Intermodal Marine Container Transportation Impediments and Opportunities -- Special Report 236 (1992) / Chapter Skim
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Special Report 236 Intermodal Marine Container Transportation Impediments and Opportunities Transportation Research Board National Research Council
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1992 TRANSPORTATION RESEARCH BOARD EXECUTIVE COMM1TIEE Chairman William W Millar, Executive Director, Port Authority of Allegheny County, Pittsburgh, Pennsylvania Vice Chairman A
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Special Report 236 Intermodal Marine Container Transportation ImptAmenft and Opportunities Committee for a Study of the Effects of Regulatory Reform on Technological Innovation in Marine Container Shipping Transportation Research Board National Research Council Washington, D.C.
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Transportation Research Board Special Report 236 Subscriber Category VIII freight transportation Transportation Research Board publications are available by ordering directly from TRB. They may also be obtained on a regular basis through organizational or individual affiliation with TRB; affiliates or libraty subscribers are eligible for substantial discounts.
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Committee for Study of the Effects of Regulatory Reform on Technological Innovation in Marine Container Shipping W BRUCE ALLEN, Chairman, Wharton School, University of Pennsylvania L
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Preface As part of its technology policy program, the Maritime Administration of the U.S. Department of Transportation asked the Transportation Research Board to conduct a study to identify where and how government action might assist in overcoming impediments and promoting efficiency in intermodal marine container transportation, especially through technological or institutional innovation.
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interrnodal marine container transportation. Some areas -- such as domestic containerization and the domestic offshore trade -- were excluded because the committee was asked to focus specifically on international offshore movements.
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Contents Executive Summary 1 1. Introduction 12 The Intermodal Marine Container Concept, 12 Importance of Intermodal Marine Container Transportation, 14 2 The Container Revolution 17 The Technological Revolution, 17 Development of Intermodalism, 21 Marine Containers, 23 Development of Containerships, 26 Impact of Transportation Deregulation, 30 Future Developments, 33 3 The Container Transportation Chain 37 Shippers and Consignees, 37 Intermediaries, 38 Ocean Carriers, 41 Ports and Marine Terminals, 42 Cargo Inspection Agencies, 46 Drayage and Long-Haul Trucking, 47 Railroads, 49 4 Key Issues 52 PART A: IMPEDIMENTS TO EFFICIENCY AND INNOVATION, 57 Ship Procurement Restrictions Under ODS Program, 57 Federally Imposed Ship-Manning Requirements, 67 Military Cargo Bidding Policies, 72 Environmental Policy Conflicts and Costs, 81 Overweight Container Trucks, 84 Customs Clearance Procedures, 98 PART B: OPPORTUNITIES FOR IMPROVEMENT, 104 Intermodal Equipment Interchange Procedures, 104 Cargo Liability and Responsibility Regulation, 108 Creation of a Federal Intermodal Coordinating Office, 112 Collection and Publication of Container Trade Data, 115 Study Committee Biographical Information 125
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Executive Summary The container revolution, which began in the mid-1950s, has led to major changes in this country's foreign and domestic trade. At first a largely American enterprise confined to U.S.
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INTERMODAL MARINE CONTAINER TRANSPORTATION tutional innovation. The committee assembled to conduct this study established a framework for its examination by posing two questions: Are there major impediments to the further development of container technology and transportation that government in the United States can help remove?
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Executive Summary The 10 issues are listed below, not in order of priority, and a brief summary of each of the issues with the committee's recommendations for addressing them follows. Ship procurement restrictions under the Operating Differential Subsidy (ODS)
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INTERMODAL MARINE CONTAINER TRANSPORTATION U.S. shipyards.
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Executive Summary Federally Imposed Ship-Manning Requirements Although U.S. operators have successfully decreased crew costs during the last several years, they have not achieved labor cost parity with their chief foreign competitors.
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INTERMODAL MARINE CONTAINER TRANSPORTATION preference laws. This controversial issue presents a conflict between two federal mandates: the national policy of promoting a strong U.S.
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Executive Summary economic goals as well as the practical difficulties that result from the many levels of government involved in the regulatory process.
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INTERMODAL MARINE CONTAINER TRANSPORTATION the problem exists primarily at state and local levels, these criteria suggest that the federal government must take the lead in resolving this issue, which may in fact require a federal solution. Customs Clearance Procedures Delays in clearing imported cargo through the U.S.
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Executive Summary carrier legal relationships that had developed under Interstate Commerce Commission (ICC) regulations began to break down when the ICC started deregulating trailer-on-flatcar and container-on-flatcar services more than a decade ago.
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10 INTERMODAL MARINE CONTAINER TRANSPORTATION of the problems stemming from the absence of a clear legal framework governing the interchange. Cargo Liability and Responsibility Regulation The lack of uniform cargo liability and responsibility regulation for international intermodal shipments is a barrier to improved efficiency in marine container shipping.
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Executive Summary 11 industry cooperation and mediate disputes, coordinate federal policies and intermodal research, and serve as a resource center to provide technical expertise on questions about intermodal transportation.
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1 Introduction THE INTERMODAL MARINE CONTAINER CONCEPT All else being equal, the most efficient form of freight trans- portation is one in which the goods move in a continuous tiow from shipper to receiver without interruption. Thus, shipments by a single transportation mode are usually preferable to intermodal shipments, in which cargo is transferred between two or more modes.
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Introduction 13 movements (e.g., line haul versus pick-up and delivery)
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14 INTERMODAL MARINE CONTAINER TRANSPORTATION IMPORTANCE OF INTERMODAL MARINE CONTAINER TRANSPORTATION A common way of gauging the economic importance of a freight transportation function is by measuring the volume and value of the goods carried. For the international intermodal marine container transportation industry, that part of U.S.
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introduction 15 trade. It is clear that the importance of foreign trade to the U.S.
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16 INTERMODAL MARINE CONTAINER TRANSPORTATION The liner-trade category includes all waterborne trade except liquid and diybulk commodities (e.g., oil, coal, and grains) , which are carried in tankers and dry-bulk ships, and the so-called neo-bulk commodities (e.g., automobiles and lumber)
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2 The Container Revolution THE TECHNOLOGICAL REVOLUTION j-I The dawn of the era of contain- - erization can be precisely dated - as April 20, 1956, when a Pan Atlantic Steamship tanker, the SS Maxton (renamed the Ideal X) , set sail from New York for Houston carrying 58 loaded truck-trailer vans above deck.
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18 INTERMODAL MARINE CONTAINER TRANSPORTATION service -- with one carrier responsible for the entire door-to-door movement" (Van Den Berg 1969, 151-154)
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The Container Revolution 19 first transatlantic containership service in April 1966 with weekly sailings from Port Elizabeth -- Baltimore to Rotterdam-Bremen (Van Den Berg 1969, 154-156)
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20 INTERMODAL MARINE CONTAINER TRANSPORTATION singly or as part of a consortium, by the end of 1968. The same pattern was repeated shortly thereafter on transpacific routes.
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The Container Revolution 21 in-port time of each ship is reduced, and a smaller number of ships are needed to carry a given volume of cargo.
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22 INTERMODAL MARINE CONTAINER TRANSPORTATION 1971 when European containers destined for a Gulf Coast port were landed at an East Coast port and shipped the rest of the way by rail. This was quickly followed by routing Far Eastern containers destined for the eastern seaboard through California ports and via transcontinental rail to East Coast ports for delivery by truck.
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The Container Revolution 23 to shift both import and export cargoes from East and Gulf Coast ports to West Coast ports. This accelerated a trend that was already under way as a result of the shift in the center of U.S.
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24 INTERMODAL MARINE CONTAINER TRANSPORTATION foreign containers. According to the MARAD data, 87 percent of the U.S.
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The Container Revolution 25 been introduced in the Far East but is rarely used in Europe. Even newer and larger cubic capacity containers, 45 and 48 feet long and 9.5 feet high, have appeared in recent years (the 48-feet containers are also 8.5 feet wide)
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26 INTERMODAL MARINE CONTAINER TRANSPORTATION weight limits (see Table 2-1)
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28 INTERMODAL MARINE CONTAINER TRANSPORTATION service speeds of 18 to 21 knots. All in all, they were no larger or faster than the conventional cargo ships of their day.
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The Container Revolution 29 on improving loading and unloading to reduce time in port. Capacities are generally in the 2,500- to 4,000-TEU range with drafts of 38 to 40 feet, and typical service speeds ranged from 18 to 23 knots.
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30 INTERMODAL MARINE CONTAINER TRANSPORTATION or in a unitized form other than containers (such as pallets) but also have some container slots.
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The Container Revolution 31 TABLE 2-2 SUMMARY OF WORLD AND U.S. CONTAINERSHIP FLEETS World F1eet' Ships Capacity (no.)
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32 INTERMODAL MARINE CONTAINER TRANSPORTATION COFC) traffic from ICC restrictions.
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The Container Revolution 33 companies. The act removed most restrictions on rail mergers and on rail ownership of carriers in other modes.
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34 INTERMODAL MARINE CONTAINER TRANSPORTATION container terminals have been increased through the enlargement of terminal areas and the addition of heavier and more automated equipment. The newest-generation dockside cranes, for instance, have a reach of 150 feet and a lift capacity of 50 tons.
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The Container Revolution 35 attempt by some firms to create integrated multimodal transportation systems or total transportation companies. Examples are briefly described in Chapter 3.
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36 INTERMODAL MARINE CONTAINER TRANSPORTATION NOTES According to statistics compiled by MARAD, average daily employment of such workers stood at 61,850 in January 1972 and had fallen to 28,000 by October 1990. This and the following paragraph rely heavily on an unpublished paper by Richard Staley, President, Richard Staley Associates, March 1988.
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3 The Container Transportation Chain r - - .. Despite advances made in sys- tematizing the process, moving I a marine container from origin to destination is still a complex - endeavor.
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38 INTERMODAL MARINE CONTAINER TRANSPORTATION major American manufacturers and producers who are experienced in foreign trade generally maintain large export traffic departments to handle the myriad details involved in selling and shipping overseas, including obtaining containers and arranging for inland and ocean transportation. These companies are often called direct shippers.
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The Container Transportation Chain 39 Many forwarders also perform the classic intermediary function of consolidating smaller shipments from several shippers into larger shipments to obtain volume discounts from carriers. Some of the cost savings are passed on to the shippers, inducing them to use the forwarders' services, and the balance is retained as profit.
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40 INTERMODAL MARINE CONTAINER TRANSPORTATION mon carriers by water" (NVOCCs) , and in 1984 they were given statutory recognition by the Shipping Act.
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The Container Transportation Chain 41 oped to the point that they offer not only inland pick-up and delivery but complete integrated intermodal through services, including fullscale logistics management. With single operator, end-to-end control over freight movements, they obviate the need for separate freight forwarding and transportation brokenng firms and thus are beginning to replace some traditional intermediaries.
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42 INTERMODAL MARINE CONTAINER TRANSPORTATION with highway regular route common carriers and less-than-truckload (LTL) freight.
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TABLE 3-1 MAJOR CONTAINERSHIP LINES SERVING UNITED STATES (Journal of Commerce, Inc.
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44 INTERMODAL MARINE CONTAINER TRANSPORTATION mately 50 ports in the United States that have some container-handling capacity, relatively few can be described as major container ports. Not only do container ports require a large investment, but ship operators have also had a decisive influence by selecting some ports as "load centers" and ignoring others: A recent trend in containerized shipping operations, resulting in part from the tendency to build ever larger container vessels, has been exploitation of the load center concept.
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The Container Transportation Chain 45 TABLE 3-2 MAJOR U.S. CONTAINER PORTS FOR INTERNATIONAL TRADE Port Loaded Container Throughput (thousands of TEUs)
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46 INTERMODAL MARINE CONTAINER TRANSPORTATION turn hire longshoremen -- usually on a daily basis -- to do the work. At most container terminals, the terminal operator and the stevedoring firm are the same entity.
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The Container Transportation Chain 47 TABLE 3-3 IMPORTANT CUSTOMS DISTRICTS FOR INTERNATIONAL MARINE CONTAINER TRANSPORTATION Customs Region Customs District New York New York Seaport Newark Northeast Baltimore Southeast Norfolk Charleston Savannah Miami Southwest Houston Pacific Los Angeles-Long Beach San Francisco Seattle Districts have considerable latitude in the cargo classification, examination, and clearance procedures and practices they follow. This has led to significant differences between districts, and these differences have become a competitive element affecting the selection of ports and carriers.
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48 INTERMODAL MARINE CONTAINER TRANSPORTATION Sometimes local pick-up and delivety operations overlap line-haul operations. Nevertheless, the distinction is pertinent because different segments of the trucking industry are involved in each operation.
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The Container Transportation Chain 49 The study also includes a breakdown between inbound and outbound boxes, regardless of mode, based on an analysis of all containers handled by Sea-Land in 1984 at Port Elizabeth. Of those boxes that were inbound, 72 percent terminated within 100 miles and 82 percent terminated within 400 miles.
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50 INTERMODAL MARINE CONTAINER TRANSPORTATION the last three carriers listed in Table 3-1)
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The Container Transportation Chain 51 Verified statement of Forrest S Baker, Jr., President, Transportation Research and Marketing (TRAM)
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4 Key Issues Like other industries that have expanded rapidly, the intermodal marine container transportation industry is suffering growing pains. For marine container shipping, the problems resulting from rapid growth are compli- cated and magnified by the fact that the industry crosses modal and national boundary lines.
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Key Issues 53 Are there major opportunities to improve container technology and transportation that government in the United States can help realize? Numerous issues and problems were examined, and many of these were discussed in detail.
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54 INTERMODAL MARINE CONTAINER TRANSPORTATION ommendations on some issues stemmed from its recognition that the trade-offs among these goals can only be made at the highest policymaking levels of government. The 10 issues, which are reported on at length in this chapter, are as follows (not in order of priority)
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Key Issues 55 TABLE 4-1 KEY ISSUES AFFECTING INTERMODAL MARINE CONTAINER TRANSPORTATION BY LINK IN CONTAINER TRANSPORTATION CHAIN Link in Chain' Issue Examined Domestic shippers and 5. Overweight container trucks consignees 6.
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56 INTERMODAL MARINE CONTAINER TRANSPORTATION TABLE 4-2 KEY ISSUES AFFECTING INTERMODAL MARINE CONTAINER TRANSPORTATION BY IMPACT AREA AND LEVEL OF GOVERNMENT Government Impact Area Issue Examined Level' Economics 1. ODS ship procurement restrictions Federal 2.
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Key Issues 57 tamer trucks) , simply because of the number of different jurisdictions that must agree.
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58 INTERMODAL MARINE CONTAINER TRANSPORTATION 1981. At that time, a temporary one-year authority was granted to obtain permits making foreign-built ships eligible for ODS, but this was never made permanent.
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Key Issues 59 policy of the United States to foster the development and encourage the maintenance of such a merchant marine.
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60 INTERMODAL MARINE CONTAINER TRANSPORTATION operating subsidy and encourage collective bargaining. A wage index was developed, and wage increases larger than those allowed by the index were not subsidizable (OTA 1983, 153)
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Key Issues 61 subsidy pays for about 80 percent of crew wages and benefits, costs for U.S. crews being that much higher than for foreign crews manning the same ship (personal communication from Office of Ship Operating Assistance, MARAD, October 17, 1990)
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62 INTERMODAL MARINE CONTAINER TRANSPORTATION The first problem is that full compensation would clearly have a significant impact on the federal budget. It is impossible to quantify the impact without knowing how large the price differential is per ship (which depends on ship size and design)
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Key Issues 63 years later by the launching of a 3 ,450-TEU automated containership that requires a crew of only 21 and is powered by a single slow-speed, more fuel-efficient diesel engine. The availability to competitors of ships with dramatically increased capacity and sharply reduced labor and fuel costs has driven operators to lay-up and seek to replace ships that are otherwise perfectly sound.
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64 INTERMODAL MARINE CONTAINER TRANSPORTATION ported by OTA and others, dozens of shipyards have closed and hundreds of engineers and other professionals and thousands of skilled production workers have quit or been laid off in the last decade as the commercial shipbuilding industry has shrunk and lost much of its capacity and capability (OTA 1983, Chapter 4; Commad 1987a, 3643)
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Key Issues 65 the U.S. fleet, strengthen the fleet's competitive position in the international market, and encourage necessaiy modernization and expansion.
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66 INTERMODAL MARINE CONTAINER TRANSPORTATION simply continue the status quo as far as the ODS program is concerned because all ODS containership contracts are scheduled to expire by 1997 and no new ones have been executed since 1981. Besides giving U.S.-flag carriers access to the lowest-cost and most up-to-date vessels, this approach would save taxpayers the yearly cost of the ODS program.
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Key Issues 67 Therefore, the committee believes that a prompt and thorough reevaluation of overall government policy toward the U.S. merchant marine and the maritime industry as a whole should be undertaken, to include consideration of the issues listed above.
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68 INTERMODAL MARINE CONTAINER TRANSPORTATION Despite this dramatic improvement, U.S.-flag carriers still lag behind their rivals from other developed nations. During the late 1960s and early 1970s, the most efficient European and Japanese containerships operated with a crew of 24, compared with the 41 employed on U.S.
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Key Issues 69 42 percent in crew costs.
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70 INTERMODAL MARINE CONTAINER TRANSPORTATION inspection of each ship and consultation with its owner or operator. Minimum manning levels are determined through administrative guidelines and implemented by Certificates of Inspection issued in the field.
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Key Issues 71 logical advances, and in the light of labor-management agreement, the Coast Guard has pennitted 21-man crews for the newest and largest U.S. containerships (Marine Board 1984, 63-64)
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72 INTERMODAL MARINE CONTAINER TRANSPORTATION recommends that U.S. manning laws be modernized to "allow innovation without degrading safety" by Incorporating a statement of congressional intent linking vessel manning and safety, Removing unwarranted barriers to innovation (such as requirements for three watches where impractical or not needed)
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Key Issues 73 erence policies -- reserving some or all of a particular trade or certain shipments for their own national flag carriers.'7 This provides those ocean carriers with a core business that is immune from foreign competition. Virtually all maritime nations, including the United States, have enacted some form of cargo preference laws.
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74 INTERMODAL MARINE CONTAINER TRANSPORTATION ment and supplies for U.S forces in Europe and the Far East, but there are also significant inbound shipments of household goods of returning military personnel.) By far the largest military shipper is the Navy's Military Sealift Command (MSC)
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Key Issues 75 "winner-take-all" awards; on trade routes served by more than one U.S. -flag carrier, the low bidder receives no more than 75 percent of the cargo, thus ensuring that military preference cargoes are spread around.
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76 INTERMODAL MARINE CONTAINER TRANSPORTATION flag ships.22 Having lower costs, the foreign owners could well be able to submit lower bids and win contracts, with the same consequences as those in the case previously cited. As Congressman Walter B
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Key Issues 77 there was a substantial infusion of new technology [meaning containerization] which resulted in overcapacity." From this, the following conclusions were drawn: When overcapacity exists and when a competitive DOD procurement system exists which includes the possibility of one operator carrying a predominant share of the cargo, the conditions are ripe for incremental bidding and serious industry financial problems.
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78 INTERMODAL MARINE CONTAINER TRANSPORTATION Thus in the end, the changes recommended by the SPANS study did not solve the problem of noncompensatory rates, and every major merchant marine or sealift study since SPANS has found the same problem. The most recent such study was undertaken by Commad in the late 1980s.
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Key Issues 79 In 1988, MSC rates were approximately six percent lower than the commercial service contract rates available on the major trade routes. Since DOD is the countly 's largest single shipper, normal commercial practice suggests that MSC should expect to pay less than commercial shippers.
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80 INTERMODAL MARINE CONTAINER TRANSPORTATION at some additional cost to the government; just how much is not clear. Another suggestion for modifying the MSC 's procurement policies has been made by a member of the committee who has long considered this issue (communication from Paul F Richardson, President, Paul F Richardson Associates, Inc., and former President, Sea-Land Service, May 3, 1990)
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Key Issues 81 The issue of cargo preference is closely tied to the first two issues for ensuring the health of the U.S. maritime industry and cannot be fully assessed independently.
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82 INTERMODAL MARINE CONTAINER TRANSPORTATION sound disposal of the spoil material from harbor and channel dredging.
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Key Issues 83 Separate permits must also be obtained for the disposal of dredged materials. This presents problems in cases in which there is a large volume of material or in which some of the dredged material may be contaminated from, for example, chemical plant discharges or sewer runoff near the shore.
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84 INTERMODAL MARINE CONTAINER TRANSPORTATION achieve consensus has proved time-consuming and difficult for port applicants: The decisionmaking authorities that an applicant must appease are fragmented. Frequently each part is seeking to preserve, restore, or create habitats that are mutually exclusive, e.g., shallow bay bottom versus coastal marsh, fish versus avian habitat.
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Key Issues 85 but the container as rigged for highway travel -- that is, mounted on a chassis and pulled by a tractor (FHWA 1989)
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86 INTERMODAL MARINE CONTAINER TRANSPORTATION from excessive gross weight, then overweight container trucks have an extremely deleterious impact on pavements because of the steeply inverted relationship between axle loadings and pavement life. Firms at evezy link in the container transportation chain bear some responsibility for the prevalence of overweight boxes.
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Key Issues 87 ship line, and shipper interests on both coasts. These discussions eventually led to the FHWA study and report.
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88 INTERMODAL MARINE CONTAINER TRANSPORTATION 40-foot boxes having weights between 56,000 and 59,700 pounds. The 20-foot containers were mounted on 23-, 27-, and 40-foot-long chassis of five different types; and the 40-foot boxes were mounted on 40-foot gooseneck chassis, with "West Coast" axle positions (i.e., creating the longest possible wheelbase)
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Key Issues 89 second most frequently overloaded import. Overloaded exports are concentrated among relatively few commodities, whereas overloaded imports tend to be spread among many commodities.
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90 INTERMODAL MARINE CONTAINER TRANSPORTATION applicable laws and regulations. It seems unlikely that many foreign shippers know about the provisions of U.S.
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Key Issues 91 typical 40-foot chassis (7,000 pounds, although many run higher) to the tare of a typical tractor (16,250 pounds with a 21-foot wheelbase)
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92 INTERMODAL MARINE CONTAINER TRANSPORTATION tion. Shippers and consignees know this too, and because of the prevalence of intense competition, they can pressure carriers into accepting overweight boxes.
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Key Issues 93 however, may have paved the way for the introduction of percontainer or "box rates" in the 1970s, and it is these rates that provide the incentive for overloading. Box rates are similar to the older volume-based rates because they vary by commodity and the amount of space used, but because containers are modular, the rates are standardized by box size.
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94 INTERMODAL MARINE CONTAINER TRANSPORTATION the carriers disappeared, the ships remained and were sold at distressed prices to other carriers, thus continuing the overcapacity. Competition among container ports is even more pervasive.
