U.S. shippers may opt for air cargo alternatives on West Coast

By Patrick Burnson, Executive Editor
July 08, 2014 - LM Editorial

When it comes to assessing the current state of the U.S. West Coast dockside labor situation, air cargo providers may be contemplating this verity:  “it’s an ill wind that blows no one any good.”

A sharp spike in air cargo demand has been evident ever since the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) began negotiating a new contract several months ago.

According to Brandon Fried, executive director of the Airforwarders Association, some of that business may never return to the waterfront.

“Our shippers use all modes of transport in their operations,” he says, “but we are seeing a very significant shift back to air now…especially with components of the perishable market. The disruptions at the ports are too unstable…especially now that drayage has become part of the equation.”

As LM has reported, independent truckers and Teamster drivers have staged several demonstrations at Southern California terminals in recent days. While these are not sanctioned strikes, shippers may be unnerved by the potential consequences.

An on-again, off-again trucker actions at the Port of Vancouver also has shippers concerned.

“The air cargo industry suffered when the air controllers were fired in the 1980s,” observes Fried. “And 9/11 dealt a serious blow to this sector for a long time, too. But we’ve recovered from those setbacks and it appears that air carriers are poised to capture freight for a long time.”



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

Manufacturing activity in April remained on the right side of growth for the second straight month, following six months of contraction, according to the April edition of the Manufacturing Report on Business from the Institute for Supply Management (ISM).

Some 22 centuries after the original Silk Road smoothed the path of Chinese silk merchants to Europe, a new effort is beginning to build a new 21st century highway between Europe and the burgeoning economy of China, now the world’s fastest-growing market.

A new study released recently from global management consulting firm A.T. Kearney promises to provide supply chain managers valuable advice on risk mitigation

The most recent edition of the Shippers Conditions Index (SCI) from FTR showed solid gains for the fourth straight month, with market trends remaining favorable for shippers.

Shippers and other ocean cargo carrier stakeholders should be cheering the announcement made today by The U.S. Coast Guard, as it formally notified the International Maritime Organization through a Declaration of Equivalency that the United States position on SOLAS is that there are multiple methods to submit the combined cargo and container weight (Verified Gross Mass or VGM).

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.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA