Ports of Calla freight wagon: This is how much you can expect to pay
Posted October 05, 2019 18:04:11With the Port of Callao coming to an end this week, its now time to take a look at how much cargo will actually get shipped through the port.
While the official capacity is still unclear, a recent report from cargo consultancy firm Ports of America (PA) has claimed that ports in the Philippines have more than 4,000 containers loaded with cargo destined for major American retailers like Walmart and Amazon.
In fact, PA estimates that more than 30% of the cargo is already packed in the ports.
PA is one of the few independent freight brokerage firms that regularly assesses the shipping conditions at ports, which have traditionally been understaffed and under-resourced.PA estimates that at least $4.5 billion worth of cargo could be sent through the ports over the next five years, as well as a further $8 billion in future years.
The shipping companies that are shipping through the Port have also been keen to stress that the average cost per container is actually less than the current US standard for cargo.
“A lot of our clients are saying, ‘This is actually cheaper than the standard freight rate,’ ” said Paul Jaffe, vice president of operations for the Port’s Northeast Corridor Division.
“And that’s true.”
PA also claims that the port’s cargo terminals are fully staffed with skilled and experienced staff, and that their capacity is already on par with other American ports.
With the port closing, its not just warehouses and terminals that are likely to be affected, but the entire cargo industry, which is expected to be impacted in some way.
While the port itself is not likely to see an immediate drop in volume, there will likely be a significant reduction in the amount of freight that will actually make it into the country, which will mean fewer ships at the ports, less cargo to ship, and less shipping capacity for US retailers.
The port is expected move away from a “full” fleet of more than 500 ships to a “small fleet” of around 200 ships by the end of 2021.
The “small” fleet will be made up of small vessels that are either cargo-carrying vessels, which are currently allowed to sail at their full capacity, or small vessels used to ferry people and cargo around the ports for the most part.
Some of these small vessels are expected to begin moving to the port by the middle of next year, and the port will begin allowing larger vessels to dock there next year.
The shipping industry will also see a significant shift in the nature of freight, and a significant increase in container shipping.
While the bulk of the ships currently used in the port are cargo carriers, smaller ships will be allowed to dock at the port as well.
As a result, the port is likely to start adding more capacity for container ships, as they are now allowed to operate with limited capacity.
This could mean an increase in the volume of cargo being sent into the US by a certain amount, and could also mean that cargo ships will start leaving the ports at a significantly higher rate.
While there is no official estimate for how much freight could be shipped out of the Port, PA’s estimates suggest that the actual cost per tonne could drop by as much as 30%.
As of this week the ports had just over 3,200 containers shipped through it, according to the Port.
For more on the shipping industry, watch: