Tag Archives: intermodal

The terminal connections maze

In the post there is a link to an article from a Drewry analyst about the possibility that more firms will make close relationships with their terminal operators.

If ocean lines and terminal operators consolidate, this would have the effect of improving coordination between that line and the terminal, but would disrupt coordination with other lines. It’s as if American Airlines and O’Hare airport in Chicago made a deal that there would be preferential loading and unloading there for American flights.  Easy to pick up or unload passengers, get baggage, priority for landing and takeoff slots, de-icing (I was just there!), lines for tickets, baggage checking, TSA clearance, and so on.  It would be good for American passengers and cargo, presumably (Perhaps American would drop the unpleasant $25 fee for domestic checked bags!)

So coordination of all air traffic and passenger or cargo handling for the other airlines would be disrupted.  Delays would occur. Any issues that appeared would take longer to settle.  And it would take me longer to get in and out of the airport.

Would it make me choose American if I had to go to O’Hare? Just maybe– but rather unlikely that it alone would be enough to sway me. After all, someone else might still be cheaper.

Coordination has to be horizontal in logistics to be truly better for all customers.

Source: The terminal connections maze – The Loadstar

The Terminal Connections Maze

Maersk Line to acquire Hamburg Süd in cash deal worth up to $5bn – The Loadstar

It’s the usual talk we hear from participants about a merger, but this is an established and well-respected ocean carrier.

One of the most interesting comments in the story is the concentration of firms in shipping compared to a year ago– down to 13 firms from 20.  That is a big change, considering the amount of capital in a vessel owning carrier.

Source: Maersk Line to acquire Hamburg Süd in cash deal worth up to $5bn – The Loadstar

Container Weighing breeds profit snatchers

Talk about unintended consequences.

The Verified Gross Mass (VGM) rule promulgated by the International Maritime Organization (IMO) on July 1, 2016 is intended to make cargo and ships safer, by making sure that container weights are properly recorded. when you are loading a ship, it’s good to know how the weight is distributed. if people give you containers overfilled, you won’t have the right balance on your ship.  A ship might turn over, or other containers might be damaged if there’s a shift in cargo.

But the rule has created an entire industry and a plethora of fees being charged by supply chain partners. they’re presumably to offset ‘costs’ of the rule.  But there is a concern that they are merely ways of increasing profits.  And the fees certainly add to the complexity and cost of a container shipment, and even of identifying the best route for my cargo.

This story about India’s experience highlights some of the bad experiences shippers are having.  And it is affecting which ports are used and which carriers.  Will there ever be rationality in this area? Everyone agrees we want correct weights of containers, unless we want to cheat, but how complex can it be?

shippinglogo51The downside of IMO’s container weighing rule

Source: Shipping Tribune

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