Ocean

From my GLS class this past Tuesday taught by Brandon LeCou of Hamburg Sud NA, some information I thought was interesting about ocean transportation:

  • Beneficial Cargo Owners (BCO’s) with high cargo volume have tremendous leverage in negotiating rates directly with carriers, however, they may not have the expertise nor the risk protection offered by working with a freight forwarder
  • A “tramp service” is an ocean carrier which goes where it wants to go, i.e. it is not part of an established ports of call.  An example would be chartering a shipment to Guam for a bulk shipment of power plant parts.  As you might expect, the term “tramp” is derived from the English word meaning a beggar or vagrant.
  • There are a significant amount of carriers and they are constantly consolidating and forming alliances with other carriers.
  • Containerships are still called steamships, even though most of them run on diesel.
  • Most of us heard about the CMA CGM 18,000 TEU Benjamin Franklin’s recent call to the POLA.  It is the largest steamship to service the POLA.  Interestingly another the previous record for ship size was set two days earlier when the 15,000 TEU Maersk Edmonton called on the POLA.
  • CMA CGM is planning on calling on the POLA with all six of its 18,000 TEU ships over the next year.
  • Big ships can cause big problems for infrastructure and other supply chain requirements.  It remains to be seen whether US ports are prepared for the larger ships.
  • More ocean carriers are offering freight consolidation, warehousing, trucking, and rail services to deliver packages to their final destination.

Published by

Chuck Berger

I am Director with Cushman & Wakefield's Global Supply Chain Solutions (CA Broker License #01359232). My passion is solving real estate problems for supply chain companies and investors.

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