Author Archives: just2bruce

California inland port project a blueprint for a re-engineered US supply chain

Posted on April 20, 2022 | Leave a comment

It is interesting and useful to set these inland ports in agricultural areas, where the empty containers can be filled with ag products. The easy proximity will induce a lot more loads.

Locating inland ports with prescribed connections to ports and to rail and truck should aid in reducing congestion at ports. Being able to move containers to an inland port reduces the congestion at the port itself. Many of the functions performed at the port can be carried out at the inland port.

The EU has been pioneering this approach. In the US it has been less common, though. It has been suggested for 10 years by various commentators, including me and my partner Chris Clott. Inland ports increase the flexibility of a port system as well as increasing capacity and improving service.

California inland port project a blueprint for a re-engineered US supply chain – The Loadstar

By Nick Savvides 20/04/2022

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Posted in Logistics, Ports, Supply Chains

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US container prices tumble as yards overflow with empties

Posted on April 20, 2022 | 1 comment

Suddenly there is a glut of empty containers. And prices for empty containers have fallen, in some cases by almost 50%. That’s because the containers are jammed up and not going back to China, due to Chinese COVID shutdowns and the Ukraine crisis.

Now the cost of a container in the US is below what it costs to buy a new one in China. I’m afraid it isn’t low enough for ocean carriers to be motivated to spend a voyage on relocating them. I think they will continue to build up in the US.

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Gary Howard | Apr 19, 2022

US container prices tumble as yards overflow with empties

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Vietnam steel giant Hoa Phat moves into container manufacturing

Posted on April 4, 2022 | 1 comment

Others are discovering that they can dump steel by making it into containers. While the Vietnamese steelmaker Hoa Phat mentioned in the article won’t be a large percentage of the demand, it’s significant.

And since more goods are now being exported from Vietnam compared to before the Chinese lockdowns, supplying new containers on the spot may be a better option than moving them from the US and other places.

This means there will be a glut of containers in importing countries. The only option may be to scrap them when they arrive. Ocean carriers and shippers will prefer to buy new containers at the exporting site rather than shift the old empty ones back for more cargo, at present fuel prices and increasing pollution and crew charges.

It’s a real waste to scrap the containers if they are used only once. While steel is recyclable, it’s a torturous road, and we aren’t set up to do it at scale. And a tremendous waste of effort.

All are examples of exogenous charges, as the economists say. They are not factored into the original price of shipping the goods, so they aren’t paid by the shipper. They also aren’t paid by the carrier. They instead erode the general welfare of the communities who have to deal with the empties. It’s a classic scenario in sustainability.

By Martina Li in Taiwan 04/04/2022

Vietnam steel giant Hoa Phat moves into container manufacturing – The Loadstar

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Posted in Logistics, Shipping, Supply Chains, Sustainability

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