National Academies Press: OpenBook

North American Marine Highways (2010)

Chapter: Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways

« Previous: Appendix C - Tabulation of Shipper Requirements
Page 67
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 67
Page 68
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 68
Page 69
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 69
Page 70
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 70
Page 71
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 71
Page 72
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 72
Page 73
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 73
Page 74
Suggested Citation:"Appendix D - Compilation of Potential Obstacles to the Development of Marine Highways." National Academies of Sciences, Engineering, and Medicine. 2010. North American Marine Highways. Washington, DC: The National Academies Press. doi: 10.17226/14406.
×
Page 74

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

67 A P P E N D I X D Compilation of Potential Obstacles to the Development of Marine Highways Service/Marketing Issue Comments References Perception by others Shippers and freight forwarders see water transportation as slow and old-fashioned … NAMH shipping is generally slower and less frequent than rail or road … Skepticism about the service’s ability to provide adequate transit time and reliability … IMCs (Intermodal Marketing Companies) either are not aware of NAMH services or choose not to use them, making it difficult for NAMH to increase its market share … Many shippers feel that barge transit times are less reliable than truck or rail because of weather factors … It has a poor service image, it is seen as a segmented industry, and it is perceived to be a complex system involving many actors. The missing link that requires most attention is to convince shippers and forwarders presently using road transport to abandon their sole reliance on road and rail transport and give more serious consideration to alternative modes such as NAMH as a backbone for integrated door-to-door transport … However, shippers in the general cargo market will see lack of daily services with faster travel times as a competitive disadvantage for NAMH services as compared to truck and even rail services. It takes time to convince cargo owners to change their habits, and they need to see reliable and regular services before doing so, making it difficult to fund the start-up phase. NAMH is perceived as a slow mode, and inappropriate for just- in-time delivery systems … Not perceived to be competitive with trucks … Past failures make shippers reluctant to switch. 1, 2, 3, 4, 5, 6, 8, 10, 14, 21, 31, 33, 43 Lack of supply chain orientation/lack of modal integration U.S. shippers are quite concerned about purchasing a service requiring multiple carrier contracts … Any possibility of commercial viability almost certainly hinges on a service that combines feeder operations with door-to-door (domestic or cross-border) service, so as to achieve a sufficient volume to allow sailings at a regularity sufficient to meet the expectations of shippers of higher value, more time-sensitive cargoes … However, feeder service obligations are likely to tie any such NAMH operation to the schedules of deepsea carriers. It may, therefore, only be quite providential that such departure times, or indeed frequencies, meet the needs of door-to-door shippers … Many NAMH companies are too small to operate total logistics chains and they are characterized by individualism that makes it difficult to cooperate with others in the industry … Insufficient integration with other transport modes in the transport chain; NAMH can have difficulty in meeting “just-in-time” requirements … Lack of supply chain orientation by carriers and integration with other modes. 1, 4, 21, 40 Schedule reliability Susceptible to inclement weather conditions. 6, 10, 33 Trip frequency Trucks can operate on demand. Rail carriers can offer daily or twice-daily service. No one has documented any NAMH operators in the United States offering daily service. Delivery schedules increasingly need to fit just-in-time delivery requirements … Fixed-day departure every two weeks is not acceptable to a majority of exporters … Only a small percentage of the market is interested in a NAMH option with biweekly service. 6, 8, 10, 40 Insufficient demand Viable cross-border NAMH services will require relatively high-volume shipping lanes to generate sufficient demand for frequent services (a necessary pre-condition to compete with trucking). This may be difficult to develop in the primary corridors of cross-border movement on the West Coast. 33 Difficulty in selling feeder service to ocean carriers Fewer and fewer carriers or alliances control larger and larger blocs of cargo, and the number of potential customers of a feeder service is reduced … Steamship lines often do not realize the full costs of trucking operations and thus mistakenly believe barge service is overpriced … Bills for “hidden costs” come into different departments and different individuals at the steamship company. 2, 7 International cargoes On Canada’s Atlantic Coast, a NAMH based purely on international cargo is not financially viable since the largest customers of Canadian National Railway (CN) also pay the lowest rates to the railway … Coastwise between major ports: large ports already served by foreign liners, imports/exports tend to move east-west to/from these ports, versus north-south … If the larger shipping lines decided to chase the cargo that a NAMH operator carried, they could jeopardize the existence of the service. 8, 9, 40 (continued on next page)

Cost Issues Issue Comments References High fees for ports and land-based services Another obstacle to NAMH container feeders is modal interchange costs, or handling costs … The cost of the vessels (even the higher costs of U.S.-built Jones Act vessels), was found to represent only 14% of the total cost per trailer. The most significant costs for NAMH on a per trailer basis remain the landside costs including truck drayage to and from the terminals, port costs, and fuel costs … Research has shown that the economic viability of marine highways is influenced to a significantly greater degree by landside costs such as truck drayage and terminal costs than by vessel capital costs … Often times the cost barrier comes in the form of transport onto or off a smaller port facility instead of the on-dock storage or cargo handling costs. 10, 14, 31, 33 Terminal lease costs are too high Especially on the West Coast, the cost of land acquisition in a port area is prohibitive and the lease rates for waterfront property are very high. 14 Lack of capital Private financiers are unwilling to take the plunge … Reluctance to invest millions of dollars on untested ideas … Difficult to obtain financing in today’s environment. 15, 22, 34, Economic load requirements The volume of freight handled in a single block (typically 400–1,000 TEU) restricts the frequency of shipments compared to other competitive modes of intermodal transport. Trucking typically handles 2 TEU at a time and intermodal trains handle roughly 250 TEU per train … The larger the vessels, the lower the frequency to handle the same volume. This creates a barrier to entry into shipping routes as the volume of cargo must be sufficient to enter the market with an economically sized vessel … The need to consolidate loads and the associated impacts on frequency of service clearly puts NAMH at a disadvantage, particularly for general cargo moves, when compared to rail or trucking. 2, 33, 40 Increased lead time Cargo has to be accumulated at the outbound dock ahead of time (a particular issue for high- value goods because of increased inventory costs). 31 Infrastructure Issue Comments References Terminal handling equipment Most Great Lakes ports do not have the necessary equipment to handle containers efficiently, and justifying such investment is difficult. 1 Driver hours-of- service rules Time spent by drivers with their vehicles on a ferry is considered to be on-duty time, thus providing no benefit with regard to driver hours-of-service regulations. 1 Port infrastructure … Locks/dams, channels, bridge clearances … Many of the underutilized ports that would benefit from increased NAMH operations do not have sufficient infrastructure (berths, cranes, access) … Ground storage capacity is currently at a premium at most ports. The current policy of managing capacity through surcharges will discourage growth of comparatively low-revenue domestic transportation … Information systems support to coordinate “hand-offs” between motor carriers, ports, and ocean carriers would be a critical service component to ensure a seamless service … Initial capital costs, including vessel procurement costs and port infrastructure-related costs, are much higher in NAMH than in trucking, which deters carriers to invest in such business … Potentially insufficient terminal capacity and added congestion on port access routes … Diverting over-the-road truck volume into port areas for marine highways service use may compound existing traffic congestion issues in and around the ports … Port infrastructure constraints do not appear to be a major obstacle to expanded services … However, bringing shippers physically closer to carriers by creating warehouse and processing sites near the water may be an important incentive for development of NAMH and this could be difficult given municipal tax policy in British Columbia, zoning rules, environmental permitting requirements in coastal areas, and community opposition to port expansion in both Canada and the United States. 15, 16, 17, 18, 33, 34 Issue Comments References Market issues The biggest barrier to NAMH operations in Canada is the lack of a defined market … Inadequacy of meaningful statistics, data, and information … Furthermore, the possibility is complicated by the seasonality of the exported goods … There is a lack of statistical data that make accurate analysis of trade flows between ports and regions difficult; this creates problems both for commercial development and policy making … The academic community needs a far better picture of freight movements within the United States in order to support further analysis of the potential benefits of coastal shipping, as well as to capture the currently under-appreciated externalities of freight movements, such as pollution. Accurate and precise freight data along America’s coastlines simply do not exist. 10, 11, 12, 21, 40 Transit time Transit times for the barge services are not competitive even with current congestion levels at the border … Great Lakes ports have experimented with the concept of bringing in containers by ocean vessel but have found that shippers preferred the shorter timeline of rail-truck intermodal movements from the ocean ports for containerized cargo … Vessel performance leads to a lack of speed when compared to its competitors on U.S. trade corridors, especially highways and roads … Transit times are cited in surveys more than any other factor as a major problem. 4, 12, 13, 21, 31, 33 68

