Category Archives: Trucking

Mexico trucking capacity crunch

Posted on September 16, 2020 by | 1 comment

The USMCA replacement for NAFTA has not improved anything regarding trucking between the US and Mexico. COVID-19, movement of production from the Far East to Mexico, and no change in regulations, has put demands on trucking firms and on drivers that they cannot meet without large cost increases.

This is another fine example of the law of unintended consequences. A crisis is emerging, and it is borne on the backs of the truckers themselves. Equipment shortages, payment for deadhead runs, and a change to transloading at the border replaces the vision of through-traffic by Mexican or US trucking firms serving both countries in a seamless manner.

And it is a good example of how logistics is central to the value proposition of any product. The costs of logistics must be figured in, and accurately, and any system must be built to withstand severe shocks.

Scenario analysis may be the only way. The days of Just-In-Time are almost over.

By Ian Putzger, Americas correspondent 16/09/2020

Link: https://theloadstar.com/capacity-crunch-gives-shippers-a-pain-as-us-mexico-trucking-rates-soar/

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Posted in Logistics, Supply Chains, Trucking

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Truckers seek $1.8B from ocean carriers for alleged chassis overcharges

Posted on August 28, 2020 by | 1 comment

Once again intermodal container chassis become a bone of contention.Ocean carriers brought this on themselves by trying to escape liability for accidents caused by defective chassis. They created a system in which they could retain shadow control over chassis availability while not appearing as the responsible party.

The problem today, with declining intermodal shipping, is with the chassis pools created to give cargo owners a place to obtain a chassis when a shipment needs one. The pools were supposed to provide maintenance services on the units to assure they would be in good repair when they were picked up, reducing the chance of accident. However, there have been many trucker problems with the nature of the chassis use agreements; where they must be dropped off, and when. The words in the story are “denying truckers choice of equipment providers at ports and inland locations”.

I don’t think they will win on that claim. But it’s quite possible that there have been undercharges to ocean carriers and overcharges to truyckers. And since OCEMA, the chassis pool operator, was founded by ocean carriers, it’s probable the charges were arranged in carriers’ favor whenever possible.

There’s no question the truckers, who are on the low end of the totem pole, bear the brunt of the problems. And they have very few ways to try to right things. This is one attempt. There will be more until treatment of truckers is economically fair to them. It may never happen.

Chris Gillis Thursday, August 20, 2020

https://www.freightwaves.com/news/truckers-seek-18b-from-ocean-carriers-for-alleged-chassis-overcharges

Thanks to my good friend Chris Clott, ABS Professor of Logistics and Supply Chain at SUNY Maritime, I’m posting a copy of the complaint.

Filed Complaint ATA v. OCEMADownload

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Posted in Logistics, Shipping, Supply Chains, Trucking

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‘Data sharing is nice, but cooperation is key’ to ending congestion

Posted on July 13, 2020 by | 1 comment

The speaker, Stefan Pieters of Jan de Rijk, was speaking of the relation between road hauliers and airport stakeholders. I believe most hauliers at ports, warehouses, inland terminals, and any cargo transfer points would be saying the same thing. And so far there has been little effort on this score.

Truckers are the low person on the pole, and are not connected to the facilities they must rely on for service. They have no leverage. So their problems go ignored.

There is a lot of money to be made by coordinating this aspect of the trucking business, if anyone will step up and do it.

And as the interview claims, data takes you only so far. There has to be a willingness to act and change procedures, rather than just send data. Facilities don’t want to recognize that; it requires workers with the power to make decisions on behalf of the cargo owner, and that would erode ‘profits’, meaning costs. You’d have to pay workers more for the ability to make decisions.

It makes a stronger case for end-to-end coordination by the same vendor, such as Amazon or Wal-Mart. But truckers would still often be left out.

By Alex Lennane 13/07/2020

‘Data sharing is nice, but cooperation is key’ to ending congestion, says Jan de Rijk – The Loadstar

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Posted in Logistics, Service Management, Strategy, Supply Chains, Trucking

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