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.
It appears that many of the ships waiting offshore in Shanghai are not waiting to unload, but to get new cargo. shipments out of China seem to be plummeting.
It’s leading to blanked or rescheduled sailings.
Perhaps the avalanche of post-COVID goods for the US and the EU has stopped. Perhaps we have enough inventory here and in Europe. If so, we should soon see the queues of waiting ships at US ports drop to more normal levels, and the same with Europe.
It’s getting to look more likely that a recession might appear in the US, and I think the same will happen in Europe. the Ukraine instability is bound to cause consumers to cut back and try to spend less and save more. In both places, that is likely to induce a recessionary trend. Consumer spending is a major part of economic activity in these countries.
R$at3es for container shipping from Asia to the US and Europe are still high. How long will it take for them to plunge down?
It is interesting and useful to set these inland ports in agricultural areas, where the empty containers can be filled with ag products. The easy proximity will induce a lot more loads.
Locating inland ports with prescribed connections to ports and to rail and truck should aid in reducing congestion at ports. Being able to move containers to an inland port reduces the congestion at the port itself. Many of the functions performed at the port can be carried out at the inland port.
The EU has been pioneering this approach. In the US it has been less common, though. It has been suggested for 10 years by various commentators, including me and my partner Chris Clott. Inland ports increase the flexibility of a port system as well as increasing capacity and improving service.