Lower fuel costs should bring a much needed bonanza for the transportation industry. However, the late November 2014 OPEC decision that made a further dent in the price of oil is not an indication that lower fuel costs could be guaranteed over the medium to long term. Hence, UASC 's decision to build the world's first dual-fuel-powered "LNG ready" ultra-large container ships is likely to be vindicated over the lifetime of the ships from the standpoint of lower operating costs and reduction in carbon emissions. It is fitting that a Middle East-based carrier has done its part to provide the lead and induce other ocean carriers to build more energy-efficient ships, notwithstanding the higher capital investment that was required for the 17-ship order — 11 15,000-TEU ships and six 19,000-TEU ships.
Cheaper fuel costs should reduce the price of consumables and lead to greater retail spending, thereby improving containerized cargo flows, that could provide much needed support for the influx of slots through the spurt of big box deliveries in 2015. This could, however, add to further strain in the overall transportation infrastructure that is already creaking with inadequate terminal capacity and poor productivity at facilities that could accommodate the ultra-large container ships.
In the U.S., what is needed is a comprehensive national port study aimed at disbursing federal funding in developing strategic regional gateway ports rather than a collection of ports and terminals all chasing the same cargo. While competition is always good when funding is scarce, the basis of funding should be on identified strategic objectives, not the political muscle of the concerned states.
Also needed is a review of the Jones Act that would allow foreign-flag vessels to offer feedering to regional ports. That could reduce millions of truck moves on roadways, contributing immensely to reducing carbon emissions and also offsetting the problems impacting the trucking industry in terms of investment and driver shortages.
Anil Jay Vitarana, President, United Arab Agencies