Category Archives: Ports

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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ILWU caucus to think about future of West Coast Port labor peace

Posted on August 10, 2016 by | Comments Off on ILWU caucus to think about future of West Coast Port labor peace

Bill Mongelluzzo writes about an attempt to get the labor situation at West Coast Ports under control. The two sides are meeting at the urging of a cargo owner and shipper group that was drastically affected by the last strike.

Ocean carriers last time were quite critical of the Pacific Maritime Association, the negotiator for the terminals, and how they handled the negotiations, blaming them for the length of the disabling strike.  The strike alone probably accounted for half the diversion of traffic toward East Coast ports. The Port of Los Angeles has just barely recovered.

The union, the ILWU, was just doing what they are supposed to; pick a crucial business period, and strike if the PMA did not negotiate in what they view as good faith.  That’s what labor unions do; it’s how they make progress for their members, the port workers. What other strategy can they have?  By ironing out difficulties in advance, the hope is that when the strike period comes around again the agreement can be adjusted to everyone’s satisfaction easily without a work stoppage.

East Coast Ports are doing the same kind of pre-negotiation. Everyone is afraid of a shutdown like the last one in prime shipping season.

HomeSource: ILWU caucus to determine future of West Coast labor peace | JOC.com

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Posted in Labor Economics, Logistics, Ports, Supply Chains

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