Issue49November2016Innovating.pdfVIP

CargoSmart is creating a whole new visibility model for ocean shippers and logistics service providers to monitor their shipments. The rules of the game are changing in the global shipping and logistics industry. CargoSmart’s innovative methods oer insights for the industry to manage their shipments. CargoSmart’s monthly, complimentary Innovating newsletter delivers refreshing insights for you to make intelligent decisions for your supply chain. CONTENTS ? Port Performance: Before and After SOLAS VGM 2 ? Schedule Reliability: K Line, MOL, and NYK 4 ? World Incidents: Busan Port Strike 7 ? Contact 8 ABOUT INNOVATING WELCOME to the November issue of CargoSmart’s Innovating, a monthly, complimentary e-newsletter for the ocean shipping industry. Innovating is designed to provide insights about cargo delays around the globe that you may find useful to improve your daily operations and strategic planning. More than three months have passed since the new Safety of Life at Sea Verified Gross Mass (SOLAS VGM) requirements went into effect on July 1. Under the new rules, if ocean carriers do not have the VGM by the cutoff time, they may hold cargo, which could cause delays at the port. The industry has taken a practical and pragmatic approach when enforcing the new container weight rules for the first three months. In September, ocean carriers reported that initial compliance has been strong. This month, we reviewed performance at six ports before and after the new container weight requirements went into effect. We found that vessel arrivals decreased at the ports and that the Port of Felixstowe experienced the longest average vessel departure delays among the ports after the regulation went into effect. However, the new requirements do not appear to have had an impact on vessel schedules. On October 31, three Japanese ocean carriers, K Line, MOL, and NYK, announced that they will spin off their container divisions and merge them on Jul