Government/Regulatory Issue Comments References Harbor Maintenance Tax Some trucks move by water from the United States to Canada, but return to the United States by bridge to avoid paying the tax … Horizon is “waiting to see what happens with the Harbor Maintenance Tax.” … HMT is an identified cost of anywhere from US$75 to US$120 on a 20-ft box … This tax may amount to around 2.5% of the total cost of a NAMH movement along the Atlantic Coast. It adds to the cost of the NAMH mode as well as introducing the “annoyance factor” of an additional layer of administrative paperwork that does not encumber a trucking movement … HMT still accounts for 6%– 10% of the total costs per trailer load on the Pacific Coast … To use a NAMH carriage alternative, the highway carrier must contact every shipper with freight in the trailer to seek permission to subject each shipment to the HMT at the expense of the shipper or importer. The domestic shipper/importer will calculate the added cost (HMT) of shipping by water and make a business decision whether the time and money saved on the congestion avoidance route is worth the added tax and document filing obligation. If it agrees to incur the added costs associated with HMT, the domestic shipper/importer will need to declare accurately the shipment contents and value of the merchandise shipped … A vessel that carries multiple cargoes such as the Detroit–Windsor Truck ferry is unable to attract additional business such as UPS trucks because each shipper in the truck will have to pay the tax, creating a paperwork issue on less-than-truckload cargoes … It serves to stimulate rather than discourage a shift to the use of land modes, and therefore works at variance with the thrust of the arguments for encouraging NAMH … HMT is the prime example on the U.S. side exemplifying this situation. Application of this tax encourages cross-border traffic to move by land rather than by water … The single most important impediment to the development of NAMH in the United States is the Harbor Maintenance Tax. 1, 17, 19, 20, 21, 22, 23, 24, 26, 27, 28, 31, 34, 36, 40, 43 Costs vs. public benefit There is no mechanism to credit a potential operator with these external benefits ... If coastal shipping produces economies, it is not clear where the savings will be realized—the carrier, the cargo owner, or the consumer. Thus, it is hard to determine who should invest to make the necessary improvements to enhance the efficiency of coastal shipping. 4, 25 Customs clearance Advance notice of 24 hours is required by U.S. Customs and Border Protection (CBP) for cargo traveling from Canada (or Mexico) by water … In the case of a truck trailer, a shipper must provide CBP with advance notice of only 1 hour prior to arriving at the border crossing. For shipments moving by rail, the notice requirement is 2 hours. For a similar shipment moving into the United States via water where there is no driver on board, however, CBP requires at least 24 hour’s advance notice prior to the cargo being loaded onto the vessel … Customs clearance was perceived to be more difficult for shipping than for trucking and this perception may be more of a barrier to service adoption than expected … Inconsistencies in the application of rules and procedures (particularly in relation to customs) are another consideration. Differentials in the timeliness or availability of services or differences in cargo inspection procedures (that delay loading or unloading of cargo or passengers) … This problem is exacerbated by the non-availability to marine movements of customs services on a 24/7 basis, while such services are available for most land-mode border crossings … There is currently an imbalance in the way security and customs rules are being applied on both sides of the border and harmonization of these procedures may be critical to development of a viable NAMH service. The application of 24-hour rules is the most often cited example of this inequity … Because the Detroit–Windsor Ferry operates a truck ferry service, Animal and Plant Health Inspection Service (APHIS) agricultural quarantine inspection (AQI) fees are collected twice—once on the vessel ($490.00) and then again on the truck ($5.25). If a truck crosses a bridge or tunnel, the fee only applies to the truck ($5.25) … A serious challenge to developing NAMH within the Great Lakes region will be the Canadian government policy of charging any new international marine operation the full cost recovery of customs services. These identical services are provided to bridges and tunnels without charge … Canadian Customs has limited the hours that they would clear vessels on cross-border trade. U.S. Customs charges overtime and travel expenses to clear vessels. Truck and rail operators are able to have 24-hour service with no recovery charges … Anything that constitutes more demanding or lower-quality customs treatment in comparison with that applied to land alternatives disadvantages marine movements in relation to an all-land route … Administrative barriers because of rather complex documentation and procedures in ports and the veterinary checks … Canadian cost recovery fees … Clearly, the service would benefit from more harmonized documentary procedures (including, of course, the use of a single waybill). 12, 21, 26, 27, 28, 33, 40, 43 69 (continued on next page)

