The DWS Logistics Update 

Welcome to our new website! Our goal is to provide visitors with relevant and usable content, which is updated frequently. Our first post covers the topic of West Coast Transload and some of the potential changes happening that would make it more attractive to importers.

Transload: The Pendulum swings back.

Real economics are making Transloading a viable option. As of January 2010 some of the ocean lines are raising the cost to move intact containers to Toronto or Montreal from the traditional up charge of $1500 to $2100, and in doing so are making the transload process viable.

The railways are raising the marine container costs to the ocean lines, not only the cost to move the container to Toronto or Montreal but also the cost to return the container to Vancouver.

The railway can move a 53 foot intermodal container at roughly the same cost as a 40 foot marine container, that's a minimum efficiency gain of 30%, and eventually hard to ignore.

The Ocean Lines in general bleeding badly from the global recession and desperate for price increase early in the year, have a decent rational to become more efficient. They need to compete on the Far East to Vancouver lanes and quit subsidizing the inland movement of marine containers.

Done properly Transloading can save money all around. It makes good economic sense to everyone involved. The lines get a quicker turnaround on the container, The railway is more efficient, and the Importer can shave logistics costs and move more quickly to take advantage of market shifts.

Technology has improved so complete internet based visibility is common place and available to virtually every Importer.

Need more reasons to reconsider Transloading, how about:

• Greater Supply Chain Responsiveness
• Reduced Operating Costs
• Reduced Inventory Levels
• Increased Throughput
• Reduced Transit Times
• Faster Time to Market
• Improved Cash Flow

Transload operations are expected to expand as the supply chain economics drive efficiency.

I hope this creates some ideas and discussion around the viability of West Coast Transload.

Chris Kaulback

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