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November 12 2018

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November 12 2018 | The Journal of Commerce 15 www.joc.com International Maritime Jim Endres, general manager of Paragon Software Systems. Drayage companies in Southern California are responding to the needs of e-commerce fulfillment centers by establishing satellite yards where containers from the harbor are stored overnight so they can be delivered the next morning to the fulfillment centers, which normally do not have much storage capacity. Chassis dislocations at ports and inland hubs, and inconsistencies in the handling of chassis at different facilities, are having a significant impact on driver productivity. Each Class I railroad has its own process for handling containers and chassis, causing BCOs and truckers to won- der, "Is my container going to be on the ground or on wheels?", transpor- tation consultant Andrew Nutting said. This is not a new problem, but the industry now has technology that can help BCOs and truckers if only more facilities would push this information to the users, he said. The management of chassis pools also has room for improve- ment if the needs of truckers are to be met, said Donna Lemm, executive vice president, national sales, at IMC Companies. Although the intention of pools is to provide interoperability of assets so that truckers are free to pick up and de- liver chassis throughout the region without regard to the owner of the asset, the so-called pool of pools would benefit from a single manager for the competing pools. That is why some truckers advocate a "pool of pools-plus" solution with one manager in charge of managing and coordinating the activities of the entire pool, she said. While the transportation industry is looking to technology solutions to address many of the efficiencies it faces, each segment of the transportation supply chain, in- cluding ocean carriers, port author- ities, marine terminals, equipment providers, truckers, and railroads, has access to a number of technolo- gy products that can address specific issues particular to each sector, but they are all siloed in their respective industries. JOC email: bill.mongelluzzo@ihsmarkit.com twitter: @billmongelluzzo and a dozen container terminals, the job is becoming increasingly complex, Hacegaba said. Therefore, even though the growth in cargo volumes will likely slow somewhat in the coming year, BCOs will continue to deal with a "massive increase in complexity" as they attempt to coordinate freight movements through marine termi- nals and along the overland truck and rail networks to their distribu- tion facilities, said Matthew Gordon, director, transportation engineering at Anheuser-Busch InBev. If drivers are experiencing delays at the ter- minals, rail facilities, and receiving warehouses, they are experiencing "too much down time," he said. The 'Amazon effect' Complexity is also increasing due to the "Amazon effect" that expects shorter lead times, tighter delivery windows and smaller, more frequent shipments, said Freight volumes have increased this year, impacting ports and the inland transportation network. Shutterstock.com Prepared for takeoff Asia air freight carriers say they are confident of meeting peak-season space needs By Greg Knowler ASIAN AIRLINES HAVE moved to allay shipper fears of chronic space con- straints this peak season and believe belly cargo and flexible freighter flights should be able to handle cargo owners front-loading shipments ahead of the Jan. 1 round of US trade tariffs on China. But the Association of Asia Pacific Airlines (AAPA) and two of its member carriers warned it's becoming very difficult to predict demand beyond the peak season. Andrew Herdman, director general of the AAPA, said the peak air cargo shipping season, currently under way, is not yet showing a shortage of capacity. "In the short term, load factors are actually edging down, which is an indication that additional capacity is available. The tariffs are stimulating the trans-Pacific and there could be pressure, but there is additional flexible capacity on many of the major routes," he told reporters at the association's annual gathering of airline executives in Jeju, South Korea. Cathay Pacific's recently released September cargo figures show a growth of 1.7 percent year over year, and CEO Rupert Hogg said the rest of the year would remain as a tradi- tional peak. "I don't know if the peak this year will look like last year, but we have about 20 freighters and take a lot of volume in our widebody fleet that we expanded quite a bit, so there are a lot more destinations," he said. "But going into next year, the future is unknown." This uncertain outlook for 2019 was supported by Walter Cho, Korean

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