Insights - September/October 2017 - 29

Canadian Pacific Railway Vice President Jonathan Wahba
said "competition has never been tougher for [steamship] lines
and ports. For major liner companies to divert vessels that
are already on the water is an indication of how fierce that
competition is, 'Where the lines go drives the ports, terminals,
rails and truckers.'"
Hacebaga and Sal Ferrigno, vice president of SSA Terminals,
cited positive developments related to recent international freight
pattern changes.
"The deployment of service strings under the new shipping
alliance structure has had a significant and positive effect. Since
April 2017, when the new alliances set sail, the Port of Long
Beach has experienced a surge in cargo."
Similar volume increases have been seen at neighboring Los
Angeles.
"Having one big ship instead of two smaller ones is much
easier to operate," Ferrigno said. "We have adapted to that. The
day of a single carrier that is not willing to share their vessel with
other carriers is past."
He added that what is important to SSA hasn't changed:
safety, timeliness and productivity.
"Ensuring there is an adequate supply of equipment at
the terminal in advance of vessel arrival is critical," Hacegaba

said. "Although spot shortages continue to occur sporadically
across the complex, the number of dislocations has dropped
significantly."
Truckers like Peter Schneider and George Boyle, CEO of Quik
Pick Express, had a somewhat different view.

Chassis Dislocation
"There was a dislocation of chassis as a result of the
changes," Schneider said. "Chassis positioning is an ongoing
battle. The changes mean going to different terminals to get
loads, but maybe still take empties back to other terminals, and
even a third terminal or off dock facility for the chassis. It means
more congestion and more cost to the BCO, which isn't right."
"Chassis are a real challenge," said Boyle. "The West Coast
chassis model is fragile. This is a challenge nationwide."
At the same time that ocean freight patterns shift, inland
cargo moves continue to change. There has been a longterm shift away from intact inland intermodal moves toward
transloading, said Prof. Rob Leachman from the University of
California - Berkeley.
He told attendees the shift from IPI to transloading has to do
with "inventory economics rather than transportation economics."
Transloading brings greater flexibility in managing inventory,

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September/October 2017 | Intermodal Insights

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