Tag Archives: Logistics

FMC probe into D&D claim against Hapag-Lloyd could set industry precedent – The Loadstar

This Detention and Demurrage claim filed by a carrier against Hapag-Lloyd could be interesting to watch. All this activity takes place at the Port of Long Beach and nearby.

For one thing, the claim involves reefer containers, usually overweight, which require special triple-axle chassis to handle. It also involves breaking down the containers and restuffing them into domestic-style reefers for inland transit. The drayage firm, OAE, finds that they are often charged detention even if they can return the empties within 2 days.

From a supply chain perspective, OAE is clearly providing an important service; they are moving containers from the yard, and are quickly returning them to the carrier for reuse. Both of these are aids to reduce congestion. They also are aids to the shippers, getting cargo further along its route. And there is a recognized need for reefer containers, perhaps even more than for general merchandise containers.

So it would seem that Hapag-Lloyd might be prepared to look the other way regarding D&D charges, except when something goes wrong, such as a lost container or something. Other issues that can occur include a lack of gate appointments for return. With the congestion at Long Beach we see now, gate appointments could be in short supply. To what extent is that the fault of Hapag-Lloyd? Do they have an obligation to use a terminal that can accept the containers they are sending through it?

By Nick Savvides 10/01/2022

FMC probe into D&D claim against Hapag-Lloyd could set industry precedent – The Loadstar

Port of Long Beach receives $52 million for rail project

It’s about time that Long Beach is able to provide on-dock container rail handling. Drayage trucks have been a massive source of pollution in the area since the 1990s. Even the Clean Trucks initiative, helpful though it was, can’t keep the particulates and other noxious elements of diesel exhaust down. The proper solution is on-dock rail.

Though this won’t touch the total cost of the project, it’s enough to get it going. It can certainly fund studies and preliminary work.

The time frame isn’t till 2025 for the first trains, though.

23 December 2021 Port Technology International Team

Port of Long Beach receives $52 million for rail project – Port Technology International

It’ll be ‘quality not quantity’ on China-Europe rail services as subsidies fade

The Chinese government and several states have been subsidizing rail service from China to Europe. A phase-out is planned for 2023 now. Subsidies were supposed to end in 2022 but an extension was made for COVID.

There are various claims of inflating the amount of traffic.

Rates from Europe to China, the return trip, have been low, so that empty containers get returned to China. In fact, they are set at less than cost; around $100 per container, while the real cost is around $3000 to move an empty container.

But with container rates sky-high now and so many blank sailings from Asia by container liners, the rail service rates have been very high to Europe. Perhaps a subsidy is no longer needed. We’ll see.

Quality of service will be the main determinant of the success of this route in the long run. And we will see if the various countries on the route can figure out how to cooperate over the long run to get total rail shipment times down.

By Sam Whelan 20/12/2021

It’ll be ‘quality not quantity’ on China-Europe rail services as subsidies fade – The Loadstar