Subscribe to our free, weekly email newsletter!


Agricultural shippers face added container chassis expense

CL, CMA-CGM, Cosco, Evergreen, Hanjin, Maersk, NYK and OOCL have announced plans to no longer provide chassis, the letter stated.
By Patrick Burnson, Executive Editor
September 09, 2010

In a letter sent to shippers today, the Agriculture Transportation Coalition (AgTC), said several major ocean carriers will no longer be providing container chassis.

CL, CMA-CGM, Cosco, Evergreen, Hanjin, Maersk, NYK and OOCL have announced plans to no longer provide chassis, the letter stated.

“NYK had announced an effective date of September 1, 2010, but this has postponed this,” said AgTC spokesmen.

According to the AgTC, Maersk has announced October 4, 2010 as the date for divestment of chassis at California’s ports and rail yards:

“Henceforth, the truckers will have the choice to provide their own chassis, use customer-owned chassis, or rent the chassis from Direct ChassisLink, a Maersk affiliate for $11/day. Of course, the truckers will likely charge the cargo owners additional amounts to cover their own extra operational and administrative costs.”

The move should hardly come as a surprise to West Coast shippers, however, as they were warned of this development at last June’s AgTC annual conference in San Francisco.

AgTC spokesmen allowed that the lines “correctly point out” that the U.S is the only market in the world where ocean carriers provide the chassis, and that stricter safety and reporting requirements will drive costs up further.

“While carriers have said that carriers and shippers should work together to jointly reduce costs, this appears to be a fairly significant increase in shipper costs (and administrative burden), with no recognition of the impact by the carrier, and no sharing of the burden,” AgTC said, adding that essentially, this amounts to a unilateral rate increase.

“So the question becomes - if the carriers regularly impose surcharges on the basis that they have additional costs, such as for bunker fuel, for terminal handling, shouldn’t they provide a freight rate reduction now that they are shifting a significant cost from themselves to the shipper?”

So far, said the AgTC, such requests, even from major shippers, have been rejected.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

When it comes to the chances of the December 31, 2015 Positive Train Control (PTC) deadline being extended, something which railroads say is badly needed, it appears they need to be prepared to be disappointed. That was the chief takeaway of a statement from Sarah Feinberg, acting administrator of the United States Department of Transportation’s Federal Railroad Administration (FRA).

It’s said that innovation will lead the economy out of its current funk. But how does an organization become a perpetually innovative company? That’s one of the questions Kai Engel and his co-authors at A.T. Kearney set out to answer in their new book Masters Of Innovation.

At $2.843, the average price per gallon was down 1.6 cents, following last week’s 1.1 cent drop and a cumulative 7.1 cent cumulative drop over the last five weeks.

LM Group News Editor Jeff Berman caught up with UPS Freight President Jack Holmes at the National Shippers Strategic Transportation Council’s (NASSTRAC) Annual Conference and Exhibition. Berman and Holmes spoke about various aspects of the less-than-truckload sector (LTL), as well as related freight transportation news and trends.

In the third-party logistics (3PL) sector, the ongoing trend of merger and acquisition (M&A) activity never seems to take a break. That is apparent in recent weeks alone, with XPO Logistics recent acquisition of Norbert Dentressangle for $3.53 billion, Echo Global Logistics scooping up Command Transportation for $420 million, and Kuehne+Nagel buying ReTrans for an undisclosed sum.

Article Topics

News · Freight · Truck · Railroad · Container · Transportation · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA