b'20American Journal of Transportation ajot.comFMC orders 10 ocean carriers andSuez blockage is a signal 17 marine terminals to report onof whats ahead as ships demurrage and detention practices get biggerThe 200,000-ton cargo shipwaterway has halted the transit By Stas Margonanis, AJOT that was lodged in the Suez Canalof about 185 ships, according to last week, bringing 13% of theRichardMeade,London-based In response to complaints by U.S. exporters andcan companies to reach overseas markets is an impor- worlds trade to a halt, may bemanaging editor of Lloyds List DemocraticandRepublicanCongressionalrepre- tant issue. One of the statutorily established purposesthe biggest vessel to get stuck inMaritimeIntelligence.Yet,as sentatives, the U.S. Federal Maritime Commissionof the Federal Maritime Commission is to promotea major waterway. But if historyin 1967 and throughout history, (FMC) announced that it was ordering 10 ocean car- the growth and development of United States exportsis any guide, it wont be the last. there are alternatives.riers and 17 marine terminals to report on demurragethrough competitive and efficient ocean transportationMovement of ships betweenThecanalhasntalways and detention practices and penalties assessed onand by placing a greater reliance on the marketplace.the Red Sea and Mediterraneanbeen there, he said in a phone shippers as well as the availability of empty contain- We are mindful of this direction in discharging ourwere halted for 6 days when theinterview. Its entirely feasible for ers for U.S. exporters to ship their goods. regulatory responsibilities. containershipEverGivenranshipping to reroute around Africa.A March 17th letter addressed to the Congres- On March 25th, Peter Friedmann, executiveaground in the southern part ofIn2016,twoseparateinci-sional representatives and signed by FMC Chairdirector of the Agriculture Transportation Coalitionthe Egyptian canal.dents occurred where ships ended Michael A. Khouri and four FMC Commissionerswelcomed the FMCs action: Our members, theTheblockagehighlightsaup blocking the canal. In one case, announced that: Last week, Commissioner Dyenations agriculture and forest products exporters andmajor risk faced by the shippingtheshutdownlastedtwodays. ordered ten (sic) Vessel-Operating Common Car- importers, are encouraged by the response to the Com- industry as more and more shipsThatincidentwasbriefandthe riers and 17 Marine Terminal Operators to providemittees timely directive, namely that the Commissiontransitmaritimechokepointsstuck ship was half the size of the a compulsory report on their practices related tois united behind Commissioner Dyes initiative, as itincluding the Suez, Panama Canal,Ever Given, according to Meade.demurrage and detention, empty container return,has the potential to significantly reduce unreasonablethe Strait of Hormuz and South- Container vessels have nearly and the availability of containers for the carriagedemurrage and detention charges. But the export trans- east AsiasMalaccaStrait.Suchdoubled in size in the past decade of U.S. exports. The responses to this compulsoryport crisis continues, with lost sales and other addi- occurrencescouldbecomemoreas global trade expanded, making order will inform Commissioner Dyes next stepstional costs amounting to millions of dollars a week.common as ships get bigger andthejobofmovingsuchships to address this critical issue. The Commission willSolutionsareurgentlyrequired;wearecontinuingwaterways get more congested. much harder when they get stuck. take action against practices that violate the law. to work with Congress, USDA (U.S. Department ofIhaveneverseenacon- This is particularly the case now The letter went on to say: The ability of Ameri- Agriculture) and the FMC to expedite relief. tainer vessel this large groundedas homebound consumers around so hard in a canal that way, saidthe world order goods online due Lindsay Malen-Habib, presidentto the pandemic, prompting such of the American Salvage Asso- vessels to carry more and more House Republicans and Democrats voice concernsciation. This is a first that I cancontainersandincreasedship-remember. ping congestion.to FMC that ocean carriers decline to shipStill,thislatestSuezinci- TheEverGivenisamong dent is nothing compared to thethe largest of container ships in US agriculture exports eight-year shutdown in 1967. the world and was as full as it AftertheSix-DayWarcan be when it became stuck, By Stas Margonanis, AJOT betweenIsraelanditsArabMeadesaid.Atthemoment, neighborsthatyear,theSuezall ships are fully laden because OnMarch9th,agroupofnies looking to offload foreign- aredeliveringshipmentstoCanal was shut down until 1975there is so much demand.Democratic and Republican Con- made products at American portsU.S. ports and then electing towhile Egyptian and Israeli forcesOther waterways have expe-gressionalrepresentativesledbymustprovideopportunitiesforleavewithoutrefillingemptyfacedoffacrossthewaterway.rienced disruptions. The Panama John Garamendi (D-CA) and JimAmerican exports. Even duringcontainerswithAmericanDuringthatperiod,shippersCanal closed for a day in 1989, Costa(R-CA)announcedthata global pandemic, trade must begoods for