Lack of Communication, Solutions Cloud Availability of Ocean Container Distribution Equipment

NEWARK, N.J., April 11, 2011 /PRNewswire/ -- Shippers are facing the prospect of peak-season rush with uncertainty over availability of equipment central to moving goods from ports to stores, factories and inland distribution points.

(Photo:  http://photos.prnewswire.com/prnh/20110411/NY80706 )

International ocean container carriers are overhauling their programs in the United States that provide chassis to truckers hauling containers from ports, in what amounts to the most far-reaching maritime freight industry change in the United States in nearly 30 years. A cover story this week in The Journal of Commerce (http://www.joc.com/maritime/waiting-gate) analyzes the different directions carriers are taking and the concerns of shippers over the uncertainty in their supply chains.

A loss-leading practice, carrier-provided chassis grew out of the early U.S. competition between containerization and domestic trucking. Ocean carriers, which own about 45 percent of the nation's 750,000 chassis, receive very little financial gain from the $3 billion to $5 billion often tied up in capital or spent to provide chassis to assist the movement of their shippers' goods from port. As carriers attempt to maximize recovery from the recent trade collapse, many are dropping chassis in some manner. Confusion reigns, however, as changes are made only in specific regions or on differing schedules.  

"The overarching challenge is how all the stakeholders are going to make this transition without any degradation of terminal operations or customer service," said Tom Malloy, vice president, Intermodal Association of North America.

A topic of much debate at The Journal of Commerce's recent Trans-Pacific Maritime Conference in Long Beach, Calif., it has industry stakeholders weighing benefits of cost-transparency and efficient terminal-space use against fears of liability, equipment availability and costs. Without carriers subsidizing chassis, the cost "ultimately is going to go back to the cargo owner, and it's going to come out of their pocket," said Philip Connors, senior vice president, Flexi-Van Leasing, at TPM.

To view daily news visit www.joc.com. For all media enquires, including article reprints, please contact Editorial Director Paul Page.

Since 1827, The Journal of Commerce has been the most trusted source of intelligence for international logistics executives to help them plan global supply chains and better manage day-to-day transportation of goods and commodities in the United States and internationally.

To become a member of The Journal of Commerce click here. JOC members have access to our weekly print and digital magazine and Web site, as well as a 10% discount on all JOC events and trade shows, UBM Global Trade Directories and select PIERS products. Authoritative editorial content in the form of daily news, weekly analysis and regular features ensure our members have the information and data necessary to understand the issues facing trucking, rail and maritime transportation. Members enjoy access to "By the Numbers," an exclusive weekly compilation of key industry statistics that provides detailed views of current market trends across all modes. Regular market intelligence reports -- utilizing PIERS trade data -- include Top 100 Imports and Exporters, quarterly Top 40 Container lines, Trans-Pacific and Trans-Atlantic Maritime Forecasts and Top Container Ports and Terminals. Market-sector supplements, including Breakbulk, Cool Cargoes, 3PL, JOC Guide to Trucking and others, ensure all modes are comprehensively covered.  

About UBM Global Trade - UBM Global Trade is the leading provider of proprietary data, news, business intelligence and analytical content supporting commercial maritime, rail, trucking, warehousing and logistics industries worldwide. The company's portfolio of more than 100 online, print and interactive workflow business solutions includes The Journal of Commerce, Breakbulk, RailResource, PIERS and an array of international trade and transportation databases and directories. UBM Global Trade, a subsidiary of United Business Media Limited, is headquartered in Newark, NJ, with offices throughout the United States. For more information, explore www.ubmglobaltrade.com or call 800-952-3839 (+1-973-776-8660 outside the U.S. or Canada).

SOURCE The Journal of Commerce