Category Archives: Ports

The terminal connections maze

In the post there is a link to an article from a Drewry analyst about the possibility that more firms will make close relationships with their terminal operators.

If ocean lines and terminal operators consolidate, this would have the effect of improving coordination between that line and the terminal, but would disrupt coordination with other lines. It’s as if American Airlines and O’Hare airport in Chicago made a deal that there would be preferential loading and unloading there for American flights.  Easy to pick up or unload passengers, get baggage, priority for landing and takeoff slots, de-icing (I was just there!), lines for tickets, baggage checking, TSA clearance, and so on.  It would be good for American passengers and cargo, presumably (Perhaps American would drop the unpleasant $25 fee for domestic checked bags!)

So coordination of all air traffic and passenger or cargo handling for the other airlines would be disrupted.  Delays would occur. Any issues that appeared would take longer to settle.  And it would take me longer to get in and out of the airport.

Would it make me choose American if I had to go to O’Hare? Just maybe– but rather unlikely that it alone would be enough to sway me. After all, someone else might still be cheaper.

Coordination has to be horizontal in logistics to be truly better for all customers.

Source: The terminal connections maze – The Loadstar

The Terminal Connections Maze

State of Freight II Report

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

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

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