export. Such activityhad to go around Africa, addingwhen U.S. military forces staged theyauthoredabipartisanlettermutually beneficial, and I expectconstrictsentiresupplychainstime and expense to world trade.an assault on the Central American toMichaelA.Khouri,chairoftheFederalMaritimeCommis- and propels trade to move onlyTheclosurealsoensnared15countrytodeposethecountrys theFederalMaritimeCommis- sion to resolve these issues andin an inbound direction, Housecargo shipsdubbed the Yellowleader Manuel Noriega. Just two sion (FMC), voicing concern overensure that is the case. representatives say. Fleetpartwaythroughtheiryears ago, a chemical plant fire in reports that certain vessel-operat- TheAgricultureTranspor- In addition, House memberscanal transit, turning a day-longTexas prompted the shutdown of ing common carriers (VOCCs) aretationCoalition(AGTC)hasnote, in March 2020, the Federaljourney into an eight-year ordeal. the three-day closure of the Hous-declining to ship agricultural com- takenaleadershiproleurgingMaritime Commission launchedThe latest closure of this keyton Ship Channel in 2019.modity exports from US ports. the FMC to take action againstFactFindingNo.29,Inter-Over 100 congressional rep- ocean carrier practices that hurtnationalOceanTransportation resentatives signed the letter toU.S. exporters. Supply Chain Engagement, toSuez crisis isnt deterring the FMC including: Garamendi,American producers, export- investigateallthecongestion, Costa and Adrian Smith (R-NE),ershavegrappledwithwide- bottlenecks,andfeesseenatorders for mega container shipsRepresentativesRodneyDavisspreaddelays,bottlenecks,andU.S.ports.InNovember,Fact (R-IL), Dusty Johnson (R-SD),increasingfeesatU.S.ports.Finding No. 29 was expanded toThe 200,000-ton cargo ship Samsung Heavy will build TroyNehls(R-TX),JimmyThesechallengesareexacer- include reports of the decline tothat blocked one of the worlds20shipsthatcaneachcarry Panetta(D-CA),andMikebatedbyreportsthatVOCCsship American exports. busiestwaterwayshasdone15,000containers,thesingle Thompson (D-CA). littletodetershippingcompa- biggest shipbuilding contract at California is a leading exporterniesfromorderingsimilarly2.81trillionwon,theshipyard of agricultural commodities, total- (CHASINGcontinued fromment in the United States to date,mega-sized vessels. saidinaseparatestatement. ingover$42billioninannualpage 14) according to the New Jersey gov- Korea Shipbuilding & Off- Thosevesselswillbehanded receipts,saidRepresentativecargo.AccordingtoBrendanernors office. Construction on theshore Engineering Co. and Sam- over to a unnamed customer in Jim Costa. It is critical that weDugan, assistant executive direc- facility will break ground in Janu- sung Heavy Industries Co.twoPanama by June 2025.resolvesupplychainissuessotor and director of business devel- ary 2021, with production begin- of the worlds three biggest ship- Globally, there are about 180 ourproducerscanquicklyshipopment at the South Jersey Portning in 2023.buildersannouncedtheydshipsthatcaneachcarrymore healthy, nutritious food around theCorporation(SJPC),Initially,Thewindenergymarshal- wonordersworthacombinedthan15,000containers,accord-world. Food is a national security70 acres will be leased to EEWling port proposed by New Jer- 3.45 trillion won ($3 billion) oning to Um Kyung-a, an analyst at issue and we cannot allow for dis- for monopile manufacturing. Inseysgovernor,whichwillbeFriday to build 25 container ves- Shinyoung Securities Co. in Seoul. ruptions to this system. This letterJuly 2019, EEW signed a memo- designed to assemble wind com- sels that are all longer than theAt least 47 more ultra-large con-sends a strong bipartisan messagerandum of understanding (MOU)ponents for transport to offshoreEiffel Tower. The ships will betainer vessels are expected to be to quickly investigate and resolvewith rsted towards establishingsites,willcostbetween$300delivered by 2025. deliveredby2024,accordingto any issues that impact our econ- the monopile fabrication facility inmillion and $400 million to fullyKoreaShipbuildingwillresearch firm Drewry.omy and ability to feed the world. Paulsboro. The Paulsboro facility,develop,accordingtogovern- build five vessels that can eachOrdersformega-bigships RepresentativeJohnGara- in addition to building monopilesment estimates. Construction iscarry13,20020-footcontain- have been increasing since this mendisaid:Californiasagri- for Ocean Wind, will likely alsoplanned in two phases, with 55ers for Taiwans Wan Hai Linesyearafterthelinessawtheir culturalexportersandotherserveotheroffshorewindsitesacrestobedevelopedbegin- Ltd.,theUlsan,SouthKorea- profitsjumpin2020.Global businessesarewillingtopayaround the United States, as speci- ning in mid-2021, while anotherbasedcompanysaidinantrade has recovered to pre-pan-toensurethatAmerican-madefied in the MOU. The monopile150acreswillaccommodateemailedstatementFriday.Thedemiclevelsasthecoronavi-productsreachmarketsinthefacility will represent the largestmarshallingandmanufacturingships will be delivered startingrus triggered a huge amount of Asia-Pacific.Inturn,compa- industrialoffshorewindinvest- activities beginning in 2026. from the first half of 2023. demandforhouseholdgoods.'