Tag Archives: supply chains

Secondary services suffer as carriers eye ‘container gold rush’ to the US

Posted on September 15, 2021 by | 1 comment

Oean carriers are redeploying ships from lower-paying to higher-paying routes, leaving some with no way to transport their goods. The article explains how ships are being reassigned, leaving too few ships on a route to keep the schedule going. Give it a look!

Currently, they are adding ships to the Asia-US routes which charge over $10,000 per container. They are leaving routes that charge on the order of $2000 per container.

You can see why they are doing it. They can get away with it because ships are only bound by the laws of the country they are flagged in. Most of these laws are weak. Port countries do have some say, but only the major world port countries can do much to change the behavior of the liners. And they would favor more ships for their key routes.

By Mike Wackett 15/09/2021

Secondary services suffer as carriers eye ‘container gold rush’ to the US – The Loadstar

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Posted in Logistics, Managerial Econ, Ports, Shipping, Strategy, Supply Chains, Uncategorized

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US shipper launches $270k D&D claim against carrier and terminal operator

Posted on September 15, 2021 by | Leave a comment

Demurrage and Detention (D&D) charges are commonplace in ocean container shipping. Standard contracts specify a number of days the container may stay in the yer without charge. When the port doesn’t transfer a container within the time limit, the shipper is liable.

The FMC (Federal Maritime Commission) is right now looking into whether ocean carriers and ports are unfairly adding D&D charges to shippers’ bills. Many shippers have been complaining for months that this is happening. But this is the first time one of them has sued the carrier and port, making the dispute public. We’ll now find out, through the court case, the exact sequence of events and the times involved.

The costs for D&D that aren’t in the contract are a complete surprise to the shipper, and come right out of thier profits. Read the story to see what the claims are.

By Nick Savvides 15/09/2021

US shipper launches $270k D&D claim against carrier and terminal operator – The Loadstar

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Posted in Logistics, Ports, Supply Chains

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‘Firms undervaluing their drivers caused this shortage crisis across Europe’

Posted on September 8, 2021 by | 2 comments

Europe has much the same problem as the US when it comes to a driver shortage for logistics.

And the problem made it into consciousness for a similar reason– a new regulation that required drivers to take 45 hours of rest outside their truck, and other work rules. The rules were made for safety reasons, and they make a lot of sense.

But the effect was to prevent drivers from using extra hours to earn money from firms that pay too little. ‘Make it up on volume’ is possible only if you have enough hours to do it.

So drivers increasingly are simply walking away from driving jobs, or quitting and looking for jobs from those few companies that pay more fairly.

The speakers in the article make it plain that trucking firms themselves brought this shortage on, by not paying drivers fairly and not providing fair working conditions.

It’s much the same story in the US.

By Alex Whiteman 08/09/2021

‘Firms undervaluing their drivers caused this shortage crisis across Europe’ – The Loadstar

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Posted in entrepreneurship, Labor Economics, Logistics, Supply Chains, Trucking

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