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Home » Supply Chain Effects of Slow-Steaming to Get FMC Scrutiny

Supply Chain Effects of Slow-Steaming to Get FMC Scrutiny

January 11, 2011
JOC Sailings

Federal Maritime Commission Chairman Richard A. Lidinsky Jr. says he would like to assess the economic effects of slow-steaming to ensure the practice is not causing "unreasonable constraints" on the international supply chain.

Lidinsky said the FMC will devote a portion of its Jan. 26 meeting to looking at the economic effects of slow-steaming over the past year.

In January 2010 the commission gave the Transpacific Stabilization Agreement, which comprises carriers in the eastbound Pacific trade, authority to discuss operating at lower speeds to save fuel and reduce air pollution. Lidinsky said the practice "affords substantial cost savings during this period of financial stress."

At the FMC's Dec. 8 meeting, Lidinsky signaled his intention to go further, saying the commission should look at "the effects on our supply chain, capacity, rates, fuel charges and emissions over the past year."

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KEYWORDS Business Strategy Alignment Global Logistics Global Supply Chain Management Logistics Logistics Outsourcing Ocean Transportation Regulation & Compliance Supply Chain Analysis & Consulting Transportation & Distribution
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