Subscribe to our free, weekly email newsletter!



Shippers not content with FMC

By Patrick Burnson, Executive Editor
December 10, 2010

To no one’s surprise, The National Industrial Transportation League (NITL) announced its profound disappointment late last week in the Federal Maritime Commission?s (FMC) conclusions reached in the agency’s “Fact Finding Investigation No. 26.

As I have been reporting over the past several months,
the investigation was ordered by the Commission?s Chairman, Richard A. Lidinsky, Jr., on March 17, 2010 in response to a flood of complaints from U.S. importers and exporters who experienced service disruptions, rolled cargoes, abrogated service contracts and virtually uniform rate and surcharge increases from carriers in the transpacific trades.

The turmoil in the two-way Pacific trades occurred over an extended period beginning in late 2009 and well into 2010. Shippers’ deep concerns over perceived malpractices by ocean carriers led to widespread calls for this investigation.

Two Congressional hearings before the Coast Guard and Maritime Transportation Subcommittee of the House Transportation and Infrastructure Committee were also held as a result of their complaints.

Could it be that the FMC is actually more concerned with ensuring that a sustainable shipping service is in place when the anticipated surge in cargo demand becomes reality?

Meanwhile another appointment to the commission is pending, and the leading candidate comes from the Port of Long Beach. Our guess is that when the FMC has a “full bench,” carriers will have their position strengthened as well.

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

As was the case for the second quarter, third quarter earnings results for publicly-traded less-than-truckload (LTL) carriers are again strong. Signs of solid earnings results from carriers that have posted earnings to date include tonnage increases, gains in weight per shipment and average daily shipments, higher yield, and revenue per hundredweight.

While the holiday season is known to bring good tidings and cheer to all, it may also come with another thing that is not so pleasant: higher rate freights. That was the thesis of a commentary written by Mark Montague, industry pricing analyst and chief market-watcher for DAT, a Portland, Ore.-based subsidiary of TransCore.

Earlier this week, FedEx said it is expanding its International First service for early deliveries with the addition of 31 new origin countries, which will bring the total number of origin markets for the service to 97.

Monday, December 22 is pegged as UPS's peak delivery day, as the company expects to deliver more than 34 million packages that day, adding that it expects to see six days in December top last year’s peak shipment day delivery record of 31 million packages.

The time has come again for less-than-truckload (LTL) general rate increases (GRI), with various carriers recently announced their respective rate hikes in recent days.

Article Topics

Blogs · Transportation · Trade · Shipping · Exports · NITL · Imports · 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