True collaboration is still a distant goal for shippers, carriers, ports

Despite great strides in mechanization and technology, many U.S. ports and terminals remain challenged by political conflicts, internecine competition, and internal communication issues.

Logistics and supply chain managers attending yesterday’s Navis World 2015 afternoon session “Shipper, Carrier, Terminal Collaboration: Room for Improvement,” were provided with a broad overview of the challenges ahead.

“There are a lot of silos and special interests in the port community that get in the way of true collaboration,” opined John McLaurin, president of the Pacific Merchant Shipping Association. “While labor, management, and shippers may be on the same page with some issues, there is can only be consensus when everyone has skin in the game.”

As an example, he said, The National Retail Federation’s (NRF) call last year for a suspension of PierPass fees in Southern California, was unrealistic. The NRF and other shipper associations were also off the mark in their appeal to have dockside labor and management factions come to an immediate resolution to contract negotiations, or be threatened by an executive action.

“We all agree that having a contract should be the objective,” said McLaurin, “but the shippers provided no direction on how to achieve this. The ‘chassis inspection’ issue was never addressed, and other elements were hardly considered.”

Greg White, senior vice president of Ports America, agreed, noting that federal and state government officials were right in permitting the International Longshore and Warehouse Union and the Pacific Maritime Association to retain ownership of the bargaining process.

“This is a procedure that is designed to work out the details,” he said. “Then they can focus on a long-term relationship.”

The cooperative nature of ocean carrier alliance relationships was also brought into question when White noted that some “misbehavior” could be expected when terminal sharing was involved.

“We have to realize that while carriers are working together to take advantage of economies of scale, they are also competing for business. That hasn’t changed.”

Finally the quality of data being shared in the alliances may also need to be refined, said White, who noted that the “truthiness” of KPI’s (Key Performance Indicators) is still regarded with suspicion.

“Vessel polarization prevents flexibility, and limits the levels of engagement,” he concluded.