Forecast for 2007: No congestion.(port and shipping industry)

BYLINE: BY BEN HACKETT

The port and maritime industry appears to be fixated on the theme of congestion and high utilization, be it on sea or land. For the former, we can see that there is significant spare capacity, but that liner operators are managing it much better than in the past. They are removing capacity to maintain the illusion of full ships and the need for higher freight rates. This is a sound policy that helps maintain freight revenue and avoids the violent swings apparent in the past.

The ports have a different issue. Port authorities, terminal operators, liner operators, railroads and labor are all joining in the mantra of port and inland …