Ocean cargo/global logistics: Carrier shift in capacity reflects U.S. shipper's perception
The competitive position of U.S. West Coast ports was called into question during a press conference held at The National Industrial Transportation League annual conference this week
Patrick Burnson -- Logistics Management, 11/19/2009
ANAHEIM—The competitive position of U.S. West Coast ports was called into question during a press conference held at The National Industrial Transportation League (NITL) annual conference this week.“Given the ongoing crisis with environmental and labor groups in Oakland, Los Angeles and Long Beach, we may see a permanent shift in sourcing goods from Asia,” said NITL executive director, Peter Gatti. “It’s certainly not unthinkable.”
NITL president, Bruce Carlton, echoed that sentiment, stating that a more collaborative tone must be taken by organized labor and local governments if “green” drayage issues are to be resolved.
Coinciding with this observation was news that The New World Alliance (TNWA) carriers – APL, Hyundai Merchant Marine (HMM) and Mitsui OSK Lines (MOL) – would initiate capacity changes next month that will benefit U.S. East Coast ocean cargo gateways.
Along with the Grand Alliance (GA) lines – Hapag-Lloyd, Nippon Yusen Kaisha (NYK), and Orient Overseas Container Line (OOCL) -- it will jointly operate the New York Express (NYX) with TNWA.
TNWA will provide six ships and the GA three vessels. APL, HMM and MOL will each withdraw one ship from the service.
In addition to a recently added Yokohama call, the NYX port coverage will be enhanced with an additional call at Shekou. The revised port rotation is Shanghai, Ningbo, Shekou, Yantian, Hong Kong, Kaohsiung, Panama Canal, Manzanillo, New York, Norfolk, Savannah, Jacksonville, Miami, Manzanillo, Panama Canal, Balboa, Yokohama and Pusan.
The NYX service will continue to be an essential part of the TNWA’s Asia-US East Coast via the Panama Canal service offerings as well as the APX (Atlantic Pacific Express).
According to carrier spokesmen, the changes made will reduce trade capacity by approximately 4,000 twenty-foot equivalent units (TEUs), “which is in line with continued challenging market conditions.”
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