Global Supply Chains, Maritime Transportation and the Caribbean Transshipment
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Global Supply Chains, Maritime Transportation and the Caribbean Transshipment Market: The Challenges of Growth and Rationalization. Jean-Paul Rodrigue Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA

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Global Supply Chains, Maritime Transportation and the Caribbean Transshipment Market: The Challenges of Growth and Rationalization

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Global supply chains maritime transportation and the caribbean transshipment market the challenges of growth and ratio

Global Supply Chains, Maritime Transportation and the Caribbean Transshipment Market:The Challenges of Growth and Rationalization

Jean-Paul Rodrigue

Associate Professor, Dept. of Global Studies & Geography, Hofstra University, New York, USA

Van Horne Researcher in Transportation and Logistics, University of Calgary, Canada


The panama canal expansion what s up doc

Non academic title:

The Panama Canal Expansion: What’s up Doc?


Factors impacting north american freight distribution in view of the panama canal expansion

Factors Impacting North American Freight Distribution in View of the Panama Canal Expansion

Operational Factors

Competitive Factors

Macroeconomic Factors

Aggregate demand changes

Supply chain diversification and differentiation

Response from East and West coast ports

Economies of scale in shipping

Structure of production changes

Response from railways

Shipping costs structure

New gateways

Slow steaming

Response from Suez Canal and Med transshipment hubs


Container traffic at north american ports 1980 2009 this was supposed to be impossible

Container Traffic at North American Ports, 1980-2009: This was supposed to be impossible…


Main export oriented regions and shipping routes servicing north america

Main Export-Oriented Regions and Shipping Routes Servicing North America

Southeast Asia

South Asia

Indifference Point

East Asia

Westbound Route

Eastbound Route

Landbridge

PanamaRoute


At the crossroads which value proposition for the caribbean

At the Crossroads… Which Value Proposition for the Caribbean?

1) Strong margins, but many not large enough to justify dedicated services

3) East coast capacity issues

4) Last segment in import-based supply chains

-

+

2) Interlining between the America’s coastal systems


What drives supply chain management control freaks

What Drives Supply Chain Management? Control Freaks

Added Value

Efficiency

Control

Offshoring

Costs / time / reliability

Internalize efficiency


Diversification routing options between pacific asia and the american east coast

Diversification: Routing Options between Pacific Asia and the American East Coast

Pacific Asia / American East Coast

Intermodal (60%)

All Water (40%)

Western Canada (5%)

Via Suez (5%)

Pacific Northwest

(20%)

Via Panama (95%)

Pacific Southwest

(75%)

Mexico(?%)


Share of the northeast asia u s east coast route by option transition already completed

Share of the Northeast Asia – U.S. East Coast Route by Option: Transition Already Completed?


Supply chain differentiation pick your preference

Supply Chain Differentiation: Pick Your Preference


Slow steamin what hath you brought us

Slow Steamin’: What Hath You Brought Us?

Prince Rupert

12

Transit Times from Shanghai and North American Routing Options (in Days)

Vancouver

4

13

8

5

Seattle / Tacoma

Toronto

Oakland

5

3

26

Chicago

New York

13

Los Angeles

25

Norfolk

Atlanta

5

14

Dallas

Savannah/Charleston

5

25

Slow Steaming:

More WC transloading

More inventory in transit

28

Houston

8

19

Lazaro Cardenas

22

Panama


The toll conundrum potential diversion between intermodal and awr for asian imports

The Toll Conundrum: Potential Diversion between Intermodal and AWR for Asian Imports

The Toll Conundrum:

Financial pressures versus maritime shipping pressures

Current

Expansion (unconstrained)

Expansion (constrained)

Toll increases have already captured 40% of the potential savings of the expansion.

The appeal of revenue maximization (NOT traffic maximization).

Yield management?

Adapted from A. Ashar (2009)


Shipping rate from shanghai for a 40 foot container mid 2010

Shipping Rate from Shanghai for a 40 Foot Container, Mid 2010

Vancouver

Montreal

$2,300

$2,110

$4,040

$3,950

New York

$3,700

$1,830

Los Angeles

$2,620

$1,400

Inbound rates: function of distance

Outbound rates: function of trade imbalances

Houston

$3,510

$2,560

Inbound

Outbound

$1,300

$2,100


The north american container port system and its multi port gateway regions

The North-American Container Port System and its Multi-Port Gateway Regions

4

Multi-port gateway regions

1. San Pedro Bay

2. Northeastern Seaboard

3. Southwestern Seaboard

4. Puget Sound

5. Southern Florida

6. Gulf Coast

7. Pacific Mexican Coast

2

1

3

6

5

The Caribbean Gateway?

(RIMS)

7


Selected mou between the panama canal authority and american gulf and east coast ports

Selected MOU between the Panama Canal Authority and American Gulf and East Coast Ports


Governance changes in port authorities

Governance Changes in Port Authorities

Conventional Port Authority

Expanded Port Authority

  • Planning and management of port area.

  • Provision of infrastructures.

Landlord

Landlord

Cluster Governance

  • Service Efficiency

  • Logistical Integration

  • Infrastructure and Growth Management

  • Terminal-City Integration

Regulator

Regulator

  • Planning framework.

  • Enforcement of rules and regulations.

Operator

Operator

  • Cargo handling.

  • Nautical services (pilotage, towage, dredging).

Terminal Operator(s)


Added value activities performed at an extended gateway

Added Value Activities Performed at an Extended Gateway


Major rail corridors improved since 2000

Major Rail Corridors Improved since 2000


Global supply chains maritime transportation and the caribbean transshipment market the challenges of growth and ratio

Conventional

Direct

NorthAtlantic

Central

Atlantic

South Atlantic / Gulf

Transshipment

Circum-Equatorial

NorthAtlantic

NorthAtlantic

Central

Atlantic

Central

Atlantic

South Atlantic / Gulf

South Atlantic / Gulf

Caribbean

Transshipment

Triangle


Emerging global maritime freight transport system

Emerging Global Maritime Freight Transport System


The caribbean transshipment market

The Caribbean Transshipment Market

The “curse of economies of scale”

Jones Act + 24 hour rule

Anchoring footloose traffic


Conclusion the complexities of divergence

Conclusion: The Complexities of Divergence

Operational Factors

Macroeconomic Factors

Aggregate demand changes, structure of production

Supply chain diversification and differentiation, economies of scale, Slow steaming

Panama Canal Expansion

No expansion: High impact (trend reversal)

Expansion: Maintaining existing trends (AWR)

Response from East and West coast ports, hinterland factors, tolls

Competitive Factors


Global supply chains maritime transportation and the caribbean transshipment market the challenges of growth and ratio

Asia

Europe

USA

Caribbean

Canal

Panama


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