The recent LinkedIn post by Nathan Halberstam, CEO & Founder of Bound Logistics, highlights a pressing issue in the logistics industry: the refusal of shipping lines, notably Hapag-Lloyd AG, to accept empty container returns at certain terminals, particularly at the Port of New Jersey. This situation has significant repercussions for drayage carriers and the broader supply chain. I’ll expand on his post.

Consequences of Refused Empty Returns:

1. Chassis Shortages: Empty containers occupy chassis that are essential for transporting new imports. This leads to a scarcity of available chassis, hindering the movement of loaded containers and contributing to port congestion and delays.
2. Lost Revenue & Efficiency: Truckers are compelled to hold onto empty containers, preventing them from undertaking productive hauls. This results in wasted time and financial losses daily.
3. Unfair Costs & Lack of Accountability: While truckers incur per diem fees for late container returns, shipping lines face no penalties when they fail to provide designated return locations. This imbalance forces trucking companies and shippers to shoulder costs stemming from the inefficiencies of steamship lines.

Industry-Wide Challenges:

The issue of shipping lines not accepting empty container returns is not isolated to Hapag-Lloyd AG. For instance, in August 2021, Washington United Terminals (WUT) announced it would not accept empty containers from any shipping lines due to space constraints caused by the volume of cargo on the dock.

Proposed Solutions:

To address these challenges, the industry could consider the following measures:

1. Guaranteed Empty Return Locations: Shipping lines should collaborate with terminals to ensure that truckers have designated locations to return empty containers at all times. In situations where this isn’t feasible, off-site depots should be provided as interim solutions.
2. Compensation for Truckers Holding Containers: If a container cannot be returned due to restrictions imposed by the shipping line, truckers should receive daily compensation for each chassis occupied, mirroring the per diem charges they face for late returns.
3. Shipping Line Accountability: Steamship lines must take responsibility for the downstream effects of their policies. When planning failures occur, truckers should not bear the brunt of the consequences.

Organizations Leading the Charge:

Several organizations and companies are actively addressing these challenges and advocating for fair practices within the logistics industry:

1. Federal Maritime Commission (FMC): The FMC has been proactive in proposing reforms to enhance supply chain efficiency. Commissioner Rebecca F. Dye has suggested changes to practices related to container returns, early return dates, and container pickup notifications, aiming to improve cargo fluidity and reduce unreasonable demurrage and detention charges.
2. BlueCargo and Trinium Technologies: BlueCargo, known for its “Per Diem Fighter” tool designed to manage empty container returns and audit per diem bills, has partnered with Trinium Technologies, a leading provider of Transportation Management System solutions for drayage operations in North America. This collaboration seeks to enhance container management efficiency and address demurrage and detention cost challenges.
3. Orange Avenue Express (OAE): A California-based drayage company, OAE, filed a complaint against Hapag-Lloyd, alleging that the ocean carrier forced the trucking company to store empty refrigerated containers without compensation and imposed detention charges in violation of federal shipping regulations. This legal action underscores the challenges faced by drayage carriers regarding empty container returns.
4. Association of Bi-State Motor Carriers: Representing drivers hauling cargo at the Port of New York and New Jersey, this association has highlighted issues related to the accumulation of empty containers and the resulting chassis shortages. They have been vocal about the operational challenges and financial burdens faced by truckers due to the inability to return empty containers promptly.

How Small and Medium-Sized Trucking Companies Can Show Unity:

Small and medium-sized trucking companies can take several strategic actions to show unity and advocate for solutions to the empty container crisis:

1. Collective Advocacy and Lobbying
   • Join Industry Associations – Organizations like the Association of Bi-State Motor Carriers, American Trucking Associations (ATA), and the Owner-Operator Independent Drivers Association (OOIDA) already push for better policies. More members mean a stronger voice.
   • Collaborate with the Federal Maritime Commission (FMC) – Participate in public hearings, provide data on financial losses, and submit formal complaints to help drive regulatory change.
   • Engage Local and Federal Lawmakers – Organizing letters, petitions, and meetings with policymakers can encourage legislative action on per diem fee fairness and return location guarantees.
2. Coordinated Awareness Campaigns
   • Leverage Social Media and Industry Publications – Share real stories of how the issue impacts trucking businesses, using platforms like LinkedIn, Twitter, and FreightWaves.
   • Participate in or Organize Public Demonstrations – Peaceful protests or coordinated convoys at ports can visually highlight the problem.
   • Media Engagement – Reach out to journalists covering supply chain issues to increase public awareness.
3. Data Collection & Reporting
   • Document Financial Impact – Track and compile how much money is lost due to storage costs, delayed hauls, and unused chassis.
   • Share Reports with Regulators and News Outlets – A unified set of statistics from multiple trucking companies strengthens the case for policy changes.
4. Engage with Port Authorities & Shipping Lines
   • Demand Regular Meetings with Terminal Operators – Request discussions on improving container return processes.
   • Push for Alternative Return Locations – Propose designated off-site depots or collaboration with third-party storage providers.
5. Implement Collective Action Measures
   • Negotiate Jointly with Shippers & Steamship Lines – A collective stance on unfair charges makes it harder for large corporations to dismiss concerns.
   • Temporary Service Pauses or Boycotts – In extreme cases, refusing service to problematic shipping lines could force them to the negotiation table.

By uniting under a common cause and taking a proactive approach, small and medium trucking businesses can push for meaningful change in container return policies.

The refusal of shipping lines to accept empty container returns poses significant challenges to the logistics industry, affecting efficiency, profitability, and fairness. By implementing the proposed solutions and leveraging the efforts of organizations leading the charge, stakeholders can work towards a more balanced and efficient supply chain.