Management Update: No more boxes.
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U.S. exporters of agricultural goods meeting in San Francisco last month said they were facing a dire shortage of ocean cargo capacity this season. LM was told in a memo that carriers' increasing use of slow steaming was also a concern, as it causes severe disruptions in the supply chain. According to sources, prominent West Coast shippers met with carrier representatives of the Westbound Transpacific Stabilization Agreement to discuss ways to expedite movement in the U.S.-Asia trade lane. Sources said that part of the problem is that carriers are not using the proper forecasting tools to anticipate growth. Shippers comprising the Agriculture Transportation Coalition insist that demand is ramping way up and that vessel operators are slow to recognize the need for better deployment and more reliable service.Logistics Management May 14, 2010