Tag Archives: intermodal

Felixstowe revamps VBS to stop ‘haulier abuse’

Here is an example of the adversarial approach to overbooking. Felixstowe has had serious problems handling cargo over the last several months. Port management is blaming it on everyone but themselves. Ocean carriers are avoiding the port or canceling visits, or cutting and running without fully unloading cargo; truckers can’t get slots to pick up or deliver; and customers are unhappy with the ability to get their cargoes delivered through this port.

I don’t know anything about the actual situation, except what I read. But when there’s poor performance, overbooking is one of the responses to expect from customers. YOu look to game the system to be able to get what you need when you need it, and rely on canceling to avoid payment. It happens everywhere. To me, it’s more a symptom of a broken system than a ‘crime’ to be punished.

I think it’s probable entirely too little time was invested in finding out what some of the customers (users) needed from the system, and when it was developed, not enough attention was paid to making sure the prospective users were able to see its advantages. When you don’t work with users closely and cooperatively, they won’t see how the system can help them.

I’d tell management, fix the problems with the system. Make it fair to all, and make sure you understand participant motivations so you can prevent gaming. Because if there’s a weakness, there will be gaming, for sure.

By Mike Wackett 12/10/2020

Link: https://theloadstar.com/felixstowe-revamps-vbs-to-stop-haulier-abuse-and-ease-congestion/

2M restores transpacific capacity, pleads for return of empty containers

Ocean carriers are suddenly waking up to the fact that supply chain disruptions for their customers are bad for relations. Now they’ve decided that they blanked too many voyages. And thehoarding of containers by customers who usethem to store goods they’ve already taken possession of has disrupted things further. There just aren’t enough containers and chassis to get cargo from China and to move it about.

They should have thought about the repercussions in the supply chains when they started out reducing service.

The main advantage of ocean shipping is the cost and large quantity; if the service becomes marginally reliable in terms of time of delivery, naturally people are going to look for alternatives like buying larger quantities, beyond storage space, and using the containers to help out.

Supply chain performance is about matching supply to demand, and ocean carriers should continue to remember that it’s not about them, but about their customers’ needs.

By Gavin van Marle 21/09/2020

Link: https://theloadstar.com/2m-restores-transpacific-capacity-and-pleads-for-return-of-empty-containers/

Heartland shippers feel 20-foot box squeeze

Twenty-foot containers are better than 40-foot containers for many ag products, and for machinery. Neither of these completely fills a container, and the smaller size means less blocking. But the containers are in short supply in the Midwest.

Twenty-foot containers are also ideal for products like soybeans, which have considerable Midwest-to-Asia container trade. They are a better size for shipments, because they are a bit smaller. We can’t always get a full forty-foot container because of the order size, which for premium products tends to be smaller. High-quality non-GMO beans often are not grown in the large bulk quantities.

Fewer products are shipped to the Midwest in 20-foot containers. And apparently, many of the 20-footers from the Far East are simply reused in California and Washington, rather than moving east. Goods could even be transshipped there to 53-footers for the ride into the Midwest. There’s no shortage on the West Coast.

This kind of problem is what plagues logistics operators of all kinds, as well as shippers. A simple little issue, very hard to do anything about. How do we cope with it?

By Chris Gillis Tuesday, April 28, 2020

Link: https://www.freightwaves.com/news/heartland-shippers-feel-20-foot-box-squeeze