SHIPPERS PUSH FMC TO ADDRESS ISSUES WITH CHANGING DROP OFF DATES FOR EXPORTS
U.S. exporters have expressed concerns to the Federal Maritime Commission (FMC) that the inconsistent information on vessel schedules and drop-off dates leads to higher costs and delays. Although having a single source for this kind of data would be beneficial, ports and liner operators claim it is unachievable due to the numerous factors involved in ocean shipping.
The Maritime Transportation Data Initiative (MTDI) was launched in November 2021 by Commissioner Carl Bentzel to standardize container monitoring and other cargo data across US ports.
The FMC announced in April that it was looking for more advice on maritime data accuracy and “where communication is most likely to break down or information is most likely to be conveyed inaccurately,” following the receipt of early industry opinion on what the MTDI should cover last year.
Shippers frequently referenced contradicting and erroneous information regarding the arrival and movement of containers in comments that were published in the Federal Register on Monday.
FEEDBACK FROM EXPORTERS
In feedback given to FMC one organization said the early return date (ERD) that an ocean carrier gives a shipper “does not match the ERD provided by the marine terminal, or the ERD does not match the appointment system.”
Vessel schedule modifications might suggest a possible ERD shift, but according to the report, “such updates are not consistently provided.” According to the industry experts, ERD shifts result in “dry runs and additional storage in trucker yards.” Feedback also indicated that shippers must perform “a lot of manual cross-referencing” of ocean carrier updates and websites for marine terminals to determine the ERD status.
Another group informed the FMC that because of a “lack of uniform behavior, process, data and timing” on ERD information and vessel schedules, its members must rely on their truckers and forwarders to coordinate exports.
CAUSES OF ERD CHANGE
One steamship line informed the FMC that 20% to 30% of its ships have scheduled adjustments within the final week before arrival, which has an impact on the ERD. This information pertains to the number of vessels arriving behind schedule. Although the carrier notifies its customers directly of schedule changes, it advises shippers to speak with the marine terminals on ERDs because local problems like port congestion can affect export receiving.
“The [marine terminal] will frequently change the ERD depending on operational changes,” the steamship line told the FMC. “The most common reason is due to port congestion that results in vessel delays.” ERD modifications are a result of both vessel delays and terminal space, according to the Port of NY/NJ Sustainable Services Agreement, which represents terminal operators in New York and New Jersey. As a first port of call for vessel services, the group claimed that schedule adjustments are less common in NY-NJ marine ports; but “berth congestion, tidal restrictions, and operational delays play a factor when a vessel is beyond its first port of call.”
Up to 90% of vessels are currently changing their scheduled arrival due to “performance at previous ports of call on the US East Coast,” according to the Port of Virginia, which handles some container services and is the second port of call after NY-NJ. This information was provided to the FMC.
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