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

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.

Last-mile electrification – electrification’s best use case

Amazon has lit on the very best use case for electric vehicles. Last mile delivery generates lots of rips and lots of air pollution. It looks like they are going to invest big in improving their carbon footprint in the last mile delivery.

I believe it makes strategic sense and well as driving long-term cost reduction for Amazon. And it’s a lot more eco-friendly. Fleets like Amazon uses, with traveling-salesman-type routes from a depot or distribution center, are best positioned to mitigate the problems with electric vehicles– shorter distances before fuel-up, and longer time to refuel.

Linda Baker, Senior Environment and Technology Reporter Friday, August 21, 2020

https://www.freightwaves.com/news/in-last-mile-electrification-amazon-sees-another-opportunity-to-dominate

Cathay Pacific strips seats from 777 aircraft for cargo

I am fascinated by this article. What an innovative solution!

Many years ago my family and I took a trip to Guatemala. One of the highlights of my trip was going to see the Maya ruins at Tikal, which is in the jungle in the central Peten area far east of Guatemala City. There aren’t any roads to get there, so you had to fly.

We got on our plane (a DC-3) at the Guatemala City airport. All seats were occupied with passengers going to the jungle area. The flight was one of those hedgehoppers, only a couple of thousand feet above the ground, right above the trees. We made several stops.

Finally we arrived at the town of Flores, on the shores of Lake Peten Itza. The stewardess (that is what they were, then!) informed us that the stop would be for a while, and we were allowed out on the tarmac in the steaming heat to wait while they refueled the plane.

As we watched, a group of men went into the plane. We wondered what they were doing. In a few minutes they started emerging, each one carrying a plane seat. This went on for a half hour, as many seats in the plane were removed and stacked on the tarmac.

Eric Kulisch Monday, August 10, 2020

Link to Article Continue reading →