Category Archives: Ports

Long Beach in tie-up with inland port and rail operator to move boxes faster

The Port of Long Beach has made a deal with a Utah site to transfer containers there, to relieve the congestion at the Long Beach terminal yards.

Moving containers by rail to Utah will clear space at the port and allow faster unloading there. The containers can then be picked up in Utah and forwarded to the points in the US.

This is a good strategy for the port. Many European ports, such as Rotterdam, Hamburg, and Antwerp, have done the same thing. In Europe, the containers tend to be moved by river barge or truck, but in the US, rail is the natural transportation mode to use.

It’s an idea that has been suggested years ago for the large ports on the West Coast US, but it took a crisis for it to happen.

I thought that long ago the ports would make such agreements with the Centerpoint complex in the Chicago area. Much of the container cargo moves to the Chicago area, for distribution to the rest of the United States. 8 years ago, Centerpoint had empty space available. Now it is completely built out, according to my informants.

Below the articles, I’ve provided my reference to our article of 2014, which suggested forging alliances with the Chicago warehouses.

By Ian Putzger in Toronto 28/10/2021

Long Beach in tie-up with inland port and rail operator to move boxes faster  – The Loadstar
Published Oct. 28, 2021
Sarah Zimmerman

Union Pacific steps up efforts to ease West Coast port congestion

Our paper of 2014:

Clott, Christopher B. and Bruce C. Hartman. (2014). “Supply Chain Integration, Landside Operations and Port Accessibility in Metropolitan Chicago”.  Journal of Transportation Geography (51) 131-139. DOI: 10.1016/j.jtrangeo.2015.12.005

Shippers Find New Supply-Chain Hurdles at Alternate Ports

This article shows that it isn’t so easy to divert containers from LA/LongBeach to other ports. The smaller ports don’t have the infrastructure to handle the added containers efficiently. They may not even be able to get drivers to move the incoming containers. And how will they handle empties? Ship them to LA/Long Beach? It’s a complete mess for shippers and forwarders.

The article details some of the techniques people are trying. Each has its own set of problems to wrestle with.

By Paul Berger Oct. 24, 2021 8:00 am ET

Shippers Find New Supply-Chain Hurdles at Alternate Ports – WSJ

Major forwarder on how to reduce the bottlenecks at Long Beach

Ryan Petersen, CEO of Flexport, hired a boat to visit the Port of LA/Long Beach to see the traffic jam of ships and observe what the terminals are doing. He came away with numerous suggestions, some of which have appeared in the directive published yesterday by Governor Gavin Newsom.

Ryan is a keen observer of the shipping scene, in addition to being CEO of a fast-growing forwarder.

The problems he detects seem to be yard space for containers, and a shortage of chassis and places to put empty containers to get them off chassis.

The new policy will allow stacking up to six high instead of only two high. That will help out both port yards and inland yards, such as for rail. More land available for stacking will also help, if properties close to rail yards can be identified and assigned for stacking.

Apparently, because empty containers cannot be dropped off, chassis are standing around with empty containers on them, preventing their use for a full container newly unloaded from a ship. A shortage of chassis ready to take a loaded container thus occurs.

How come it is always chassis and empties that cause the problems in the container supply chain?

By Alex Lennane 25/10/2021

Major forwarder on how to reduce the bottlenecks at Long Beach – The Loadstar