Category Archives: Shipping

How Panama Canal navigated COVID, drought and trade war

This extremely interesting article details what’s happening at the Panama Canal in terms of ocean shipping trade. I learned a lot from it.

For instance, containers are a small part of the trade through the Canals, both the Panamax and NeoPanamax (deepwater, for the larger ships) routes. The largest part is bulk, grains, coal and oil and LNG.

And the majority of the trade in 2020 is Pacific to Atlantic, not Atlantic to Pacific.

Since there’s a lot of export of these commodities, particularly agricultural and oil-based, from the Gulf Coast of the US to Asia, Canal traffic is a good measure of US international trade of these.

Altogether a good read.

Greg Miller, Senior Editor Thursday, October 15, 2020

How Panama Canal navigated COVID, drought and trade war – FreightWaves

Felixstowe revamps VBS to stop ‘haulier abuse’

Here is an example of the adversarial approach to overbooking. Felixstowe has had serious problems handling cargo over the last several months. Port management is blaming it on everyone but themselves. Ocean carriers are avoiding the port or canceling visits, or cutting and running without fully unloading cargo; truckers can’t get slots to pick up or deliver; and customers are unhappy with the ability to get their cargoes delivered through this port.

I don’t know anything about the actual situation, except what I read. But when there’s poor performance, overbooking is one of the responses to expect from customers. YOu look to game the system to be able to get what you need when you need it, and rely on canceling to avoid payment. It happens everywhere. To me, it’s more a symptom of a broken system than a ‘crime’ to be punished.

I think it’s probable entirely too little time was invested in finding out what some of the customers (users) needed from the system, and when it was developed, not enough attention was paid to making sure the prospective users were able to see its advantages. When you don’t work with users closely and cooperatively, they won’t see how the system can help them.

I’d tell management, fix the problems with the system. Make it fair to all, and make sure you understand participant motivations so you can prevent gaming. Because if there’s a weakness, there will be gaming, for sure.

By Mike Wackett 12/10/2020

Link: https://theloadstar.com/felixstowe-revamps-vbs-to-stop-haulier-abuse-and-ease-congestion/

Can green shipping scheme learn to ‘herd cats’?

This article provides a valuable perspective on sustainability. There seems to be, despite all odds, a rising tide of concern about the environment and sustainability behavior for maritime firms. Investors and insurers are starting to pay close attention to how ocean carriers and ships themselves are matching up to green standards. They want disclosure and frequent reporting of consistent, meaningful measures, not greenwashing.

So the odd news release isn’t enough. A company needs a sustainability charter and plan with measures of their progress in greening their business. It’s costly if you actually have to do concrete things, like replacing ships, installing scrubbers, and taking care of seafarers. Some companies are far ahead of others on this path. And it seems that now those firms will attract the investment they need, whereas others will need to work much harder to get it, at potentially higher rates.

It’s good for sustainability, and for the global environment. Economic pressure is what gets sustainability done.

Greg Miller, Senior Editor Thursday, October 8, 2020

Can green shipping scheme lick ‘herding cats’ dilemma? – FreightWaves