Open Collections

UBC Theses and Dissertations

UBC Theses Logo

UBC Theses and Dissertations

Factors affecting containerized intermodal OCP traffic movement through the port of Vancouver Lockhart, John Robert 1971

Your browser doesn't seem to have a PDF viewer, please download the PDF to view this item.

Item Metadata

Download

Media
831-UBC_1971_A4_5 L62.pdf [ 16.31MB ]
Metadata
JSON: 831-1.0101776.json
JSON-LD: 831-1.0101776-ld.json
RDF/XML (Pretty): 831-1.0101776-rdf.xml
RDF/JSON: 831-1.0101776-rdf.json
Turtle: 831-1.0101776-turtle.txt
N-Triples: 831-1.0101776-rdf-ntriples.txt
Original Record: 831-1.0101776-source.json
Full Text
831-1.0101776-fulltext.txt
Citation
831-1.0101776.ris

Full Text

FACTORS AFFECTING INTERMODAL  CONTAINERIZED  OCP TRAFFIC MOVEMENT  THROUGH THE PORT OF VANCOUVER  by JOHN ROBERT  LOCKHART  B. S c . ( A g r ) ,  University of Alberta,  1962  B. E d . ( S e c ) ,  U n i v e r s i t y of Calgary,  1969  A  THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS MASTER  FOR THE DEGREE OF  OF BUSINESS ADMINISTRATION  in  the F a c u l t y of  COMMERCE AND BUSINESS ADMINISTRATION  We a c c e p t required  this  t h e s i s as conforming t o the  standard  THE UNIVERSITY OF BRITISH June,  1971  COLUMBIA  In p r e s e n t i n g an  this  thesis  advanced degree at  the  Library  I further for  shall  agree  scholarly  by  his  of  this  written  the  fulfilment of  University  of  make i t f r e e l y  that permission  p u r p o s e s may  representatives. thesis  for  be  (  granted  gain  g s ^ / v ^ ^  The U n i v e r s i t y o f B r i t i s h V a n c o u v e r 8, Canada  Columbia  (97/.  for  for extensive by  the  It i s understood  financial  70,  British  available  permission.  Department of  Date  in p a r t i a l  shall  requirements  Columbia,  H e a d o f my  be  I agree  r e f e r e n c e and copying of  that  not  the  that  study.  this  thesis  Department  copying or  for  or  publication  allowed without  my  The conversion of many major international ocean trades to container f a c i l i t i e s makes truly intermodal cargo movement possible.  However the ocean carriers have embraced the  concept of containerization with much more fervor than have the inland carriers.  As a result the van container has been  u t i l i z e d much less than might be expected for inland cargo movement. This study has concentrated on the movement of cargo from the Far East to Eastern Canada via Vancouver, in an attempt to discern why 'OCP' traffic, which arrives in containers, is being destuffed and moved eastward in boxcars. This long-haul traffic appears to be of a commodity composition and volume which should move in intact containers. It has been concluded that the inland carrier rates are not conducive to the movement of cargo in intact containers. This is a reflection of unfavorable cargo density characteri s t i c s , and to some extent, a lack of containerized cargo volume. While the labor contract in force on the Vancouver waterfront discriminates against off-dock destuffing, the density,and rate considerations are sufficiently important that 'OCP' cargo should maintain its present non-intermodal characteristics.  I  INTRODUCTION  1  OBJECTIVES OF THE STUDY  5  IMPORTANCE OF THE STUDY  8  SCOPE OF THE STUDY  -  9  INFORMATION SOURCES  II  9  THESIS ORGANIZATION  10  FOOTNOTES  12  GENERAL ECONOMICS OF CONTAINERIZATION IN INTERMODAL DEVELOPMENT HISTORY OF CONTAINERIZATION EARLY U.S. CO-ORDINATED ATION EXPERIENCE  13 13  TRANSPORT1^  DEFINITIONS AND DESCRIPTIONS OF CONTAINERS  15  WORLD CONTAINER EVOLUTION AND DEVELOPMENT  l6  VANCOUVER DEEP-SEA CONTAINER DEVELOPMENT  18  History  18  C u r r e n t and Proposed Line Services Japan 6 Line  Steamship 19  Operation  ADVANTAGES AND PROBLEMS CONTAINERIZATION  21  OF 22  Advantages  22  Problems  24  SAVINGS FROM CONTAINERIZATION  25  INTERMODAL FREIGHT MOVEMENT  26  TRENDS IN INTERMODAL CONTAINERIZATION INVESTMENT  28  RAIL  28  World Developments  28  Canadian Experience  30  VESSEL AND PORT EFFICENCY  32  Port and Route Rationalization  33  ECONOMICS OF CONTAINERIZATION FOR VESSELS COSTS IN OCEAN TRANSPORTATION  35 .  35  Cargo Stowage  36  Ship Tonnage Measures  37  REPRESENTATIVE INVESTMENT IN CONTAINER VESSELS ' Current and Future Trends World Container Fleet  38 38 41  Ideal Container Ship Size  43  Container Systems of the Future  44  CONTAINERSHIP OPERATING COSTS  46  General Factors  46  The Arthur D. L i t t l e Study  48  Future Trends  51  Increased Speeds  51  Nuclear Power  52  ECONOMICS OF CONTAINERIZATION FOR PORTS  53  WORLD PORT INVESTMENT  53  PORT TECHNOLOGY CHANGES  55  Port Purpose: Deep-Sea or Feeder  55  LABOR AND CONTAINERIZATION COSTS IN PORTS  58  AIR  60  MOVEMENT AND CONTAINERS  P O T E N T I A L CONTAINER World Port  CARGOES  Scene  61  o f Vancouver  61  PORT OF VANCOUVER CENTENNIAL .PIER CONTAINER TERMINAL  III  61  62  SUMMARY  68  FOOTNOTES  71  OVERLAND COMMON POINT TARIFFS AND TRAFFIC OVERLAND COMMON POINT TARIFFS  85 85  OCP AND LOCAL RATE TERRITORY  86  APPROVED CARRIERS AND PORTS  86  HISTORY OF COMMON POINT RATES  90  UNITED STATES  90  Rate S t r u c t u r e Fourth Class  90  Section  Provisions  90  a n d Commodity R a t e s  91  U.S. C o n t a i n e r  Rates  •Freight-All-Kinds' ICC I n v o l v e m e n t Transportation  92 Rates  i n Co-ordinated Tariffs  CANADA  93 95 96  Historical Class  Development  Rates  97  Commodity R a t e s Import and E x p o r t and T a r i f f s  96  98 Rates 99  CANADIAN OCP TRAFFIC  100  HISTORY OF OCP RATES  .  100  CARRIER ABSORPTION PRACTICES  104  CANADIAN RAILWAY IMPORT TARIFFS  106  CFA-25^-B  107  CFA-263  108  CFA-38-L  108  CFA-70-C  108  CFA-589-A  110  OCP CARGO TYPE AND VOLUME  I l l  TYPE OF CARGO  I l l  CONTAINERIZABLE EXPORT CARGOES  112  THE  115  PORT OF VANCOUVER Importance  115  Type of. C a r g o Moved  118  VOLUME OF OCP CARGO MOVED TO EASTERN CANADA Method o f Movement  122  CONTAINERIZABLE CARGO VOLUME Land B r i d g e P o r t o f Vancouver S t u d i e s Reviewed  121  124 126  Container 128  C o n t a i n e r i z a b l e C a r g o Tonnages From 'OCP O r i g i n ' N a t i o n s  131  Japanese  1*H  Trade  ACTUAL CONTAINER TRAFFIC OF VANCOUVER SUMMARY FOOTNOTES  IN PORT 1*14 . 150 152  IV  OCP RATES AND TERMINAL CHARGE APPLICATION FOR CARGO IN CONTAINERS  159  OCP CHARGES  160  SUMMARY OF CONTAINER PROVISIONS FOR OCP TRAFFIC Ocean Rail  F r e i g h t Charge F r e i g h t Rate  Determination  Determination  161 ....  161 163  Example  1  165  Example  2  165  TERMINAL CHARGE APPLICATION  168  TERMINAL CHARGES DEFINED  168  TERMINAL CHARGE APPLICATION  169  Wharfage Service  I69  and H a n d l i n g and F a c i l i t y  Charge  171  Loading  171  Crane  172  TERMINAL CHARGE ABSORPTIONS Examples  of Absorption  Practices  CONDITIONS UNDERSCORING DESTUFFING ON THE VANCOUVER WATERFRONT LABOR UNION AGREEMENT  17^ 175 180 180  EMPTY CONTAINER RATES FROM THE PRAIRIES CARGO CHARACTERISTICS  l8l 182  The P r o b l e m o f * M i x e d S h i p m e n t s '  182  Cargo D e n s i t y C o n s i d e r a t i o n s i n R e l a t i o n t o Equipment C a p a c i t y  183  Container Rail  Capacity  Boxcar C a p a c i t y  Road E q u i p m e n t  Capacity  I85 185 186  CHAPTER  PAGE SUMMARY  '  .  189  FOOTNOTES V  188  LABOR UNION RESPONSE TO INTERMODAL 192  CONTAINERS LABOR UNION RESPONSE TO CONTAINERIZATION  '193  REDUCED HANDLING EXPECTED TO LOWER INSURANCE COSTS ..  19^  CONTAINERIZATION RESULTS IN INCREASED HANDLING SPEED  196  Reduction  i n P o r t Numbers  WHO BENEFITS FROM CONTAINERIZATION: LABOR, MANAGEMENT, OR BOTH REGIONAL ADAPTATION TO CONTAINERIZATION  198 201  CONTINENTAL EUROPE  201  THE  UNITED KINGDOM  201  THE  UNITED STATES E A S T COAST  203  1968  Contract Negotiations  Longshore Agreement Clauses THE  204 205  UNITED STATES WEST COAST History of United C o a s t Agreement  States  Container  i n t h e A g r e e m e n t ....  Clauses  West  VANCOUVER  206  208 209  Inquiries  Containerization  206  207  EASTERN CANADA Labor  203  Container  O u t l o o k F o r 1971  THE  197  Clauses  DOCK WORKERS CONTRACT  209 211  CONTRACT NEGOTIATION PROBLEMS  211  CONTRACT CONDITIONS REGARDING CONTAINERIZATION  213  S i z e and S t r u c t u r e o f Container Crew on C e n t e n n i a l P i e r  215  The  217  Outlook  SUMMARY  .....  221  FOOTNOTES VI  OTHER FACTORS WHICH TEND TO PREVENT INTERMODAL TRANSFER OF CONTAINERIZED 225  CARGO  VII  219  CUSTOMS  226  DOCUMENTATION  228  SORTATION PROCEDURES  230  OTHER FACTORS .  232  FOOTNOTES  23^ 235  CONCLUSIONS AND SUMMARY  236  CONCLUSIONS OCEAN RATES  237  TERMINAL CHARGES  238  INLAND CARRIER RATES  238  '  239  SORTATION WATERFRONT LABOR  .  SUMMARY FOOTNOTE  24l ..  BIBLIOGRAPHY APPENDIX  239  •  242 2^3  42  2.1  CONTAINER SHIPS ON ORDER  2.2  OPERATING COSTS OF BREAK-BULK CARGO SHIPS  2.3  ANNUAL OPERATING COSTS FOR A CONTAINER SHIP  2.4  3.1  3.2  3.3  3.4  3.5  3.7  3.8 3.9 3.10  3.11  grt  TRAVELLING AT 22 KNOTS  EXAMPLES OF INVESTMENT BY SELECTED WORLD PORTS FOR DEEP-SEA CONTAINER HANDLING FACILITIES  50  54  EXAMPLES OF COMMODITY RATES CHARGED UNDER THE JAPAN-WEST CANADA FREIGHT CONFERENCE T A R I F F No. 2  103  MAJOR EXPORT CARGOES FROM CANADA TO S E L E C T E D "OCP ORIGIN" COUNTRIES BY CANADIAN REGION 1966 t o 1968  113  TONNAGE OF CONTAINERIZABLE COMMODITIES EXPORTED TO FOREIGN COUNTRIES BY CANADIAN PORT REGION  114  A COMPARISON OF THE PORT OF VANCOUVER WITH A L L BRITISH COLUMBIA PORTS FOR TOTAL INTERNATIONAL SEABORNE AND FOR GENERAL CARGO UNLOADED TOTAL DEEP SEA CARGO MOVEMENTS THE PORT OF VANCOUVER  3.6  29,000  '4?  116  THROUGH  1962 --197.0  117  TONNAGE OF A L L INTERNATIONAL SEABORNE CARGO CLASSED AS "OTHER COMMODITIES" UNLOADED BY MAJOR PORT IN B. C.  119  THOUSANDS OF SHORT TONS OF GENERAL CARGO UNLOADED AT B R I T I S H COLUMBIA PORTS BY S E L E C T E D MAJOR COMMODITY GROUP  120  CONTAINER ON F L A T CAR MOVEMENT EASTERN AND WESTERN R A I L REGIONS ,  123  RAILROAD POOLCAR MOVEMENTS WESTERN RAIL. REGIONS  125  EASTERN  AND  P O T E N T I A L CANADIAN CONTAINER TRAFFIC USING THE TWO LAND BRIDGE CONCEPTS  127  PROJECTED NUMBER OF CONTAINERS HANDLED PORT OF VANCOUVER 1968 - 1975  130  3.12  IMPORTS BY CANADIAN PORT REGION FOR SELECTED "CONTAINERIZABLE" COMMODITIES FROM "OCP ORIGIN" COUNTRIES  .  132  3.13  SEA DISTANCES BETWEEN MAJOR PORTS  133  3.14  IMPORTED TONNAGES FROM SELECTED "OCP ORIGIN" COUNTRIES THROUGH CANADIAN PACIFIC COAST PORTS  135  CARGO UNLOADED AT PORT OF VANCOUVER IMPORTS FROM SELECTED "OCP ORIGIN" COUNTRIES 1961 - 1970  136  3.15  3.16  3.17  CANADIAN (CONTAINERIZABLE) IMPORTS FROM "OCP ORIGIN" NATIONS BY YEAR THROUGH THE PORT OF VANCOUVER  1 3 8  CONTAINERIZABLE TONNAGES OF CANADIAN IMPORTS STEEL AND ORES EXCLUDED FROM "OCP ORIGIN" NATIONS BY YEAR THROUGH THE PORT OF VANCOUVER 1967 - 1970  139  3.18  JAPANESE EXPORTS TO CANADA 1967-1969  1^2  3.19  CONTAINERS IMPORTED ON VESSELS OF THE JAPAN 6 LINES 1970 - 1971  1^5  CONTAINERS EXPORTED ON VESSELS OF THE JAPAN 6 LINES 1970 - 1971  1^6  TONS OF IMPORTS PER CONTAINER INITIAL VOYAGES JAPAN 6 LINES TO VANCOUVER B. C. BY COMMODITY GROUP  148  TONS OF EXPORTS PER CONTAINER INITIAL VOYAGES JAPAN 6 LINES FROM VANCOUVER  149  3.20 3.21  3.22 4.1  4.2  4.3  SOME EXAMPLES OF COMPARATIVE CHARGES FOR COMMODITIES MOVED BY POOLCAR AND IN INTACT CONTAINERS  167  RELATIVE TERMINAL CHARGES PER REVENUE TON PORT OF VANCOUVER FOR CARGO ARRIVING BY DIFFERENT METHODS  173  EXAMPLES OF TERMINAL CHARGE ABSORPTIONS BY OCEAN AND RAIL CARRIERS FOR CARGO OF VARIOUS DENSITIES  177  4.4  4.5  5.1  SOME EXAMPLES OF COMPARATIVE TOTAL LINE HAUL CHARGES TO THE CONSIGNEE FOR OCP CARGO MOVED THROUGH THE PORT OF VANCOUVER BY THE JAPAN 6 LINES SHOWING THE R E I A T I V E ABSORPTIONS IN POOLCARS v s INTACT CONTAINERS  179  SAMPLE CONTAINER LOAD PLANS FOR IMPORTED CFS CONTAINERS VANCOUVER CONTAINER TERMINAL May 1971  184  CONTAINER HANDLING RATE AT CENTENNIAL P I E R I N I T I A L VOYAGES OF JAPAN 6 LINES  1970 - 1971  '  216  Fig. 1.1  A COMPARISON OF AN INTEGRATED CONTAINER VESSEL SYSTEM WITH PRESENT BREAK-BULK VESSEL METHODS  3  MAP  2.1  PORT OF VANCOUVER CONTAINER TERMINAL  64  MAP  3.1  LOCAL AND OVERLAND COMMON POINT TERRITORY  87  ORIGIN AREAS FOR TRAFFIC MOVING TO OVERLAND COMMON POINT CENTERS  88  MAP  3.2  Fig. 3.1  Fig. 5.1  PROJECTED CARGO TONNAGES TO BE SHIPPED IN CONTAINERS THROUGH THE PORT OF VANCOUVER NUMBER OF TIMES CARGO IS HANDLED FROM. SHIPPER TO THE CONSIGNEE  129 195  The a u t h o r t h a n k s Transportation include  I n d u s t r y who  have a s s i s t e d  t h e many i n d i v i d u a l s who  interview scene  t h e many r e p r e s e n t a t i v e s  in  t i m e and  detailed  o f the  in this  study.  These  have so w i l l i n g l y p r o v i d e d  e x p l a n a t i o n s o f the  container  Vancouver.  S p e c i a l thanks are extended t o : Mr. G o r d o n P a y n e , Mr. P e t e r S e n i o r , & Mr. J o h n Shaneman o f E m p i r e S t e v e d o r i n g Co.; Mr. G o r d o n Cameron, Mr. G o r d o n K i n g , & Mr. D a l e S p i n k , S h i p p i n g Agents; Mr. G i l l F r o n t a i n , Mr. C h a r l e s C r o o k , Mr. A l b e r t Thomson, & Mr. E r i c S t a t o n o f t h e C a n a d i a n N a t i o n a l R a i l w a y Co.; Mr. S t a n G a r r o d o f t h e C a n a d i a n P a c i f i c R a i l w a y Co.; Mr. Dave E d g e w o r t h o f The B u r l i n g t o n N o r t h e r n R a i l w a y Co.; Mr. J o h n Shaw o f G i l l I n t e r n a t i o n a l T r a n s p o r t ; Mr. B a r r y L i n d s a y o f J o h n s t o n T e r m i n a l s L t d . ; Mr. Ken Cox o f W e s t e r n Assembly; Mr. Don M c G r e g o r , C a n a d a Customs O f f i c e r ; Mr. Len C a r l y l e & M i s s M a r j o r i e M c G e r r i g l e o f t h e N a t i o n a l H a r b o u r ' s B o a r d ; and t o Mr.  H a r r i s o n and members o f t h e  Thanks a r e a l s o with  to the Canadian  Transport  t h e a i d o f whose F e l l o w s h i p t h i s work was  finally and  due  ILWU.  t o Dr.  Treavor Heaver,  e n c o u r a g i n g comments and Also  sincere  assistance  thanks  i n the t y p i n g  t o my  T h e s i s Chairman  Commission,  undertaken,  and  for his helpful  assistance. wife,  of this  May,  thesis.  f o r h e r p a t i e n c e and  INTRODUCTION  The  concept of  discussed  c o n t a i n e r i z a t i o n i s one  developments i n t r a n s p o r t a t i o n  "rediscovery"  i n the  comparable  that  Like passing  phase? the  enlightened  can  do,  and  i f i t follows  land  carriers,  The  to  rather  this  'new'  Edsel could  most p a r t ,  only  While  b e e n s h a r e d by  consignees.  As  total  most e f f e c t i v e  way  message' the to present  more i m p o r t a n t  that  be  hula  f o r an  steamship their  either  the  the  intermodal  cost.  of  then, the  But  i f a  'box' is,  companies  'vision'  has  shippers,  majority  of  van  use.  If a  container  sooner  container  shipments  is  is  everyone not  palletization  methods, t h e n i t becomes  the  spread, because  'word' be  .  handling.  what i t c a n n o t do,  a result  this,  into  u n d e r s t a n d what t h e  the  a  catastrophic.  f o r c o n t a i n e r i z i n g cargo  doing  only  hoop  i t i s a plea  transportation  better.  been  20th C e n t u r y .  may  w e l l be  wholeheartedly,  'raison d'litre' the  and  widely its  method o f m a t e r i a l s  really  limited.  container  or  most  Since  i n the  ' b i g box'  a forecast;  have b e e n f o r o c e a n , n o t  to reduce  •gets the  the  consequences  t h r e a t nor  the  f o r the  containers  the  p e r h a p s e v e n more i m p o r t a n t ,  not,  superior  ideas,  number o f p e r s o n s who  have e n d o r s e d  the  a  today.  human p o p u l a t i o n  'new'  approach  unfortunately,  is  the  economic  i s neither  The  of  but  the  mid-1950's, i t s g r o w t h r a t e has  many o t h e r  oblivion, This  to  of  even  containerization  (1)  the  actual rate(s)  (2)  the  time  consumer. rate  immediate  reduction  direction.  appraised  the  the  p r a c t i c e s by  and  i n moving goods from the  Because of  s t r u c t u r e s and  pricing  this  involved  charged,  extensive  political  involvement  almost u n i v e r s a l lack of  most modes of. t r a n s p o r t , i n transportation costs  However, t i m e - s a v i n g s  source of  producer to  cost  present  in  cost-oriented  relatively  can  the  be an  little  expected  in  easily  reductions.  1 M c K i n s e y and  Company  i n a graphic  comparison  economic time advantages o f  c o n t a i n e r i z a t i o n over  cargo h a n d l i n g  F i g . 1.1),  ships in  would r e q u i r e  the  required  time p e r i o d . handling should  l e s s time  Providing  not  the  there  concluded  in port, ship per  t o move a g i v e n  equipment,  land  i s no  year;  quantity carriers  applied,  containerization gives  modes.  Before  carriers  The  this  must be  traditional  the  between the can  various be  prepared  transportation  ultimate  consignee's  aim  increase vessels given  proper  same r e s u l t s  movements. completely  complete i n t e r c h a n g e a b i l i t y land,  achieved  sea,  and  air  however, b o t h  to r e a p p r a i s e  and  transport  shippers  revise  and  their  patterns.  must be  d o o r as  cargo  the  Properly  'box'  container  in a  possess the  i n overland  the  that  of cargo  r e a s o n why  cargo with  break-bulk  thus fewer  obtained  movement o f  the  r e s u l t i n g i n an  be  intermodal  to  (see  number o f v o y a g e s p e r  w o u l d be  of  methods  of  t o move c a r g o f r o m  r a p i d l y and  the  inexpensively  shippers as  possible.  FIGURE 1.1 A COMPARISON OF AN INTEGRATED CONTAINER  V E S S E L SYSTEM WITH  PRESENT BREAK-BULK V E S S E L METHODS  80  Present Break-Bulk - v . ^ Method  Per  cent of 60 ship's life in 40 port  v  Integrated . Container -Sy_s_tem  20 -  80 Number of voyages per ship per year  Container ships spend l e s s time in port....  H  2 4 6 8 T r a d e r o u t e m i l e s (one way) Thousands  Container ships make more v o y a g e s per year.  60.  40-  10  Integrated Container System  20Present breakT3ttlk -me-thed-9-2 4 6 Trade r o u t e m i l e s Thousands  Source:  TT~  (one way)  To  " C o n t a i n e r i z a t i o n : The Key t o Low C o s t T r a n s p o r t " , A R e p o r t f o r t h e B r i t i s h Docks A u t h o r i t y , M c K i n s e y and Co., L o n d o n . June 1967. P«  As the  s i m p l i s t way t o a c c o m p l i s h t h i s  same p a c k a g e interest  for  the  e n t i r e movement,  i n , and the a d o p t i o n , o f ,  s h o u l d be t o u s e s h i p p e r and  complete  should r a p i d l y increase  among t h e  A shift  h a n d l i n g methods  ocean  i n inland  t r a n s p o r t a t i o n has n o t y e t If  real,  the  the  door i s this  cargo  cost  failure  transfer  lowest  containerization  trading nations  of  comparable  the to  total  containers  to the  if  t h i n k s i n terms of  lowest  consignee's  the  everyone  However  concerned  TOTAL c o s t  of a completely the  early  i n t e r m o d a l cargo  19th Century,  but i t has o n l y  and a c c e p t e d  instances  s h i p p e r s and c a r r i e r s have n o t f u l l y g r a s p e d  be u s i n g  of  the  i n the mid-20th C e n t u r y .  complete  transfer,  has  become  I n many  for  the  local,  even though t h e y  may  containers. of  the f a c t 2  i n the world  that  one o f  was o p e r a t e d  commitment t o deep s e a  develop  c o n t a i n e r concept  or i n t e r n a t i o n a l cargo  In spite  the  with  (and  movement  practical  national,  of  price).  b e e n known s i n c e  routes  that  c o n t a i n e r i z a t i o n are  c a n o n l y be s u c c e s s f u l  The c o n c e p t  significance  world.  developed.  claimed for  t o move i n t a c t  carrier  a severe m i s a l l o c a t i o n and waste of r e s o u r c e s .  procedure  cargo  advantages  the  the f i r s t  out of  container  the P o r t o f  ship  Vancouver,  c o n t a i n e r i z a t i o n has been s l o w  i n t h e P a c i f i c N o r t h West r e g i o n o f N o r t h A m e r i c a .  to  Traditionally  Canadian  imports  through the P o r t o f  V a n c o u v e r h a v e a r r i v e d i n b r e a k - b u l k f o r m on e i t h e r l i n e r o r tramp s t e a m s h i p s . but  often without  necessitated  The c a r g o was o f f - l o a d e d b y t h e l o n g s h o r e m e n , reference  considerable  l a b o r i n the f r e i g h t consolidated  handling  sheds b e f o r e  switch  but  not entirely  the cargo  eliminated time  this  as  container  respective terminal points.  dock i n N o r t h  Vancouver.  from S e a t t l e by t r u c k  relative  and the O r i e n t  through  the Port  the European  trade  These  Lines Pier  I n a d d i t i o n , The W h i t e of ore to t h e i r carried  are also arriving  i n intact  the  Dock, a n d L a P o i n t e  by SeaLand,  i n Vancouver Railroad.  t h e s i s i s t o document t h e  o f moving goods i m p o r t e d  Zealand  Only the t r a f f i c  a n d New Z e a l a n d  Some c o n t a i n e r s  of this  a t the Port  t o t h e " J a p a n 6"  o r the B u r l i n g t o n Northern  primary purpose merits  belong  t o move c o n t a i n e r s  and American M a i l L i n e s  The  f o r forwarding.  and S c a n S t a r S e r v i c e s .  P i e r , the Fraser-Surrey  P a s s a n d Yukon c o n t i n u e s  Inc.  c o u l d be p r o p e r l y  vessels arriving  D i r e c t (PAD) L i n e ; w i t h  by Johnson L i n e  Centennial their  longshore  problem.  and American M a i l ; from A u s t r a l i a  Pacific Australia  use  This  t o c o n t a i n e r i z e d c a r g o movement h a s g r e a t l y r e d u c e d ,  the present  represented  of Lading.  carload lots  of Vancouver from Japan and the F a r E a s t Line,  Bill  and s o r t i n g by  into truckload or r a i l  The  At  to the proper  from A u s t r a l i a ,  intermodal  o f Vancouver to E a s t e r n o r i g i n a t i n g i n nations  New  van containers  Canadian d e s t i n a t i o n s . designated  as w i t h i n  the  "Overland  Common P o i n t "  (OCP) o r i g i n  to Canadian d e s t i n a t i o n s e a s t border to  i s discussed.  this  OCP t r a f f i c  applying Port  to other  and s h o u l d  reached  arriving  n o t be c o n s t r u e d  which a l s o e n t e r s  few e x c e p t i o n s ,  a t the Port  removed f r o m  motor c a r r i e r  the containers  designated  'break-bulk  cargo'  New Z e a l a n d ,  o r any A s i a n  n a t i o n " and, a f t e r  North American p o r t ,  the cargo  the lower Overland i s by approved  railroad Vancouver  carrier  and  through  i twill  qualify  I f the inland  t r u c k ) , t h e cargo  will  waterfront.  the r a i l r o a d s does,  o f the $ 9 . 0 0 i n fact,  i n S e a t t l e , b u t which  a l s o be e l i g i b l e  qualifies  f o r the absorption  p e r t o n c a r l o a d i n g charges,  when  move t o OCP d e s t i n a t i o n t e r r i t o r y .  