Tag Archives: intermodal

Terminals in Ports of L.A., Long Beach move container chassis fee to September 1

Again the container chassis issue creates controversy.  Leasing companies created a ‘pool of pools’ in the LA/Long Beach area but are not paying port operators for services and storage performed on or by the port operators.  The $5 fee on a loaded chassis (whether the container is empty or not) is supposed to cover this work.

It’s another example of how hard it is to get a pool to work well.  Normal ways of compensating participants are not usually fair to all parties; nor do they usually act to keep the pool together.  But here the issue is simply that the pool is skimming profits by benefiting from free work by a non-participant; or we could look at the terminals as a dummy participant that contributes no chassis but pays anyway.

We have a talk on a related aspect at the IAME 2016 annual conference in Hamburg later this month.

LONG BEACH, Calif.–The West Coast MTO Agreement (WCMTOA) has extended the implementation date of a new tariff rule for chassis services by one month.

Source: Terminals in Ports of L.A., Long Beach move chassis rule to September 1 – Canadian Shipper

STB rolls out proposed reciprocal switching regulations

The proposed new regulations are opposed by the AAR as we might expect. Rules have not been updated since 1985. The finding is a small modification. Rails who want switching from another line need only show it is in the interest of lowering overall costs, not that the other line is behaving monopolistically.

Something must be done to loosen up the switching rules.  Rails argue that it would be costly and prevent them from making large capital investments. But when you consider that since the 1880’s rails have benefited from free land …

I agree with the last paragraph in the article:  this rule should keep the lawyers busy!

www.logisticsmgmt.com 2016-07-29 09-49-14  New regulations focused around reciprocal switching were proposed by the Department of Transportation’s Surface Transportation Board (STB) yesterday.

Source: STB rolls out proposed reciprocal switching regulations

Thanks to author Jeff Berman for the article!

National Retail Federation’s Jonathan Gold Shares His Views on the Ocean Cargo Supply Chain

It’s not the big ships; it’s the lack of coordination. Ocean carriers need to cooperate more with upstream supply chain service providers.  That’s what the National Retail Federation members think.

While that is only one type of supply chain, I submit it’s a somewhat simpler chain than for instance a manufacturer’s chain. That’s because there aren’t as many intermediate assemblers and manufacturers in retail, and products are all expected for sale promptly.  The problem might be worse for manufacturers since they have some items that they want to buy in large batches since they are willing to inventory them, and others they want just-in-time if possible. Manufacturers might require at least two service and performance levels in their chain

  In an exclusive interview with Supply Chain Management Review’s Patrick Burnson, Jonathan Gold, vice president, supply chain and customs policy for the National Retail Federation shares his views and forecasts on the ocean cargo supply chain.

Source: National Retail Federation’s Jonathan Gold Shares His Views on the Ocean Cargo Supply Chain – Supply Chain 24/7