Perfect storm for US ports

Not long after the snow had been cleared, the port saw a different type of debilitating storm in the form of an unsanctioned wildcat strike by members of the International Longshoreman’s Association. The actual work of unloading vessels got caught in the pincer of early contract negotiations in advance of the present ILA contract expiration in 2018, an investigation of crime on the docks by the Waterfront commission, and the near implementation of a chassis sharing arrangement.

Predictably, major cargo shipper groups expressed concern about the lack of reliability of moving boxes through the port, which hardly has a monopoly on cargo as the entire East Coast is girding for bigger vessels.

In New York, as well as in US West Coast ports like Los Angeles and Long Beach, planners are taking a look at broader supply chains. Such a view is imperative and should be driving strategies where vessels interface with surface transportation.

Things will become even more complicated in July when new rules for weight verification of containers come into effect. As I understand it, the cargo interest – the name on the bill of lading – is responsible for weighing and verification of loaded boxes, but where there are daisy chains involved there will be a whole host of challenges that will crop up.

What will happen when the US Coast Guard, enforcer of the SOLAS weighing rules, conducts its spot checks and discovers overweight boxes. Finger pointing won’t speed up the movement of cargo when regulators slow it down. Legal responsibility is one thing, but what about disruptions on the ground when overweight boxes are found and then pulled out of the queue into the penalty area?

With such challenges in complicated supply chains come opportunities to actually improve the reliability of ports. Concerns have been voiced about the dangers of more congestion as a result of these rules, especially at the outset. But any new rule can be used as a rallying cry to push divergent interests onside, reducing the probability of future ‘storms’, provided that everyone works together.

Around New York, and elsewhere, let the new rule be a catalyst for meaningful dialogue about ‘what-ifs?’ and how to keep boxes moving, now, and in the future.