Most o f t h e c o n t a i n e r i z e d c a r g o is  passing  companies f o r t h e t e r m i n a l charges i n c u r r e d on t h e  t h e OCP o c e a n r a t e , w i l l  cargo  country  f o r t h e a b s o r p t i o n p r a c t i c e s o f the steamship and  Cargo which i s d i s c h a r g e d  the  I f i t comes  ocean t a r i f f .  (except  poolcars or  moves a t l e a s t a s  for  Common P o i n t  l a b o r on  or A f r i c a n  east as the Manitoba-Saskatchewan border,  qualify  i s being  transferred to railroad  far  movement  currently  (destuffed) by longshore  a s a n "OCP o r i g i n  a west c o a s t  by  as n e c e s s a r i l y  t r a n s p o r t s f o r movement e a s t w a r d .  from A u s t r a l i a ,  for  specifically  Canada t h r o u g h t h e  o f Vancouver i n c o n t a i n e r s  docks, and subsequently  also  apply  o f Vancouver. With v e r y  the  and moving  o f the Manitoba-Saskatchewan  The c o n c l u s i o n s  traffic  territory  imported  d e s t u f f e d a t the Vancouver premises  v i a the Port  of freight  of Seattle,  forwarders,  t r a n s f e r r e d t o i n l a n d o r OCP d e s t i n a t i o n s b y t r u c k o r  This paper advances the hypothesis that Overland Common Point t r a f f i c i s both suited to, and suitable f o r , containerization; as a r e s u l t i t should a r r i v e i n Vancouver i n a sealed container, be off-loaded from the ship and be loaded  directly  onto a r a i l c a r , f o r forwarding i n that i n t a c t container to i t s Eastern Canadian destination.  Destuffing should only occur at  the Eastern Canadian consignee's warehouse.  While the i d e a l  would be f o r the consignor and consignee to have door-to-door shipment, t h i s i s not inherent i n the OCP  t a r i f f s , since these  are s t r i c t l y ocean rates, not ocean-rail j o i n t  tariffs.  Since t h i s 'suitable* t r a f f i c has not been moving East i n the i n t a c t import container (but rather i n boxcars), question  of 'Why  Not?' has been studied.  the  Admittedly the  new  container handling f a c i l i t i e s on Centennial P i e r have only been operational since m i d - 1 9 7 0 ,  but imported cargo i n containers  has been unloaded at the Port of Vancouver since 1 9 6 8 . by the beginning of 1971» very few i n t a c t containers a c t u a l l y moved to OCP  destinations.  had  Even so,  With the s c h e d u l e by  i n t r o d u c t i o n of  the  J a p a n 6,  A u s t r a l i a D i r e c t Line intermodal Port  not  freight  transportation  It  appears reasonable  move i n c o n t a i n e r s  the  This  means t h a t  van  ( w h i c h d o c k s a t New  Vancouver.  over  the  containers,  container  equipment),  from  chassis,  inclusion  than the  shipper's  of  carriers  the  c o m p a n i e s , and insurance ization;  and  shipper,  the  imported  cargo  door to the and/or time  the are  cost  are  matter.  carrier, the  movement. form  considered  on present  obtaining.  not  the  only  response of l a b o r equipment  evaluation  factors as  the  suitable  customs i n s p e c t o r s ,  i n any  of  inland  Such t h i n g s  and  will  advantage  of abandoning  presently  government r e g u l a t i o n s ;  unitization.  and  the  consignee's  equipment i n the vessels,  and  truly  through  (which i s s i m u l t a n e o u s l y  customer);  must a l s o be  intermodal  a rate  considerations  documentation  needs of  regular  must show a l a r g e r r e t u r n  taken i n t o account i n t h i s  problems of the  the  containerized  However f i n a n c i a l t o be  possible  t o assume t h a t  p r o v i s i o n o f new  fully  (after  a  ocean-break-bulk-rail-poolcar  b o g i e s and  investment  on  Westminster)  i s now  t h i s method has  traditional  ships  Johnson L i n e , American M a i l L i n e s ,  of  warehouse, u n l e s s  container  to  insurance  unions; standardof  This  study  presents  containerization on  both  a brief  and t h e e f f e c t  Vancouver w a t e r f r o n t ,  and  absorption,  I t concentrates  particularly  r a t e s , and l a b o r union  t h e v o l u m e o f OCP t r a f f i c , relate  t o boxcar, motor c a r r i e r ,  movement b y t r u c k a n d r a i l  attempt  t o d e t e r m i n e why i m p o r t e d  Vancouver i n i n t a c t  INFORMATION  i n this  published  inland  of port  response.  charges  An a n a l y s i s  r a t e s i n v o l v e d as  and i n l a n d  container  has been u n d e r t a k e n i n an goods a r e n o t m o v i n g  Eastward  containers.  r e l i a n c e has been p l a c e d  steamship agents,  stevedoring  material the  o f c o n t a i n e r s on  on t h e o p i n i o n s ,  a n d i n f o r m a t i o n made a v a i l a b l e b y p e r s o n n e l  railways, and  on some o f t h e  SOURCES  Considerable data,  those  and t h e r a i l  traffic  from  intermodal  the non-intermodality  the  these  of  t h a t t h e v a n c o n t a i n e r has had  the p o r t s and c a r r i e r s .  problems a s s o c i a t e d with  of  history  companies because t h e r e area.  tariffs  carriers.  motor c a r r i e r s ,  Information  of the  government  i s very  little  agencies, published  has a l s o been g l e a n e d  o f the p o r t s , Steamship Conference,  from and  This  introductory  importance Traffic. and in  of this  study t o Canadian Overland  I t has proposed  should true  C h a p t e r has o u t l i n e d t h e o b j e c t i v e s and  the hypothesis  be c o n t a i n e r i z e d  intermodal  to f a c i l i t a t e  the general  of  containerized  of  the h i s t o r y o f containers  container the  and  f r e i g h t movement.  handling  capital  that  investment  have  a trade  experience. of  of  this  modality  discussion  American  must be  Specifically that  i t deals  i s involved  or route,  with  i n any  and w i t h  the costs  t h e development o f Overland  Canadian general with a discussion  of this  next  study with of this  structure  cargo being  two C h a p t e r s  Common  being  terms,  o r b r e a k - b u l k cargo volumes i s on t h e s u i t a b i l i t y a n d containerized.  ( I V a n d V) a r e t h e e c o n o m i c  the relevant  traffic  minor f a c t o r s enter rate  a brief  The s i g n i f i c a n c e , i n t o n n a g e a n d p e r c e n t a g e  along  probability The  Following  w i t h p a r t i c u l a r emphasis on t h e C a n a d i a n  OCP t o t o t a l  explored  economic c h a r a c t e r i s t i c s  appeared.  Chapter I I I describes tariffs  movement  engaging i n intermodal  are discussed.  to containerize  benefits  Point  i t s overland  i n t h e w o r l d and North  by c a r r i e r s and p o r t s  extensive  decision  OCP t r a f f i c c a n  s c e n e , a number o f e c o n o m i c f a c t o r s t h a t  considered  Point  fashion.  Chapter I I discusses  freight  that  Common  factors leading discussed.  heart  to non-inter-  W h i l e a number o f  t h e p i c t u r e , t h e m a j o r ones a r e t h e p r e s e n t  o f the inland  c a r r i e r s (discussed  i n Chapter IV)  The and  final  Chapter  summarizes  the f i n d i n g s  p r e s e n t s the c o n c l u s i o n s r e a c h e d i n t h i s  area of f r e i g h t  movement.  o f the  rapidly  study changing  CHAPTER I  1. " C o n t a i n e r i z a t i o n * The Key t o Low C o s t Transport", R e p o r t f o r t h e B r i t i s h Docks A u t h o r i t y , M c K i n s e y and Co., London. June 1967. E x h i b i t s I I - I V , p . 14. 2. C. Clapham, " C o n t a i n e r i z a t i o n i n t h e S e v e n t i e s " , P r o c e e d i n g s o f t h e C a n a d i a n T r a n s p o r t a t i o n R e s e a r c h Forum. P a n e l D i s c u s s i o n , V a n c o u v e r , B.C. M a r c h 20, 1970. p . 