b'16American Journal of Transportation ajot.comACL AJOT_SailSchedule_2020_ACL2/27/209:33 AMPage 1Surging shipping rates pose new headwind forOONNEESSHHIIPPthe global economy C onCo nttaaiinneerrss,,RROORROO,,BBrreeaakkbbuullkkCCaarrggooShocks to supply chains aredentforglobaloceanatSan engulfing a wider swath of theFrancisco-basedfreightfor-global economy as the pandemicwarderFlexportInc.,reckons rageson,threateningtostiflethe world needs the equivalent Asiastrade-ledrecoveryjustof500,000more20-footcon-as soaring freight rates make ittainersroughly enough to fill harder for businesses to weather25 of the largest ships in opera-another year like 2020. tiontosatisfythecurrent Shortagesofconsumerdemand. In the meantime, stan-goodslikepapertowelsanddard container rates on transpa-work-from-homegearearlyincific routes are quadruple what the COVID-19 crisis have giventhey were a year ago. And thats way to parts shortfalls in one ofbeforeequipmentsurcharges RORO Customer Servicethe most globally integrated ofandpremiumsforguaranteedA SERVICE AL1 SERVICE AL2 SERVICE 877-918-7676industries: auto manufacturing. loading are added. Cuto Friday Cuto Thursday Cuto Monday Export Customer ServiceVolkswagen AG was forcedAnyone paying the freightFROM NEW YORK LOLO RORO LOLO LOLO 800-225-1235cutproductionplansatthebills in 2020 though knows theTO Transit Time Transit Time Transit Time Transit Time Export Documentation worldslargestcarfactoryintruecostofshippingismuchANTWERP 1620 18888-802-0401GermanyandwarnedsupplyhigherthaneventherecentlyDUBLIN 12Import Customer ServiceBELFAST 13 constraintsmightspreadglob- increasedrates,Poskussaid.GTEBORG 21888-802-0403ally, while Honda Motor Co. isWe expect that to only increaseHAMBURG 13 17 15 22 LogisticsreducingoutputatfiveNorthin 2021. LE HAVRE17 866-821-7449Americanfactoriesasitstrug- Justafewweeksago,theLIVERPOOL 9 13 Credit & Collectionsglestoprocurechipsusedtobottlenecks at ports from Singa- LONDON GATEWAY20 19 888-225-7747make cars. pore to Los Angeles and Rotter- ROTTERDAM11 20Thesupply-sidebottle- dam were looking like short-term necksseemtobemorepro- headaches and added costs during nounced in the U.S. and Europepeak season. Now theyre threat- Seroka reports Port of LA moved where supply delivery times areening to act more like a brake on slowing again, said Rob Sub- the global recovery.baraman, global head of macroC RimPingd EmAnd 9.2 million TEUS in 2020researchatNomuraHoldings Inc. in Singapore. This is nega- Thatsbecausetheconvul- Gene Seroka, executive director of the Port of Los Angeles reported that the tive for industrial production insions are reaching beyond supply the west and should result in achainsintooperations,eitherPort moved 9.2 million twenty-foot containers (TEUs) in 2020.sharperdrawdownininven- curbing output or saddling manu-toriesandupwardpressureonfacturers with goods that haventBy Stas Margonanis, AJOT output prices. beenpaidfor,andwreaking Compounding the industrialhavoconinventoriesandcashOur container business in 2020 was the mostturkeys and cooked meals.imbalancesaretransportwoesflows.Insomecases,supplyerratic we have ever seen, with volumes plunging plaguing consumerandhealth- snarlsarebegettingdemandnearly 19% in the first five months of the year, fol- d RAyAgEi nCEntivEScaresectorsstilldealingwithdrags: Some factories complainlowedbyanunprecedentedsecond-halfsurge Seroka noted problems faced by drayage truck-adearthofavailableshippingtheycantconsidernewordersOurILWUlongshoreworkforcedidagreatjobers picking up and delivering containers in a timely containers to move componentsuntil the clogged pipeline clears. adapting to the huge swings in volume, as did portmanner as a result of congestion caused by container andfinishedproductsoutofSatellitetrackingshowstruckersandeveryoneelseinvolvedinmovingvolume surges in the latter part of 2020. Drayage trucks China, Taiwan, South Korea andalmost three dozen container shipscargo through our Port. In a year of great difficulty,currentlyhandleaboutthree-quartersofallimport Asias other export powers. (HEADWINDcontinued onweareextremelygratefulforthetenacityandand export containers moving through the Port. In Nerijus Poskus, vice presi- page 17) resolve of all of our partners. response, Seroka announced a new Truck Turn-Time Seroka made the announcement at the Pacificand Dual-Transaction Incentive Program. Starting in MerchantShippingAssociations(PMSA)sixthFebruary, the program will financially reward terminal annual State of the Port of Los Angeles, which wasoperators who move containerized cargo faster and a virtual event. more efficiently through their terminals.Seroka laid out the Ports priorities for 2021, including job creation, cargo growth, infrastruc- i nfRAStRuCtuREi nvEStmEnt Andz ERo -tureinvestment,acceleratingzeroemissionE miSSionE quiPmEnt& t RuCkStechnologydevelopmentanddeployment,andSeroka noted the progress on $473 million in continued development of a thriving waterfrontPort capital projects, which include eight major ter-community. minal, rail and roadway improvements.P oRt ofl oSA ngElESm obilizESm EdiCAl The Port also moved forward on its goal of zero-emission terminal equipment by 2030 and a S uPPlyS uRgEf oRH EAltHCAREw oRkERS zero-emissions drayage fleet by 2035. It currently DuringtheStateofthePort,LosAngeleshas 16 demonstration projects underway involving Mayor Eric Garcetti spoke and praised Seroka andthe testing of 134 pieces of advanced equipment, Port of Los Angeles employees for their success inincluding 78 zero-emissions trucks.mobilizing the supply of personal protective equip- One zero-emission truck is being developed by ment for health care workers at local hospitals andToyota and was featured in a video explaining how nursing homes. This effort was organized by a newhydrogen can be the next generation fuel for trucks.MEXPRESS entity, Logistics Victory Los Angeles (LoVLA) inSeroka projects the cost of transitioning drayage & S response to a national shortage of protective medi- trucks from diesel to zero-emission will cost $10 bil-cal gear during the early stages of the COVID pan- lion, but this figure does not include the consider-200 MYSTIC AVENUE demic in 2020: able public and private sector costs installing region MEDFORD, MA 02155I asked Gene to serve as the citys first everwide infrastructure to support these trucks.chief logistics officer on top of his responsibilities(781) 395-8772/87 at the Portto build a city stockpile of personalP oRtd EfEndEdA gAinSt45 m illionFax (781) 395-7319 protective equipment workers in our hospitals. InC ybERA ttACkSP ERm ontHi n2020justsevendaysGenesteamtogetherwith(LosSerokanotedthatthePortsuccessfully Angeles city agencies and workers) stood up whatdefended itself against 45 million cyber intrusions Container-LTL Bonded U.S. Customs Carrier was essentially a new City department(which)permonthin2020againstsystemsoperatedby Piggyback Coverage Radio Dispatched has provided more than 4.6 million units of PPE toPort employees. The Port has built and continues Consolidation-Distribution three dozen LA area hospitals and 150 skilled nurs- to build up its cyber security defenses: The dis-Private Chassis Fleet Bonded Container Freight Station ing facilities. That is work that has saved lives. So,covery of widespread foreign cyber espionage tar-Overwidth/Overheight Loads thank you to everyone who played their part in thatgeting the US government is our latest reminder of Fully Insured extraordinary effort. why we need to protect supply chain data (from) Seroka recognized donation of supplies duringcyber intrusion attempts on our IT system (that) the crisis from Harbor Freight and Tools, Toyotahave nearly doubled to 45 million per month.Daily Service Port of Boston LosAngeles,theAppleCorporation,OperationSerokareiteratedthePortsfocusonsupply Serving: Conn., Maine, Mass., N.H.,USA in Wilmington, The Los Angeles County Fed- chainefficiencyandoptimization,callingfor Rhode Island, Vermont eration of LaborI want to especially thank CMA- nationwide port data connectivity that could provide Also Serving Logan International Airport CGM (for) numerous donations of PPE shippingenhanced visibility, efficiency and choice for cargo containers, emergency equipment and thousands ofowners, as well as a more stable supply chain.'