Commentary Land Lines
Balancing boxes
We ’ ve seen this movie before . We know what happens when ocean rates spike ; the ocean carriers become laser-focused on turning the ISO containers as quickly as possible and sending them back to Asia to get the next high-value load .
That imperative puts the current surge in inland point intermodal ( IPI ) squarely in the crosshairs . Every day an ISO box spends trundling inland from the coast to destination and back becomes , in the eyes of the ocean carrier , a “ wasted ” day . It ’ s much better from the ocean carriers ’ perspective to turn that container on the coast and hand off the inland movement to the beneficial cargo owner ( BCO ).
Carriers have no shortage of levers to accomplish this shift , the most significant of which is the pricing of the IPI movement to the BCO relative to port-to-port pricing . But changes of this sort will take a bit of time to implement . It will take a month or two before evidence of the shift begins to appear in the numbers .
That presents a particularly difficult dilemma because of the ongoing ILA negotiations on the East Coast . During the pandemic , East Coast routings were a logical response as lengths of haul were shorter and inland truck movement feasible and economical in the absence of IPI . But the alternative doesn ’ t look very attractive right now with the ILA contract expiration looming at the end of September and cargo trying to crowd through in advance . The prospect of congestion and delays seems very real . One obvious solution to expect will be an increase
Imports , intermodal volumes remain well below pandemic peaks
Indexes of North American international intermodal volumes , imports and real GDP , using 2017 as a baseline reading of 100
Index Reading ( 100 = 2017 )
138 130
120
110 100 100
90
80
70 |
|
|
|
|
Q1 2018 |
Q2 2019 |
Q3
2020
Q4 2020L
|
Q4 2021 |
Q1 2023 |
Source : PIERS , GTC
International Intermodal North American Loaded Import TEU Real GDP
in transload activity off the West Coast . The transload sector has been relatively quiet up until now . Southern California transloads have not participated in the big runup that IPI has experienced , but that is about to change . The transloaders appear to be well positioned to handle at least the early stages of a surge . They ’ d best get ready .
email : lgross @ intermodalindepth . com
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Classifieds & Marketplace
AARQ Association for the Administration of Rice Quotas , Inc . NOTICE OF OPEN TENDER – UK TRQ
Following the exit of the United Kingdom ( UK ) from the EU Customs Union on December 31 , 2020 , independent bids are invited for rights to ship U . S . -origin milled rice to the UK under an allocation to the UK of a tariff-rate quota ( TRQ ) granted by the EU to the United States .
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Enter the Gateway
An extensive dashboard of continuously updated charts organized by trade lane , mode and topic .
www . joc . com
Bids must be submitted on August 1 , 2024 for the October 2024 UK TRQ Tranche , in which the following quantity is available for the UK :
Volume ( metric tons )
UK Duty Semi-Milled or Milled Rice 3,238 zero ( HTS item 1006.30 )
TRQ Certificates will be awarded to the highest bidder ( s ). Any person or entity incorporated or domiciled in the United States is eligible to bid . The minimum bid quantity is 18 metric tons and the minimum bid price is $ 15 / MT . Performance security ( the lesser of $ 50,000 or the total value of the bid ) must be submitted with each bid . Potential bidders may obtain the required bid forms and bid instructions from :
AARQ Administrator TRQ Services , LLC 2001 L Street , NW , Suite 500 , # 50122 Washington , D . C . 20036 Tel : ( 202 ) 987-2972 E-Mail : aarq @ trqservices . com Website : https :// aarq . net
Note : Potential bidders should consult regulations in the UK to determine the applicable tariff rate on semi-milled / milled rice . AARQ disclaims any responsibility for advising potential bidders on applicable tariff rates .
JOC0979 July 1 , 2024 | Journal of Commerce 45