Request more info about FMI.
Do you have a friend or colleague who would
like to receive this eFlash, click here.
|
|
| Visit us online at www.fmiint.com Request more info about FMI. |
Issue 7 Do you have a friend or colleague who would like to receive this eFlash, click here. |
Trucking companies who service the LA / Long Beach area have a big challenge ahead of them in the upcoming peak shipping season. As terminals introduce surcharges for cargo that moves off the pier during daytime hours (3 a.m. to 6 p.m.), shippers can avoid the surcharge by moving their cargo during “off-peak” hours, or during the “Night Shift”.
One of the biggest challenges is the supply of owner-operators in the Southern California area. This is already a tight market, and finding owner-operators willing to work the night shift could make the situation even tighter.
The other challenges lie in the coordination of pick-ups and delivery to the customers’ distribution centers. Many may not have night hours for delivery of freight. This may cause trucking companies to store containers at their yard until the next day and then the availability of drivers for the day shift could become tight.
In order to avoid these potential problems, FMI is working with our West Coast customers and asking them to decide whether they want to be a “Day Shift” or “Night Shift” account. By doing so, we will be able to plan our labor and power accordingly in order to ensure timely delivery of freight and avoid delays and potential surcharges.
As a reminder Shippers can now begin enrolling for PierPass accounts online at http://www.pierpass-tmf.org.
As a reminder, containers that move during off-peak hours or by train through the Alameda Corridor are exempt from the fee. Companies will be billed through their accounts for peak moves or receive automatic credit for designated off-peak or rail moves.
The $20 per TEU fee will apply during the transition period for systems testing scheduled for mid-June to late-July and rise to $40 per TEU as soon as PierPass goes live.
PierPass and FMI will define peak daytime hours as 3 a.m. to 6 p.m.
PierPass President Bruce Wargo encouraged all port users to register as soon as possible whether or not they intend to use off-peak gates.
As for FMI, we encourage all of our West Coast trucking customers to register for Pier Pass, and we will be in contact with you in the very near future to determine whether you will be a "Night Shift" customer or a "Day Shift" customer.
If you have any questions, please feel free to contact your local FMI sales representative.
In order to help alleviate congestion on the already over-crowded terminals in New York and New Jersey, terminal operators have announced a reduction in free time for import containers.
Port Newark Container Terminal (PNCT) recently announced their plans to reduce free time from 5 days to 4 days for import cargo due to the combination of the existing congestion on the terminal and the forecasted increase in volume projected for the upcoming peak-shipping season
The PNCT adjustment will take effect on June 1, 2005.
Reductions in free time puts increased pressure on pier trucking companies, such as FMI, to move containers off the pier before free time expires and demurrage is assessed. In order to avoid demurrage charges, FMI will need to take necessary steps to add power and extend hours of service in order to meet our customer demands.
The combination of port congestion, draft restrictions and the need to reduce empty containers will create a tighter market in the trans-Pacific in the upcoming months. The effective supply in container capacity this year will only be 9 percent. That contrasts with the nominal projected increase of 11 percent, which is based on the deployment of new and larger vessels in the trade. With cargo volume projected to rise 13 percent, that will create a 4 percent gap between projected increases in demand and container supply. In addition, carriers are not able to fill ships to their full capacity because of draft restrictions at many ports.
In addition, carriers face increasing costs because of the growing gap between loaded containers and empty boxes on the world's three major East-West head-haul routes -- Asia to the U.S. and Europe, and Europe to the U.S. has added to carriers' costs because of the need to reposition empty containers. In 2003, he said, there were 16.8 million loaded TEUs on the head-haul routes, but only 9 million TEUs on the back-haul routes -- U.S. to Asia and Europe, and Europe to Asia. As a result, there was a 1.9:1 ratio between loaded TEUs and empties, up from 1:2 in 1997.
The imbalance is particularly severe in the trans-Pacific trade, where there are almost three times more loaded containers coming into the U.S. for every box returning to Asia, compared to a ratio of slightly more than 2 to 1 in 2000.
The cost to reposition empties back to Asia will exceed $1 billion in 2005.
©2005 FMI International