Matching shipping containers to shippers

A matching problem that John Vande Vate is thinking about has to do with the large number of shipping containers that travel empty to their next destination after being unloaded. "Street turns" would match them to shipments near their previous destination.

Here's his report on the considerable upside to improved matching:
e‐Street‐Turns:TheEasyStreettoGreen

There is a port in Oakland

In Pittsburgh it was sometimes said that Gertrude Stein's famous line about Oakland: "there's no there there," is about the Oakland neighborhood of Pittsburgh, where Andy Warhol grew up. (But there seems to be good evidence the quote is about Oakland CA: Gertrude Stein’s Oakland.)  These days there's plenty of there in Oakland California, and the port there is active lately in, of all things, empty containers.

The WSJ has the story: Port of Oakland Reports Record Container Volumes in July--Movement of empty TEUs sparks upsurge

"The Port of Oakland, Calif., reported record container volumes in July, driven by a surge in empty containers on both the export and import side.

Dockworkers handled nearly 30% more empty containers—48,521 20-foot equivalent units for export and 17,017 import TEUs—in July. Empty containers are usually moved, in anticipation of trade growth, to places where they’re expected to be filled with goods before shipping back.

“With holiday shipments set to commence, this could be the start of something good,” said the port’s maritime director, John Driscoll.
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Oakland is a major hub for U.S. agricultural exports other shipments destined for Asian markets.
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Officials said July was the port’s busiest month in 10 years. During the month of July, the port received 153 visits from container ships, up from 136 during the same period in 2015."

Ship insurance, ship ownership, and arms embargoes

The breakout of cold war politics regarding the emerging civil war in Syria casts some light on the insurance markets for ships. Briefly, the United States would like to enforce an arms embargo on the Syrian government, and the Russians are supplying arms. What tools are in Washington's arsenal, short of acts of war?  It turns out the answer is ship insurance. (And ship insurance may be a simpler market than ship ownership...) The Telegraph reports: US enlists Britain's help to stop ship 'carrying Russian attack helicopters' to Syria


"Washington, which last week condemned Moscow for continuing to arm the Syrian regime, has asked British officials to help stop the Alaed delivering its alleged cargo by using sanctions legislation to force its London-based insurer to withdraw its cover.

"Under the terms of the current European Union arms embargo against Syria, imposed in May last year, there is a ban on the "transfer or export" of arms and any related "brokering" services such as insurance. Withdrawal of a ship's insurance cover would make it difficult for it legally to dock elsewhere and could force it to return the cargo to port.
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"It is insured by Standard P and I Club, which is managed by Charles Taylor and Co Ltd of London, whose offshore syndicate director, Robert Dorey, confirmed on Saturday that they were investigating claims that the ship was carrying arms.
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"Like most international cargo ships, the Alaed has a complex ownership and management structure. Its registered owner is Volcano Shipping on the island of Curacao in the Dutch Antilles, but it is listed as part of a fleet belonging to a Russian company, FEMCO, which was unavailable for comment last night. According to FEMCO's website, the ship's commercial management and chartering is carried out by United Nordic Shipping, a Danish company based in Copenhagen, but yesterday, United Nordic shipping said that the management agreement had never actually been finalised, and that FEMCO's website was wrong.
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The insurance on the ship in question has subsequently been cancelled, and the news reports leave me in some doubt about what happens next.

The Telegraph thinks the withdrawal of insurance stops the ship:
Britain stops Russian ship carrying attack helicopters for Syria: A Russian ship believed to be carrying helicopters and missiles for Syria has been effectively stopped in its tracks off the coast of Scotland after its insurance was cancelled at the behest of the British government.

"As it neared the Dutch coast, the authorities there also hailed the ship, the security sources said, and it made an abrupt turn, heading towards Scotland. It was last night now off the coast of the Hebrides but with no insurance covering the ship security sources say it may now have to return to port."

 The NY Times is less sure: Insurer Cancels Policy on Syria-Bound Russian Ship

"The ship, the 400-foot MV Alaed, owned by the Russian shipping company Femco, was last tracked about 100 miles to the west of Scotland early Tuesday, according to data available online. The state-owned Russian news agency Ria Novosti reported that it was carrying “a cargo of Mil Mi-25 attack helicopters” and “coastal-based anti-ship missiles” to Syria.

"Its insurer, the Standard Club, said in a statement that the coverage was withdrawn, raising the prospect that the ship would be delayed as it sought an alternative, because its cargo had breached Standard Club's rules. "We were made aware of the allegations that the Alaed was carrying munitions destined for Syria," the statement said. "We have already informed the shipowner that their insurance cover ceased automatically in view of the nature of the voyage."

"It was not immediately clear why the cargo ship was off the coast of Scotland on its voyage to Syria or whether the ship would continue in defiance of the insurance policy withdrawal."

The market for bulk commodity shipments

The transport of bulk commodities by sea is a business that depends on matching loads to ships. When times are good, ships may be fully booked, and costly, and when times are bad ships may be available and cheap.

"The Baltic Exchange is an association of ship owners, and has a long and colorful history. Because shipping prices are an indicator of the general economy, the Baltic Exchange Dry Index, which measures the cost of hiring a big ship, is a leading indicator of commodities trading in particular and of economic activity in general.

As recently adjusted, the components of the index are indices for different kinds of shipping, in order of cargo capacity: Capesize (too big to transit the Suez canal, so have to go around), Panamax (the maximum size ship that can go through the Panama canal), Supramax, and Handysize.