Subscribe to our free, weekly email newsletter!

Time to look at Intra-Americas trade again

By Patrick Burnson, Executive Editor
May 13, 2014

With so much attention now being placed on trade agreements with the EU and in the transpacific, shippers may wish to take a fresh look at what one leading ocean cargo carrier is doing within the parameters of the existing North America Free Trade Agreement (NAFTA).

Starting early next year, the resurrected U.S. carrier, SeaLand, will be coming back under the auspices of Maersk Line to serve existing Intra-Americas service network. This will also shift the logistics weight to the Caribbean Basin in anticipation of the Panama Canal expansion. SeaLand was aquired by Maersk Line in October 1999.

“This reorganization is an investment in our global container business. It enhances and strengthens service in this important and growing trade region, as well as the future of our overall global service network,” says Vincent Clerc, chief trade & marketing officer, Maersk Line.

Analysts say that the Caribbean Basin Partnership Act – which was broadened more than a decade ago – may eventually be replaced by a “Free Trade Area of the Americas” act.

Russell Held, Director of Economic Development for The Port of Virginia, and a former SeaLand executive, says the trend for near-shoring is gaining traction – with a great focus on ocean carrier reliability.”

Indeed, Maersk Line’s existing Intra-Americas service network will be the foundation for SeaLand. Industry analysts contend that the new U.S. subsidiary will have similar structure to Maersk Line’s other regional carriers – including intra-Asia carrier MCC Transport and intra-European carrier Seago Line.

SeaLand will feature local sales and support personnel located in North, Central, and South America, as well as the Caribbean, to service customers throughout the region.

The new, independent unit will officially start operating next January. Meanwhile, Maersk will begin the transition of its Intra-Americas business to SeaLand in a phased approach throughout the remainder of this year.

About the Author

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 a month ago, the Global Port Tracker report from the National Retail Federation (NRF) and maritime consultancy Hackett Associates is calling for annual import cargo volume gains at United States ports, as retailers gear up for the holiday season.

More than nine months after saying it was not for sale, Long Beach Calif.-based non asset-based third-party logistics (3PL) services provider UTi Worldwide has apparently changed its tune, with the company saying it has entered into a definitive agreement to be acquired by Denmark-based global 3PL DSV for $1.35 billion and $7.10 per share.

September carloads—at 1,417,750—were down 4.9 percent—or 72,597 carloads— annually, and intermodal—at 1,365,980 trailers and containers—was up 1.2 percent—or 16,272 trailers and containers.

Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry.

The NRF is calling for 2015 holiday sales to see a 3.7 percent annual gain to $630.5 billion, which comfortably outpaces the ten-year average of 2.5 percent.

Article Topics

Blogs · Ocean Cargo · Container · Logistics · All topics


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