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Capacity Crunch from Asia

February 8, 2010
With only a few weeks to go before the Chinese New Year and its two week factory closures, ocean containers are backing up on the docks of Asia.  Space is tight and carriers, coming off the worst market in decades, are capitalizing on the moment of high demand and low supply. Since January 15th, the Transpacific Stabilization Agreement (TSA) carriers have adopted an Emergency Revenue Charge (ERC) - a surcharge of between $400 - $505 on west coast cargo, which still does nothing to guarantee that cargo will move as booked, but does help carriers facing historically low rates. The surcharge is in effect, but capacity is still limited so hundreds of containers are being ‘rolled', as cargo is pushed from its booked voyage to a later sailing.

The capacity crunch should come as no surprise. Last year, when carriers were caught with a significant overcapacity as Asian exports suddenly dried up, freight rates dropped precipitously. In response, carriers parked vessels, combined services with other carriers in vessel-sharing arrangements and reduced sailing speeds. Despite an indication last fall that the market was returning, last year's drastic reductions in capacity have carried over to this year. The surge is expected to continue until at least mid-February, when the holidays will give some breathing room, allowing carriers to clear backlogs.  Until then, expect delays, rolling cargo and price volatility.
Source: CIFFA eBulletin - January 28, 2010 

TSA Implements Emergency Revenue Charge

January 15, 2010

The TSA (Transpacific Stabalization Agreement) has adopted a new guideline for the first half of 2010 in an effort to obtain critically needed revenue - Emergency Revenue Charge effective January 15, 2010 as follows:

- US$320 per 20-foot container (TEU)

- US$400 per standard 40-foot container (TEU)

- US$450 per high-cue FEU

- US$505 per 45-foot container

Members include, but not limited to: APL, China Shipping, CMA CGM, Cosco, Evergreen and Hanjin Shipping

For more information, click here.

Truckers Protest Outside LA City Hall

December 15, 2009

Truckers protest outside LA City Hall over Environmental Policy. 
For full story, click here.    

Logistics Labor Strategies

December 14, 2009

Partnerships key in workforce development.  For full story, click here.    

Green Legislation

December 10, 2009

Legislation sets its sights on carbon emissions.  For full story, click here.     

  

CN Strike Settled 

December 2, 2009

Teamsters Canada Rail Conference (TCRC) union settles.  For full story, click here.    

 

Possible CN Strike

November 26th, 2009

Teamsters Canada Rail Conference union plans to go on strike Nov. 28th.  For full story, click here.  

Going Green: Lowers Costs and Increases Efficiency

Mon, Nov 30th 2009 4:00 pm 
According to Jack Ampuja, president of the consulting firm, Supply Chain Optimizers -  companies that have gone green, have lower costs and are more efficient.    Click here for full article.   

Outsourced Logistics: Gaining Management Buy-in

Thurs, Nov 19th 2009 12:00 pm 
Deborah Catalano Ruriani of inboundlogistics.com offers 10 very helpful tips for selling Management on 3PL services. Click here for full article.   

Panama project threatens West Coast
ports' lock on Asia trade

Thurs, Nov 12th 2009 04:00 pm 
Competition from an expanding Panama Canal causes concern for ports of Los Angeles and Long Beach. For the full story, click here.

SWITCHED ON: Bringing The 3pl Machine To Life

Mon, Oct  26th 2009 03:00 pm
Case studies confirm 3PL's remain an integral component of efficient supply chain management. Read more about the value of 3PL's in a featured article by Joesph O'Reilly, Senior Associate Editor at Inbound Logistics.  For the full story, click here.

Transportation Spending Bill Unlikely to Pass This Year

Sat, Oct 10th 2009 01:00 pm
Extensions expected as the government's fiscal year draws to a close.  Experts suggest that the expected 18-month extension, will result in an actual 24-30 month time frame before any bill gets passed.  For the full story, click here.

Transportation Execs See Shift in Sourcing