Author Archives: just2bruce

Rail Project for Port of Los Angeles

So who says that ports are not competitive? This sort of story shows that ports are not unmitigated economic benefits.  They also carry risk.  If LA does not build the terminal, it runs the risk of being put out of business by the Panama Canal and Eastern US ports.  If it does, Long Beach has to compete somehow, and will be forced to expand so it won’t lose trade to LA.

And the environmental issue!!  I claim this is an economic story not environmental. Everyone wants clean air, but they also want jobs. Clean air can’t be bought by not expanding and meeting competition.  It has to pay for itself also.

Rail Project for Port of Los Angeles Sparks Anger in Long Beach – NYTimes.com.

MSC sells stake in its ports division – Lloyd’s Loading List

http://www.lloydsloadinglist.com/freight-directory/news/msc-sells-stake-in-its-ports-division/20018035332.htm?source=ezine&utm_source=Lloyd%27s+Loading+List+Daily+News+Bulletin&utm_campaign=737d74ea54-LLL_2_April4_2_2013&utm_medium=email#.UVrGW6u3NFo

Ocean Shippers Must Come to Terms with Carrier Efficiency “Myths”

Ocean Shippers Must Come to Terms with Carrier Efficiency “Myths” – Article from Logistics Management.

How much evidence is there that slow steaming hurts shippers? This MIT study says that because reliability is multidimensional, so far there isn’t much.  It does indicate that savings to ocean carriers have not trickled down yet to shippers.  But since the business is essentially perfect competition, it won’t be too long before shippers see the effects in lower freight rates.  Somebody will cut prices!