Subscribe to our free, weekly email newsletter!


Ocean cargo/global logistics: Short-sea shipping not a done deal in U.S. yet

image

U.S. Department of Transportation Maritime Administration (MARAD) has established a final rule on its “Marine Highway” strategy, shippers are keen to understand how the tactical implementation will begin

By Patrick Burnson, Executive Editor
June 07, 2010

Now that the U.S. Department of Transportation Maritime Administration (MARAD) has established a final rule on its “Marine Highway” strategy, shippers are keen to understand how the tactical implementation will begin. More to the point, however, is the question of how it will enhance trade and improve the movement of domestic goods.

John Hummer, director of MARAD’s Northern California Gateway Office, was charged with facing those queries and others at last week’s “Ports & Terminals” luncheon staged by the Pacific Transportation Association. Held at Scott’s, near the Port of Oakland, the event attracted its share of skeptics who took issue with some of Hummer’s rosier projections.

“How does MARAD quantify the return on investment?” asked one shipper, who said that not enough “hard numbers” had been produced before the plan was pushed through.

Hummer admitted that MARAD’s five-year plan to ease congestion by using barges and tugs as alternatives to trucks was going to deliver a “net value” yet to be measured.

“But it’s our best shot at the moment,” he added. “And worth a try. 

According to the “National Strategy to Reduce Congestion on America’s Transportation Network,” congestion is costing the U.S. an estimated $200 billion a year.”  And this figure is rising.  Nearly 98 percent of all domestic freight including through ports moves on the United States’ nation’s highways and railroads.

The Federal Highway Administration study entitled, “Estimated Cost of Freight Involved in Highway Bottlenecks – Final Report,” indicates that, on average, there are currently 10,500 trucks per day per mile on the Interstate Highway System. But by 2035, that volume is expected to double to 22,700 trucks, with the most heavily used portions of the system seeing upwards of 50,000 trucks per day.

“By linking the Northern California ports of Sacramento, Stockton, and Oakland, a great deal of that surface mode pressure can be relieved,” said Hummer. “Short-sea shipping is hardly a new concept, and now that the Obama Administration has given us the funding, it;’s worth a try.”

Other concerns raised about the plan were brought up by members of the International Longshore and Warehouse Union (ILWU). One dockside worker was assured by Hummer that all container hand-offs would remain with the ILWU – which controls all three ports. The implications of a wildcat strike or sudden work slowdown were not addressed, however.

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

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

Article Topics

News · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA