U.S. Business Groups Examining Port Efficiency Consequences, Options

10/14/2015 10 Considerations in Choosing a Freight Audit and Payment Provider


As a result of the significant cargo backlog that resulted from protracted labor negotiations at 29 U.S. West Coast ports, businesses and trade associations have been examining options for protecting their interests in future years. Data from the Journal of Commerce show that in September the West Coast ports market share of containerized cargo hit a 2015 high of 53.4 percent in September, with East Coast ports holding a 41.3 percent market share and Gulf Coast ports holding a 5.4 percent market share. Earlier in the year, East Coast port market share peaked at 47 percent in February, and Gulf Coast ports market share peaked at 6.7 percent in January.

The increased port volumes have caused concern over charges for detention and demurrage, with shippers, carriers, and terminal operators sparring over responsibility and reasonableness for charges. TIA is working closely with industry associations including the National Retail Federation (NRF) to examine the potential for Congressional or regulatory relief to set guidelines that will increase port and terminal efficiency while reducing conflicts and unnecessary charges.

To that end, several bills have been introduced or are being written in Congress which would establish means for monitoring efficiency at Ports and using the data to improve efficiency at those sites. Bills would also provide for government intervention in the event that a cargo backlog develops due to decreased efficiency at port facilities. At the same time, industry groups are considering petitions to regulatory agencies, including a petition to the Federal Maritime Commission for guidance on what constitutes reasonable practices at ports in regards to receiving, handling, storing, and delivering property.

TIA’s International Logistics Conference monitors U.S. ports issues for our membership. If these issues concern your business and you would like to be more involved, please contact Will Sehestedt at sehestedt@tianet.org or (703)299-5713.