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Nov 4, 2014

PORTS CONGESTION * USA: Los Angeles & Long Beach Ports

* California - Cargo challenges create opportunities


(Photo: The congestion at Los Angeles and Long Beach ports has been going on for at least two months) 
San Diego,CAL,USA -JOC, by David Arian -Nov 02, 2014: ... The current restructuring, based on much-needed cost savings for the (shipping) industry, dates back to about 2008. The industry’s first solution was bigger ships. Large ships in 2007 were approximately 7,500 TEUs. Today, based on construction orders for new ships between now and 2016, sizes will range from 7,500 to 18,000 TEUs... With newer, larger ships entering service, there is a surplus of containership capacity, which has depressed shipping rates and squeezed margins. In response, carriers have begun to form mega-alliances. Most of the world’s largest shipping lines now are part of a handful of alliances... These alliances are spreading their cargo to numerous terminals, which is new to the industry. This makes it extremely difficult to consolidate cargo for rail and truck transport, so cargo must be shifted from terminal to terminal or sit for long periods on the docks... 
So what are the solutions? There are a number of ideas to solve the congestion issue: 
* Create a gray or neutral chassis pool run by a non-profit organization to better administer the availability of chassis. 
* Implement a universal, technology-based portal system that oversees all movements of containers, chassis and other equipment in the Los Angeles-Long Beach complex. 
* Work with our alliance partners on a more efficient approach to use of terminals. 
* Create incentives for efficiencies at each container terminal. 
* Work with the state and federal government to invest in a cargo-movement incentive program. 
* PierPass, which was created to shift cargo truck trips from days to nights in order to avoid freeway congestion, has worked well for its intended reason. The program should be updated, however, to to realize greater operational efficiencies in the port complex. 
* Consider the wider use of inland distribution centers so our on-dock terminals are used more efficiently. We need to move cargo off our docks quickly and perhaps distribute them at another location. 
* Shipping lines should analyze cargo flow, stowage and information flow for efficiency improvements.

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