or known factors. This includes proper forecasting to ensure timely space and equipment availability, ensuring regulatory requirements are met and that market conditions (e.g., peak season) are taken into consideration.
5. Spread volume across different modes (air, rail, road, etc.). This will avoid reliance on a single mode of transport.
6. Invest in technology. For reliable ocean shipping data, it's helpful to aggregate and compare information from multiple sources. Visibility is essential, but validating data across different sources is equally important to achieve accurate insights.
7. Have a contingency plan. Plan for various scenarios, outline potential supply chain risks and build mitigation strategies to take in the event of disruption.
8. Stay on top of industry news to become aware of potentially disruptive events.

Be ready for more reliable supply chain solutions to go all the way! Supply chain disruption is inevitable. But with Maersk’s resilient logistics solutions, your business can stay one step ahead with full visibility to identify and mitigate risks, enhance efficiency and improve agility for a more robust and responsive supply chain that keeps your cargo on the move. Read more about Maersk’s ocean transport services and commitment to strengthen customers’ supply chains with resilience and flexibility on East-West trades through the Maersk East-West network. For more on our other integrated supply chain services, read about inland services and contract logistics.