Subscribe to our free, weekly email newsletter!


Will slow steaming become a non-issue?

Both the National Industrial Transportation League and the Agriculture Transportation Coalition have issued recent objections to the practice, noting that it offers no service advantages for shippers.
By Patrick Burnson, Executive Editor
February 01, 2011

While the Federal Maritime Commission (FMC) is moving forward with an investigation of slow steaming practices in the transpacific, some analysts question whether it will even be an issue after the upcoming Lunar New Year.

Both the National Industrial Transportation League (NITL) and the Agriculture Transportation Coalition (AgTC) have issued recent objections to the practice, noting that it offers no service advantages for shippers.

Since then, FMC Chairman Richard A. Lidinsky Jr. has taken a leading role in the inquiry. At the same time, he has given the Transpacific Stabilization Agreement (TSA) members permission to discuss slow steaming under antitrust immunity.

Given the recent crisis in Egypt, there is some chance the TSA will insist that there’s never been a better time for “slow steaming” – a strategy that not only spares the environment, but also saves on fuel costs.

Furthermore, said analysts, this may all be a moot point if imports begin to slacken on the Eastbound trade late, said Jock O’Connell, Beacon Economics’ International Trade Adviser.

“We can already see a big reduction in U.S. orders from multinationals sourcing from China,” he said. “And after the Lunar New Year, we don’t expect it to improve greatly.”

Finally, with the recent introduction of Horizon Lines and other smaller liners in the trade, shippers do have an alternative to slow steaming cartel members.

As reported in LM last week, Horizon Lines announced it had instituted a 15-day transit schedule for containerized cargo shipped from Shanghai to Kansas City with its new International service.

Amid considerable fanfare, the company launched the Five-Star Express (FSX) trans-Pacific ocean service between China and the United States in December, and selected Kansas City as a key hub for its express ocean-rail intermodal package.

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

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

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