NCBFAA Government Affairs Conference

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NCBFAA Government Affairs Conference September
24, 2007
Vessel Operators and Non-Vessel
Operators Partners or Adversaries in Contract
Negotiation? Tim Perry APL, Ltd.
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AGENDA

• Trade Outlook
• Were in This Together
• Successes Challenges
• Summary

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Trade Outlook
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Trade Outlook
Rising US Exports and Imports
US exports and imports expected to grow
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Trade Outlook
World Containerized Trade Growing
Containerized volumes expected to double from
2000 to 2020
Source Global Insight
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Trade Outlook
Capacity and Fleet Growth to Slow
Gap between Supply Demand growth narrowing by
2008
Source GRD, MDS, Drewry
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Trade Outlook
Infrastructure Issues Current Future
2,557
1,776
? 44.0
U.S. MARITIME CONTAINER TRADE GROWTH
? 253.6
SEATTLE
15,835
4,478
? 144.5
4,396
1,798
NY/NJ
59,420
TACOMA
5,566
3,382
2,043
1,809
? 207.7
? 65.5
? 353.6
VIRGINIA
OAKLAND
13,101
6,165
? 466.8
6,639
9,420
LA/LB
1,437
1,860
? 256.9
1,662
HOUSTON
CHARLESTON
SAVANNAH
2,152
1,010
MIAMI
? 113.1
Source American Society of Civil Engineers
(ASCE) 2005 Report Card for Americas
Infrastructure, U.S. DoT
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Trade Outlook
Rail Growth in North America
Intermodal traffic in US has almost doubled in
the past 15 years trend likely to continue
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Trade Outlook
Rail Constraints in North America
US Rail infrastructure continues to be stressed
in spite of significant investment by the
railroads
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Global Insights forecast highly congested
conditions on transcontinental railroads main
lines by 2035
Trade Outlook
Rail Volume 2005 vs 2035
Source Global Insight
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Trade Outlook
Marine Terminals are stressed
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Trade Outlook
Port of Long Beach 2004

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Trade Outlook
Infrastructure Issues Viewpoint

• The challenges which negatively impact Flow
  today will become greater over time
• Pressure on ports will continue
• As rail volumes rise, and investment fails to
  keep pace with growth, rail velocity will
  continue to slip
• Highway congestion will hamper rail and truck
  distribution to major metropolitan areas
  throughout the US

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Were All In This Together
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Were all in this together
Its More than Port-to-Port
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Were all in this together

• Parties have everything to gain by partnering.
• Closeness from booking through delivery.
• - Vessel Schedules
• - Port Rotation
• - Cargo Details
• - Info that Shipper is NVO
• VOC must know in order to manifest properly.
• Demurrage is a symptom of low cargo velocity.

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Successes and Challenges
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Successes and Challenges

• 24 Hour Rule
• - Special BL
• - Master BL and House BL relationship
• Exams
• - Random VACIS, Pop Tap
• - FDA
• - 1M

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Successes and Challenges

• Zero Tolerance Gateouts
• - MTO Bond
• - Old World Penalties
• 2,500
• - New World Penalties
• 1st - 10,000 to 25,000 2nd -
  25,000 to 50,000 3rd - 50,000 to
  75,000
• - Incidents reduced from 27 to 7 per month

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Successes and Challenges

• AMS Changes i.e. Suppress transportation
  messages until conveyance is arrived.
• 2Z Master / House BL mismatch advisory.
• ACE PGA access to holds
• 10 2

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Summary
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• Know your partners
• Communicate
• CESAC
• NCBFAA Customs Committee
• NCBFAA Legislative Advocacy
• - Ocean Carrier Best Practice Committee
• - COAC
• - Trade Support Network
• - TOPAS

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Thank you.Tim PerryAPL, Ltd.1667 K Street NW,
Suite 400Washington, DC 20006tim_perry_at_apl.com
202.496.2482
NCBFAA Government Affairs Conference September
24, 2007