Category Archives: Shipping

As DCSA and shippers work to develop eBL standards, forwarders remain wary

This article gives both sides of a discussion on the importance and readiness of the maritime and shipping industries for an electronic bill of lading.

One point made in the article by forwarders is that in the present market, changes are occurring so frequently that the bills of lading have to change frequently. The changes are happening because the congestion and resilience or lack of it currently in many supply chains is forcing frequent revisions of transport plans. That forces eBL revision, since the exactness of the details of transport is essential in building a valid eBL.

But it’s always been the case that digitalization or automation requires a change in the manual or human procedures surrounding the creation of information. Those who are naysayers need to face up to the fact that a ‘draft’ eBL needs to become the standard of creation of an order for transport. That’s true if you’re a carrier, a shipper, a forwarder, ora 3PL.

It means that every system for booking shipments needs to transition to use of the eBL as THE document defining the offer. No participant will be able to afford to have their own forms for creating or ordering a shipment. That is going to be a challenge for the myriad systems brokers and shippers use. Each of them must be forced to include the eBL structure in their system, and make it the ONLY way orders are drafted and contracted for.

That’s not quite as bad as it seems. Once the system has the ability to draft the eBL for a shipment, many of them can be prepared in advance. For instance for a customer that regularly books shipments of specific goods, the eBL can be prepared in advance as a draft, and only needs human and system interaction for approval. We know from many years of practice implementing systems that draft information can be tuned by the computer to match most of the required patterns for most shipments, so

Brokers who are concerned about constant churning of eBL information can take heart; using pre-prepared standard eBLs will eliminate 80% of the job or so; the exceptions are a lot fewer than they think.

What that also means, however, is the job of booking an order changes. The customer service agent has a lot less paperwork to do, and that may in her view reduce her ‘importance’ to the shipper and the process. They lose status and the opportunity they had in the past to influence and relate to the shipper. That might be their fear.

However, they should not fear. It’s well understood from previous system implementations in many areas from payrolls to HR to ERP and many more areas, for at least 4 decades. The job changes, and opens up many more opportunities for sales reps to be of actual use to their clients by removing the burden of paperwork. And the change is from a repetitive operation to an exception handling process.

Shipping sales rep may well become a job that requires a different type of person from the incumbents; but that should not be a reason to avoid doing it. It means retraining incumbents or encouraging them to move on to a job they are more comfortable in.

The eBL standard development and acceptance process will be key over the next few years. The faster it can happen, the better.

By Charlie Bartlett 04/08/2022

As DCSA and shippers work to develop eBL standards, forwarders remain wary – The Loadstar

New container imbalance fee to minimise congestion due to excess empty containers

Port Authority of NY and NJ have announced a new container fee payable by ocean carriers. The fee will be levied when the outbound containers don’t exceed inbound containers by 110% in the same period. The port authority also plans to find additional space to store containers near the port, and already has identified 12 acres on the port.

It seems that these two measures are what works to reduce congestion. The same two kinds of measures were invoked at the Port of LA and Port of Long Beach to get ocean lines to start moving empties out. In California, though, the container fees were just threatened; they never were begun. that alone was enough for ocean carriers to start moving containers out.

Perhaps we have found a credible set of options to get container carriers to move those boxes.

Kim BiggarAugust 3, 2022

Port Authority of NY and NJ announces new container imbalance fee to minimise congestion due to excess empty containers – Splash247

Carriers ‘must commit to berthing windows’

Terminal congestion in Europe is high, even though there are fewer containers being handled than a year ago.

Ocean carriers handle congestion by skipping calls, and landing the containers at smaller ports, then sending them by land to their final destination. Skipping calls fouls up schedules for everyone, and makes it impossible to plan for increased capacity. It’s a nightmare situation for port terminal scheduling and for much of the hinterland service logistics, such as barge, rail and truck.

Another source of congestion is containers sitting in ports, often empty, awaiting movement elsewhere.

Almost everyone believes ocean carriers ought to improve on keeping schedules and sailing when they planned, meeting commitments made in advance to the terminals they intend to stop at. When there’s little excess capacity, altering schedules throws all the downstream logistics plans out of whack. It is like a bullwhip effect; when a ship skips, all the efforts planned to handle those cargoes is wasted, and has to be reorganized as best it can for what is believed to be the next round of deliveries. Keeping entire supply chains in a quandary does not lead to efficient logistics in the hinterland.

Ocean carriers are averaging about 30-40% ontime deliveries right now, and their on-time percentage has been excruciatingly low for a couple of years. No land-based logistics service could stay in business with these kinds of numbers.

In order to get ocean carriers to commit to scheduled berthings, ports are going to have to share information about berth window schedules. If this data were more public, comparisons could be made and carriers that routinely missed their slots could be penalized by getting deferred when they wanted to berth elsewhere. Getting liners to commit to berthing schedules requires cooperation among ports.

By Mike Wackett 27/07/2022

Carriers ‘must commit to berthing windows’ as N Europe ports see volumes fall – The Loadstar