2. c f . "A New W h i t e P a s s C o n t a i n e r Route S e r v e s t h e Yukon and N o r t h e r n B r i t i s h Columbia", A d v e r t i z i n g l i t e r a t u r e o f t h e W h i t e P a s s a n d Yukon R a i l w a y Company. I n " F r a n k H. Brown", t h e f o l l o w i n g s t a t e m e n t i s made: " C a p i t a l f o r t h e new Yukon f r e i g h t s y s t e m was f o u n d a n d i n 1955, W h i t e P a s s and Yukon Route l a u n c h e d i t s own s h i p , t h e 4,000-ton C l i f f o r d J . R o g e r s , c r e a t i n g t h e f i r s t W h i t e P a s s o c e a n l i n k b e t w e e n V a n c o u v e r and Skagway. A t t h e same t i m e W h i t e P a s s p i o n e e r e d t h e c o n t a i n e r c o n c e p t o f f r e i g h t h a n d l i n g by i n t r o d u c i n g temperature c o n t r o l l e d s t e e l containers. I t i s generally c o n s i d e r e d t h a t t h e C l i f f o r d J . R o g e r s was t h e w o r l d ' s f i r s t ship designed s p e c i f i c a l l y to handle containers and c o n t a i n e r i z e d f r e i g h t . " p . 2.  GENERAL ECONOMICS IN  OF CONTAINERIZATION  INTERMODAL  DEVELOPMENT  HISTORY OF CONTAINERIZATION  The  move t o c o n t a i n e r i z a t i o n h a s "been d e s c r i b e d  revolution that  the "container  packing,  distant The idea  that  S.G. S t u r m e y  suggests  r e v o l u t i o n c a n be s e e n a s a r e v o l u t i o n i n 1  o f ocean g o i n g  indicates excluded  but Professor  a s much a s i n t r a n s p o r t " .  conversion  the  and an e v o l u t i o n ,  as both a  The e x t e n s i v e  cargo f a c i l i t i e s  those Lines  to  and r a p i d  containers  w h i c h do n o t ' c o n t a i n e r i z e '  f r o m much o f t h e w o r l d ' s  could  be  commerce i n t h e n o t - t o o -  future. idea  o f c a r g o u n i t i z a t i o n i s c e r t a i n l y n o t new.  of containerization i n large  Even  'boxes' i s f a r from 2  revolutionary,  being  described  i n detail  However t h e s i z e o f ' c o n t a i n e r s ' increased. the  word  Because o f these  'evolution*  'revolution',  as long  ago a s 1801.  under d i s c u s s i o n has g r a d u a l l y  changes o v e r the p a s t  appears  150  t o be more a p p r o p r i a t e  when d e s c r i b i n g  years,  than  t h e changes wrought by  containerization. The in  co-ordinated  s i z e from r a i l r o a d  movement o f c o n t a i n e r s , cars,  " w h i c h may  vary  highway t r u c k s , s e m i - t r a i l e r s ,  or t r a i l e r s ,  to much s m a l l e r r e c e p t a c l e s " ,  in a i r freight,  refers  such as those  to a c o - o r d i n a t i o n of s e r v i c e s  o r i g i n to d e s t i n a t i o n by more than one mode of without a t r a n s f e r of the B i l l methods of cargo  transfer  of L a d i n g .  used  from  transportation  Examples of  the  i n v o l v e d would bei  (1) piggyback - the movement o f both t r a i l e r s and containers  on r a i l r o a d f l a t e a r s  (.TOFC, COFC);  (2) s e a t r a i n - r a i l r o a d c a r s on ocean-going (3) f i s h y b a c k ferries;  ferries;  - motor c a r r i e r t r a i l e r s on deep-sea and  (4) b i r d i e b a c k - motor c a r r i e r t r a i l e r s i n a i r c r a f t .  EARLY U . S .  CO-ORDINATED TRANSPORTATION EXPERIENCE  Intermodal cargo c o - o r d i n a t i o n of t h i s between 1843 the f r e i g h t  and 1857  type was used  i n the U n i t e d S t a t e s when c a n a l b o a t s ,  c a r r y i n g equipment,  as  were mounted on r a i l r o a d cars  5 for forwarding. containers,  I n 1847  passenger's  baggage was p l a c e d  moved by f e r r y from P h i l a d e l p h i a to Comden, and  then loaded ( f o u r c o n t a i n e r s per f l a t c a r ) passenger  trains.  on f l a t c a r s  That same y e a r a l s o  f o r movement w i t h  saw c o n t a i n e r s  the  handled  between Boston and F a l l R i v e r , M a s s . , and by s h i p  from F a l l R i v e r to New York. i n 1885,  in  " F a r m e r ' s T r a i n s " began  operation  and c a r r i e d f o u r produce wagons on each f l a t c a r .  teams were loaded i n t o b o x c a r s , Demountable less-than-carload  and moved with the same  t r u c k bodies were f i r s t used i n 1917* containers  came i n t o o p e r a t i o n i n  (The train.)  and  1921.  By  1926,  had  the  begun.  service  movement o f "A  with  rail  conventional-design  highway  wagon f o r c o m b i n i n g p i c k u p  a rail  l i n e - h a u l was  tried  and  i n 1898,  trailers  delivery  191^»  and  6 again  in  1930."  specifically and  1929» r a i l r o a d c a r s were moved i n s h i p s  In  designed  for this  H a v a n a , Cuba; and  the  p u r p o s e b e t w e e n New  s e r v i c e was  Orleans,  e x p a n d e d i n 1932  La.,  to  7 include the  Hoboken, N . J .  modern d e e p - s e a v a n - c a r r y i n g  DEFINITIONS AND  There are and  to  g e n e r a l l y be  Specifically m e e t i n g the  i n use  qualities trailer  the  van  (ISO)  commerce. 'van  may  be  containers  Series  although  o f ISO  reference  will  Appendix I I ) . (1)  a different an  8'  x 8*  shapes  This  will  study which  used i n s t e a d  the  size  of  intermodal  under d i s c u s s i o n are  be  may  of s u f f i c i e n t  i n repeated  use.  those  I n t e r n a t i o n a l Standards  i n t h e i r D r a f t Recommendations #804  #830, ( s e e A p p e n d i x I and I I f o r ISO this  of various  containers',  containers  . e s t a b l i s h e d by  i n 1968  of  ships.  containers,  that they  containers  more s p e c i f i c a l l y  (see  those  b o x e s , and  standards  Organization  as  predecessors  CONTAINERS  i n world  g r o u p known as  described  structural  container  a g r e a t number o f  the  motor c a r r i e r  and  DESCRIPTIONS OF  of a l l s i z e s ,  restricted  and  T h e s e s e r v i c e s were t h e  study IA be  deals (8'  x 8'  made on  T h e s e m i g h t be length  (8',  with  those  x 40'),  occasion  Even  intermodal and  IC  to other  (8*  x 8 x  sizes,  of:  10',  cross-section;  Terminology).  24',  30',  o r 35')  with  20'),  (2) a d i f f e r e n t (3)  one  o f t h e n o n - s t a n d a r d U.S.  8'  and  x 8'6"  x 24',  dinensions  SeaLand I n c .  o f 8'  6 cm.  being  2.50  g r e a t e r than  t h e ISO  J a p a n 6 L i n e s and  P a c i f i c A u s t r a l i a Direct Linos u t i l i z e sizes  35-foot u n i t s .  will 8'  be  x 8'  or  o n l y ISO  a  8',  in this  lengths, while  SeaLand  uses  traffic  through Japan, o n l y these  paper, with  and  standard  t h e m a j o r i t y o f c u r r e n t OCP  sizes  t h e most e m p h a s i s on  the  size.  there  1900,  of  American M a i l ,  Since  or i s transhipped  x 20'  standards  or 40-foot  WORLD CONTAINER EVOLUTION AND  before  of  containers  o f 20  discussed  While  dimensions  meters wide.  members o f t h e  originates,  Matson Steamship  uses  x 8 * x 35';  or  o f t h e n o n - s t a n d a r d E u r o p e a n S y s t e m s w h i c h has  width  container  x 8'6";  sizes.  containers having  one  The  8'  Company u s e s v a n  having (4)  cross-section being  the  are  DEVELOPMENT  references  first  i n the  mention o f a van  literature container  to  containers  ( 1 8 ' x 8*  x  8 was  in 19H»  handle the  and  some wooden v a n  overseas  c o n t a i n e r s were u s e d  to  s h i p m e n t o f h o u s e h o l d goods s o o n a f t e r  the  9 t u r n of the containers United van  century.  