New Trends of West Coast Ports in the United States - Current Situation and Recent Prospects
2015-03-16
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Maybe many people heard from their colleagues in the company that the port labor agreement has been reached, so they think everything will return to "normal". Now all shipping should be in operation. In fact, it is not as simple as we imagine.
Last weekend, three different port operators from Auckland Port and Long Beach Port, as well as a major large shipping company, gave a briefing. The following are the key points provided by AGTC members - current status, short-term and long-term prospects. Warning: The situation is not optimistic. These are the steps we need to take:
1. The current congestion will exist in at least three months, and may be even longer. The delays we have experienced will continue even longer.
2. Although the media reported that the port berths are working "with all their strength", they are far from reaching this working state. Generally, the ship is unloaded and loaded by four sets of aerial cranes, but now there are only two sets of aerial cranes. The berth is not equipped with the full number of staff required by the PMA on the wharf, and the PMA requires to increase the number of employees. Some berths do not operate all cranes because they do not have space for containers unloaded from ships. Therefore, they tried to empty the containers in the berth area before the crane operation returned to normal.
3. The shipping company seeks to increase its income. They have announced a huge increase in freight charges on imported goods to adjust GRI. They are also discussing additional charges for port congestion. Some shipping companies charge surcharges on a daily basis for failure to return containers on time or within the contract period (even if congestion makes it impossible to meet these dates).
4. Despite the continuous congestion, it seems that shipping companies will continue to use larger ships, even in the spring of a few years, which will delay (if not prevent) the recovery of the port terminals. There is no plan to improve the operational efficiency of the terminal to effectively respond to the needs of these larger ships.
5. The measures taken by exporters and importers in the past seven months to divert goods to ports off the West Coast of the United States should continue to be implemented, especially in the foreseeable near future. The consignor should wait for reliable evidence to prove that the shipping is reliable and the circulation is restored before canceling these alternative routes.
6. Tomorrow: AGTC hopes that other organizations can consider effective measures to make up for losses and reduce the possibility of this situation continuing to an unnecessary level.
Last weekend, three different port operators from Auckland Port and Long Beach Port, as well as a major large shipping company, gave a briefing. The following are the key points provided by AGTC members - current status, short-term and long-term prospects. Warning: The situation is not optimistic. These are the steps we need to take:
1. The current congestion will exist in at least three months, and may be even longer. The delays we have experienced will continue even longer.
2. Although the media reported that the port berths are working "with all their strength", they are far from reaching this working state. Generally, the ship is unloaded and loaded by four sets of aerial cranes, but now there are only two sets of aerial cranes. The berth is not equipped with the full number of staff required by the PMA on the wharf, and the PMA requires to increase the number of employees. Some berths do not operate all cranes because they do not have space for containers unloaded from ships. Therefore, they tried to empty the containers in the berth area before the crane operation returned to normal.
3. The shipping company seeks to increase its income. They have announced a huge increase in freight charges on imported goods to adjust GRI. They are also discussing additional charges for port congestion. Some shipping companies charge surcharges on a daily basis for failure to return containers on time or within the contract period (even if congestion makes it impossible to meet these dates).
4. Despite the continuous congestion, it seems that shipping companies will continue to use larger ships, even in the spring of a few years, which will delay (if not prevent) the recovery of the port terminals. There is no plan to improve the operational efficiency of the terminal to effectively respond to the needs of these larger ships.
5. The measures taken by exporters and importers in the past seven months to divert goods to ports off the West Coast of the United States should continue to be implemented, especially in the foreseeable near future. The consignor should wait for reliable evidence to prove that the shipping is reliable and the circulation is restored before canceling these alternative routes.
6. Tomorrow: AGTC hopes that other organizations can consider effective measures to make up for losses and reduce the possibility of this situation continuing to an unnecessary level.