This article shows that it isn’t so easy to divert containers from LA/LongBeach to other ports. The smaller ports don’t have the infrastructure to handle the added containers efficiently. They may not even be able to get drivers to move the incoming containers. And how will they handle empties? Ship them to LA/Long Beach? It’s a complete mess for shippers and forwarders.
The article details some of the techniques people are trying. Each has its own set of problems to wrestle with.
Everyone has something to report about the great supply chain disaster. In this case, empty containers moving from the Southeast ports to LA/Long Beach are going to cause problems there. You can read to find out about the problems. There’s no space for them.
Even with new rules to allow stacks of containers to be 6 high instead of 2 high, the problems won’t go away. Just making the rule does not get the terminal operators to do it. And as the article points out, higher stacks mean it’s harder to find and get to a specific container for a given truck or ship. That adds time to the transfers, and creates another source of delay.
Perhaps finally people will grasp that in the age of global shipping there must be a plan, at least countrywide, to integrate all the components of the system– full containers, berths, empty containers, yards, stacking space, ports, terminals, warehouses, drayage trucking, chassis, appointments.
More than that, the plan has to be followed!!
There’s little that state governors can do, even though Gavin Newsom in California is trying to find ways to help out by relieving some of the storage space problems. When the commerce is interstate, and indeed international, it’s bigger than just one bottleneck point.
Well, who would have guessed! Once Maersk built out its systems for booking shipments, it’s natural they would be cutting out forwarders. It’s what forwarders have been saying was going to happen for a while. and with Tradelens, Maersk can offer tracking, but also without involving forwarders.
This upstream cannibalism of customers may work for Maersk. They have worked very hard building their systems to make booking happen. And they are large enough to have a bit of market power over some forwarders.
But so much of all container lines’ traffic comes from forwarders. That part will go down, and more than it might, because forwarders will be bent out of shape and angry at having customers pirated.
I think it most hurts the littler guys, though, both forwarders and shippers.
But doesn’t Maersk have to focus on getting the ships to run on time? Blanking sailings and ships piling up outside ports are indicators of serious supply chain flaws. It would be more important for Maersk and other liner firms to do something about those issues.
Prices cannot continue to be through the roof as they are now, with containers not available or in the wrong place for cargo, or not being able to be moved, without crippling ocean container shipping in the long run.
Supply Chain and Logistics 