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This will work well for some domestic transportation and land locked rural areas, but for everybody else... I don't think this will do anything. It just sounds
by austincheney 5y ago
This will work well for some domestic transportation and land locked rural areas, but for everybody else... I don't think this will do anything. It just sounds like a massive expense.
I live right next to perhaps the largest inland port in the US and cargo here doesn't sit for very long because the only options are air, trucks, and trains and there is anywhere for excess cargo to sit. This is called the inter-modal system of logistics, the ability to rapidly move shipping contains between air and train via short truck routes or immediately onto trucks for long haul truck distribution. In this case the Amazon plan can skip sea ports and directly reach inland ports that don't have congestion. But, that will only work efficient for domestic transport.
The solution ignores the cause of the problem for sea ports, the point of congestion to which they are likely a massive contributor.
The problem for the congestion is that ports have run out of space, mostly from empty containers taking space needed by filled containers on ships. This problem is not a labor shortage, tracking inefficiency, or distribution failure.
This problem is intentional and created by the vendors most severely impacted from the result. Empty shipping containers take up space and have to be stored somewhere. If not at a port then at a vendor's warehouse clogging operations closer to the business. Parking contains costs money. Whether you are going to park them at a port or your own warehouse there is an expense to that lost space.
Parking at the port was, until about a month ago, tremendously cheaper. It takes fuel to drive that empty box around and it takes money to pay for a filled warehouse of your empty containers that is needed for actual operations. So just leave it at the port for a massive discount.
Parking at the ports worked well... until there was a massive pandemic and everybody starting shopping online, even from places like WalMart.
The Port of Los Angeles is solving this problem on their end with rate increases that increase per day (or week, I don't remember). I suspect their neighbor at the Port of Long Beach is following on that plan as well. Only time will tell if this actually solves the problem at those ports. Even the mere announcement of this price hike resulted in one vendor removing 5000 empty containers. That is a mind boggling amount of space, and from just one company.