Tag Archives: supply chains

Shippers and carriers caught up in new D&D legal battles

There’s no end to the confusion surrounding Detention and Demurrage (D&D) charges for ocean container movements landside. This recital of some recent lawsuits shows that firms are not passing on information that would allow actual determination of accurate D&D charges.

Tthe FMC is starting to crack down on billing that isn’t complete, but some firms may not comply right away, and of course there are older cases which did not come under the recent rule.

The recourse is the courts, and that’s what’s happening now. The supply chain ‘partners’ in the move are handing off responsibility one to another. The Hapag-Lloyd story, involving a forwarder ME Dey, their haulier New Age Logistics, CSX Rail, and Hapag, is just such a case. One claim being made is that the haulier asked to use their chassis to haul the containers to avoid the D&D charges; but they were told that they could not do that, because the containers “belonged to the steamship line”. This kind of nonsensical behavior is not cooperation, and does not facilitate good supply chain relations. Expect more lawsuits!

By Nick Savvides 25/04/2023

Shippers and carriers caught up in new D&D legal battles – The Loadstar

Work resumes at LA/LB ports, but contract settlement stays out of reach

There’s no labor agreement in sight for West Coast ports. And recently there have been short unannounced work stoppages by the unions.

I’m thinking these work stoppages are trial balloons. The major union at the ports, the International Longshore and Warehouse Union (ILWU), may be trying to gauge the impact of a stoppage on the ports. We all know that the ocean shipping market is weak, and in addition quite a bit of container traffic has moved away from the West Coast ports, to the East Coast. So volumes are down at the West Coast ports.

It’s possible that cargo volumes are so light that a full strike will jeopardize the ports’ business. A sizeable reduction in container traffic would reduce the demand for longshoremen and union workers. They don’t want to kill the golden goose. A mini-trial would tell them whether the ports would be severely hurt by a strike. Otherwise the ports might say “Go ahead and strike!”

I think that is why the US government is loath to intervene yet. Continuing to negotiate might be the best way to get an outcome everyone can live with.

Ian Putzger, Americas Correspondent 11/04/2023

Work resumes at LA/LB ports, but contract settlement stays out of reach – The Loadstar

Wing to launch unique new drone delivery model

Wing, a subsidiary of Alphabet (think Google), is pioneering a new delivery model. Drones pick up packages and deliver them via a network of landing pads and charging stations. They can handle multiple deliveries point-to-point without returning to the base. It’s because the standardized landing and charging stations are also near to the start point of their next run.

The CEO indicates that the model is a lot more like a computer message network than a last-mile logistics network. The software they’ve written matches the delivery demand with the available drones. Any nearby drone can pick up and make the delivery, then scout via software for another nearby pickup.

It’s another ingenious solution to the problems of thin demand. If there’s not enough, drones will be unoccupied. Pooling demand for package rides will make the system work better.

Another advantage of drones for delivery is their zero-emission properties. Drones are electric-powered, and emit lots less than local delivery trucks. They are also lots cheaper. There are limits on the size of packages they can carry, but if you look at typical deliveries to an apartment complex, for instance, you see that most packages are small.

Perhaps drone delivery is the future of last-mile package service.

Jack Daleo·Thursday, March 09, 2023

Wing to launch unique new drone delivery model – FreightWaves