Issue Comments Re fe re nces Federal po li cies In equity in in fra struc ture- related su bsidi es to land- mo de ope rators (e.g ., th roug h th e prov ision of “way ” fa cilitie s [i. e., roads and ra ilway s], the co st of wh ich is no t fully recovered from users of that infrastructure) … “In this country, of course, state and local governments take their lead—and their approach to funding—from the federal government. Unlike the European model, we continue to consider the U.S. Department of Transpo rtation reau tho riz ation as essen ti ally a “hi ghw ay ” bill, with vi rtually no attention given to the marine transportation system or to stimulating SSS” … Industry inv ol ve m ent with DOT/Metropo litan Planning Org anization (MPO) pl ann in g efforts can be limited. State DOTs and MPOs often conduct long-range planning on a 20- to 30-y ear tim efram e, while th e priv ate- sector freig ht indu stry often condu cts long -r ang e planning on a 6- to 18-month timeframe. This mismatch in planning horizons com plicates efforts to fu ll y eng ag e the priv ate- secto r freight community in a process that they perceive to be long, cumbersome, and overly bureaucratic. 15, 29, 31, 40 Security New security requirements and customs rules (advance manifest requirements) will ma ke cross- border se rv ices less attractiv e as com pared to truck in g and as com pared to domestic marine services. This is a particular concern for southbound movements from Canada into the United States … While these new security regulations are designed to prevent terrorist activities on vessels and ports serving international trade, the increased costs and potentia l ca rg o sh ipm ent delay s res ulting fr om these ru les ma y ma ke cross- border NAMH operations less attractive to potential shippers and operators … In North Am erica , as els ewhere, on e of th e ma jor im pedim ents to the furth er dev elopm ent of coastal shipping is the limit on cabotage. In the United States, the Jones Act (1920) is widely recognized as a serious constraint … Marine highways are not yet being considered as part of tran sp orta ti on im prov em ent plan s dev eloped at the state lev el. 4, 14, 33 Cabotag e Cabotag e rules (Co asting Trade Act in Canada an d Jo ne s Act in Un ited States) do not seem to be a significant barrier in cross-border NAMH services. There were only a few carrie rs who ind ica ted th at mu lti- port per coun try serv ices wo ul d be nec ess ary to ge nerate eco nom ical serv ic es gi ve n dem and pattern s a nd dis tan ces betw een po rts. Som e carriers app rov ed of the cabotage rest ri ction so that cross- border NAMH di d not become the vehicle by which domestic shipping was undercut by the other country’s carriers (similar concerns as those expressed by motor carriers) … No carriers that were interv iewed noted th at the Coasting Trade Ac t or the Jones Ac t were a sp ec ific co ncern or hindrance to them with regard to cross-border NAMH … The Jones Act, which requires that ships engaged in domestic maritime trade be U.S.-built, U.S.-owned, U.S.-flagged, and U.S.-operated, was cited by many interviewees as a key obstacle to expanding the use of NAMH operations in the region … Canadian cabotage restrictions and duties create sunk costs that can not be recovered if the service is unsuccessful … Duties, in conjunction with other maritime fees, make new entry into NAMH services extremely costly and risky. 30, 31, 33, 38 Municip al iss ues (I n Canada) the following m unicipal fa cto rs we re lis te d as be ing facto rs tha t hi nd er NAMH: • Municip al lev ie s on wa terfron t pr ope rty (see next section ), • Z oning restrictio ns an d land use pl an nin g, • Municipalities acting locally rather than regionally, and • Go ve rnance ele ct or al cy cle. The British Co lum bia (B.C .) Port Co mp etitiv enes s Co mm ittee, which was form ed in 1999, con clu ded tha t ex ces siv e m unicipa l pr ope rty tax es were ma ki ng ma ny term inal operators unprofitable and discouraging new investment in infrastructure. In some jurisdictions, taxes on port tenants equaled the rent paid to port authorities. Property taxe s fo r B.C. term inals ar e 3% to 6.9 % of as sess ed va lue. 33 Operation al Constrain ts Issue Comments Re fe re nces Lock ag e and speed res tr ict ion s In sev eral areas of th e Gr eat Lak es, for ins tance, ga ins from hig her sp eeds wi ll be los t whi le trav eling throug h lock s and restricted- speed zones. Fo r exam ple, trav ersing th e 27 -mi Welland Canal between Lake Ontario and La ke Erie requires approx im ately 11 ho urs. 1 Win te r shut down Su gge stions to sh ippers that th ey use NAMH fo r 9 m onths, and then tem porarily switch to othe r m odes during the wi nt er, are difficu lt to sell. 1, 8, 31 70

