FMC Releases Second Report on Port Congestion Issues

The Federal Maritime Commission released another agency report on port congestion issues after the agency voted to make the report public in June, said the FMC in a news release (here). The report (here) is focused on "U.S. Port Congestion & Related International Supply Chain Issues: Causes, Consequences & Challenges." The report is the agency's second based on congestion forums held by each of the Commissioners at major ports last year. The first FMC report, released in April (see 1504140014), was on detention, demurrage and free time.

The FMC organized the report to include six separate sections on what are considered the biggest issues -- capital investment, chassis availability, vessel and terminal operations, port drayage and truck turn-time, extended hours and communications. Each section outlines the specific issues, stakeholder viewpoints and possible resolutions. The port congestion issues may be the result of a number of events over the years rather than high-profile problems, such as labor disputes, it said. Still, "many seem to think it is inevitable that embracing 'business as usual' will lead to significant further declines in the performance of the U.S. intermodal transportation system and degrade supply chain efficiency, if only because international trade will continue its relentless expansion."

The agency is now considering making use of a federal advisory committee, it said. Such a committee could provide "a critical reassessment of ocean carrier, port, terminal, rail, drayage, and equipment provisioning systems and procedures and suggest how 21st century methods and technologies could be adopted to enhance container velocity through these systems, thereby reducing supply chain costs," said the FMC. The FMC's report included only forum-participant suggested solutions and doesn't outline specific plans the FMC will take up.

The FMC also pointed to other various issues that affect supply chain and port congestion. For example, some in the industry complain of CBP's hours of service at Gulf and South Atlantic ports. The FMC should consider partnering "with other agencies such as CBP, Census, and FDA, to conduct preventative outreach and education to protect shippers and OTI’s against problematic practices that might lead to otherwise avoidable inspections and related demurrage costs," one participant at the port forums told the FMC. "For example, it was noted that the Trusted Trader Program, a pilot program of CBP, CPSC, and FDA which strengthens collaborations among those agencies to manage more efficiently the security of imports, could be advertised more to interested parties."