This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
Currently, it’s not the changes, but the unknown that is having a major impact on our business. We’ve been able to stay on top of the ever-changing supply change by aligning ourselves with various trade organizations and publications.
Lately I find myself with more questions than answers:
- How will the FMC interpret rule-making procedure regarding demurrage and detention under the Shipping Act?
- With the continued growth of ­digitization, are we going to see more on-demand dynamic ocean pricing? Will this change the spot versus contract rate mix? Will these digital transactions impact future space and/or minimum quantity commitments?
- Despite limited and conflicting details being shared, we are in the process of determining the impact as well as trying to forecast costs associated with the AB 5 (trucker) and low-sulfur fuel (ocean freight) mandates.
- What changes and charges are pending for PierPass? We’ve seen the impact that 2.0 has had on the appointment schedules, with an imbalance of daytime versus nighttime pickups.
- What will be the costs and implications to truckers and BCOs of the soon-to-be-implemented Clean Truck Program?
- With all the fees being imposed on the BCO — wait times, PierPass, demurrage (unable to secure appointments), detention (unable to return containers), chassis split/diversion (now adding the unknown costs of AB 5 and Clean Truck), moving an ocean container from Los Angeles and Long Beach terminals to their California DCs and/or 3PLs — is it still the most cost-effective port? Should we be looking at other ports?