Category Archives: Supply Chains

‘Firms undervaluing their drivers caused this shortage crisis across Europe’

Posted on September 8, 2021 by | 2 comments

Europe has much the same problem as the US when it comes to a driver shortage for logistics.

And the problem made it into consciousness for a similar reason– a new regulation that required drivers to take 45 hours of rest outside their truck, and other work rules. The rules were made for safety reasons, and they make a lot of sense.

But the effect was to prevent drivers from using extra hours to earn money from firms that pay too little. ‘Make it up on volume’ is possible only if you have enough hours to do it.

So drivers increasingly are simply walking away from driving jobs, or quitting and looking for jobs from those few companies that pay more fairly.

The speakers in the article make it plain that trucking firms themselves brought this shortage on, by not paying drivers fairly and not providing fair working conditions.

It’s much the same story in the US.

By Alex Whiteman 08/09/2021

‘Firms undervaluing their drivers caused this shortage crisis across Europe’ – The Loadstar

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Posted in entrepreneurship, Labor Economics, Logistics, Supply Chains, Trucking

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Oregon to get new 1m teu container port

Posted on September 8, 2021 by | Leave a comment

So this is news for the West Coast; there aren’t many 1M teu container ports there. But guess the location: Coos Bay, OR.

Coos Bay is a lovely oceanside town, a favorite with retirees and nature lovers. A friend of mine recently moved there.

The folks there aren’t going to be wild about a big container port, with all the trucks jamming up the highways and the air and other pollution being spread. In fairness, the plan does include rail to the port, which should reduce the need for drayage trucks. But it won’t eliminate them.

Andrew Cox September 8, 2021

Oregon to get new 1m teu container port – Splash247

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Posted in Logistics, Managerial Econ, Ports, Shipping, Supply Chains

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NITL claims alliances create ‘super-carrier distortion’ to liner shipping market

Posted on September 6, 2021 by | 2 comments

Liner shipping alliances were created years ago when there wasn’t enough containerized cargo for many competing ocean container carriers (sometimes called liners). They have evolved through time, a bit, but still allow several ocean carriers to band together to serve a particular route.

For instance, from Shanghai to LA and return, an alliance might provide weekly service. The companies then rotate in providing that ship for the service. If you book with one of thecompanies, you don’t know whose ship will be carrying the cargo, but it will be one of the members of the alliance. If everything goes smoothly and there are no delays, it should notmatter to the shipper whose ship they are on.

Alliances go by clever names such as THE Alliance (Hapag-Lloyd, ONE, & Yang Ming). Here’s a summary of facts about alliances, including who’s in each.

But when disruptions occur, as now, and ships don’t sail on schedule either because they are postponed by the line, or because of congestion in either the loading port or the unloading port, it becomes a problem.

The article outlines some of the complaints. Alliances have to be authorized by the specific counbtry they dock in. There is actually a bill in the US Congress to suggest that the FMC (Federal Maritime Commission) be given stronger powers to investigate problems and push the alliances to provide fair service to all customers.

By Nick Savvides 06/09/2021

NITL claims alliances create ‘super-carrier distortion’ to liner shipping market – The Loadstar

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Posted in Logistics, Ports, Shipping, Strategy, Supply Chains

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