In 2014, a sizable number of liner carriers formed new operational alliances or expanded existing alliances. The growth of these alliances is a consequence of the market conditions prevalent in virtually all trades: the need for larger vessels to reduce unit costs, the very significant costs associated with the construction of such vessels and the relatively slow growth of cargo demand. To provide the required services at lower cost, liner carriers have found it necessary to share vessels and cooperate on vessel operations. These market forces are unlikely to change in 2015. Accordingly, while we are unlikely to see any new major alliances formed in 2015, the need for more robust alliance operations and similar efforts to increase efficiency in vessel operations will be necessary this year.
Increased efficiency and cooperation will also be required in 2015 to address and respond to port congestion problems, particularly in the U.S. The causes of port congestion are varied and complex. The lack of infrastructure development, lack of intermodal equipment, trucker shortages, labor slowdowns, larger vessels, railcar shortages, etc., all contribute to the problem. Congestion adds to the cost of transportation and adversely affects shippers, carriers, marine terminal operators, truckers and railroads. A solution or mitigation of port congestion can only come about through a cooperative effort of all stakeholders. he necessity to address port congestion in 2015 will require these various parties to deal with each other in a meaningful and constructive way. This will require leadership; 2015 will be a test that may gauge the capability of industry leaders to address pressing concerns.
As the old Pogo cartoon said, “We have met the enemy and he is us.”
Marc J. Fink, Member, Cozen O’Connor