Tag Archives: container shipping

Managing the decline – in container shipping

A good summary as of the beginning of October 2022. Drewry research is well executed and they have thoughtful analysis.

There is an oversupply of container shipping capacity coming. There are so many newbuilds coming. And the amount of container freight seems to be leveling off, if not declining. And congestion seems to be declining, in at least the places that were bad over the past two years. Currently port congestion is responsible for only about 7% of effective capacity loss, down from as high as 17%.

Drewry’s position is that liner firms have the ability to control the supply of shipping, but they need to be careful to do it right. But the thinking is that the firms themselves cannot completely bridge the gap between supply and demand. Missed sailings can help, and so can phasing out old ships faster. that would also be a benefit for the climate change issues we face.

Drewry – Weekly Feature Articles – Managing the decline

Drewry – Weekly Feature Articles – Managing the decline

New California law designed to rein in detention and demurrage charges

California again takes the lead in denying demurrage and detention charges by marine terminals and intrmodal equipment providers, such as chassis providers, when return is prevented by actions outside the control of the users. Such conditions might include gates being unavailable for return, a provider diverting the equipment from the original intrchange location, and when the carrier documents an unsuccessful attempt to return the item, or because a vessel’s booking date is changed.

All these changes will be good for the business. They will force carriers and equipment providers to pay attention to the effects of congestion, and work to reduce it.

Congratulations to California for this law. Now let’s see how it works.

John Kingston Wednesday, October 5, 2022

New California law designed to rein in detention and demurrage charges – FreightWaves

BNSF plans $1.5B Southern California facility for intermodal, transloading

This has been a winning strategy in the past for BNSF and other Class I rails. I am reminded of the Centerpoint facility near Chicago, which provides BNSF a transfer point in the Midwest. But Centerpoint was developed with money from investors, CalPERS being the largest. BNSF hopes to be the prime developer in Barstow, CA.

In case you don’t know where that is, Barstow is in the middle of the Mojave desert, 132 miles from the Port of LA (about 2 hr 27min as I look at Google Maps). It is right on I-15, the main route the movie stars take to go to Las Vegas from LA. Parts of it around San Bernardino are already traffic jams at many hours. However, the BNSF vision is that containers from the port will move by train, reducing traffic on I-15 and other LA freeways.

The Alameda Corridor already moves containers inland a good 20 miles. It’s a double-stack double-track route. BNSF will ensure good rail service from the Barstow yards to the ports.

Transloading and distribution warehouses will be built near Barstow on the BNSF complex. I believe BNSF sees this as a good real estate play as well as a plan to improve container rail service.

I am wondering if the plans for Barstow include customs processing. If so, that would be good for both imports and exports, because they would not have to wait for customs on the ports. That would aid in reducing port congestion.

Joanna Marsh Monday, October 3, 2022

BNSF plans $1.5B Southern California facility for intermodal, transloading – FreightWaves