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Key Issues 95 obvious shortcomings, whereas the consequences of others are unclear. What does seem clear at present is that no single solution is adequate by itself; a comprehensive solution acceptable to most parties will probably require some combination of approaches.
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96 INTERMODAL MARINE CONTAINER TRANSPORTATION Because of the high cost of such equipment, however, it is uncertain whether widespread use of WIM equipment will occur, especially in light of states' fiscal constraints and the variation among states in the priority given to weight law enforcement. State Cooperation in Enforcement Even without additional weighing, if the states would cooperate with one another in a concerted program, the problem could be quickly resolved.
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Key Issues 97 ification could range from simply stating the maximum gross weight limits that would conform to U.S. highway laws in the tariffs to instituting a complete ban on per-container rates.
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98 INTERMODAL MARINE CONTAINER TRANSPORTATION outbound containers, (b) apply uniformly to all segments of the industry, (c)
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Key Issues 99 station. At the worst, they may lose customers and a substantial part of their business.
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100 INTERMODAL MARINE CONTAINER TRANSPORTATION Current Status and Possible Solutions Inadequate Staffing The Booz-Allen & Hamilton study found, and the Oversight Subcommittee investigation confirmed, that the principal cause of delays in clearing cargo was inadequate Customs Service staffing of commercial operations at the local or Customs district level. This was especially true at West Coast districts, where workloads are the highest and had increased the most during the 1980s.
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Key Issues 101 ilton 1987, Ch.
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102 INTERMODAL MARINE CONTAINER TRANSPORTATION Customs believes that its automation programs, specifically the Automated Commercial System (ACS) , will eventually solve the problem of the lack of uniformity among districts.
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Key Issues 103 ACS became operational in late 1983, but in an incomplete form that linked but did not integrate seven separate automated systems, which contained 15 discrete sets of programs or modules (U.S. Congress.
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104 INTERMODAL MARINE CONTAINER TRANSPORTATION Conclusions During the past two years, the Customs Service has made some progress on resolving the issues of inadequate staffing, lack of uniformity, and national program implementation. In particular, commercial operations at Customs districts have received greater attention from Customs.
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Key Issues 105 relationships between the various participants in the intermodal interchange. This lack of an established legal structure governing the flow of intermodal freight creates problems for intermodal marine container transportation.
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106 INTERMODAL MARINE CONTAINER TRANSPORTATION liability while their trailers were in the control of unrelated motor carriers, the railroads created what is now commonly known as a TIA. Although the provisions of TIAs vary, most make the interchanging motor carrier solely responsible for the container-handling equipment (even when in the possession of third parties)
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Key Issues 107 Recent Developments Today, intermodal motor carriers, stack-train operators, and railroads all have capital invested in intennodal service and all have direct involvement with shippers and consignees. All parties have recently acknowledged the need for a rationalized, productive interchange of intermodal container-handling equipment because it is clear that consistent, reliable door-to-door service is essential to the growth of the intermodal marketplace.
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108 INTERMODAL MARINE CONTAINER TRANSPORTATION Fe has also initiated a program of semiannual meetings with its motor carrier partners to discuss operating inefficiencies and ways to make door-to-door service more reliable. The Sante Fe has decided that it will achieve a greater intermodal market share by working with motor carriers and offering incentives in place of the traditional TIA disincentives.
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Key Issues 109 damage to cargo in international movements. Under existing law, although an ocean carrier or conference may have responsibility for an entire through movement, the carrier's liability differs according to the leg of the journey on which the damage or loss occurred.
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110 INTERMODAL MARINE CONTAINER TRANSPORTATION collectively -- be considered a package for the purposes of the perpackage limitation, provided that the shipper enumerates on the bill of lading the number of packages or units in the container. The Visby Amendments do not change the Hague Rules in other respects, and they preserve the general scheme of liability and the carrier's 17 defenses.
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Key Issues 111 Recent Developments The U.S. government signed both the Visby Amendments and the Hamburg Rules but has not taken steps to recommend either of the treaties to the U.S.
