Category Archives: Ports

NITL claims alliances create ‘super-carrier distortion’ to liner shipping market

Posted on September 6, 2021 by | 2 comments

Liner shipping alliances were created years ago when there wasn’t enough containerized cargo for many competing ocean container carriers (sometimes called liners). They have evolved through time, a bit, but still allow several ocean carriers to band together to serve a particular route.

For instance, from Shanghai to LA and return, an alliance might provide weekly service. The companies then rotate in providing that ship for the service. If you book with one of thecompanies, you don’t know whose ship will be carrying the cargo, but it will be one of the members of the alliance. If everything goes smoothly and there are no delays, it should notmatter to the shipper whose ship they are on.

Alliances go by clever names such as THE Alliance (Hapag-Lloyd, ONE, & Yang Ming). Here’s a summary of facts about alliances, including who’s in each.

But when disruptions occur, as now, and ships don’t sail on schedule either because they are postponed by the line, or because of congestion in either the loading port or the unloading port, it becomes a problem.

The article outlines some of the complaints. Alliances have to be authorized by the specific counbtry they dock in. There is actually a bill in the US Congress to suggest that the FMC (Federal Maritime Commission) be given stronger powers to investigate problems and push the alliances to provide fair service to all customers.

By Nick Savvides 06/09/2021

NITL claims alliances create ‘super-carrier distortion’ to liner shipping market – The Loadstar

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Posted in Logistics, Ports, Shipping, Strategy, Supply Chains

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There’s a ‘meltdown of container shipping market’ coming as cargo piles up

Posted on September 5, 2021 by | 1 comment

I think the key phrase in here is the suffering generated by cargo that is piling up, either not being moved, or stuck waiting for onshore capacity.

It’s an interesting piece and gets in some of each side. Shippers and Carriers (and to some extent ports) are a loggerheads.

By Sam Whelan 02/09/2021

There’s a ‘meltdown of container shipping market’ coming as cargo piles up – The Loadstar

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CH Robinson introduces drayage congestion surcharge for major US ports

Posted on September 4, 2021 by | 2 comments

This article clearly outlines some of the reasons drayage truckers don’t want the job any more. Fixing it will require major cooperation along several elements of the container supply chain.

We can enumerate them:

  • Drayage trucking companies that pick up containers weit a chassis and drive them to the next point on the journey.
  • Drayage truck drivers, who are often owner-operators, paid by theload and not hourly, who can’t afford to wait for chassis or container pickup.
  • Port terminal yards, which may have restrictions on hours, and increasingly operate with reservation systems that fix the time you can pick up.
  • Chassis pools. To move a container you must have a chassis, and chassis are currently in short supply. At many ports they are owned by leasing companies and stored in pools, where the driver must go to pick the chassis up and drop it later.
  • Forwarders and Shippers. Sometimes contracts for drayage are altered without notice and drivers must spend extra time traveling, or waiting for facilities to open. Sometimes the chassis must be dropped elsewhere, forcing the driver to go extra distance and spend unpaid time accommodating the change.
  • Rail lines. Many containers are delivered by drayage firms to transfer points where they are loaded on rail cars for a long distance trip. Currently rail lines have a shortage of the rail cars required to carry containers. Rail lines are also suffering from serious delays at key transfer points, such as Chicago. Perhaps there has been chronic underinvestment in equipment for container handling. It’s not as profitable as hauling coal or grains or other bulk commodities.
  • Warehouses. Often containers must be delivered or picked up within a specific time window. these windows are not flexible enough when there is a great deal of variation in pickup and travel times.

CH Robinson introduces drayage congestion surcharge for major US ports Published Sept. 2, 2021 Max Garland Reporter

CH Robinson introduces drayage congestion surcharge for major US ports | Supply Chain Dive

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Posted in Logistics, Ports, Supply Chains

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