Denmark has r e p o r t e d l y b e e n u s i n g 10 s i n c e W o r l d War I , and t h e S o v i e t U n i o n , t h e  Kingdom, and  the U n i t e d  c o n t a i n e r i z a t i o n i n the However t h e  States a l l experimented 11 1920's and 1930's.  c u r r e n t concept  o f the  van  with  c o n t a i n e r has  only  8')  W o r l d War, a n d t h i s was m a i n l y d o m e s t i c u n t i l (Examples are  illustrated  trade and  o f some o f t h e t y p e s  i n Appendix I I I )  A survey  1960's.  c u r r e n t l y i n use  of the shipping  j o u r n a l s i n d i c a t e s t h a t deep-sea North American  carriers  did not really  containers  until  Australian  shippers  the l a t e  In an attempt transportation  Even t h e European and  were o n l y a f e w y e a r s to reduce  shippers  become i n t e r e s t e d i n t h e u s e o f v a n  1960's.  o f break-bulk  experimented with led  of containers  the  the high cargo,  earlier.  costs involved i n the  carriers  t h e use o f highway t r a i l e r s  have  also  and c h a s s i s .  to the i n t r o d u c t i o n o f the r o l l - o n / r o l l - o f f  This  (ro/ro)  12 container  v e s s e l s a f t e r W o r l d V/ar I I ,  containers  without  wheels p r o v e d  b u t the l a t e r use o f van  t o be more s u c c e s s f u l i n most  trades. The service,  ' c r a d l e ' o f E u r o p e a n c o n t a i n e r i z a t i o n was t h e I r i s h S e a initiated  between N o r t h e r n E n g l a n d and N o r t h e r n  Ireland  13  19^0's.  i n the l a t e T h e New S o u t h W a l e s ( A u s t r a l i a ) Government R a i l w a y c l a i m s t o have p i o n e e r e d t h e s e a - r o a d - r a i l i n t e r m o d a l movement o f c o n t a i n e r s o n a r o u t e b e t w e e n T a s m a n i a 14 and S y d n e y . The A l a s k a S t e a m s h i p Company h a s u s e d c o n t a i n e r s  15 1950's  since the early i n t h e U.S. d o m e s t i c t r a d e , The W h i t e P a s s a n d Y u k o n S t e a m s h i p Company p i o n e e r e d  while Canadian  16 intermodal operated 1956, ships  17  c o n t a i n e r i z a t i o n i n 1955.  a container  SeaLand, I n c .  s e r v i c e from the P o r t  and Matson Steamship L i n e s  i n the Hawaiian trade  since  o f New Y o r k  has since  have b e e n u s i n g c o n t a i n e r 18 1958. None o f t h e s e  The  deep-sea i n t e r n a t i o n a l c o n t a i n e r  mid-1960's, later  first  began  i n the  on t h e E u r o p e a n - N o r t h A m e r i c a n t r a d e , a n d  on t h e E u r o p e a n - A u s t r a l i a n  officially  trade  entered  routes.  the container  'race'  The J a p a n e s e i n October  1968,  19 inaugurating and a y e a r  later  20  begun.  a weekly s e r v i c e between s e r v i c e between  Japan and C a l i f o r n i a ,  Japan and A u s t r a l i a  The J a p a n e s e - S e a t t l e - V a n c o u v e r t r a d e  was  began  21  i n 1970.  The w o r l d - w i d e movement t o c o n t a i n e r i z a t i o n h a s a c c e l e r a t e d on all  continents,  a n d i s now e v i d e n t  i n trades  which had  22  p r e v i o u s l y been  considered  unsuitable  VANCOUVER DEEP-SEA CONTAINER  f o r containers.  DEVELOPMENT  History Container although  the deep-sea i n t e r n a t i o n a l trade  development. operated coastal Clifford the at  s h i p s a r e n o t new t o t h e P o r t  The W h i t e  their trade  J . Rogers  isa  recent  P a s s a n d Yukon R a i l w a y Company  specially between  o f Vancouver,  designed  container vessels  V a n c o u v e r a n d Skagway s i n c e  served  until  have  i n the  1955«  The  1965* when i t was r e p l a c e d b y 23  modern $5 m i l l i o n F r a n k H. Brown. The f i r s t f u l l y c e l l u l a r d e e p - s e a c o n t a i n e r v e s s e l t o c a l l the Port  o f V a n c o u v e r was t h e A l e x  However i t was n o t u n t i l  May  J o h n s o n on J u l y 18,  1969.  30th, 1970, when t h e G o l d e n A r r o w  berthed, world  that  the  fraternity The  gantry  r e v o l u t i o n ' had  to formal  shipping  fruition  crane  reached the  the  NHB  had  the  container  storage;  had  an  handling  gantry 26  of the  British  the  This  Columbia  N a t i o n a l Harbour's Board  million 12-15  million  1970's.  in physical acres  Empire S t e v e d o r i n g ,  a d d i t i o n a l $2  and  Canada's West C o a s t .  efforts  c r a n e and  the  Ports.  ' i n t h i n g ' o f the  i n v e s t e d $3  including  spent  the  joined  swung i n t o o p e r a t i o n ,  i n d u s t r y t o p e r s u a d e The  c o n t a i n e r i z a t i o n was date  of Vancouver o f f i c i a l l y  o f Deep-Sea C o n t a i n e r  f o u r t y ton  'container brought  Port  By  that  this  facilities,  o f back-up l a n d  as  the  i n obtaining  dock  for  operators,  container  i n c l u d i n g t h r e e s t r a d d l e c a r r i e r s and a 2? heavy duty f o r k l i f t ; and t h e J a p a n 6, a c o n s o r t i u m o f s i x 28 Japanese steamship companies, and t h e p r i m a r y u s e r s o f t h e C e n t e n n i a l P i e r f a c i l i t i e s , had c o m m i t t e d t h e m s e l v e s t o t h r e e fully  equipment,  cellular  container  ships with  an  i n i t i a l investment  of  29 $30  million.  Current  and  The and  Proposed Steamship L i n e  shipping  lines  that are  from Vancouver i n c o n t a i n e r  Johnson L i n e , with Lines  and  30  S e a L a n d and  some N o r w e g i a n f l a g  Seattle.  Many o t h e r  'conventional' 'stretched*  lines  v e s s e l s as  sections.  Services  p r e s e n t l y moving c o n t a i n e r s ships  are  the  Japan 6  American M a i l Lines ships  are  sending  import  moving c o n t a i n e r s  on-deck cargo,  or i n  ,  and States  cargo v i a on  special  ( s e e A p p e n d i x IV . f o r P a r t i a l  Listing  to  of Steamship L i n e s containers are  calling  at Port  also arriving  of Vancouver)  Steamship L i n e s and  Canadian P a c i f i c  Railways.  and  handled cranes  by  at LaPointe  April  initated  a  Pier,  Casco T e r m i n a l s .  at Pier 4 &  On  A l l of  the  7»  The  5 "bo d i s c h a r g e  1971,  complete  own  where t h e  and  Canadian N a t i o n a l  the Johnson L i n e ' s  container vessels carry their  discharge  few  from Europe v i a Manchester  Canadian P a c i f i c  cellular  A  cargo  fully  handling  containers  European L i n e s use  gear  are 100-ton  the  containers.  the P a c i f i c A u s t r a l i a D i r e c t L i n e  r o / r o s e r v i c e b e t w e e n M e l b o u r n e and  Canadian t e r m i n a l a t the  and  Fraser-Surrey  Docks, w i t h  the  (PAD) the  arrival  31 o f the 'K'  20,000 dwt S w e d i s h M.S.  Line  service  Later that year,  o f J a p a n as p a r t o f the P a c i f i c was  to begin  T a i w a n , and  the  as S e a t t l e . with  Paralla.  those  Far East  the  (PACFE)  m o v i n g c o n t a i n e r s between Hong Kong, P u s a n ,  Pacific  Coast  A l l of these  o f the  U n i t e d S t a t e s as  c o n t a i n e r s were t o be  f o r Canadian d e s t i n a t i o n s expected  on  t o be  f a r north  chassis, moved  by  32 either  road  Two  or piggyback from S e a t t l e to  other  European c o n t a i n e r s e r v i c e s i n t o  V a n c o u v e r commenced d u r i n g "inaugurated  Vancouver.  1971•  a semi-container  the P o r t  H a p a g - L l o y d A.G.  fortnightly  of  o f Germany  s e r v i c e between  33 G l a s g o w and and  the  the  Pacific  East A s i a t i c  N o r t h West",  while  the  Company, under'SCANSTAR o f  Blue  Star  Line  London,  commenced s e r v i c e i n mid-summer b e t w e e n  Scandinavia-Northern  E u r o n e and  the  the  Pacific  34 container vessels.  N o r t h West, u s i n g  first  of  four  The space of  p a r t i c i p a n t s i n the  Japan 6 Line  each of  vessels,  their  three  on  s e r v i c e a l l share a  'space  the  charter'*  35 "basis. in  However, e a c h v e s s e l  partnership.  