Waterbuffalo
07-31-2008, 10:40 PM
http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1217472903209150.xml&coll=7&thispage=1
Amy Husuan, Oregoninan
After a nearly four-year hiatus, the return of container ships from a major Tokyo-based ocean carrier will allow bulk hay, feed and other Oregon exporters to avoid pricey truck detours to ports in Tacoma or Seattle.
"It's the best thing that's happened to our business in four years," said Shaun Harris, a manager with Boardman-based Oregon Hay Products, a partner of S.L. Follen Co., whose biggest customer is Japan.
On Wednesday, the shipping company "K" Line began calling at the Port of Portland for the first time since it pulled its service in December 2004.
The direct link to Japan -- now the only one -- comes at a time when demand for U.S. exports is climbing, yet overall container volumes are down, making it harder for exporters to deliver goods overseas.
In addition, the "K" Line connection could be a boon to the region's agricultural producers, who say they've lost ground in the Japanese market because of the lack of direct shipping routes from Portland. Hay and animal feed make up the bulk of exports destined for Japan.
Since "K" Line left the Port of Portland in 2004, companies such as Oregon Hay Products have had to find alternative routes to get there. Instead of a direct route from Portland, the company had to truck hay to the Port of Tacoma, which cost a couple of hundred dollars extra per container. Because hay is a commodity, the company couldn't just raise prices to cover added transport costs. Plus, with the longer shipping time, business took a dive.
"Our volume has gone down substantially," Harris said. "We hope for it to go back up with the new service."
On Wednesday, the company had 20 containers of hay headed on the first "K" Line ship. Eventually, Harris said, it will ship about 40 containers each week.
"K" Line is part of the CKYH Alliance, which includes other Asian shipping lines, such as Chinese shipper Cosco, Taiwanese shipper Yang Ming and Korean shipper Hanjin.
The return of "K" Line is the result of a shift within the partnership. The shipping lines operate much like airlines with routing alliances that let them swap routes, depending on efficiency and demand.
Many decisions they make these days are aimed at reducing fuel consumption, said Kenny Davais, marine operations manager for "K" Line America Inc.
"That's the top priority now: how to save fuel," Davais said. "It wasn't always that way."
In the shift, "K" Line will replace Yang Ming, which pulled out of the Port of Portland several weeks ago. The departure of Yang Ming leaves Portland without a direct route to Taiwan, a much smaller market than Japan for Oregon exports.
However, the new ships will bring more container volume from Oregon to other Asian destinations by way of Japan than Yang Ming's routing did. The "K" Line's vessels, larger than those of Yang Ming, will have a capacity of about 5,500 container equivalents.
Hanjin and Cosco already provided service from Portland to various Asian ports, but not to Japan.
Many who work in the export industry say shipping companies aren't keeping up with overseas demand for U.S. products.
Brenda Barnes, director of customer services with Allports Forwarding Inc., a freight forwarder, said space on ships to Asia is so limited that some orders wait for weeks. Allports arranges shipping for customers in Oregon, Washington and Idaho.
Barnes said it used to take one week to ship out cargo. Now, it takes three to four weeks, with most carriers refusing bookings beyond four weeks.
"It's a battle for one container," Barnes said. "It's a huge battle for 10 containers."
Amy Husuan, Oregoninan
After a nearly four-year hiatus, the return of container ships from a major Tokyo-based ocean carrier will allow bulk hay, feed and other Oregon exporters to avoid pricey truck detours to ports in Tacoma or Seattle.
"It's the best thing that's happened to our business in four years," said Shaun Harris, a manager with Boardman-based Oregon Hay Products, a partner of S.L. Follen Co., whose biggest customer is Japan.
On Wednesday, the shipping company "K" Line began calling at the Port of Portland for the first time since it pulled its service in December 2004.
The direct link to Japan -- now the only one -- comes at a time when demand for U.S. exports is climbing, yet overall container volumes are down, making it harder for exporters to deliver goods overseas.
In addition, the "K" Line connection could be a boon to the region's agricultural producers, who say they've lost ground in the Japanese market because of the lack of direct shipping routes from Portland. Hay and animal feed make up the bulk of exports destined for Japan.
Since "K" Line left the Port of Portland in 2004, companies such as Oregon Hay Products have had to find alternative routes to get there. Instead of a direct route from Portland, the company had to truck hay to the Port of Tacoma, which cost a couple of hundred dollars extra per container. Because hay is a commodity, the company couldn't just raise prices to cover added transport costs. Plus, with the longer shipping time, business took a dive.
"Our volume has gone down substantially," Harris said. "We hope for it to go back up with the new service."
On Wednesday, the company had 20 containers of hay headed on the first "K" Line ship. Eventually, Harris said, it will ship about 40 containers each week.
"K" Line is part of the CKYH Alliance, which includes other Asian shipping lines, such as Chinese shipper Cosco, Taiwanese shipper Yang Ming and Korean shipper Hanjin.
The return of "K" Line is the result of a shift within the partnership. The shipping lines operate much like airlines with routing alliances that let them swap routes, depending on efficiency and demand.
Many decisions they make these days are aimed at reducing fuel consumption, said Kenny Davais, marine operations manager for "K" Line America Inc.
"That's the top priority now: how to save fuel," Davais said. "It wasn't always that way."
In the shift, "K" Line will replace Yang Ming, which pulled out of the Port of Portland several weeks ago. The departure of Yang Ming leaves Portland without a direct route to Taiwan, a much smaller market than Japan for Oregon exports.
However, the new ships will bring more container volume from Oregon to other Asian destinations by way of Japan than Yang Ming's routing did. The "K" Line's vessels, larger than those of Yang Ming, will have a capacity of about 5,500 container equivalents.
Hanjin and Cosco already provided service from Portland to various Asian ports, but not to Japan.
Many who work in the export industry say shipping companies aren't keeping up with overseas demand for U.S. products.
Brenda Barnes, director of customer services with Allports Forwarding Inc., a freight forwarder, said space on ships to Asia is so limited that some orders wait for weeks. Allports arranges shipping for customers in Oregon, Washington and Idaho.
Barnes said it used to take one week to ship out cargo. Now, it takes three to four weeks, with most carriers refusing bookings beyond four weeks.
"It's a battle for one container," Barnes said. "It's a huge battle for 10 containers."