This fireside chat recap is from Day 5 of FreightWaves’ Global Supply Chain Week.
FIRESIDE CHAT TOPIC: Port of Oakland perspective on the pandemic and supply chain challenges
DETAILS:
SPEAKER: Bryan Brandes, maritime director, Port of Oakland
BIO: Brandes has spent 25 years in the maritime industry. He began his current position in June 2020. Before joining the port, he was vice president, Pacific Southwest Region Operations, for FlexiVan Leasing, an intermodal chassis leasing company. He previously was director of West Coast operations for France-based ocean carrier CMA CGM. He began his career with Maersk, rising to senior management roles with APM Terminals and Maersk Line.
KEY QUOTES FROM BRANDES:
“Historically the services call LA/Long Beach first and then make their second port of call to Oakland, which is what drove the importance of Oakland for exports. This last year we saw several services turn away from Oakland and immediately turn right back to Asia. It impacted exports out of Oakland. Last year we saw an 8% drop. Historically, Oakland has been a 50/50 port [with imports and exports].”
“Last year we held a few meetings with the exporters, led by John Porcari and the port envoy team [at the White House], along with the USDA and California GoBiz and transportation representatives. And two issues really rose to the top. And that was not having enough empties locally to source for exports. And the services provided by the lines. So we agreed to develop an off-dock empty yard that we are starting on March 1. The second initiative is vessel restoration. That’s an ongoing discussion held at every level. The exporters are talking to the lines and they are slowly returning the vessels. But the government officials have been instrumental as well.”
“They [the exporters] are being asked to pay higher rates, and they are paying higher rates. But there most likely will always be a significant imbalance between the import rate and the export rate. This pop-up yard will offer the exporters an incentive to use this yard. The USDA has committed to provide $125 for each empty container sourced out of this yard for agricultural commodities, and that goes directly to the beneficial cargo owner of record.”
“It’s clearly going to help the importers as well. The import drives the export because the export needs that empty. By pulling these empties out of the terminals, it’s really going to relieve congestion in the terminals and will allow the export trucking companies to come into a single place and source all the lines’ empties without appointments. And it really just allows a better opportunity for the export community to go to a place that doesn’t have export congestion and pick up an empty. This is simplifying the process and really allowing the terminals to focus on the imports and receiving the exports and making sure the exports get loaded on the vessel.”
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.