Tag Archives: intermodal

FedEx will sell space on empty container imports as a congestion-bypass service

And much more!

One thing that captured my attention in this nice article by Max Garland is the increasing use of 53 foot containers for imports to the US. This is a natural development, too long in coming as long as the US imports so much stuff. It saves the transloading step in SoCal once 40-foot containers get here; they can be moved immediately. A 53-foot container has 30% more cargo per truck move, and can be taken straight to a destination. No longer a reason to transload.

Another interesting point highlighted in the headline is FedEx’s offer to transport cargo in the new containers they are having built in China. I understand 53-foot containers are often being moved on refitted bulk ships rather than standard container ships which have slots for 40-foot containers. And these ships would move outside standard liner routes, which means they can choose where to drop off the containers. Perhaps they can go to ports that would avoid high congestion points. Often they are smaller as well, and take a shorter time to unload.

The article also discusses the jawboning that is taking place to get players in supply chains to move cargo quicker. Apparently the move toward 24-hour service in the supply chain has not gone too far, but some big players are already adopting the idea of it. Maybe the port terminals in LA and Long Beach won’t be able to do it, but the warehouses, trucking firms, and gate access points can, and even that will improve the flow of goods.

When people understand the whole problem and put their heads together, the congestion will abate. And they will figure out how to share the cost pain of doing so. It’s a lot more costly when you don’t have goods for sale on time.

Published Dec. 6, 2021

Max Garland Reporter

FedEx will sell space on empty container imports as a congestion-bypass service | Supply Chain Dive

Trucking trade group to Gov. Newsom: Enforce law on port fees

California law AB 45 prevents ports and terminals from charging detention and demurrage fees for containers not picked up or empties not delivered when the facilities prevent drivers from picking up or delivering.

Sometimes, the authorities or facilities institute sudden rules changes that prevent delivery of empty containers or prevent pickup of specific cargo because of hours or appointments. These rules are troublesome and cost time for drivers. And often the drivers or their firms are the ones paying the fees.

The contention is that the ports are by their own actions forcing expenses on the trucking firms and drivers.

The law, if enforced, would keep ports and terminals from charging these fees. But how to enforce the law is not altogether clear.

Clarissa Hawes, Senior Editor, Investigations and Enterprise Friday, Novvember 5, 2021

Trucking trade group to Gov. Newsom: Enforce law on port fees – FreightWaves

New fees for lingering containers at LA/Long Beach Ports

To get the attention of shippers and carriers, the Port of Long Beach and the Port of Los Angeles have instituted escalating fees for containers that are not picked up at the port. The fines start at $100 per day and go up with each following day.

These fees have been endorsed by the US Supply Chain Disruptions Task Force.

There are lots of efforts to try to give ocean carriers and shippers incentives to move cargo out. Railroads UP and BNSF also are planning to offer rebates to shippers who move cargo to them on weekends, using the longer time windows at the ports. The large rails are also taking other steps to improve flow. UP is reopening an idled rail terminal in the Chicago area, near the Centerpoint logistics complex. The refunds apply to containers in-gated at the ICTF (Intermodal Container Transfer Facility) in Long Beach CA. BNSF’s rebates apply both to LA and Long Beach.

We’ve also heard about California Governor Gavin Newsom’s efforts to find space to store containers, by leasing empty land near key transfer points.

Naturally, there are complaints about fees, which will surely be passed on to consumers. And many point to the general logjams for containers at warehouses and other choke points in supply chains. Dispersed bottlenecks are harder to do anything direct about; perhaps a money impact is the best way to get these diverse players to work harder to relieve the jam-ups.

And there’s a bit of contradiction, with the FMC looking into excessive demurrage and detention fees at port terminals, a long-standing gripe of shippers, while watching two ports add to those burdens.

Yet, there is some action. So the complaining is good, and a variety of approaches makes it more likely that the logjam will start to abate as more folks speed things up all over.

Read the articles for more details and different views.

Eric Kulisch, Air Cargo Editor Wednesday, October 27, 2021

Joanna Marsh Tuesday, October 26, 2021