Insights - September 2017 - 17

Megavessels
Trigger Sweeping
Intermodal Supply
Chain Changes

T

he transformational parade of "megavessels"
calling at U.S. ports has created a blend of
opportunity and uncertainty about the ever-larger
ships' overall impact on the intermodal supply
chain. It has also generated intense attention on
the resulting landside complexity as well as the
challenges to service and port, terminal, rail and
truck capacity.
According to the World Shipping Council, maximum vessel
size has nearly doubled in just 12 years. The economic justification for launching and operating ships that now top 20,000
TEUs is apparent: lower costs at a time when ocean carriers
as a group are struggling with profitability. The International
Transport Forum identified typical savings of about $70 per TEU
for 18,000-plus TEU vessels compared with their 14,000 TEU
cousins.
The megavessel trend will continue. Drewry Shipping
Consultants reported in July that 57 ships topping 18,000 TEUs
are to be delivered. Most are due to arrive next year, anticipating
further demand growth in more buoyant global markets amid
a continued drive in the liner industry to lower costs through
individual actions, mergers or alliances.
August's second quarter earnings report from the owner of
the largest ocean carrier, whose biggest vessels total 20,600
TEUs, succinctly explained their appeal. "Maersk Line has a
continued focus on managing capacity and the new vessels will
replace older and less efficient vessels," the report said.

'Working Closely'
From the rail perspective, UP spokeswoman Raquel Espinoza said, "Union Pacific is working closely with ocean carriers
in new carrier alliances to ensure larger-vessel cargo transitions
from dock to rail in a seamless and efficient manner. We also
work with the carriers' equipment providers to stage resources,
such as chassis, at the right time.
"Union Pacific has ample capacity to handle smaller volumes
to various destinations at our International Container Transfer
Facility, located about four miles from the San Pedro ports, benefitting newly-aligned ocean carriers working to increase freight
density to and from the various interior rail points," she added.
Ken Kellaway, CEO of RoadOne IntermodaLogistics, outlined
the challenges drayage carriers face.
"Megavessels have created a certain amount of bunching at
the terminals," he told Intermodal Insights. "That makes it more
Megavessels - continued on page 19
Photo courtesy Port of Los Angeles

