Subscribe to our free, weekly email newsletter!


Ocean Cargo: NITL committee meeting to examine state of the industry

According to chairman, Don Pisano, committee members will be discussing a wide topics ranging from “slow steaming” to the Rotterdam Rules.
By Patrick Burnson, Executive Editor
July 11, 2011

When the National Industrial Transportation League’s ocean transportation committee meets next month in Louisville, Kentucky, the agenda will be rich indeed. According to chairman, Don Pisano, committee members will be discussing a wide topics ranging from “slow steaming” to the Rotterdam Rules.

In an exclusive interview with LM, he said that chassis shortages are also a big concern.

“For each line not providing a chassis, we must factor into our freight calculations the expected additional costs per container when comparing rates among our ocean carriers,” he said.  “This is particularly burdensome on distribution centers and public warehouses when scheduling the unloading of containers received from multiple clients using various ocean carriers, some with free chassis and some bearing a daily chassis rental fee.” 

Pisano added that some clients are getting their freight “leap-frogged” in order for the DCs and warehouses to minimize the chassis costs on other clients they serve who are bearing the daily chassis rental.

Capacity issues are also top of mind these days, he said.

“We believe there will be continued tightness in 20-foot dry containers coming out of Asia,” he said. “But 40-footers are available and can be substituted provided sufficient vessel space remains available.”

In keeping with what industry analysts have told LM, Pisano expects minimal shipment delays due to vessel and equipment capacity shortages through the Peak Season.

“Slow steaming” on the transpacific, however, will continue to hurt the long-term competitive position of U.S. West Coast ports, said Pisano. He added that hikes in night gate rates and potential labor slowdowns will also have an impact.

“For a number of other reasons, we expect to see a shift from the West Coast ports of Los Angeles and Long Beach toward all water services to the Gulf Coast ports, particularly for lower valued products which are less sensitive to longer transit times,” he said.

Pisano noted that it has been almost two years since the U.S. signed the Rotterdam Rules – an international law convention governing marine cargo loss and damage on liner carriers. 

“The rest of the world in now looking at the U.S. to ratify the convention and codify the convention into U.S. law,” he said. “Since adoption of a new liability regime is critical for U.S. companies in that it would bring predictability to claims and reduce instances of unnecessary litigation, we would like to see the Rules advanced from the State Department to the Senate for ratification without further delay.”

Pisano also said that the League hopes to see measures instituted that will reduce the incidence of cargo thefts in the coming years.

“These changes should include use of better statistics and coordination among law enforcement agencies,” he said.

For related articles click here.

 

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

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

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