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Is US west coast docking of 18,000-TEUer more trouble than it's worth

WHILE the docking of the 18,000-TEU CMA CGM Benjamin Franklin and its handling of 11,200 containers over three days, proved megaships can play a role in west coast ports, it raised the question of whether it was worth the cost.

This is the point raised by Lawrence Gross, president, of Gross Transportation Consulting of New Jersey, writing in IHS Media.

Statistics show that despite massive investment in dredging, cranes and harbour infrastructure to accommodate such ships, LA port container volume has not topped the record sent in 2006.

"Although bigger ships may optimise line-haul costs, they impose significant additional costs to the terminals and other land-side operators," said Mr Gross.

"When volumes don't grow, and cargo comes in ever-larger but more widely spaced chunks, coupled with the requirement to turn those big ships rapidly, the terminal needs more of everything: more land, more cranes, more shuttle units and other equipment to handle the same volume delivered in smaller, more frequent doses," he said. "

"No rational player would agree to such a scenario, but in truth, the ocean carriers hold the upper hand because of their ability to shift volume away from any terminal that doesn't meet their requirements.

"The massive investment needed to support the mega ships in effect became the cover charge just to stay in the game," said Mr Gross.

"Although carrier representatives profess to have concern with regard to the entire supply chain, they really only care how long the ship is tied up at berth.

"What happens to the containers before and after they clear the ship's rail is a problem for the land-side players to deal with." he said.

"So the real question is this: Will we look back a decade from now and see the ship as an evolutionary dead end, a dinosaur that was too large to survive in a changing world?" Mr Gross said.