Commentary

The economic success of nations is significantly reliant on the development of infrastructure like roads, rails and ports; corporations hoarding trillions of dollars in off-shore accounts threaten the economic preeminence of the U.S.

The reaction of shippers to West Coast longshore labor disruption is evolving in such a way that West Coast ports have reason for concern.

Entering a factoring arrangement with a carrier without terms clearly set in writing may initially seem to work when accomplished through informal deals between principals, but sooner or later problems arise.

Containerization, “the box that changed the world,” was the catalyst that allowed global trade to grow to where it is today. From 1986 through 2006, global trade quadrupled. It doubled again from 2000 to 2006. The link between the growth of containerization and that of global trade is no coincidence.

Although the U.S. Federal Maritime Commission has no direct role in SOLAS compliance, the agency is monitoring the issue because of its potential impact on shipping productivity. “There’s a solution here,” William Doyle, FMC commissioner, said recently, “and we’ve got to find a solution.”

Many corporate trade compliance departments receive inadequate recognition and support in spite of the highly complex and risk-filled duties they perform.

Sometimes it can feel as if freight transportation is about to get “disrupted” by brilliant software engineers flush with millions of dollars in startup funding from Silicon Valley. Not only do we learn about new logistics-focused venture funds backed by people whose prior startups are the epitome of success, but we also see disruption in action every day.

Port cartage is the weakest link in the international supply chain, and the final miles from port to customer may soon become the longest and hardest of them all.

Motor carriers are legally prohibited from “double-brokering” loads to other carriers unless they have broker authority from the Federal Motor Carrier Safety Administration, and represent themselves to the shipper as acting in a broker capacity.

Shippers should thoroughly vet their current carrier’s logging platforms, and if they aren’t utilizing electronic logging devices or plan to, create a transition plan. Carriers suggesting ELDs are a negative should be a red flag.

When Ghana’s Transport Minister Franklin Fiavi Fifi Kwetey took to the podium at a recent international ports and supply chain conference in the country’s capital of Accra he was forced to preface his speech with an apology. The lights in the five-star venue were misbehaving badly and the windowless room was plunged into darkness every few minutes, forcing speakers to read notes using a small torch attached to the podium.

When the 3,351-TEU container ship Rena grounded off New Zealand in 2011, the cargo losses totaled $1 billion, and the salvage operation took seven months. The loss pales in comparison to what’s at stake as the latest generation of container ships approach 20,000 20-foot-equivalent units.

Nothing short of an extension to the existing West Coast labor agreement, without the disruptions of 2014-15, will be sufficient to earn back the trust of shippers. But how serious is the ILWU in achieving that? We’ll find out soon.

Though shippers can file notice of a loss-and-damage claim within the nine-month time limit prescribed by statute, with determination of damages to come, it’s important to remember there is another time clock to consider. You have two years and a day from the date of the carrier’s initial offer of settlement to file suit if you can’t later reach agreement.

Accelerating economic growth across the U.S. depends on the ability of our rail system to meet current and future shipping demands. As our nation’s economy has grown in recent years, our rail system must strive to keep pace. 



Port metrics and key performance indicators are popular topics often discussed in Washington D.C. and by local port authorities, but while metrics and KPI’s are good goals, they come with a cautionary note.

One of the major takeaways from this year’s TPM Conference in Long Beach was that global supply chain volatility and uncertainty continue to pressure beneficial cargo owners to demand best practices from their freight transportation stakeholders. The operating models at a majority of container ports don’t provide a sustainable strategy to meet these critical demands. It’s time for ports to consider implementing best practices.

Duluth has developed a solid business in heavy-lift and project cargo at the western end of Lake Superior, 2,340 miles from the Atlantic. This fall, the port will open 28 acres of additional open storage and a new dock that will handle loads of 2,000 pounds per square foot.

The extent to which beneficial cargo owners are controlling the discussion in trans-Pacific contract negotiations is becoming more evident, and that leverage is greater now than at any time since the 2008-09 recession.

As with similar matters involving revenue, costs and other things that affect the bottom line, ocean carriers are their own worst enemies at times. Unfortunately for the carriers, it’s one of those times.