September 2017 | Intermodal Insights

17



Table of Contents for the Digital Edition of Insights - September 2017

President's Message
IANA News
Silver Kingpin Award Winner Bob Huffman’s Story: On the Move
ELD Mandate Draws Ever Closer: How Ready Are You?
Megavessels Trigger Sweeping Intermodal Supply Chain Changes
IANA Salutes Intermodal Truck Drivers
EXPO’s Comprehensive, Dynamic Education Program Covers Intermodal Landscape
Speakers, Moderators Have Wide Range of Professional Credentials
Welcome New Members
Insights - September 2017 - Cover1
Insights - September 2017 - 2
Insights - September 2017 - 3
Insights - September 2017 - IANA News
Insights - September 2017 - 5
Insights - September 2017 - 6
Insights - September 2017 - Silver Kingpin Award Winner Bob Huffman’s Story: On the Move
Insights - September 2017 - 8
Insights - September 2017 - 9
Insights - September 2017 - 10
Insights - September 2017 - ELD Mandate Draws Ever Closer: How Ready Are You?
Insights - September 2017 - 12
Insights - September 2017 - 13
Insights - September 2017 - 14
Insights - September 2017 - 15
Insights - September 2017 - 16
Insights - September 2017 - Megavessels Trigger Sweeping Intermodal Supply Chain Changes
Insights - September 2017 - 18
Insights - September 2017 - 19
Insights - September 2017 - 20
Insights - September 2017 - 21
Insights - September 2017 - 22
Insights - September 2017 - IANA Salutes Intermodal Truck Drivers
Insights - September 2017 - 24
Insights - September 2017 - 25
Insights - September 2017 - 26
Insights - September 2017 - EXPO’s Comprehensive, Dynamic Education Program Covers Intermodal Landscape
Insights - September 2017 - 28
Insights - September 2017 - 29
Insights - September 2017 - 30
Insights - September 2017 - 31
Insights - September 2017 - 32
Insights - September 2017 - 33
Insights - September 2017 - 34
Insights - September 2017 - Speakers, Moderators Have Wide Range of Professional Credentials
Insights - September 2017 - 36
Insights - September 2017 - 37
Insights - September 2017 - 38
Insights - September 2017 - 39
Insights - September 2017 - 40
Insights - September 2017 - 41
Insights - September 2017 - 42
Insights - September 2017 - 43
Insights - September 2017 - 44
Insights - September 2017 - 45
Insights - September 2017 - Welcome New Members
Insights - September 2017 - 47
Insights - September 2017 - 48
http://www.nxtbook.com/nxtbooks/iana/ii_20181112
http://www.nxtbook.com/nxtbooks/iana/ii_20180910
http://www.nxtbook.com/nxtbooks/iana/ii_2018expo
http://www.nxtbook.com/nxtbooks/iana/ii_20180708
http://www.nxtbook.com/nxtbooks/iana/ii_20180506
http://www.nxtbook.com/nxtbooks/iana/ii_20180304
http://www.nxtbook.com/nxtbooks/iana/ii_20180102
http://www.nxtbook.com/nxtbooks/iana/ii_20171112
http://www.nxtbook.com/nxtbooks/iana/ii_20170910
http://www.nxtbook.com/nxtbooks/iana/ii_201709
http://www.nxtbook.com/nxtbooks/iana/ii_20170708
http://www.nxtbook.com/nxtbooks/iana/ii_20170506
http://www.nxtbook.com/nxtbooks/iana/ii_20170304
http://www.nxtbook.com/nxtbooks/iana/ii_20170102
http://www.nxtbook.com/nxtbooks/iana/ii_201612
http://www.nxtbook.com/nxtbooks/iana/ii_201611
http://www.nxtbook.com/nxtbooks/iana/ii_201610
http://www.nxtbook.com/nxtbooks/iana/ii_201609
http://www.nxtbook.com/nxtbooks/iana/ii_201608
http://www.nxtbook.com/nxtbooks/iana/ii_201607
http://www.nxtbook.com/nxtbooks/iana/ii_201606
http://www.nxtbook.com/nxtbooks/iana/ii_201605
http://www.nxtbook.com/nxtbooks/iana/ii_201604
http://www.nxtbook.com/nxtbooks/iana/ii_201603
http://www.nxtbook.com/nxtbooks/iana/ii_201602
http://www.nxtbook.com/nxtbooks/iana/ii_201601
http://www.nxtbook.com/nxtbooks/iana/ii_201512
http://www.nxtbook.com/nxtbooks/iana/ii_201511
http://www.nxtbook.com/nxtbooks/iana/ii_201510
http://www.nxtbook.com/nxtbooks/iana/ii_201509
http://www.nxtbook.com/nxtbooks/iana/ii_201508
http://www.nxtbook.com/nxtbooks/iana/ii_201507
http://www.nxtbook.com/nxtbooks/iana/ii_201506
http://www.nxtbook.com/nxtbooks/iana/ii_201505
http://www.nxtbook.com/nxtbooks/iana/ii_201504
http://www.nxtbook.com/nxtbooks/iana/ii_201503
http://www.nxtbook.com/nxtbooks/iana/ii_201502
http://www.nxtbook.com/nxtbooks/iana/ii_201501
http://www.nxtbook.com/nxtbooks/iana/ii_201412
http://www.nxtbook.com/nxtbooks/iana/ii_201411
http://www.nxtbook.com/nxtbooks/iana/ii_201410
http://www.nxtbook.com/nxtbooks/iana/ii_201409
http://www.nxtbook.com/nxtbooks/iana/ii_201408
http://www.nxtbook.com/nxtbooks/iana/ii_201407
http://www.nxtbook.com/nxtbooks/iana/ii_201406
http://www.nxtbook.com/nxtbooks/iana/ii_201405
http://www.nxtbook.com/nxtbooks/iana/ii_201404
http://www.nxtbook.com/nxtbooks/iana/ii_201403
http://www.nxtbook.com/nxtbooks/iana/ii_201402
http://www.nxtbook.com/nxtbooks/iana/ii_201401
http://www.nxtbook.com/nxtbooks/iana/ii_201312
http://www.nxtbook.com/nxtbooks/iana/ii_201311
http://www.nxtbookMEDIA.com