Tag Archives: port management

OECD says shipping freight rates are driving G20 inflation

In case we didn’t notice it, shipping freight rate increases are the source of significant inflation throughout the 20 most developed countries. If you are complaining about inflation, point here.

The firms involved are passing the price rises on to consumers, resulting in higher prices. We may not be close to the end of the rises, either. We have not seen much to encourage a belief that the supply chain snafus will not continue and be disruptive for at least a year. No one seems to know what to do.

I fear even the choice of very large shippers to lease their own ships and avoid the traditional ocean container lines will not be all that easy. The extra ships will add to port delays, since they must load and unload just where the ocean shippers do. Ports are backed up, and also are running out of space for containers; and of course the driver shortage is preventing containers moving out fast.

Do we have to turn to rationing of scarce resources to get out of this dilemma, to make delivery predictable?

By Nick Savvides 13/10/2021

OECD says huge increases in shipping freight rates are driving G20 inflation – The Loadstar

Another source by Sam Chambers has some nice graphs: https://splash247.com/oecd-tracks-how-much-container-shippings-sky-high-freight-rates-are-contributing-to-global-inflation/

Ocean terminal and inland congestion forces river barges to store boxes

It’s not just the US. And it’s not just ocean shipping.

Read about the gyrations Antwerp and Rotterdam and the river barge operators are going through.

By Alexander Whiteman 27/09/2021

Ocean terminal and inland congestion forces river barges to store boxes – The Loadstar

Port of LA will pay container terminals for efficiency gains

One way to improve throughput is to offer performance rewards to the players. The Port of LA will reward Terminal Operators for each fast turn around of a truck.

It is an interesting attempt to help truckers out. Quicker turns mean more driving time for truckers, and more loads carried. It also keeps chassis at work instead of sitting and waiting. As we know, there is a shortage of chassis at ports in the US today.

Let’s see how the reward system works. And how long the port will keep it up; as time passes, terminals may deliberately slow up to get the port to keep rewarding them. The bad performance could become ordinary, requiring rewards to go faster.

Kim Link-Wills, Senior Editor Wednesday, January 20, 2021

Port of LA will pay container terminals for efficiency gains – FreightWaves