As global trade increasingly relies on ever-larger container vessels, a critical question emerges: Are vessel sharing agreements (VSAs) truly catalysts for efficiency, or are they contributing to port congestion and cost-shifting burdens?
NCBFAA's Concerns: Mega-Ships and Port Bottlenecks
The National Customs Brokers & Forwarders Association of America (NCBFAA) recently submitted comments to the Federal Maritime Commission (FMC) urging stricter scrutiny of VSAs, particularly regarding the use of ultra-large container vessels and their operational impacts. The filing responds to the FMC's Advance Notice of Proposed Rulemaking (ANPRM) seeking monthly carrier data on agreement utilization and operational changes.
While supporting the FMC's initiative, NCBFAA advocates for expanded data requirements to better assess how mega-ships in VSAs might exacerbate port congestion. The association argues carriers should demonstrate that VSA approvals won't create severe bottlenecks that ultimately pass demurrage and detention costs to shippers and ocean transportation intermediaries (OTIs).
The VSA Dilemma: Efficiency Gains vs. Operational Strain
VSAs allow shipping lines to share vessel space, optimizing capacity utilization and reducing operating costs. However, the trend toward increasingly massive vessels places unprecedented pressure on port infrastructure and service capabilities. The concentrated arrival of mega-ships can trigger:
- Extended port congestion
- Delayed terminal turnarounds
- Landside transportation bottlenecks
NCBFAA highlights three critical pressure points:
Demurrage and Detention Fees
Port congestion frequently leads to container dwell time penalties that shippers often bear regardless of fault. The association contends the FMC should prevent carriers from passing these congestion-related costs to customers.
Chassis Availability
Port bottlenecks frequently create equipment shortages, particularly for the specialized trailers needed to move containers. NCBFAA urges examination of chassis pool efficiency and contractual limitations.
Landside Capacity
The ripple effects of port congestion extend to over-the-road transportation networks, creating delays in container movement that compound supply chain disruptions.
Regulatory Recommendations: Transparency and Accountability
NCBFAA proposes several measures to strengthen VSA oversight:
- Pre-approval conditions: Require carriers to submit detailed vessel coordination plans matching arrivals with port capacity
- Infrastructure guarantees: Demonstrate adequate chassis availability and landside transportation capacity
- Operational improvements: Commit to reducing terminal and container turnaround times
- Fee protections: Establish clear procedures preventing unreasonable demurrage charges
- Contingency planning: Submit emergency protocols for cargo handling during port access disruptions
The Global Context: Addressing Port Congestion
Port congestion has emerged as a systemic challenge worldwide, particularly during pandemic-era supply chain disruptions. Mitigation strategies include:
- Expanding port infrastructure investments
- Optimizing terminal operations through digitalization
- Enhancing coordination between maritime and landside operators
- Implementing staggered vessel arrival schedules
Balancing Efficiency with Equity
While VSAs deliver operational efficiencies, their potential to concentrate costs on specific supply chain participants warrants careful regulatory consideration. The FMC's forthcoming decisions will significantly influence whether the shipping industry can maintain this balance - preserving the benefits of cooperation while preventing disproportionate burdens on shippers and intermediaries.