World Grain - August 2008 - 47
1[l
°
FEATURE: WHERE DID THE BOXES GO?
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fixed cost for the ocean carriers," he said.
At North America's largest port, the Port of Los Angeles,
Marcel van Dijk, marketing manager, said the lower U.S. dollar has resulted in a 22% increase in export containers compared to last year, and import container handlings have slowed
by nearly 9% because of the economic slump.
One solution, van Dijk said, would be to bring agricultural
commodities to the port in box cars or hopper cars and load
the product into containers at the port. Unfortunately, there are
very few trans-load facilities at the Port of Los Angeles with
rail access.
"I don't see any big changes in the near future for the availability of empty containers if we stay in a downturn of the
market like we are now," he said.
North of the border, at the Port of Vancouver, a shortage
of containers has also resulted from the downturn in the U.S.
economy. Chris Badger, chief operating officer, said there's
increasing competition for westbound containers in Canada.
For the first quarter of this year, the number of loaded export
containers moving through the port was up by 15%.
The increased demand by Asia for products was one of the
reasons, but another was the fact that a number of breakbulk
carriers, used to moving products such as lumber and steel,
have left the Pacific for more lucrative markets elsewhere,
which has forced products that did not previously move into
containers into boxes.
"Clearly, there's greater competition (for containers)" Badger said. "Generally speaking, one doesn't think of grain and
wood and other products competing, but in the case of finding
containers, they certainly are."
He said anyone, including farmers, wanting a container will
have more success if the container is located near salt water.
"That's where the shipping lines want their containers to
WG
be," Badger said.
Based in Vancouver, British Columbia, Canada, Leo Quigley writes for a
variety of national and international publications specializing in agriculture
and transportation. He can be reached at Quigley@dccnet.com.
WWWRESEARCHPRODCOM s
We want to hear from you - Send comments and inquiries to worldgrain@
sosland.com. For reprints of WG articles, e-mail reprints@sosland.com.
For more information, see Page 70.
48
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World Grain - August 2008
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Contents
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