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April 16 2018

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April 16 2018 | The Journal of Commerce 7 www.joc.com Spotlight Empower Your Team. Unlimited access to business-critical news and in-depth analysis on shippers- need-to-know. www.joc.com 19036 yard. They also lose potential business opportunities when boxes are stuck in the supply chain, the opposition has argued. Air cargo capacity available but not where needed From 30,000 feet, the reasons for tightening air cargo capacity look remarkably like the factors behind tighter surface transportation capacity: asset-based networks, whether of planes or trucks, thrown o balance by fast-growing demand. Closer to the ground, solutions are harder to see, as less-visible factors complicate the capacity picture. "There is the perception of an air cargo capacity crunch, but there is still plenty of capacity in the market," Sebastian Kunze, Lufthansa Cargo sales steering and capacity manager for the Americas, said at the spring meeting of the Health Care and Personal Logistics Conference in late April. The root FMC probe focuses first on carriers and terminals The Federal Maritime Commission (FMC) is focusing on ocean common carriers and marine terminals in the fi rst stage of its investigation into port demurrage, detention, and free time, and has asked them to provide information and documents explaining those practices. Investigators in the inquiry, led by Commissioner Rebecca Dye, have directed carriers to "provide detailed information about their detention and demurrage practices, especially regarding circumstances where shippers are not able to retrieve cargo." The top maritime regulatory agency said an e ort seeking the same from marine terminal operators (MTOs) is also under way. "The ultimate resolution of this investigation will have the potential to a ect every ocean common carrier calling the United States," Dye said in a statement. "It is vital that the information we gather is representative of business and operational practices, as well as market conditions nationally." The information requests are the fi rst steps in a fact-fi nding mission that grew out of commission hearings in January triggered by concerns expressed by the Coalition for Fair Port Practices, a group of 26 organizations. The coalition petitioned the federal agency to establish guidelines to discourage ocean carriers and MTOs from charging hundreds of thousands of dollars when the delay in picking up or dropping o the container was out of shippers' control. Ocean carriers and MTOs, though, told commissioners they resolve shipper disputes on a case-by- case basis, but also absorb real costs when containers remain untouched in a container Shutterstock.com Shutterstock.com

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