A fascinating, heartfelt article about shipbreaking at Alang. Students of Labor Economics and unions should read it, especially the last part.
ShippingWatch visits one of the most controversial places in the shipping industry, India’s shipbreaking facilities on the beaches of Alang. After banning this location, Maersk has changed its mind and now sends end-of-life vessels to Alang. See all the pictures here from an otherwise very closed-off workplace. – Author: GRETCHEN PEDERSEN
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?
The downside of IMO’s container weighing rule
Source: Shipping Tribune
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Posted in Logistics, Ports, Shipping, Supply Chains
Tagged container shipping, intermodal, Logistics, ports, supply chains, VGM
Shippers want service. If you mess up, they won’t stay with you. It’s the new reality. And it includes all kinds of service from pickup to final destination of the cargo.
Splash24/7 has some good articles. This one is by Sam Chambers.
Disgruntled shippers are leaving in their droves from the company that used to be known as China Shipping Container Lines (CSCL) following its merger with Cosco earlier this year. CSCL joined forces with Cosco Container Lines to form China Cosco Shipping this March – a move pushed by Beijing which has been aiming to get […]
Source: Disgruntled former CSCL customers leaving China Cosco Shipping in their droves – Splash 247
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Posted in Logistics, Shipping, Supply Chains
Tagged container shipping, Logistics, mergers, ports, supply chains
Supply Chain Digest Port Technology International Marine Link
Supply Chain and Logistics 