Issue Comments References Local port operational requirements Massachusetts: The law requires barge tankers to have tugboat escorts and follow specified routes and sets minimum staffing requirements and mandatory drug and alcohol testing ... Gate charges are not often counted as a cost when comparing trucking to marine … The Right Whale Rule kills exposed water marine highway services and drives cargo to trucks … “With the new port security, many of my truckers are not authorized to go into the ports, and they actually are not willing to go into a port” … Drayage to and from the ports … Drayage costs, port charges, and handling costs are viewed as significant obstacles and NAMH services are viewed as not being able to meet shipper requirements in many cases … Handling costs are likely to be a major cost component for every type of service that is envisioned. Many of the existing domestic NAMH services that are successful are operating out of private facilities or in situations in which lower skilled labor (often non-union) can be employed … Since ocean-going containerships are the primary customers of these ports, they typically have preference when it comes to berth, labor, and equipment availability. This is a particular concern for lift-on/lift-off ships, which require a significant amount of labor and equipment for loading and off-loading cargo … Deepwater ports often require the use of other services, including pilotage, tug assist, and line-handling services … Drayage costs to the load point and from the delivery point to the receiver are also significant costs … Delays in ports are a serious issue … Port charges that are sometimes very high and not transparent … Shippers see ports as obstacles to just-in-time business … The ratio of terminal costs to total costs tend to be too high, to the point where intermodal options are rendered non-competitive. 3, 4, 7, 9, 10,12, 32, 33, 34, 40, 41 Labor issues ILA assessments can be high … “We tend to avoid anything that has to do with the International Longshore and Warehouse Union (ILWU)” … Perceived risk of potentially costly delays for traffic moving through ports due to the involvement of longshore labor as part of the transportation service … Waterfront labor practices on the Pacific Coast were seen as presenting a major potential hurdle with a possible lack of concessions on labor productivity … A number of carriers mentioned that the use of unionized labor for on-dock handling activities is an obstacle to NAMH, given the tremendous pressure to keep handling costs down to be competitive with trucking. These carriers argue that the types of handling operations associated with NAMH operations frequently require lower skill levels as compared to deep sea container operations and the current union rules do not take this into account … The cost of labor for rehandling at each origin and destination port has the potential to offset any gains in per ton-mile cost savings of the waterborne option … Restrictive labor regulations and practices … Labor rules and requirements were an often-cited obstacle to cross-border NAMH. This complaint by carriers may be based on comparison of costs when shipping from private terminals, which may not be unionized, as opposed to public ports … High union labor rates can potentially act as a barrier against increased NAMH operations … High stevedoring cost. 3, 10, 12, 15, 31, 33, 34, 43 Container chassis management Motor carriers are looking to the ocean carriers to assume the responsibility for chassis supply and coordination. 34 Vessel-Related Issues Issue Comments References Lack of vessels that qualify under the Jones Act or Canadian cabotage law While many nations protect their coastal fleets through laws similar to the Jones Act, none— other than the United States—require that their ships be domestically built … There is a lack of vessels that are appropriate for use in NAMH operations … There is a shortage of vessels suitable for use in NAMH trade … There are few adequate vessels sailing under the Canadian flag. 15, 22, 31, 35, 38 Vessel costs and availability A key constraint on the development of NAMH services is the very high cost of suitable new vessels from U.S. shipyards that make them unemployable in any other service thereby creating a significant business risk for any investor contemplating such a start-up service … Lack of capital financing guarantees for new ship construction through the Title XI program … Ocean carriers perceived that the high capital cost of U.S.-built ships was the single largest obstacle to successful implementation of domestic coastal NAMH services … Initial capital costs, including vessel procurement costs and port infrastructure-related costs, are much higher in NAMH than in trucking, which deters carriers to invest in such business … Amazingly, the Jones Act was barely mentioned by marine operators … High U.S. shipyard construction costs … The capital investment by the transport operator is so much greater that there is considerable work on the part of all players to make the mode a viable alternative … The extremely high cost of commercial vessels built by U.S. shipyards must be addressed … The risk capital just isn’t there to make it happen right now … These vessels are expensive to construct and maintain, requiring a long-term commitment by shippers who would use a NAMH service … Many of us believe that the principal problem is the absence of available financing … There will be no 20-year or 25-year vessel financing without a Title XI program or some similar government guarantee … The larger challenge for shipbuilding in the United States is the ability to secure series production … The cost of equipment is another important discriminator between truck and coastal shipping. The high number of vessels envisioned for an NAMH service, and the infrastructure to support them, would take a large third-party logistics provider (3PL), trucking company, or consortia of small service providers in order to amass sufficient capital and market share for a service to be successful. 6, 14, 15, 19, 23, 24, 31, 34, 36, 37, 38, 39, 43 71 (continued on next page)

