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

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Intermodal volume was up 8.1 percent annually at 280,016 containers and trailers. This outpaced the week ending April 11 at 270,463 and the week ending April 4 at 271,127. AAR said this tally marks the second highest weekly output it has ever recorded as well as the first time container and trailer traffic was higher than carloads for a one-week period.

Ocean cargo carrier service reliability across the three core East-West trades hit a five-month peak in March with an aggregate on-time performance of 64 percent, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

The Airforwarders Association, which represents more than 360 companies that move air cargo through the supply chain, today applauded an agreement reached by Congressional leaders to advance legislation giving the President authority to conclude key global trade agreements.

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy.

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