Logistics Management - October 2011

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HATChinaice cHesTItalyneon signHong Kong© 2011 C.H. Robinson Worldwide, Inc. All Rights Reserved. www.chrobinson.comKeTcHup boTTleUnited StatesDenim blAzerArgentinasAlTIndiabAr sToolSingaporeepoxyGermanyOur expertise is everywhere you look.Thousands of customers in all kinds of industries rely on us to expandtheir global supply chains around the world. As a leading global forwardingprovider, our top priority is delivering unbeatable service and execution tocustomers. Whether you need ocean, air, customs brokerage, or projectcargo solutions, we’ll do the same for you.Contact us today and tie your entire global supply chain together.solutions@chrobinson.com | 800.323.7587
Special Report: Top 30 Ocean CarriersA special supplement to logistics managementthat it was complying with investigators.Meanwhile, Visser tellsLogistics Management that the fewremaining U.S.-flag carriers wereunlikely to face similar scrutiny.“Only APL is at risk,” says Visser,“but of course, that belongs to aSingapore-based company now.”But that’s not to say that thissegment is without the stain ofmalfeasance. Earlier this year,Horizon Lines, a pure-play domesticcarrier based in Charlotte,N.C., was fined $45 million fora scheme of its own followingJustice Department charges thatit had conspired with Crowley,Sea Star, and Trailer Bridge to fixprices and increase fuel surchargeson shipping lanes to Puerto Rico.Dissecting talking agreementsShippers comprising the AgricultureTransportation Association and theNational Industrial TransportationLeague (NITL) allege that carriersin the transpacific are also quietlycolluding on prices through sub rosa“talking agreements.”The Federal Maritime Commission(FMC) is currentlylooking into that matter, saysspokesperson Karen Gregory.Number 2 MSC is gaining groundMaersk Line countries of origin for U.S. imports, TEUsPlace Receipt Country 2011 2010 % ChangeChina 474,064 512,960 -7.58%India 48,737 53,025 -8.09%Indonesia 46,517 44,816 3.79%Hong Kong 37,859 45,203 -16.25%Vietnam 31,479 35,493 -11.31%Netherlands 30,254 32,426 -6.70%Japan 29,472 31,336 -5.95%Korea, South 23,644 23,648 -0.01%Germany 21,812 26,511 -17.73%Pakistan 19,886 23,107 -13.94%MSC Mediterranean Shipping countries of originfor U.S. imports, TEUsPlace Receipt Country 2011 2010 % ChangeChina 456,313 384,078 18.81%Germany 72,614 66,326 9.48%Italy 70,354 54,947 28.04%Belgium 44,903 35,756 25.58%Brazil 39,371 39,203 0.43%Chile 37,274 33,442 11.46%Spain 22,829 18,769 21.63%India 22,249 12,822 73.53%Vietnam 20,484 15,781 29.80%Source: AlphalinerMeanwhile, responding to arequest for comments fromthe FMC on the effect of slowsteaming on U.S. ocean linercommerce, most shippers foundlittle or no rate or service benefit.“This was particularly true onthe transpacific, where carriersengage in a collective assessmentof the rate structure,” saysPeter Gatti, NITL executive vicepresident. “We, of course, agreethat there are environmentaladvantages to slow steaming, butshippers were also counting on apricing break from the carrierscomprising the TranspacificStabilization Agreement (TSA)and that hasn’t happened.”Indeed, says Gatti, onenon-conference carrier, Matson,which has been operating a dedicatedshuttle from Shanghai toLong Beach, has been running atnormal knot-speed and deliveringgoods at a competitive pricepoint. “So from a money-savingperspective, slow steaming’sadvantages are negligible,” addsGatti.Spokesmen for the WorldShipping Council (WSC) havealso been telling Logistics Managementthat while its member’scomments were largely in supportof continued slow steaming,the issue was largely confined tothe transpacific lanes.“To my knowledge, we don’tface this problem anywhere elsein the marketplace,” says WSCspokesperson Anne Kappel.“Besides, the FMC does nothave the enforcement powersto regulate any trade lane basedon request for comments.”According to the NITL’sGatti, supply chains havesuffered negative impacts asa result of slow steaming. Hesays that shippers are reporting56S October 2011 • Logistics Management
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