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FMC expands capacity, pricing monitoring of alliances
The FMC is strengthening its monitoring of the three major container alliances by requiring members to provide more information on pricing and capacity on trades in which they cooperate.
The FMC said it would require the 2M, Ocean, and THE alliances to submit more detailed information to the Commission’s Bureau of Trade Analysis (BTA), in an effort to better gauge carrier behavior and market competitiveness.
Container lines within the alliance are allowed to cooperate on operational matters. However, they cannot market, sell, or contract third-party providers jointly. Therefore, alliance members compete with each other and carriers in other alliances.
FMC chairman Daniel Maffei said the FMC had not found any evidence showing container lines are colluding to keep freight rates high, but acknowledged the agency had stepped up its monitoring.
Port automation debate flares ahead of USWC labor talks
The temperature around terminal automation – long anticipated to be the most contentious issues in the upcoming USWC labor talks – is heating up. Diametrically opposed views of management and labor as to the use of automated cargo handling equipment have emerged.
The PMA recently released a study noting that automation “will figure prominently in coming labor talks” with the ILWU. Additionally, the study highlighted the PMA’s main point that only through automation will it be possible to expand the capacity of marine terminals at the ports of LA and LB.
Responding to the PMA study, ILWU Coast Committeeman Frank Ponce DeLeon said that automation has destroyed longshore jobs. Additionally, he said, “Container volume has increased at the automated terminals, but this has been at the expense of other terminals that have had an offsetting drop in container volumes.”
The ILWU’s opposition to automation has become part of its mainstream view. They say that “human-operated equipment is superior to automated equipment for many reasons.” Therefore, observers believe the negotiations will likely take time, likely extending beyond the July 1st expiration date of the existing contract.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
