Drewry Says U.S. Ports Will Be Vigilant in Pursuit of Carrier Calls

By Patrick Burnson, Executive Editor
April 08, 2014 - SCMR Editorial

Even the most dominant U.S. ports can’t afford to become complacent in the face of several competitive factors converging at mid-year, say industry analysts.

According to Neil Davidson, Senior Analyst - Ports & Terminals for Drewry Research, the newly created/expanded alliances will certainly review and revise port calls, so there will be changes.

“However, it is in their interest to serve as many ports directly as possible in order to offer the best service to cargo owners,” he says.

“Furthermore, adds Davidson, carriers will still call at key cargo generating ports.

“So in this sense there may not be much change to the list of ports called. But bigger ships do mean reduced service frequency, or at least less port calls per year, leading to more peaking of port volumes.”

Davidson says a anticipation of a breakdown in dockside labor contracting on the U.S. West Coast should also be considered when talking about ports.

“I imagine that most shippers, through past experience of similar issues, have contingency plans in place for diversions if necessary. They will adopt a wait and see approach though,” he says.

Finally, Davidson says the impact of the expanded Canal still remains to be seen.

“East Coast U.S. ports are hoping to gain share from the West Coast ports but they won’t give it up easily,” he notes. “Plus, it’s not just about port capacity, but also about inland/intermodal capacity.”


In addition there are two key unknowns about the future, says Davidson.

First, the level of the new Canal vessel tolls is yet to be determined, and we have yet to see how the US and Canadian railroads will react to the expanded Canal.

“Both of these will have a big influence on which way cargo is routed,” says Davidson. “Most likely time sensitive cargoes will continue to move via the West Coast, but cost sensitive cargoes will be more tempted to use the Canal.”



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

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.