Category Archives: Ports

FedEx will sell space on empty container imports as a congestion-bypass service

And much more!

One thing that captured my attention in this nice article by Max Garland is the increasing use of 53 foot containers for imports to the US. This is a natural development, too long in coming as long as the US imports so much stuff. It saves the transloading step in SoCal once 40-foot containers get here; they can be moved immediately. A 53-foot container has 30% more cargo per truck move, and can be taken straight to a destination. No longer a reason to transload.

Another interesting point highlighted in the headline is FedEx’s offer to transport cargo in the new containers they are having built in China. I understand 53-foot containers are often being moved on refitted bulk ships rather than standard container ships which have slots for 40-foot containers. And these ships would move outside standard liner routes, which means they can choose where to drop off the containers. Perhaps they can go to ports that would avoid high congestion points. Often they are smaller as well, and take a shorter time to unload.

The article also discusses the jawboning that is taking place to get players in supply chains to move cargo quicker. Apparently the move toward 24-hour service in the supply chain has not gone too far, but some big players are already adopting the idea of it. Maybe the port terminals in LA and Long Beach won’t be able to do it, but the warehouses, trucking firms, and gate access points can, and even that will improve the flow of goods.

When people understand the whole problem and put their heads together, the congestion will abate. And they will figure out how to share the cost pain of doing so. It’s a lot more costly when you don’t have goods for sale on time.

Published Dec. 6, 2021

Max Garland Reporter

FedEx will sell space on empty container imports as a congestion-bypass service | Supply Chain Dive

Port congestion cascades into intra-Asia services, disrupting container traffic

A sign of the disruption of container shipping processes is the dumping of cargo in Singapore. This article discusses some of the issues in East Asian ports.

While there’s hope that ocean carriers will divert ships there, we don’t know that it will happen, and with ships tied up waiting at other ports there may not be enough vessels to follow the short-term need.

By Sam Whelan 12/11/2021

Port congestion cascades into intra-Asia services, disrupting container traffic – The Loadstar

Berthing challenge for new transpac carriers arriving on the west coast

It seems that ocean carriers that own or have an interest in port terminals are getting preferentially served by those terminals. It’s what we would expect. But nowadays, it may mean months of delay for other ships, such as chartered vessels.

Should part of the charter for a terminal be some form of ‘common carrier’ commitment? A requirement to unload ships that present in an order defined by some rule?

There has been lots of study of queues with one or multiple servers, and different size unloading jobs presented, with different priority schemes. It’s classic operations management. It should be possible to define a service policy that would be fair to the facility owner and would help to prevent excessive delays for those in the less preferred categories.

For instance, should a ship waiting for three weeks have preference over a recently arrived ship owned by the line that also has a stake in the terminal? I think ocean carriers and terminals have an interest in seeing that the policy for accepting ships for unloading is clear and fair to all who arrive. If it’s clearly stated, then ship owners and charterers can make estimates of when they will be served at the port, and would choose the port over another that had no policy.

The guesswork of choosing a port begins weeks earlier, at sea, or even when loading the ship. While a ship can be diverted en route, it adds mileage to the trip (and time). If port delays are long and unknown, it becomes impossible to make a reasoned decision; ‘Russian roulette’ for the carrier and cargo owners.

By Mike Wackett 24/11/2021

Berthing challenge for new transpac carriers arriving on the west coast – The Loadstar