Can Ports Keep Up with the Changing Needs of Container Lines?

Posted on: June 23rd, 2016 by The IAS Team No Comments

Many changes are taking place with containerships and the ocean carrier industry these days. Let’s discuss what is going on in this industry:

  • Mergers & Acquisitions – Many of the world’s largest carriers are forming alliances to grow their trade volume. Previously a port terminal was assigned to one carrier. That is no longer the case. The latest merger combines two Chinese carriers, China Ocean Shipping Co. (Cosco) and China Shipping Group Co. Mitsui O.S.K. Lines, Ltd.; Nippon Yusen Kaisha (NYK Line); Hanjin Shipping Co.; Hapag-Lloyd AG and Yang Ming Marine Transport Corp. have disclosed plans to form a new space-sharing partnership known as THE Alliance, operating in all east-west trade lanes.
  • New gigantic containerships up to 18,000 TEUs require ports to revamp by dredging channels, lengthening berths, adding cranes and expanding yard space.
  • The bigger the ship, the longer the turnaround time to load and unload ships. Making appointments at the dock is a good way to speed this activity by ensuring the right amount of workers are available and there is an opening at the berth. Faster turnaround times save costs.
  • New regulation to weigh each loaded container and certify its verified gross mass (VGM) prior to loading on ship is confusing. The International Convention for the Safety of Life at Sea (SOLAS) requires shippers to accurately declare the full weight of a container – both its contents and the equipment itself before it’s loaded aboard ship. The confusion comes with how and when to weigh the box and its contents, as many countries and organizations interpret the ruling differently.

Automating and optimizing operations is one way to address these issues by improving the flow of information. When a ship arrives in port, it triggers a large amount of information. Sharing this information with all trading partners means businesses can make more informed decisions that lead to bottom line success.

Reducing empty miles through street turns can enable motor carriers and ocean carriers to better utilize assets. IAS’ ChassisManager efficiently manages the financial and liability aspects of this activity. By eliminating these impediments to optimization, IAS makes it easier for intermodal participants to reduce empty mileage, cut fuel costs and emissions, decrease congestion, and eliminate cumbersome administration.

Using chassis management and transportation automation solutions from IAS ensure accurate invoicing and faster collection of detention and demurrage charges. IAS DispatchTariff module gives full visibility and control of all your drayage rates. Instantly create, view, update, or delete rates with easy-to-use fields.

Keeping up to date with the shifting patterns of the industry helps shippers and ports to stay ahead of the competition and improve bottom line results.

By Blair Peterson

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