Skip to content
Search AI Powered

Latest Stories

Exporters cheer U.S. effort to clear shipping container blockage

Federal Maritime Commission to investigate ocean carriers operating in alliances as shippers wince under late fees.

containers on ship

Logistics providers are cheering a possible solution to skyrocketing container-detention fees they say have spiked in recent weeks, following news today that the Federal Maritime Commission (FMC) has opened an investigation into the enforcement of ocean carrier and marine terminal practices.

For months, both shippers and carriers have complained of knots and tangles in the international fabric of trade, as boxes have piled up in U.S. warehouses and the shipping lanes that reach them, leading to a related shortage of containers in Asia.


For example, the Port of Los Angeles on Wednesday reported that container traffic for October marked the busiest month in the facility’s 114-year history, but that sunny statistic hid a troubling detail. According to the port, for every three and a half containers that are imported into Los Angeles from abroad, only one container leaves American shores filled with U.S. exports

Reasons for the imbalance include pandemic impacts such as hot U.S. demand for personal protective equipment (PPE) manufactured in Asia and a simultaneous shutdown of many North American manufacturing plants during Covid-19 shutdowns. Many containers are also tied up in the annual peak season surge of imports to the U.S. market, which was concentrated into a shorter period than usual in 2020 due to coronavirus disruptions. That flood of imports has stranded many containers at crowded maritime ports awaiting drayage to trucks and rail cars, according to Container xChange, a German firm that helps forwarders get access to third party container equipment while avoiding demurrage and detention charges.

Federal officials will now open a fact finding mission intended to investigate ocean carriers operating in alliances and calling the Port of Long Beach, the Port of Los Angeles, or the Port of New York and New Jersey, FMC said. The commission is the independent federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and the U.S. consumer.

"The Commission has a compelling responsibility to investigate the situations that currently exist in our major port gateways. The Commission is concerned that certain practices of ocean carriers and their marine terminals may be amplifying the negative effect of bottlenecks at these ports and may be contrary to provisions in the Shipping Act of 1984,” FMC Commissioner Rebecca F. Dye said in a release. “The potentially unreasonable practices of carriers and marine terminals regarding container return, export containers, and demurrage and detention charges in the Ports of Los Angeles, Long Beach, and New York/New Jersey present a serious risk to the ability of the United States to handle trade growth.”

Shipper industry groups cheered the move, with the Agriculture Transportation Coalition (AgTC) saying the investigation was “terrific news” for U.S. exporters, importers, forwarders, and truckers. In a release, the AgTC said its members have provided information to the commission on “current supply chain dysfunction” caused by carrier and terminal practices including: refusal to carry export cargo, cancelling export bookings/refusing new bookings, lack of appointments, changing earliest return dates (ERDs), lack of free time, and lack of notice.

The group has complained for weeks about the rising costs faced by exporters when carriers make “unpredictable, last minute” changes to ERDs, which mark the earliest date that exporters can bring a container into a terminal. Without that knowledge, exports face additional demurrage, storage, chassis, and trucking costs, the AgTC said.

In similar statements, groups such as the British International Freight  Association (BIFA) and the FIATA (International Federation of Freight Forwarders Associations) also backed the FMC, saying that freight forwarders and the shippers they work for are reeling from unjust demurrage fees linked to congestion in ports around the world, according to published reports.

The Latest

More Stories

person using AI at a laptop

Gartner: GenAI set to impact procurement processes

Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.

Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.

Keep ReadingShow less

Featured

Report: SMEs hopeful ahead of holiday peak

Report: SMEs hopeful ahead of holiday peak

Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.

That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.

Keep ReadingShow less
retail store tech AI zebra

Retailers plan tech investments to stop theft and loss

Eight in 10 retail associates are concerned about the lack of technology deployed to spot safety threats or criminal activity on the job, according to a report from Zebra Technologies Corp.

That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.

Keep ReadingShow less
warehouse automation systems

Cimcorp's new CEO sees growth in grocery and tire segments

Logistics automation systems integrator Cimcorp today named company insider Veli-Matti Hakala as its new CEO, saying he will cultivate growth in both the company and its clientele, specifically in the grocery retail and tire plant logistics sectors.

An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.

Keep ReadingShow less

Securing the last mile

Although many shoppers will return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.

One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.

Keep ReadingShow less