Executive Commentary |
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National Customs Brokers & Forwarders Association of America ( NCBFAA )
Jose D . ( JD ) Gonzalez
Board President www . ncbfaa . org
Similar to their importer and exporter clients , customs brokers , freight forwarders and NVOs feel the increasing physical constraints of insufficient freight infrastructure at our nation ’ s airports and land border crossings .
Most US airports with large cargo operations were designed when 40-foot truck trailers were the biggest , and now the standard size is 53 feet . These larger trucks choke entry gates and streets leading to airport cargo facilities . If these infrastructural constraints are allowed to continue , they will lead to heightened security risks , delay time-sensitive products and adversely impact shipping costs . In May 2024 , President Joe Biden signed the Federal Aviation Administration Reauthorization legislation into law . This includes $ 19.35 billion for airport infrastructure improvement grants which will help to tackle airport truck
Logistics , Expeditors International and Ryder — join the list of the top 20 global logistics companies .
But what about the maritime sector ? “ Major ports need to invest in resilience , new technology and green infrastructure to ensure the stability of global markets and the sustainability of the shipping industry ” said Martin Humphreys , lead transport economist at the World Bank . The Container Port Performance Index ( CPPI ), developed by the World Bank and S & P Global Market Intelligence , ranks 405 global container ports by efficiency .
According to the 2023 CPPI rankings , no US port is listed in the top 50 . Charleston ( No . 53 ); Philadelphia ( No .
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congestion . In addition , the General Accountability Office started a large-scale assessment of US air cargo operations , including a section on truck delays and lack of infrastructure .
Similarly , increased truck traffic along US borders with Mexico and Canada is testing the physical limits of land-border port infrastructure . High-traffic land border ports , such as Laredo , TX , require a continuous funding stream analogous to the long-established Harbor Maintenance Fund for seaport infrastructure investments .
In 2023 , Rep . Henry Cuellar ( D-TX ) introduced the Land Port of Entry Modernization Trust Fund Act . This legislation will establish a trust fund to construct new ports of entry , expand and improve existing ports of entry , buy inspection technology , and hire Customs and Border Protection officers . The Department of Homeland Security ( DHS ) will also establish the Land Port of Entry Modernization Oversight Board to advise DHS on how to use the trust fund and to review trust fund expenditures . US customs brokers and freight forwarders endorse this necessary infrastructure trust fund .
55 ); Everglades ( No . 65 ); Miami ( No . 74 ); Boston ( No . 75 ); Wilmington , NC ( No . 81 ); New York-New Jersey ( No . 92 ) and Jacksonville ( No . 99 ) are in the top 100 . Major US ports such as Baltimore ( No . 189 ), Virginia ( No . 301 ), Houston ( No . 312 ), Long Beach ( No . 373 ), Los Angeles ( No . 375 ) and Savannah ( No . 395 ) trail badly .
Alphaliner provides a consistently updated ranking of the 100 largest container / liner operators . No US company is listed in the top 20 . The largest US operator , Matson , comes in at No . 28 with a meager market share of 0.2 %. Others listed include Seaboard Marine ( No . 39 ), Great White Fleet ( No . 48 ), Dole Ocean Liner ( No . 49 ), Tropical
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“ Customs brokers , freight forwarders and NVOs feel the increasing physical constraints of insufficient freight infrastructure at our nation ’ s airports and land border crossings .”
Jose D . ( JD ) Gonzalez
“ Having experienced the excitement of extreme profitability , carriers are reluctant to return to the days of death by 1,000 rate cuts . They will have to avoid chasing cutthroat rates or cutting their own throats as a matter of self-interest .”
Joe Saggese
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Shipping ( No . 52 ), Crowley ( No . 57 ), Pasha Group ( No . 59 ), King Ocean ( No . 80 ) and Del Monte ( No . 91 ). The combined market share of all US operators falls short of 2 %.
The ailing port and maritime sectors should be a major concern to the new US administration . Supply chain woes add to price increases in retail and consumer products and consequently to inflationary pressure . Attacking foreign-flag liner operators or using the Federal Maritime Commission ’ s regulatory oversight will not resolve the problem ; the weaknesses are within . Continuing to sidestep the issue by pandering to labor unions or protecting antiquated maritime legislation will only exacerbate the challenges faced by US importers and exporters .
North Atlantic Alliance Association ( NAAAI )
Joe Saggese
Executive Managing Director www . naaai . com
“ The more things change , the more they remain the same ” goes the old saying . Ocean shipping is , for the most part , back to its pre-pandemic levels . However , demand for cargo has declined — contrary to prior expectations — and rates remain at profitable levels , even if capacity has not been fully utilized . Some may say this is odd based on past practices , but that ’ s not the case . Ocean carriers quickly adapted to handling overcapacity during the pandemic , along with maximizing vessel utilization while earning record profits .
Demand in 2025 will be a test of the carrier ’ s resolve to hold the line on rate levels while experiencing overcapacity — aside from the normal options to increase vessel capacity such as slow steaming , dry docking and skipping ports . Ocean carriers have one thing in common in that they weren ’ t highly schooled on what was missing in previous decades — profits . Cargo shipping can be profitable , and pricing cargo at or above profitable levels is how you win . Chasing elusive market share or throughput is not .
Having experienced the excitement of extreme profitability , carriers are
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