Category Archives: Ports

State of Freight II Report

Posted on December 9, 2016 by | Leave a comment

The second State of Freight report is out.  We should listen to it because one thing Trump expects to do is spend big money on, guess what, infrastructure construction projects.   If he gets rid of EPA regulations, we can see these move forward quickly, for better or worse.  Reports such as this will provide important input to the choice process.

The report comes a year after Congress made dedicated freight funding a priority, with almost $11 billion in funding for freight mobility in dedicated freight funds as part of the Fixing America’s Surface Transportation Act, the report also notes how states will have a key role in how the U.S. plans for freight movement and what projects will be completed.

Source: State of Freight II Report Takes Wide-Ranging View of U.S. Infrastructure’s Needs – Supply Chain 24/7

Here’s the actual report in PDF format: aapa_state_of_freight_reportii

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Posted in Logistics, Ports, Rail, Supply Chains, Trucking

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Container terminal operators can’t invest if shipping alliances squeeze prices too tight

Posted on December 2, 2016 by | Leave a comment

An example of why supply chain cooperation is so hard. And the problems it will bring to customers.  Individual motives tend to supersede customer interests. Yet success will only be achieved with cooperation. 

  http://theloadstar.co.uk/container-terminal-operators-cant-invest-shipping-alliances-squeeze-prices-tight/?utm_source=The+Loadstar+daily+email&utm_campaign=31eba8bcb3-EMAIL_CAMPAIGN_2016_12_02&utm_medium=email&utm_term=0_c4570e43d4-31eba8bcb3-153468669

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Posted in Logistics, Ports, Strategy, Supply Chains

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Container Weighing breeds profit snatchers

Posted on August 12, 2016 by | Comments Off on Container Weighing breeds profit snatchers

Talk about unintended consequences.

The Verified Gross Mass (VGM) rule promulgated by the International Maritime Organization (IMO) on July 1, 2016 is intended to make cargo and ships safer, by making sure that container weights are properly recorded. when you are loading a ship, it’s good to know how the weight is distributed. if people give you containers overfilled, you won’t have the right balance on your ship.  A ship might turn over, or other containers might be damaged if there’s a shift in cargo.

But the rule has created an entire industry and a plethora of fees being charged by supply chain partners. they’re presumably to offset ‘costs’ of the rule.  But there is a concern that they are merely ways of increasing profits.  And the fees certainly add to the complexity and cost of a container shipment, and even of identifying the best route for my cargo.

This story about India’s experience highlights some of the bad experiences shippers are having.  And it is affecting which ports are used and which carriers.  Will there ever be rationality in this area? Everyone agrees we want correct weights of containers, unless we want to cheat, but how complex can it be?

shippinglogo51The downside of IMO’s container weighing rule

Source: Shipping Tribune

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Posted in Logistics, Ports, Shipping, Supply Chains

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