Tag Archives: supply chains

New California law designed to rein in detention and demurrage charges

California again takes the lead in denying demurrage and detention charges by marine terminals and intrmodal equipment providers, such as chassis providers, when return is prevented by actions outside the control of the users. Such conditions might include gates being unavailable for return, a provider diverting the equipment from the original intrchange location, and when the carrier documents an unsuccessful attempt to return the item, or because a vessel’s booking date is changed.

All these changes will be good for the business. They will force carriers and equipment providers to pay attention to the effects of congestion, and work to reduce it.

Congratulations to California for this law. Now let’s see how it works.

John Kingston Wednesday, October 5, 2022

New California law designed to rein in detention and demurrage charges – FreightWaves

US warehouse market stays tight, and pricey, as it bucks rate decline trend

Even though imports are not coming as fast, and inventories are already high, demand for warehouse space has not slacked off. Read some conjectures as to why.

The Inland Empire is seeing rates as high as $100/square foot. Even the slowdown in Amazon warehouse openings, where they have chosen to rent out their space rather than occupy it, has not affected the demand.

By Ian Putzger, Americas correspondent 05/10/2022

US warehouse market stays tight, and pricey, as it bucks rate decline trend – The Loadstar

BNSF plans $1.5B Southern California facility for intermodal, transloading

This has been a winning strategy in the past for BNSF and other Class I rails. I am reminded of the Centerpoint facility near Chicago, which provides BNSF a transfer point in the Midwest. But Centerpoint was developed with money from investors, CalPERS being the largest. BNSF hopes to be the prime developer in Barstow, CA.

In case you don’t know where that is, Barstow is in the middle of the Mojave desert, 132 miles from the Port of LA (about 2 hr 27min as I look at Google Maps). It is right on I-15, the main route the movie stars take to go to Las Vegas from LA. Parts of it around San Bernardino are already traffic jams at many hours. However, the BNSF vision is that containers from the port will move by train, reducing traffic on I-15 and other LA freeways.

The Alameda Corridor already moves containers inland a good 20 miles. It’s a double-stack double-track route. BNSF will ensure good rail service from the Barstow yards to the ports.

Transloading and distribution warehouses will be built near Barstow on the BNSF complex. I believe BNSF sees this as a good real estate play as well as a plan to improve container rail service.

I am wondering if the plans for Barstow include customs processing. If so, that would be good for both imports and exports, because they would not have to wait for customs on the ports. That would aid in reducing port congestion.

Joanna Marsh Monday, October 3, 2022

BNSF plans $1.5B Southern California facility for intermodal, transloading – FreightWaves