Shipping urged to ‘engage’ with supply chain to solve US port problems

Carrier alliances have been told they should enter talks with the operators of Port of New York & New Jersey to ease the return of empty containers.

US Federal Maritime Commissioner Carl Bentzel said it was apparent that the ongoing situation at the port “related to the delivery of imports and exports and the return of empty containers is increasingly untenable”.

“I am concerned that if left unchecked, drayage trucking serving the port will suffer, and fewer and fewer truckers will be willing to service the port,” Mr Bentzel said in a letter to 2M, Ocean Alliance and The Alliance.

“In large part, the volume surge of import cargo has contributed to confusion and congestion at the Port of New York & New Jersey.”

While recognising the role of the volume surge in the “confusion and congestion” at New York/New Jersey, Mr Bentzel wrote that “the large-scale structure” of the existing three-carrier alliance system also contributed to the challenge of providing shoreside transportation.

“Accordingly, I am writing to urge all three alliances serving the port engage and co-ordinate with supply chain stakeholders on how to best address shoreside intermodal transportation services.”

He strongly encouraged each of the alliances to participate on the Council on Port Performance, an information group founded in 2014 which meets on a regular basis to ensure there is consistent communication among stakeholders.

“However, when the CPP was created, the alliances had not been established,” Mr Bentzel wrote, though acknowledging that over time individual alliance members had participated in the initiative.

According to the CPP, only two ocean carriers, CMA CGM and Hapag-Lloyd, are part of the group — a point Mr Bentzel noted.

He said there had “never been full representation of all three alliances” and expressed the belief that “this has been a blind spot in the regional supply chain coordination and has become a drag on the efficiency of the supply chain during the pandemic”.

Over the years, he said, the CPP had been the focal point in addressing regional resiliency and supply chain challenges. Many of the problems, he said, had been resolved by simply “being present” with other stakeholders, and talking issues through. 

“It concerns me that not all the Alliances have been at the table, participating in real-time problem-solving discussions,” he said.

New York/New Jersey is projected to move 8m containers this year, he noted, adding that freight surges and increased volumes had put “tremendous strain” on the overall regional supply chain.

“For the benefit of the post pandemic economy, and to better serve freight volumes, all supply chain stakeholders will need to work together to ensure that the freight moves safely, securely, and efficiently,” he said.

An investigation by the FMC into congestion caused by the pandemic at the Ports of Los Angeles, Long Beach and New York/New Jersey has highlighted problems of detention and demurrage, as well as shortages of equipment.