Tag Archives: ocean shipping

Truckers seek $1.8B from ocean carriers for alleged chassis overcharges

Once again intermodal container chassis become a bone of contention.Ocean carriers brought this on themselves by trying to escape liability for accidents caused by defective chassis. They created a system in which they could retain shadow control over chassis availability while not appearing as the responsible party.

The problem today, with declining intermodal shipping, is with the chassis pools created to give cargo owners a place to obtain a chassis when a shipment needs one. The pools were supposed to provide maintenance services on the units to assure they would be in good repair when they were picked up, reducing the chance of accident. However, there have been many trucker problems with the nature of the chassis use agreements; where they must be dropped off, and when. The words in the story are “denying truckers choice of equipment providers at ports and inland locations”.

I don’t think they will win on that claim. But it’s quite possible that there have been undercharges to ocean carriers and overcharges to truyckers. And since OCEMA, the chassis pool operator, was founded by ocean carriers, it’s probable the charges were arranged in carriers’ favor whenever possible.

There’s no question the truckers, who are on the low end of the totem pole, bear the brunt of the problems. And they have very few ways to try to right things. This is one attempt. There will be more until treatment of truckers is economically fair to them. It may never happen.

Chris Gillis Thursday, August 20, 2020

https://www.freightwaves.com/news/truckers-seek-18b-from-ocean-carriers-for-alleged-chassis-overcharges

Thanks to my good friend Chris Clott, ABS Professor of Logistics and Supply Chain at SUNY Maritime, I’m posting a copy of the complaint.

Shippers ‘held to ransom’ from blanked sailings and feeder problems

The constant stream of blanked sailings is predictably disrupting many supply chains and networks. Shippers are not getting the message, and it’s costing them extra, unplanned expense. That will percolate down to their customers as well, both in reliability and costs.

And shippers are complaining. No wonder!! The carriers are bringing it on. They are not considering ultimate customer needs.

Anyone wanting to create a disruption in maritime and hinterland supply chains will pay attention and try to do something about this.

By Mike Wackett 29/06/2020

Top time sucks in ocean shipping

A former VP of Hanjin (currently with K&N) complains quite rightly about two time-wasters in the ocean shipping business– RFQs and bunker surcharges. They overcomplicate the process and add layers of obscurity to straightforward shipping deals. And they confuse customers.

I’ll bet the ocean carriers and shippers and brokers would be better off getting away from these practices.

He also mentions one of my favorite topics– container chassis. His view is that the problem is not going to go away anytime soon. I agree. People will continue to look for ways to eliminate the red tape and confusion they add to supply chain activity.

It’s a breath of fresh air to hear what this guy has to say. Dealing on a handshake is much simpler, but requires honor. It’s been the practice in the oil business for many years. Sure, there are bad guys, but they get ostracized.

Kim Link-Wills Friday, May 22, 2020

Top time sucks in ocean shipping – FreightWaves