Tag Archives: container shipping

US logistics industry needs a unified data stream to boost cargo velocity

This article quotes Carl Bentzel, an FMC commissioner, who says that there is increased concentration of the ocean shipping business, from no carrier having more than 4%, to around 10 carriers, half of whom have 12-20% each.

Many supply chain participants have been calling for standardization of basic data surrounding a shipment, especially concerning its timing and needs as it moves through the system. There are no standards for this kind of data, and any attempt to compile it meets the challenge of disparate and constantly changing independent systems. And often, data for particular shipments is exchanged by emails.

It would be nice if the FMC would step in and develop a standard for data interchange. But different players have different concepts of what data is essential, according to the article. For instance, some partners want to know how long they have storage rights for a particular container, free of detention and demurrage charges. Others want to know whether a chassis is available, and where. Chassis shortages have hampered container moves in the LA/Long Beach area, despite a chassis pool; other ports have pools as well, but containers often ride out delays on a chassis if it’s believed the wait won’t be too long.

A standard would be nice, but often takes years to negotiate. The startup Dray Alliance, mentioned in the article, is trying to set a standard for some of this information with an online and app-based system. But not all the necessary data will be there, not for all the participants in the container-move supply chain. And it’s not clear truckers need one more app.

By Nick Savvides 15/12/2021

US logistics industry needs a unified data stream to boost cargo velocity – The Loadstar

UK hauliers ditch container work in favour of Amazon ‘gold rush’

Container drayage hauliers are shifting to driving for Amazon. It’s a clear economic case— they can make more per shift driving for Amazon, and with easier work.

Of course it is the holiday season, and there is plenty of Amazon work. That may not be true after the season is over.

But it shows the line of thought independent trucking firms follow. And the same would be true for owner drivers. They are tired of being jerked around by container shipping firms.

Cargo movers need to start being sensitive to the drivers’ concerns.

By Nick Savvides 08/12/2021

UK hauliers ditch container work in favour of Amazon ‘gold rush’ – The Loadstar

Nordstrom leverages pack and hold inventory to mitigate supply chain risk

Nordstrom and a number of other retailers are starting to keep more inventory, by buying larger lots and holding some. The fact that retailers are publicizing this means that they are starting to recognize that inventory shortage is a substantial issue. With sources of supply bottlenecked, stuff can’t be moved to the US as quickly.

Does it make sense to place larger orders earlier? Devotees of the bullwhip effect will say that’s counterproductive. Perhaps, in the long run with perfect coordination with suppliers. But when you have near-disaster conditions in the supply chain for, say, clothing manufactured in Vietnam, and ocean carriers blanking just about every other sailing, you need to take some action. That may mean committing to larger purchases and saving some of it against future demand rather than trying to sell it all at once.

We’ll see if the policy works, and how quickly it damps out. Especially if the ocean supply chain begins to normalize. Inventory is expensive, and the expense is both highly visible and easily tracked, unlike the lost business due to shortages on the floor.

Published Dec. 7, 2021 Max Garland

Nordstrom leverages pack and hold inventory to mitigate supply chain risk | Supply Chain Dive