Lines Agree to Cut Vancouver Cargo
Deltaport Still Socked by Container Backlog |
|
|
|
(The Journal of Commerce Online)
Ocean
carriers have agreed to cut import cargoes at Vancouver's Deltaport (schedules) by 25 per cent a week for four weeks beginning Feb. 28 as the Canadian port struggles to clear a stubborn backlog of
containers.
"The backlog hasn't changed" from more than 5,000 containers, said Morley Strachan, vice-president of TSI Terminals Inc., in an interview. TSI declared force majeure in
mid-January -- meaning that it was not liable for delays in delivering boxes - blaming Canadian National Railway for a shortage of railcars.
Strachan said CN had yet to provide the extra capacity it
promised at the time, from 11,800 feet per day to 14,000 feet, although "they are supposed to be working on it."
Canadian National spokesman Mark Hallman, however, said "we're putting
in 14,000 feet a day -- we're up there." He said that capacity has been affected by events outside of the railroad's control, including a recent collision between a passenger train and a truck that
disrupted mainline traffic, but that "the week of Feb. 7, for instance, we averaged 14,100 feet per day."
But with no significant reduction in the backlog and the surge of Asian imports
continuing, TSI just over a week ago urged steamship clients of Canadian National to reduce their import cargoes.
"The carriers were given two options," said Chris Badger, vice-president of
the Vancouver Port Authority. "Either they could miss a visit to the port -- just don't come in once -- or they could reduce what they bring in by 25 per cent a
week for four weeks. I believe most chose the latter."
Strachan said carriers agreed to reduce imports "for a period of time, until we see some change in the backlog."
The
carriers were given until Feb. 28 to implement reductions, if they chose, simply by not loading their ships with as much Vancouver cargo. The lines could also choose to divert cargo to another port.
"There may be other options as well," Badger said. "There likely is no one way."
Initially, TSI predicted it would take seven to 10 weeks to clear the backlog. But after a month
with no change, there are no new forecasts of how long a clean-up would take with the reduced cargo levels
|
|
|
The CIFFA Perspective
The Bar-Code Border's
Courtney Tower reports that Ocean Lines have agreed to cut origin port loadings by up to 25 percent a week for 4 weeks beginning February 28, 2005 for Deltaport scheduled vessels. This comes as a result of Deltaport being unable to clear the backlog on which we reported on January 20th.
TSI Terminals maintains that the backlog of some 5'000 Containers has not changed since it declared force majeure mid January. As per TSI, CN has "yet to provide the extra capacity it promised
at the time, from 11,800 feet per day to 14,000 feet, although 'they are supposed to be working on it.'"
On the other hand, CN maintains that "we're putting in 14,000 feet a day - we're up
there." He said that capacity has been affected by events outside of the railroad's control, including a recent collision between a passenger train and a truck that disrupted mainline traffic, but that
"usually they averaged 14,100 feet per day."
The carriers now are left with the option to either reduce volume uplift voluntarily or divert cargo to another port!
Initially, TSI
predicted it would take seven to 10 weeks to clear the backlog. But after a month with no change, there are no new forecasts of how long a clean-up would take with the reduced cargo levels.
However,
CIFFA believes -- as forecasted earlier -- that the volume upswing, due to the Chinese New Year, factory closings, will continue until about mid/end next week after which time there will be an automatic
downturn in volume until Chinese manufacturing gets back to "normal."
|
|
|
|
Best viewed with MSIE 6.0 at 800 X 600 resolution. |
|
|
© 2005 The Federated Group - All rights reserved. |
|
|
| |
|
|
|
|