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112 INTERMODAL MARINE CONTAINER TRANSPORTATION evaluation of the Visby Amendments and the Hamburg Rules to the extent possible. A possible compromise, calling for ratification of both the Visby Amendments and the Hamburg Rules, was proposed in discussions by officials of the U.S.
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Key Issues 113 contributor to an integrated system that has complex intermodal connections in large, metropolitan areas" (OTA 1991, 11)
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114 INTERMODAL MARINE CONTAINER TRANSPORTATION Although the committee does not disagree with most of these goals, it envisions something on a more modest scale -- a small office dealing only with freight transportation that would serve as a focal point within DOT and the government and perform mainly a facilitating and coordinating role. Such an Office of Intermodal Freight Transportation would probably best be located within the Office of the Assistant Secretary for Policy and International Affairs •40 At that level, it should command the attention of the modal agencies without threatening their domains, and, equally important, it could work closely with the other offices in that division: International Transportation and Trade, Transportation Regulatory Affairs, and Economics.
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Key Issues 115 to smooth out and speed up the permitting process for disposal of dredged materials. In the same way, the office could work with the states to tiy to bring greater uniformity to their highway weight limits and enforcement practices.
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116 INTERMODAL MARINE CONTAINER TRANSPORTATION tistics on marine container transportation. Currently, key container data, especially container flow data, are either unsuitable for many purposes or have not been collected.
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Key Issues 117 be effectively linked, to collect data on multimodal passenger and freight transportation flows, and to integrate and disseminate transportation-related data collected by DOT and other public agencies.
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118 INTERMODAL MARINE CONTAINER TRANSPORTATION set priorities on specific data and/or information needs of both the public and private sectors. The primary objective of the project would be to develop an on-going data base that would meet the combined needs of public and private users.
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Key Issues 119 Shipbuilders are likely to oppose any bill that gives foreign-built ships ODS eligibility unless it also provides for at least some new construction in U.S. shipyards.
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120 INTERMODAL MARINE CONTAINER TRANSPORTATION Under MARAD regulations, a foreign-built and foreign-registered ship would generally not be eligible to carry most types of preference cargo until it had been reregistered under U.S. law for 3 years.
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Key Issues 121 Many of the proposals have been discussed in detail elsewhere (Caltrans 1989; Containerisation International 1989; Container News 1989)
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122 INTERMODAL MARINE CONTAINER TRANSPORTATION REFERENCES ABBREVIATIONS Caltrans California Department of Transportation Commad Commission on Merchant Marine and Defense DOT U.S. Department of Transportation FHWA Federal Highway Administration GAO General Accounting Office MARAD Maritime Administration OTA Office of Technology Assessment SOIC Steamship Operators Intermodal Committee SPANS Sealift Procurement and National Security Study TRB Transportation Research Board Ackerman, P
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Key Issues 123 Ek, C
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Study Committee Biographical Information W Bruce Allen, Chairman, is Professor of Public Policy and Management and Transportation at the Wharton School, University of Pennsylvania.
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126 INTERMODAL MARINE CONTAINER TRANSPORTATION Mechanical Engineers, and a trustee of The George Washington University. Michael Diaz is Executive Vice President and Chief Operating Officer of American President Domestic Company, Ltd., Oakland, California.
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Study Committee Biographical Information 127 Holmdel, New Jersey, since 1977. He holds a bachelor's degree from Boston University.
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128 INTERMODAL MARINE CONTAINER TRANSPORTATION Roger W Wigen is Manager of Transportation Policy and Industry Affairs of the 3M Company, St.
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The Transportation Research Board is a unit of the National Research Council, which serves the National Academy of Sciences and the National Academy of Engineering. The Board's purpose is to stimulate research concerning the nature and performance of transportation systems, to disseminate the information produced by the research, and to encourage the application of appropriate research findings.
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Transportation Research Board National Research Council 2101 Constitution Avenue, N.W. Washington, D.C.
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Key Terms
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