Speaking exclusively to Air Cargo News, Hung said the shortage is worst on the transpacific trade and is the result of the knock-on effects of general supply chain disruption causing hold ups in transport operations.

“Airlines are finding it’s taking much longer for assets to be delivered back to US warehouses after collection by the consignee,” Hung said.

“Backlogs in warehouse operations for both airlines and freight forwarders, combined with transportation issues such as driver shortages and capacity constraints, are also impacting the availability of ULD pallets and containers.”

Hung added that ULD manufacturers are backlogged and despite running at maximum capacity they can’t fulfil the current demand.

Lead times for delivery of new ULDs is at least four to six months.

“Exacerbating the shortage, freight forwarders are running out of warehouse space and keeping ULDs as supplementary storage outside of their warehouses,” Hung added.

“Airlines are trying to combat the challenges by leasing more units, offering incentives for faster turnarounds in the US and expediting repairs.”

Airlines are also struggling to have enough pallets on hand due to delays in their return from customers.

“It’s also difficult for airlines to secure pallets from ULD leasing companies, even though many are willing to pay a premium for pallets,” added Hung.

“The shortage of pallets is going to continue to delay shipments, which will have an impact on the entire supply chain.”

Asked how long the shortage could last, Hung said it was very “extremely difficult” to predict given the uncertainty regarding future lockdowns – especially given the Omicron variant – and the impact that could have on air cargo.

Hung recommended that airlines utilise tracking technology and software, such as that offered by Descartes, to monitor ULDs and automate the demurrage process.

“[Tracking technology] helps carriers optimize the use of the ULD assets they do have by changing the behaviour of agents so they return ULDs on time.

“This provides visibility into the exact location of ULD assets and whose custody they are in at any time, and traces ULD movements easily to clarify any discrepancies.

“Technology also drives better forecasting and planning so airlines can identify ULD shortages before they occur and take proactive action as necessary, such as leasing or purchasing new assets.”

Descartes is not the only company to have noted a shortage of ULDs over recent weeks.

In November, Cathay Pacific director of cargo Tom Owen also noted a shortage of ULDs on the transpacific.

“Backlogs in both our and consignee warehouses, along with shortages of trucks and labour issues, are combining to make this very challenging,” he said.

Source: www.aircargonews.net

Image: www.pexels.lv

The post Air cargo continues to tackle transpacific ULD shortage appeared first on Cargo News Today.

In a new blog, the White House National Economic Council said the Federal Maritime Commission (FMC), an independent agency, was already investigating excessive shipping fees, but should consider using other tools, including challenging carrier alliances if they resulted in unreasonable costs or delays.

It also urged Congress to enact reforms to give the FMC more tools to oversee the global shipping sector, including boosting transparency about fees carriers charge their customers.

President Joe Biden and his administration are racing to address supply chain snarls that emerged in the wake of stronger-than-expected recovery from the COVID-19 pandemic, fueling product shortages and inflation.

Much of the focus has been on U.S. ports, which have been inundated with cargo as a result of seismic shift in consumer spending during the pandemic, from travel and dining to physical goods.

The pandemic also reduced the number of workers needed to keep goods flowing smoothly. Aging truckers retired early, while infection control measures have limited dock and warehouse staffing.

The White House said new data showed continued improvements, with a record number of containers imported at the ports of Los Angeles and Long Beach, California, from January to October, retail inventories up 4% from 2020, and on-the-shelf availability at 90%, just 1% below levels seen before the pandemic.

“The good news is that we’re moving more goods than ever before, we’re seeing that retail is fully stocked, and we’re seeing that the ports are moving these goods more quickly,” a senior White House official said. “That means it’s going to be a normal holiday season for Americans.”

At the same time, the White House said more work was needed to improve exports out of U.S. ports, with rising shipping costs making it more profitable for carriers to load empty containers instead of waiting for loaded containers to get to ports.

“The problem … raises questions about the fair treatment of American exporters and importers in the shipping industry,” it said, noting that nine carriers organized in three alliances now controlled 80% of global shipping, up from just 29% in 2011.

The alliances are legally immune from antitrust laws, but the FMC can challenge them if they result in unreasonable delays, unreasonable increase in transportation costs or “substantially lessen competition,” the White House said.

It said the U.S. Justice Department stood ready to help the FMC, adding that the agency needs a bigger budget than its current $30 million.

The post White House Lauds Easing of Supply Chain Clogs, Cites Shipping Competition Concerns appeared first on Cargo News Today.