U.S. seaports continue to organize, train for and fund compliance with security regulations resulting from various homeland security initiatives launched after the terrorist attacks of 9/11. While these efforts haven't had much of a tangible effect on shippers, increasing trade volumes certainly have.
Congestion at ports has increased dramatically in the past year; though some port authorities have started to deal with the problems, the issues are long-term and will require infrastructure upgrades and expansion. Landside efficiency has been affected by idling rules in some ports designed to reduce air pollution, container and chassis shortages and container charges, among other factors.
The rise of offshore sourcing in Asia (specifically China) has made the situation more acute at West Coast ports, but other ports are not free from problems. Longer term, initiatives like the African Growth and Opportunity Act and the expansion of the European Union may add volume to East Coast trade, taxing those ports. (Some Chinese manufacturers are already outsourcing to western Africa.)
Importers and exporters will have to stay on top of developments at key ports as capacity can quickly get out of synch with demand. For many ports the solution to five-year growth projections may come in the form of a seven-year infrastructure project.
Bigger is better in ocean freight, at least from the perspective of ship operators. Shipbuilders' order books are strong for large container ships and the once awe-inspiring 8,000 TEU ship is now almost commonplace.
Ocean carriers gain efficiency on the seas from these large ships, but could face some problems at ports, especially as larger ships are discussed, designed and built.
With many of the ships in the Asian trades running with a substantial cargo of empty containers, using fewer ships to move large volumes of containers can help control costs. To keep containers in the pipeline, ocean carriers have added tough rules and some stiff detention fees for containers that leave the port area. U.S. importers are faced with a decision on whether to "break" the container at the port or pay to move it to and from their inland distribution center.
Third parties — some of them divisions of ocean carriers — are seeing a growing business in "deconsolidation centers" where import shipments are received, unloaded from 40-foot containers, crossdocked and reconsolidated into 53-foot trailers at a 3-to-2 ratio and moved to the destination distribution center.
With offshore manufacturing and sourcing continuing at a strong pace, the situation isn't likely to change much in the near future.
To help determine which ports and which carriers are best suited for your specific shipping needs, Logistics Today offers the exclusive Solution Selector, which matches up the ports and the ocean carriers and their respective capabilities.
All of the information in the accompanying charts, as well as in Solution Selector, was provided by the port authorities and the carriers.
steel, limestone, cement
steel, machinery
fruit, general cargo, bulk
bananas, foods
steel
salt, coal, cement