Issue Comments References Vessel operating requirements Manning levels for self-propelled vessels engaged in domestic commerce are much higher than for tug-barge combinations moving an equivalent amount of freight … Horizon advocates moving the ubiquitous 53-ft trailers off the highways. They admit, however, that this will be a difficult thing to do with existing domestic marine assets. 34, 39 Other Issue Comments References Flow imbalance Flows are significantly imbalanced—northbound flows of 51.8 million trailer-loads versus 26.4 million trailer-loads southbound … Possibility of a high volume of empty equipment repositioning … The trade imbalance also creates an obstacle based on the difficulty of generating back-haul loads. Reducing cabotage obstacles might be one way of expanding back haul markets … However, this is a problem faced by competing modes so its differential impact on NAMH may not be that significant a factor … This affects regularity of service … We also concluded that the trade is unbalanced and, without the opportunity to engage in cabotage on the return leg, it is highly likely there will be poor capacity utilization northbound. 21, 33, 34, 40, 41 Rate competition Recognizing that coastal competition constitutes only a small percentage of the business of land-mode operators, there is a risk of non-compensatory pricing on those routes that compete with NAMH so as to discourage diversion … Shippers seem to expect services discounted below truck rates and these cost goals are difficult to achieve. 33, 40 Resistance from port authorities Some ports perceive NAMH services as adding to congestion and emission problems in their area, even though they might be beneficial from a systems perspective … A redistribution of emissions from inland to coastal communities are a roadblock to acceptance. 14 Miscellaneous The risk of loss or damage is enhanced by the inclusion of additional handling points … (In Canada) truckers are generally paid per kilometer driven, rather than on overall mileage; thus there is a disincentive to use Ro/Ro services … Developing a national transportation policy also conflicts with the local nature of infrastructure development. Most intermodal infrastructure projects begin at the local level and must meet state environmental regulations. Funding comes largely from state and local sources and the private sector … Difficulties in competitive pricing … To sum up, the shorter the distance, the less likely NAMH is competitive against the truck mode on cost. The longer the distance, the less likely NAMH will be truck-competitive on transit time. In short, NAMH has difficulty meeting the service and price requirements of shippers … NAMH would be much more competitive if more manufacturing plants and consumer markets were within 5 mi of water … Bringing the shippers closer to the load points could help make NAMH more cost competitive (as was the case in the past). However, many of the bulk raw materials shippers that traditionally used this service are in decline or restructuring of the industries has moved production locations farther from water loading points … The more common operation for bulk transport is to load directly on barge from a production site with appropriate bulk handling equipment … There is a lack of “port partnering.” … Canadian icebreaking fees, even when there’s no ice … NAMH operations are subject to “way” charges (one example being pilotage and another being marine services fees), to which competing modes (e.g., road, rail) are not subject. 12, 15, 21, 30, 31, 33, 36, 40, 42, 43 REFERENCES 1 Higginson, James K. Great Lakes Short Sea Shipping and the Domestic Cargo-Carrying Fleet. Transportation Journal, Vol. 46, No. 1, Winter 2007, pp. 38–50. 2 Frost, J., D., D. Hawkins, P. Morin, and R. Hodgson. Short Sea Shipping Market Study. Transport Canada, September 2005. Available at http://www.tc.gc.ca/innovation/tdc/projects/marine/a/5563.htm as of July 1, 2009. 3 Kruse, B. Comments on Potential Short Sea Shipping Market for the West Coast. Presented at NSRP Short Sea Shipping Workshop, Orlando, FL, April 19–20, 2007. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/nsrp-pdmt-short-sea-shipping-workshop-april-19-20-2007- presentations/2B_Kruse_Markets.pdf as of July 1, 2009. 4 Comtois, C. and B. Slack. Restructuring the Marine Transportation Industry: Global Overview of Sustainable Development Practices. Ministère des Transport Quebec, Montreal, QC, Canada, April 2007. Available at http://www.mtq.gouv.qc.ca/portal/page/portal/Librairie/Publications/en/ministere/etudes/rtq0701.pdf as of July 1, 2009. 5 In the Fast Lane, Ports & Harbors, July 2006, pp. 26–29. 6 Glass, P. Short Haul. Work Boat, December 2004, pp. 36–37. 7 Marketing Barge Feeder Service Is a Tough Job. American Shipper, No. 11, November 1987, p. 86. 72

