Ocean lines should compensate shippers, truckers forced to store containers because of port congestion

The FMC chairman has made his position known.

One of the big hassles in container shipping right now is the unfair treatment of drayage drivers. They are often forced to wait because of inadequate capacity at ports. And this is directly traceable to the advent of large ships, which take longer to unload and which result in large numbers of empty containers cluttering up ports. When there are too many containers, the port operations are delayed and cannot be efficient, so often the terminals close their doors to returning containers. They are usually empty.

So the drivers are stuck with them. Or the warehouses and distribution centers wait to return them till they can get in. The time windows for return are not coordinated across the supply chain players, so it’s kind of random whether they can get them in. https://splash247.com/truck-drivers-at-port-of-baltimore-protest-long-waits-at-container-terminal/

Then we compound it with the fact that it’s not that useful for the ocean carrier to pick them up for return to an exporting location. It’s almost easier to build a new one in China, say for the next load. Also, an empty container takes up a slot on the ship that could be used for paying cargo. Remember that ocean routes are closed loops with pickups and deliveries along the way. Each stop presents a new version of a loading problem to be solved.

Yet many containers are owned by the ocean shipping lines. So they are responsible for them. https://splash247.com/us-east-coast-empty-container-congestion-due-to-lack-of-accountability-fmc-commissioner/

The FMC will look at whether the ocean carriers need to reimburse other supply chain participants for any delays suffered when they can’t return the containers on time. And the carriers have to be more diligent about picking up empties. That’s something the FMC should be able to influence. The carriers will squeal. But they have to start cleaning up their leftovers.

It’s a good article to keep in mind.

Kim Biggar August 8, 2022

FMC chairman says lines should compensate shippers, truckers forced to store containers because of port congestion – Splash247

August 10, 2022

By Margherita Bruno

Empty container congestion creates ‘double whammy’