Tag Archives: container yards

DPW to deploy first Boxbay stacking system at Pusan Newport

Here’s an innovation that’s going to be popular at container terminals. It’s a fixed set of frames allowing containers to be stacked in individual pigeonholes. They’re placed and removed by stacker cranes running through the aisles. The system has been in development and testing since 2018.

Hardware innovations take a long time to develop, and they require a place for testing. The partnership of DP World and SMS Group, a German firm, combined the expertise and the need and test bed to create the product.

Stacking density may be improved up to 4 times using the Boxbay system.

This is not a new idea. Auto manufacturers and shippers have been using such arrays to store cars since the 90’s. I was shown a picture of one in Japan by Ernest Konigsberg, a Berkeley operations research professor who was familiar with the design and the optimizing software written to decide which locations to place vehicles. We would call it AI today, but then it was simply optimization software. It’s been around a long time.

An interesting question is why this technology is only emerging now. One answer is the Great Congestion about the time of the COVID epidemic. Yard storage was a significant problem during the supply chain crisis. This kind of system can improve the utilization of scarce container yard land. It’s a natural type of tech to invest in.

I’m sure we will see more such systems if container shipping demand comes back and exceeds the congestion period levels. But if ports aren’t handling so many containers, they may not be so eager to invest in this technology. I don’t see the large US ports jumping on this so soon, with traffic falling.

The article has a nice picture of Pusan Newport terminal, and judging by the stacking disarray in the right part of the picture, they can use this system1

By Nick Savvides 08/03/2023

DPW to deploy first Boxbay stacking system at Pusan Newport – The Loadstar

FMC ruling could be crucial in other ‘unfair D&D fee’ complaints

Shipper complaints about demurrage and detention (D&D) charges by carriers have been many, especially over the Coronavirus period, when many facilities were congested and supply lines were overloaded. One of the main complaints was the uncooperative attitude of port terminals and yards when asked to release cargo.

The Federal Maritime Commission (FMC) held a hearing over one case involving Evergreen, a major container carrier, and trucker TCW Inc, in December. Evergreen was forbidden to make per diem charges on days when the motor carrier could not pick up the cargo.

The essence of the FMC argument is that you can’t charge D&D when it’s impossible to pick up the container. Frequently ports and yards may have reasons to deny a trucker from picking up, but if it doesn’t lead to congestion and is the yard or terminal problem, the carrier can’t charge D&D.

The latest case involves carrier Hapag-Lloyd and rail line CSX, versus a Wisconsin forwarder, ME Dey, and the trucker New Age Logistics. Hapag-Lloyd has already waived over $150,000 in charges, and the case is still ongoing. CSX rail may well cave in also.

The principle established by the FMC is important, and may prevent some D&D charging errors in freight bills. Carriers are going to need to be careful and monitor conditions at the facilities holding the containers.

This may go some way toward increasing communication among logistics ‘partners’. Now a carrier must keep informed about the conditions at the yard where the container is located. They will need to ask for information on a continuous basis, which they have a right to, because it is affecting their billing process. If the yard is closed for a holiday, or has the container under a big stack that cannot be moved fast, they will need to tell the carrier, so that the billing can be waived. This information exchange is a crucial part of the financial wing of the supply chain.

When there’s money involved, action often follows.

I think it’s great for the FMC to proactively insist on attention to the possibility of congestion. It will encourage yards to reduce it, and carriers to monitor it, and shippers to work to avoid it.

By Nick Savvides 03/01/2023

FMC ruling could be crucial in other ‘unfair D&D fee’ complaints – The Loadstar

Major forwarder on how to reduce the bottlenecks at Long Beach

Ryan Petersen, CEO of Flexport, hired a boat to visit the Port of LA/Long Beach to see the traffic jam of ships and observe what the terminals are doing. He came away with numerous suggestions, some of which have appeared in the directive published yesterday by Governor Gavin Newsom.

Ryan is a keen observer of the shipping scene, in addition to being CEO of a fast-growing forwarder.

The problems he detects seem to be yard space for containers, and a shortage of chassis and places to put empty containers to get them off chassis.

The new policy will allow stacking up to six high instead of only two high. That will help out both port yards and inland yards, such as for rail. More land available for stacking will also help, if properties close to rail yards can be identified and assigned for stacking.

Apparently, because empty containers cannot be dropped off, chassis are standing around with empty containers on them, preventing their use for a full container newly unloaded from a ship. A shortage of chassis ready to take a loaded container thus occurs.

How come it is always chassis and empties that cause the problems in the container supply chain?

By Alex Lennane 25/10/2021

Major forwarder on how to reduce the bottlenecks at Long Beach – The Loadstar