Category Archives: Supply Chains

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/

Truckers counter ocean carrier effort to dismiss chassis complaint

It goes on and on. Truckers at ports are constantly being rattled by individual contract specifications that are probable violations of law. Chassis, as usual, are one of the flash points. There’s always something new to write about when we look at chassis use around ports.

The article has a series of links to past stories in this chain of events, making it quite easy to follow. At play is a $1.8 billion lawsuit against OCEMA, the ocean carriers’ vehicle for providing chassis for their containers.

Because of US liability laws the ocean carriers didn’t want to own chassis in the US. They then found that in the US they could not force truckers to own chassis. there’s a nice game theoretic reason why that won’t work economically. So they (and others) had to create pools. But now they want to control the pool activities. You can’t have it both ways– be out of the business, and running it at the same time!

Chris GillisTuesday, October 6, 2020

Truckers counter ocean carrier effort to dismiss chassis complaint – FreightWaves

Rail shippers say admin and maintenance service is falling behind with PSR

Is PSR just another shorthand for cost cutting? It seems shippers think they are getting more financial responsibility for admin and maintenance now that most class I rails have adopted PSR practices.

Firms are usually trying to save money. And with the declines and constraints of COVID-19, I’m sure cost cutting is being practiced. but are shippers seeing the short end of the stick on important practices?

It would not surprise me; perhaps rails need a warning to shape up.

AUTHOR

Emma Cosgrove @emmacos

Link: https://www.supplychaindive.com/news/rail-shippers-admin-maintenance-service-falling-behind-PSR/585691