Forwarders’ Forum: Keep communication lines open to keep airport lines moving

There has been a great deal of research into the psychology of waiting in line. As it turns out, it’s not the wait but the perception of the lack of fairness that causes the most frustration. That frustration is reaching a boiling point as a result of the ongoing delays at major ocean ports in the U.S. and Europe. These delays, and the rising associated costs, have created a shift that may benefit air cargo — but only if the industry can solve similar issues at airports. [caption id="attachment_93852" align="alignright" width="300"] Brandon Fried, Executive Director of the U.S. Airforwarders Association[/caption] Reports in February indicated that over thirty-five ships carrying more than 30,000 containers were stacked in line, waiting for docking outside Los Angeles and Long Beach ports. On shore, lines of cargo trucks stretched for hours as port workers struggled to handle the unsurpassed volume of cargo. We’re seeing this situation at ports all over the world, as pandemic-driven consumer demand challenges major ocean freight transit points. There are many factors contributing to the problems and causing a lot of finger-pointing within the logistics industry. Truckers blame poor infrastructure and port management for the harsh lines resulting in no chassis, hours of waiting time, and lost productivity. Port workers say that ongoing delays and inefficiencies are due to an insufficient supply of dock labor, caused by a sick and aging workforce. Others blame the freighters themselves. During the height of the pandemic, steamship lines canceled sailings in a struggle to accommodate uncertainties stemming from low manufacturing output and demand, and undetermined trade policy. This shortage of sailings resulted in a container imbalance, which forced ships to return carrying nothing but empty boxes. Regardless of the underlying cause, consumers are most impacted as the world begins its recovery from COVID-19. In the last year, supply chains have evolved to accommodate new buying patterns focused on e-commerce, which emerged as consumers made because of fewer trips to brick-and-mortar stores. The freight transportation industry needs to evolve as well, to resolve its challenges and deliver a better experience for the customer. As port-congestion chaos endures beyond the Lunar New Year holiday, some freight forwarders suggest that customers shift their ocean shipments to airfreight. According to the Shanghai Containerized Freight Index, the once unfathomable discussion now seems reasonable, as container costs from Asia to the U.S. hit a new record of 162% higher the same time last year. After factoring in the surging port congestion-related expenses — including detention and demurrage fees — trucker waiting time surcharges and lost opportunity costs, a trip to the airport starts to seem worthwhile. Unfortunately, shippers who make the switch to airfreight may find a similar pattern of delays. Passenger airline capacity continues to be at rock-bottom lows, with more than 50% of the world’s aircraft fleet remaining idled due to shallow demand. While freighter aircraft and converted passenger planes fly essential shipments, airport congestion remains an unsolved issue. Third-party ground handling companies now accommodate more than half the cargo that passes through commercial airports worldwide. However, the airline computer systems they use to track and respond to shipments are often inaccurate, causing truckers to show up to collect shipments that may not be available. The ineffective communication, combined with an abundance of cargo trucks waiting to retrieve unavailable loads, has created incredibly long lines at airports that many legacy gateways cannot accommodate. As at ocean ports, there are many factors contributing to airport congestion, but solutions can only be implemented following a broad understanding of the scope of the challenge. Several organizations representing forwarders, customs brokers and airport managers are sponsoring a survey to determine stakeholder concerns and perceived reasons for the delays. Each airport has its unique challenges, and the results will help this combined group work together toward addressing the most pressing challenges. Regardless of the underlying causes for delays at transit points, effective communication between all stakeholders is essential to reducing congestion. The pandemic continues to make in-person dialogue challenging, but many associations are hosting virtual meetings to keep the discussion going and accelerate progress toward solutions. As the world recovers from the pandemic and navigates the increased freight volumes, shippers may find that leaving ocean transport in favor of airfreight to be a worthwhile option, at least in the short term. Regardless of their decision, a strong and robust community of freight forwarders remains committed to working toward a solution for the major delays and supporting their customers with fair and creative transportation solutions.

Forwarders’ Forum: Keep communication lines open to keep airport lines moving

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