Doyle says carrier alliances contribute to port congestion

The Federal Maritime Commission may institute more stringent monitoring of ocean carrier alliances, according to commissioner William P. Doyle.    A member of the Federal Maritime Commission said last week, “There is evidence that some carrier alliance models are contributing to port congestion at terminals in the United States.”
   During a speech in Athens last week, William P. Doyle, one of the five FMC commissioners, also told the European Maritime Law Organization (EMLO) that “larger ships in general are stretching the capacity of some gateways.”
   “We could be experiencing some growing pains, not so much with the two-or-three company-sized alliances, but instead with the alliances that contain a larger number of companies,” said Doyle. “The problems stem from vessels not meeting their scheduled windows thus, resulting in vessel bunching upon reaching the discharge ports. Once at the terminal, these new larger ships discharge cargo one ship after the other — swamping the terminal.”
   He also said in the Asia–U.S. West Coast trade, “vessel loading plans have changed with the new alliances in many instances — the block loading of containers at the load ports in some cases are disorganized and leading to confusion at the discharge terminal. Upon discharge, the containers are scattered all over the west coast terminal(s) making it difficult and time consuming for the truckers and shippers to retrieve their cargo.”
   Doyle said the FMC is examining these issues and “it may be that the FMC initiates more stringent monitoring and information requests on the alliances. But, time will tell, I am one vote of a five member Commission. Nonetheless, I intend to support the placement of monitoring alliances on the agenda of an upcoming Commission meeting.”
   In March, FMC Commissioner Michael Khouri called on the FMC to request all of the four major Alliances to provide new information on the steps each is taking to reduce congestion at U.S. ports, saying, “In terms of overall costs and service levels in the liner supply chain as experienced by U.S. exporters and importers, there has been a deterioration in service and significant increase in costs due to several factors.”
   Doyle noted that last week the FMC unanimously voted to allow the Pacific Ports Operational Improvements Agreement to go into effect on Friday, which will allow West Coast terminals and container carriers “to discuss factors contributing to congestion, delays at marine terminals and inefficient interchange of equipment, with the ultimate goal of creating ways to address the problems.”
   He added he believes detention and demurrage fees “are having a negative impact on the fair, efficient and reliable movement of ocean cargo,” noting many importers, exporters, and drayage trucking companies say they are having to pay fees even though they cannot gain timely access their cargo or drop it off before free time expires.