For the first 10 weeks of 2016, North American Class I railroads originated 3.3 million carloads of freight (excluding intermodal). That’s 427,000 fewer carloads than the same period last year, or a decline of more than 11 percent.

With the industry just just more than three months away from the July 1 implementation date of the new container weight verification rule under the Safety of Life at Sea convention, fears of disruptions have abated somewhat. The industry seems to have come a long way from last fall when panic-stricken shippers, carriers and forwarders wondered how a new type of rule applied to container shipping would have any hope of being implemented without disrupting trade.

The intermodal industry finds itself in a perfect microeconomic storm. Energy is a primary driver. The price of diesel has dropped by approximately one-third in the past year, greatly reducing intermodal’s secular price advantage over truck.

A shipper should regard set-off as a last-resort measure where a carrier is being insupportably obdurate about paying claims and the shipper is confident of prevailing if the carrier challenges you. It’s not a proper substitute for resolving claims out of hand without clear provocation.

CMA CGM’s announcement this month that it would deploy six ships with capacities of up to 18,000 TEUs to the West Coast beginning in May is the latest indication that the French carrier believes Los Angeles, Long Beach and Oakland are up to the task. But will the ports be ready?

Despite the calm market in early 2016, a storm is forming that is going to hit the trucking industry. New regulations coming into play in the next several months and the increasing influence of a major retailer are prepped to cause significant turbulence in the U.S. trucking market.

Satellite offers numerous benefits, including the ability to provide coverage in remote regions where trucks and oceanic vessels often travel.

Ahead of the SOLAS container weight mandate its important to ask yourself these questions: Will you purchase weighing equipment to use Method 1 or 2? Will you purchase a service from others and pay by the container? Will you purchase the equipment and provide the service for others and potentially yourself?

An often overlooked and increasingly relevant form of intermodal transport is truck to barge or train to barge. The Mississippi River is really a “free railroad” for the U.S. whose potential for intermodal transport has not been fully exploited.

A year after the Feb. 20, 2015, deal that ended months of catastrophic West Coast port disruption, what lessons have been learned? And what is the likelihood the events will be repeated?

As members of the supply chain we should all be focused on safe, secure, and reliable global marine transport, but from my perspective, there are too many parties looking for a reason to not provide verified weights.

It’s safe to say that most everyone has heard the word “cloud” used in connection with at least some aspect of supply chain technology. But while most may have heard the term, it’s also safe to say that many wouldn’t be able to fully explain exactly what it is, how it works or, for bonus points, where the term “cloud computing” originated.

There’s nothing in general or transportation law to preclude contracting parties from reaching agreements to be applied retroactively. But there’s also nothing in the law to preclude the parties from agreeing to alter an effective date.

Damage from poor rail performance can be severe and long-lasting. Once incurred, that damage isn’t easily reversed.

The analysts that process trade transactions for commercial banks are the front lines of defense against global financial crime and they must be taught to look beyond just the trade documents in front of them and consider a wider context.

As we descend on Long Beach, California, for the 16th Annual TPM Conference, a slew of issues threatens to disrupt shipper supply chains. Long-awaited consolidation among container carriers is under way, with dramatic changes to alliances likely. But the biggest concern for shippers is the looming container weight policy mandated by the International Maritime Organization, an issue that will resonate through TPM and beyond.

Although communications have improved between stakeholders dealing with ports and terminals, and congestion has eased, much still needs to be done, and port productivity remains a concern. Progress that could be made hasn’t been because much of the design, infrastructure and equipment in ports don’t meet the requirements of today’s environment and markets.

The Federal Motor Carrier Safety Administration's decision to post “absolute performance measures” for BASIC scores in early March represents an affront to the intent of Congress when it passed the FAST Act.

Amazon is reimagining the modern supply chain, and we have to use our own imaginations to follow along. The company that simultaneously built the world’s largest cloud computing business and became a digital entertainment giant has grown uncomfortable with traditional freight transportation offerings, thus dabbling in trucking, air freight and now ocean.

While other segments of the transportation industry have consolidated to gain network efficiencies, the railroads continue to operate with the structural constraints of a bygone era.