STRONG cargo volumes from Asia to North America's west coast have "exposed severe shortcomings in the overall supply chain network", says Drewry's latest Container Insight Weekly.
"Current slack season volumes will give some respite to the US west coast (USWC) port congestion but fundamental issues need to be addressed by the industry's stakeholders if this is not to be a recurring theme."
Drewry said the volume of cargo moving on the head-haul leg during September to North American west coast ports hit an all-time record of 1.1 million TEU, registering a year-on-year rise of 5.1 per cent.
"Asian boxes pouring into the US ports surpassed the 900,000 TEU threshold for the first time ever, and the Mexican market remained strong with a rise of 17.5 per cent," Drewry said.
"Only the Canadian trade lane remained subdued with loads scarcely any higher than a year ago, and September volumes were well off their June peak. On a 12-month rolling average basis, the eastbound west coast of North America growth rate has steadied at 5.2 per cent for the third consecutive month."
Falling energy prices "are providing a strong spur to consumer spending," Drewry said. For "American households that simply live from one wage packet to another, this fuel saving will generate extra disposable income which they are more than likely to spend rather than save."
It said west coast congestion has resulted from a "simmering cauldron of issues: large 10,000 TEU ships being placed in the trade, scarcity of chassis, insufficient railcar availability, not enough truck drivers, lack of any progress to conclude a new port labour agreement, which has brought along go-slows, a shortage of labour and poor crane productivity."
Drewry noted only three longshore gangs are being allocated to larger ships when "ideally" they need five to six gangs to be worked efficiently.
"The result is that the larger ships require up to three additional days in port to complete their exchange, and even then they have to cut loose leaving behind empties and some loaded export boxes, which in turn further clog up the berths," it said.
"Carriers have had to steam vessels faster than planned in order to try to get services back on schedule."
PORTS
15 December 2014 - 00:13
Huge box volumes expose 'severe' US west coast cargo handling deficiencies
STRONG cargo volumes from Asia to North America's west coast have "exposed severe shortcomings in the overall supply chain network", says Drewry's latest Container Insight Weekly.
PORTS
15 December 2014 - 00:13
Huge box volumes expose 'severe' US west coast cargo handling deficiencies
This news 8123 hits received.
These news may also interest you