8 Frost, J.D. Motorways of the sea. Great Lakes Seaway Review, Vol. 34, No. 3, Jan/Mar 2006, pp. 55–56. 9 Cameron, J.E. Charleston as an S3 Port. Presented at America’s Marine Highways Workshop, Charleston, SC, October 21–23, 2008. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/nsrp-pdmt-americas-marine-highways-workshop-october- 2008/John%20Cameron%20Operators%20Panel.pdf as of June 30, 2009. 10 Columbia Snake River System and Oregon Coastal Cargo Ports Marine Transportation System Study, Appendix C, Short Sea Shipping in the Columbia/Snake River System. CEDER, the Center for Economic Development Education and Research, Portland, OR, June 2005. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/columbia%20snake%20river.pdf as of June 30, 2009. 11 Borgerson, S.G. and R. Weitz. America’s Deep Blue Highway. Institute for Global Maritime Studies in cooperation with the Fletcher School of Law and Diplomacy, Tufts University, Medford, MA, September 2008. Available at http://www.igms.org/docs/americas_deep_blue_highway_IGMS_report_sept_2008.pdf as of June 30, 2009. 12 Yonge, M. and L. Henesey. A Decision Tool for Identifying the Prospects and Opportunities for Short Sea Shipping. Presented to the 85th Annual Meeting of the Transportation Research Board, Washington, D.C., January 25, 2006. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/06- 0423.pdf as of June 30, 2009. 13 Stewart, R.D., R.J. Eger III, L. Ogard, and F. Harder. Twin Ports Intermodal Freight Terminal Study. Project 02–06. Midwest Regional University Transportation Center, Madison, WI, July 15, 2003. Available at http://www.dot.state.mn.us/ofrw/PDF/Twin%20Ports%20Intmdl%20Terminal%20Study%20- %20FINAL.pdf as of July 1, 2009. 14 A Shipbuilder’s Assessment of America’s Marine Highways. General Dynamics NASSCO, San Diego, CA, July 30, 2009. 15 Short Sea Shipping Port Probability Study. Canaveral Port Authority, Cape Canaveral, FL, March 4, 2005. 16 Short-Sea and Coastal Shipping Options Study, Final Report. I-95 Corridor Coalition, Rockville, MD, November 2005. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/SSS%20Study%20-%20I95%20Cooridor%20Coalition.pdf as of July 1, 2009. 17 Zou, B., M. Smirti, and M. Hansen. Reducing Freight Greenhouse Gas Emissions in the California Corridor, The Potential of Short Sea Shipping. Presented at the 88th Annual Meeting of the Transportation Research Board, Washington, D.C., January 2009. Available at http://www.uctc.net/papers/856.pdf as of July 1, 2009. 18 Bagnell, D., C. Saunders, R. Silva, and M.P. Tedesco. Operational Development of Marine Highways to Serve the Pacific Coast. Presented at the 88th Annual Meeting of the Transportation Research Board, Washington, D.C., January 2009. 19 Leach, P.T., and W.B. Cassidy. Short Sea on Horizon. Traffic World, Vol. 271, No. 40, October 8, 2007. 20 Double, Z. Shortsea Shortchanged? Containerisation International, 2004, pp. 44–47. 21 Ward, G.M. The Development of Short Sea Shipping in the United States. Statement presented to Subcommittee on Coast Guard and Maritime Transportation, Committee on Transportation and Infrastructure, U.S. House of Representatives, Washington, D.C., February 15, 2007. Available at http://transportation.house.gov/Media/File/Coast%20Guard/20070215/Ward.pdf as of July 1, 2009. 22 Short shrift for short-sea? Traffic World, Vol. 270, No. 30, July 24, 2006. 23 Analysis of the Potential Market for Short Sea Shipping Services over the Ports of Fall River and New Bedford. Massachusetts Department of Business and Technology and Seaport Advisory Council, Fairhaven, MA, March 29, 2006. Available at http://advancedmaritimetechnology.aticorp.org/short-sea- shipping/fall%20river%20and%20new%20bedford.pdf as of June 30, 2009. 24 Driving Factors and Potential Impacts of Future Increases in Short Sea/Inland Waterway’s Share of Total Freight Movements. Commission Briefing Paper 4B– 09. National Surface Transportation Policy and Revenue Study Commission, Washington, D.C., January 11, 2007. Available at http://transportationfortomorrow.org/final_report/pdf/volume_3/technical_issue_papers/paper4b_09.pdf as of June 30, 2009. 25 High Speed Ferry and Coastwise Vessels: Assessment of a New York / Boston Service. Center for the Commercial Deployment of Transportation Technologies, Long Beach, CA, May 2003. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/NY_Boston_Final.pdf as of June 30, 2009. 26 Johnson, C., Jr, The Development of Short Sea Shipping in the United States. Statement presented to the Subcommittee on Coast Guard and Maritime Transportation, Committee on Transportation and Infrastructure, U.S. House of Representatives, Washington, D.C., February 15, 2007. Available at http://transportation.house.gov/Media/File/Coast%20Guard/20070215/SLSDC%20SSS%20Johnson.doc as of July 1, 2009. 27 Stewart, R.D. Great Lakes Marine Transportation System. Great Lakes Maritime Research Institute, Duluth, MN, April 12, 2006. Available at http://wupcenter.mtu.edu/education/great_lakes_maritime/lessons/Grt-Lks-Maritime_Transportation_System_Report_Stewart.pdf as of June 30, 2009. 28 de Cerreno, A.L.C., M. E. Robins, P. Woods, A. Strauss-Wieder, and R. Yeung. Bi-State Domestic Freight Ferries Study. Rudin Center for Transportation Policy & Management, NYU Robert F. Wagner Graduate School of Public Service, New York, NY, September 2006. Available at http://wagner.nyu.edu/rudincenter/files/domesticFreightFerries.pdf as of June 30, 2009. 29 Johnson, E. A Cargo Water Highway. American Shipper, January 2006, pp. 77–78. 30 Fenimore, B. Barge Ahead. Traffic World, July 26, 2004, pp. 32–33. 73

