Category Archives: Shipping

2M restores transpacific capacity, pleads for return of empty containers

Posted on September 21, 2020 by | 1 comment

Ocean carriers are suddenly waking up to the fact that supply chain disruptions for their customers are bad for relations. Now they’ve decided that they blanked too many voyages. And thehoarding of containers by customers who usethem to store goods they’ve already taken possession of has disrupted things further. There just aren’t enough containers and chassis to get cargo from China and to move it about.

They should have thought about the repercussions in the supply chains when they started out reducing service.

The main advantage of ocean shipping is the cost and large quantity; if the service becomes marginally reliable in terms of time of delivery, naturally people are going to look for alternatives like buying larger quantities, beyond storage space, and using the containers to help out.

Supply chain performance is about matching supply to demand, and ocean carriers should continue to remember that it’s not about them, but about their customers’ needs.

By Gavin van Marle 21/09/2020

Link: https://theloadstar.com/2m-restores-transpacific-capacity-and-pleads-for-return-of-empty-containers/

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Posted in Logistics, Shipping, Strategy, Supply Chains

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Dealing with the shameful crew-change crisis

Posted on September 14, 2020 by | Leave a comment

Here’s a suggestion for a relatively simple way to stop the cheating on crew changes during Covid-19.

Crews are often not allowed to leave ships during the Covid-19 crisis, and are either coerced into signing renewal contracts or simply denied the ability to travel home. How to stop it?

The proposal: get P&I insurers to deny coverage until crew members have been changed. It’s clearly a safety issue to have continuously-serving crew who do not get a mandated break.

It’s simple, and doesn’t require a lot of collaboration between countries, shipowners, and international agencies. And enforcement is quick and easy and dire for the shipowners and cargo owners. No one will ship with a carrier who does not have P&I insurance.

I thin it has real promise, and only needs a few P&I executives to make it happen.

Andrew Craig-Bennett September 14, 2020

Link: https://splash247.com/a-practical-way-to-deal-with-the-shameful-maltreatment-of-600000-people/

Previous story: https://mymaritimeblog.wordpress.com/2020/09/10/flag-states-attacked-for-weakness-on-crew-change/

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Heartland shippers feel 20-foot box squeeze

Posted on September 14, 2020 by | Leave a comment

Twenty-foot containers are better than 40-foot containers for many ag products, and for machinery. Neither of these completely fills a container, and the smaller size means less blocking. But the containers are in short supply in the Midwest.

Twenty-foot containers are also ideal for products like soybeans, which have considerable Midwest-to-Asia container trade. They are a better size for shipments, because they are a bit smaller. We can’t always get a full forty-foot container because of the order size, which for premium products tends to be smaller. High-quality non-GMO beans often are not grown in the large bulk quantities.

Fewer products are shipped to the Midwest in 20-foot containers. And apparently, many of the 20-footers from the Far East are simply reused in California and Washington, rather than moving east. Goods could even be transshipped there to 53-footers for the ride into the Midwest. There’s no shortage on the West Coast.

This kind of problem is what plagues logistics operators of all kinds, as well as shippers. A simple little issue, very hard to do anything about. How do we cope with it?

By Chris Gillis Tuesday, April 28, 2020

Link: https://www.freightwaves.com/news/heartland-shippers-feel-20-foot-box-squeeze

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