31 Frost, J. and M.A. Roy. Study on Potential Hub-and-Spoke Container Transhipment Operations in Eastern Canada for Marine Movements of Freight (Short Sea Shipping. Transport Canada, Ottawa, ON, Canada, April 2007. Available at http://www.tc.gc.ca/policy/report/acf/tp14876/menu.htm as of September 10, 2009. 32 Barge operators seek preemption. Traffic World, Vol. 269, No. 15, April 4, 2005, p. 33. 33 Cross Border Shortsea Shipping Study. Transport Canada, Ottawa, ON, Canada, May 2004. Available at http://resources.wcog.org/border/sss_phase1report.pdf as of June 30, 2009. 34 Four Corridor Case Studies of Short-Sea Shipping Services: Short-Sea Shipping Business Case Analysis. Office of the Secretary, U.S. Department of Transportation, Washington, D.C., August 15, 2006. Available at http://advancedmaritimetechnology.aticorp.org/short-sea- shipping/DOT_SSS_final_report_v2_11.pdf as of June 30, 2009. 35 Gibson, A. and A. Donovan. The Abandoned Ocean: A History of United States Maritime Policy. University of South Carolina Press, Columbia, SC, 2000. 36 Cook, H.C., Jr. Testimony regarding Maritime Administration Title XI Loan Guarantee Program. Presented to the Subcommittee on Seapower and Expeditionary Forces, Committee on Armed Services, U.S. House of Representatives, Washington, D.C., March 15, 2007. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/HAS%20031507%20FNL%20PKG%20%282%29.pdf as of July 1, 2009. 37 Brooks, M.R. Atlantic Canada Short Sea Shipping Background Study. Transport Canada, Ottawa, ON, Canada, 2003. Available at http://www.tc.gc.ca/pol/en/acf/shortseaS/workshop/Atlantic_Canada_SSS.pdf as of June 30, 2009. 38 Brooks, M.R. and J.D. Frost. Short Sea Developments in Europe: Lessons for Canada. Working Paper No. 10, North American Transportation Competitiveness Research Council, July 2009. Available at http://myweb.dal.ca/mrbrooks/TRC%20WP%2010.pdf as of September 10, 2009. 39 Keefe, J. Big Things on the Horizon? The Marine Executive, February 2008, pp. 36–40. 40 Reeve, J.G. Markets for Short-Sea Shipping in the United States. Presented at NSRP Short Sea Shipping Workshop, Orlando, FL, April 19–20, 2007. Available at http://advancedmaritimetechnology.aticorp.org/short-sea-shipping/nsrp-pdmt-short-sea-shipping-workshop-april-19-20-2007- presentations/2A_Reeve_Markets.pdf as of June 30, 2009. 41 Brooks, M.R., J.R. Hodgson, and J.D. Frost. Short Sea Shipping on the East Coast of North America: An analysis of opportunities and issues. Dalhousie University, Halifax, NS, Canada, March 31, 2006. Available at http://advancedmaritimetechnology.aticorp.org/short-sea- shipping/ShortSeaShipping_dalhousie.pdf as of July 1, 2009. 42 Building Bridges: Will citizens support infrastructure development? Gulf Shipper. September 10, 2007. 43 Glass, P. Short Leash. Work Boat, April 2006, pp. 24–25. 74

Next: Appendix E - Marine Highways Legislation with Committee Referrals »
North American Marine Highways Get This Book
×
MyNAP members save 10% online.
Login or Register to save!
Download Free PDF

TRB’s National Cooperative Freight Research Program (NCFRP) Report 5: North American Marine Highways explores the potential for moving intermodal containers on chassis, non-containerized trailers, or rail cars on marine highways in North America. The report includes an assessment of the conditions for feasibility; an analysis of the economic, technical, regulatory, and logistical barriers inhibiting greater use of the marine highway system; and potential ways to eliminate these barriers.

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook, NAP.edu's online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!