and  the  *K'  was  followed  The  Line, by  first  i n S e p t e m b e r 1970,  Mitsui  OSK  first units,  two  the  Beishu  A l l three  refrigerated  containers  number o f 4 0 - f o o t round  trip  dry  can  discharged,  so  the  Beishu  v/ith a  an  and  1,000  the  of  the  the  Japan  of  NYK  Lines Line  1970. and  Maru (co-owned  She  Shov/a by  ) i n O c t o b e r 1970.  f o r 750  twenty-foot twenty-foot  The  container  container  have h o o k - u p s f o r s e r v i c i n g  reefer units. one  vessel  days.  average  like  (YS)  ( r e e f e r s ) , and  voyage, with  that  carry  ships  P i e r a p p r o x i m a t e l y e v e r y 10 increased,  two  i n May  (co-owned by  have a c a p a c i t y  equivalents.  day  and  service  Yamashita. S h i n n i h o n  vessels  while  entered  H o t a k a Maru  Lines)  and  only  G o l d e n A r r o w i s co-owned by  and  the  i s owned by  of  number o f  a l l can The  300  loaded  full  ships  calling  Traffic  accommodate  has  at  ply a  a  thirty  Centennial  gradually  containers  units being  are  placed  being on  36 board, at  each  call.  'Space c h a r t e r ' as u s e d by t h e J a p a n 6 members means t h a t e a c h o f t h e p a r t i c i p a t i r i g f S t e a m s h i p L i n e s i s e n t i t l e d t o t h e use o f o n e - s i x t h o f t h e a v a i l a b l e s p a c e on e a c h v e s s e l . But i n p r a c t i c e t h e v e s s e l ' s owners seem t o r a t e s l i g h t l y more t h a n one-sixth. I f a p a r t i c u l a r L i n e i s u n a b l e to f i l l t h e i r a l l o t e d s p a c e , i t w i l l be made a v a i l a b l e t o t h e f i r s t o t h e r L i n e v/hich a s k s f o r t h e use o f t h e empty s p a c e on t h e m u t u a l u n d e r s t a n d i n g t h a t when t h e c u r r e n t b o r r o w e r has empty s p a c e a v a i l a b l e i n t h e f u t u r e , t h e l o a n w i l l be r e p a i d .  Advantages Many advantages have been proposed as reasons for the increased trend to containerization, including greater ease of handling; fewer handling operations with less labor and more mechanization; smaller inventories on hand and in transit; fewer opportunities for pilferage; less damage; and (perhaps) a lower price for transportation.  These factors have been  extensively discussed in the literature, and w i l l not be dealt 37  with in this study. Unitization, which may be either palletization or containerization, decreases the turnaround time of carrier units (ships, railcars, airplanes and motor carrier flatbeds), and should markedly lower the cost of transportation.  The use  of containers out of the Port of Freemantle, Australia has been estimated to provide door-to-door savings of up to 38  $5 million (Australian) on interest charges on goods in transit. Whether savings from the latter are passed on to the consignee is not always clear. The majority of the advantages of containerization seem to be involved with time savings through faster, easier, and more desirable delivery procedures.  Rees, in commenting on the 1 9 6 ?  United Cargo Corporation experiments, noted that "reduction in time has not necessarily resulted in a decrease in total costs. Certainly the development and extension of containerization  "promises to f a c i l i t a t e direct  i n t e r n a t i o n a l trade  movements o f c o n t a i n e r l o a d s 40  receiving points",  in different  by  making p o s s i b l e  between i n l a n d s h i p p i n g nations,  and  on  and  different  continents. In  some i n s t a n c e s ,  have been r e a l i z e d Some s h i p p e r s  as  illustrated  savings  by  the  from c o n t a i n e r i z a t i o n  f o l l o w i n g examples.  o f 2$fo i n p a c k a g i n g c o s t s a n d up 41 50% i n d o o r - t o - d o o r t r a n s i t t i m e . General R e f r a c t o r i e s c l a i m e d t h a t t h e y r e a l i z e d o v e r a l l s a v i n g s on t h e i r b r i c k 42 s h i p m e n t s e v e n when t h e c o n t a i n e r was o n l y h a l f f u l l .  The  cited  however, r e a l  savings  Economist described  chartered  German c o n t a i n e r  fleet,  and  reduce  total  $58  the  by  million  carefully c o s t s by  such  o f an  Irish  s h i p s , u s e d i t s own  controlling 43  40$.  investment  produced savings  operation  the  Similarly  i t was  i n c o n t a i n e r i z a t i o n by t h a t the  total  company w h i c h  road  c o s t , was  haulage  able  to  claimed Matson  Hawaii-U.S.  to  that  a  Lines  Mainland  f r e i g h t b i l l f o r 1967 was '$16 t o $17 m i l l i o n l e s s t h a n i t w o u l d h a v e b e e n w i t h o u t s u c h a s e r v i c e , and t h a t r a t e s were a c t u a l l y 44 lowered. I n O c t o b e r 1970 container  Matson announced t h a t t h e i r  s h i p s , The  Enterprise,  were so  Hawaiian Progress efficient  and  the  two  new  Hawaiian  that  " e v e n M a t s o n o f f i c i a l s were s u r p r i s e d by t h e e c o n o m i e s g a i n e d . . , ( a n d ) a s k e d t h e U.S. ( F e d e r a l ) M a r i t i m e Commission to i g n o r e an e a r l i e r r e q u e s t f o r r a t e i n c r e a s e s , b e c a u s e they are p l a n n i n g r e d u c t i o n s i n s t e a d " . 45 In  March  Mainland a  9/5  1971  this  stand  was  to Hawaiian I s l a n d s  increase  in this  reversed freight  r a t e was  and  a \2h%  r a t e s was  granted  at  increase  requested.  t h a t t i m e and  in  the  Only hearings  continued through  out the s p r i n g months on the  justification  46 of the remainder of the i n c r e a s e .  Problems  For the most p a r t lower f r e i g h t r a t e s have not and  s h i p p e r s f e a r t h a t t h i s has been the r e s u l t of  developed, reduced  c o m p e t i t i o n as more steamship companies j o i n and a c t t o g e t h e r in consortia.  However the q u e s t i o n t h a t should be asked i s  whether the steamship conferences  r e a l l y had r a t e c o m p e t i t i o n  b e f o r e c o n t a i n e r s came i n t o s e r v i c e . c o n t a i n e r s h i p s r e p l a c i n g ten times  The  p r o s p e c t of 9  t h a t number of c o n v e n t i o n a l  v e s s e l s on the U.K.-New Z e a l a n d - A u s t r a l i a Route, or of three c o n t a i n e r s h i p s r e p l a c i n g 18  v e s s e l s i n the J a p a n - A u s t r a l i a  trade r a d i c a l l y changes the problems of  'monopoly* p r i c i n g f o r  47 ocean t r a n s p o r t s e r v i c e s . Presuming t h a t the ocean c a r r i e r s can, and are  realizing  s a v i n g s from c o n t a i n e r i z e d o p e r a t i o n s , s h i p p e r s want to know these s a v i n g s have not been shared  (with the s h i p p e r s ,  u l t i m a t e l y w i t h the consumer) through  lower p r i c e s .  why  and  "One  answer  i s t h a t such s a v i n g s are not r e a l and w i l l not be f o r a l o n g time...(being)  more than counter balanced by the expense of  48  changeover to c o n t a i n e r o p e r a t i o n s . " F i v e years ago the answer g i v e n was t h a t " a l l kinds of s a v i n g s are b e i n g passed onto the s h i p p e r s . . . savings i n time, i n s u r a n c e , p i l f e r a g e , and h a n d l i n g c o s t s . With c o s t s . . . t h e advantages gained to the s h i p p e r and c a r r i e r a l i k e outweigh the disadvantages". 49  Presumably  i f freight  actually  lowered,  risen  as  fast,  case,  then  the  as  savings  Undeniably intermodal scale.  to the  nor  s h i p p e r s , and  But  steamship  lines,  procedures  or at l e a s t  Worldwide  the  strides  in  intermodal altered  on  to  their  r e q u i r e s new  investment and  in distribution  Howell,  passed  a s s o c i a t e d economies  and  by  of  ways  of  the  aircraft techniques  consignee.  ( t h a t ) have b e e n t a k e n  b a s i s " , Robert  claims  the  consignor  the  consumer.  r a i l w a y s , motor c a r r i e r s , a change  not  have b e e n  of containers l i e s with  been  r a t e s have  c o n t a i n e r i z a t i o n are being  appeal  f o r both  'pull'  t h a t these  might otherwise  functionally  new,  "remarkable  r a t e s have n o t  u l t i m a t e l y to the  companies, a l o n g w i t h  a  extent  f a r , as  from  the  t o be  and  on  insurance  characteristics  thinking,  the  and  by  and  In s p i t e water  of  carriers  writing in Distribution  that "shippers w i l l  have t o  'push' t o  get  50 universal  acceptance  o f the  container".  SAVINGS FROM CONTAINERIZATION  It  i s p o s s i b l e t h a t many s h i p p e r s a c c e p t e d c o n t a i n e r i z a t i o n  initially inherent certain had  i n the i n the  e x p e c t a t i o n t h a t the system would lower  economies o f s c a l e  freight  r a t e s ; thereby  g o o d s t r a n s p o r t e d i n c o n t a i n e r s more c o m p e t i t i v e  p r e v i o u s l y been the  conventional break-bulk  case.  Spectacular savings  making than  over  s h i p p i n g methods were p r e d i c t e d i n  I960 i n a p a p e r p r e s e n t e d b y D.C. G e o r g e S h a r p Company b e f o r e  the  MacMillian, President  of  S o c i e t y of Naval A r c h i t e c t s  " u n i t i z e d cargo h a n d l i n g system reduces cargo h a n d l i n g c o s t s 6 5 $ t o 8 0 $ . . . a n d p o r t t i m e by more t h a n 8 0 $ . . . ( W i t h ) f e w e r s h i p s c r e w and o t h e r o p e r a t i n g costs (are r e d u c e d ) . . . u p to 3 0 $ . . . ( E v e n though) the containers must be b o u g h t and p a i d f o r , . . . a n d w h i l e a c o n t a i n e r s h i p may c o s t a b i t more, t h e t o t a l f l e e t c a p i t a l c o s t i s a b o u t t h e same", 51 as  f o r conventional  erization as  a way  of to  unloading play be  export/import reduce  cargo  i n the  shipping  the  rising 52  ships".  in detail  In  a d d i t i o n "contain-  m e r c h a n d i s e has labor  The  d e v e l o p m e n t and  discussed  methods.  costs  important  acceptance  i n Chapter  long of  advocated  loading  role  of  been  that  and  labor  can  containerization  will  V.  INTERMODAL FREIGHT MOVEMENT  Containerization of  transportation.  is really  No  longer  modes c o m p e t i n g a g a i n s t basis;  rather  the  components), system,  to  shipment of  including  order  ( w h i c h may  compete a g a i n s t  the  that  the  system  to  on  companies  but think  intermodal  various an  now  forces  land,  competing t o Z. the  or  total  and  t o move a the  total  air  transport  perhaps the  In  modal  one  sea,  complete  (but  concept  transportation  individual  involve  concerned with  transportation,  of  the  another  some commodity f r o m A really  complete  competition  Both networks are  c o n s i g n e e was  sectors  of  involving different  components).  are  each o t h e r ,  nature  t r a n s p o r t a t i o n network  the  particular  past  cost  same  of  only the  containerization forces a l l i n terms o f  'total  cost'  in  the goods  "maximum savings ( t h e g r e a t e s t r e t u r n on investment) from a p p l i c a t i o n o f the u n i t i z a t i o n p r i n c i p l e w i l l be r e a l i z e d from the combination o f c o s t s and savings 53 accumulated d u r i n g the through-movement o f the goods". The  c o s t f o r some segments o f the t o t a l system may i n c r e a s e ;  f o r example the sea journey may c o s t more because o f i n c r e a s e d v e s s e l o p e r a t i n g c o s t s with the f a s t e r , more c o s t l y  container  s h i p s , but the r e d u c t i o n i n o v e r a l l t r a n s i t time and improved  <  a r r i v a l c o n d i t i o n o f the cargo p r o v i d e s more than o f f s e t t i n g savings. T r a d i t i o n a l l y cargo has a r r i v e d i n break-bulk form, been stowed aboard s h i p by longshore  l a b o r , t r a n s p o r t e d to another  dock, o f f - l o a d e d onto t h a t dock, moved i n t o the storage the longshoremen, and subsequently truck loads.  shed by  consolidated into r a i l c a r or  So l o n g as the same procedure i s f o l l o w e d  with  c o n t a i n e r s , u s i n g the 'box' o n l y f o r the ocean ' l e g ' o f the journey,  added c o s t s a r e b e i n g b u i l t i n t o the system, and few  o f the b e n e f i t s a r e b e i n g  obtained.  The pointed  trend to containers i n world  trade i s s u b s t a n t i a l ^ a s  o u t "by H.A. Mann o f Swan W o o s t e r E n g i n e e r i n g ,  Vancouver.  He s t a t e d t h a t t h e number o f c o n t a i n e r s i n U.S. f o r e i g n t r a d e increased  f r o m 14,000 i n i960 t o 100,000 i n 1968 a n d " i t i s  estimated  t h a t b y 1973 more t h a n  be  available  comparison,  on t h e N o r t h  of  America-European  t h e 0ECD e s t i m a t e d  v/ere a v a i l a b l e the world.  800,000 c o n t a i n e r s l o t s route  alone".  t h a t 1,050,000 c o n t a i n e r  b y t h e e n d o f 1970 on t h e f i v e  will In slots  major t r a d e  routes  55  RAIL  World  Developments  Not  only are the intermodal  van containers  c o s t i n g f r o m $2,000.00 t o $4,500.00 e a c h , special The  c o n t a i n e r truck c h a s s i s and r a i l  latter  than  expensive,.  b u t so a r e t h e flatcars  may c o s t f r o m $17,000 t o $20,000 e a c h  the conventional f l a t c a r ) ,  and bogies. (which  i s more  because o f a d d i t i o n a l  57 technological The total  design  problems.  number o f u n i t s i s e a s i e r t o e s t i m a t e  dollar  investment  by e i t h e r  than  i s the  companies o r n a t i o n s .  The  58 Japanese N a t i o n a l Railway, length  m o v i n g ISO v a n s up t o 40 f e e t i n  under F r e i g h t A l l Kinds  70 r e g u l a r l y  scheduled  (FAK) r a t e s , p l a n s  container trains  t o have  o f 60 f l a t c a r s  each  other  major c i t i e s ,  away. ISO  Plans  i n c l u d i n g Hokkaido,  a r e f o r 300  van c o n t a i n e r s  trains,  18,000 f l a t c a r s ,  t o be i n s e r v i c e b y 1978.  i n v e s t m e n t o f p e r h a p s $1.5 m i l l i o n 100  million  billion  dollar  i n trains  Probably British  investment alone  Freightliner,  coupled  62-foot  own more t h a n will  flatdecks  into  a t 55 mph,  and 5 p o r t s , expanded.  length  19&5.  the service presently  unit trains  and i t  o f permanently  cars, Freightliners  Assuming only  owned c o n t a i n e r s  one t r a i n  and c o n t a i n e r s  could  Ltd.  now  investment  when c o m p l e t e .  by r a i l .  dollars.  t h e German  Estimates  i n t h e Munich-Hamburg L i n e a t  train  expect  Federal  w i t h i n the next  on w h i c h  should  t h e motor c a r r i e r s of less  10 y e a r s .  i s t h a t o f many  and as complete  One  of  problem  short-hauls, advantage.  c a n be made more  intermodalness  billion  tons  have a c o m p e t i t i v e  t h a n 200 m i l e s  place  c $3  t o move 25 m i l l i o n  face  o m i c a l l y by t r u c k s  million  particularly  which a l l European r a i l w a y s  hauls  the investment i n  R a i l r o a d s , have a l s o moved a g g r e s s i v e l y 61  The F r e n c h  cargo by c o n t a i n e r  up t o 40 f e e t i n  per route,  e x c e e d $50  t h e movement o f c o n t a i n e r s  Generally  s e r v i c e i s the  o v e r some 80 r o u t e s ,  Using  container  shipper  French National  possible  train  w h i c h b e g a n s e r v i c e i n November  Other European r a i l r o a d s , and  few y e a r s .  s i x t h o u s a n d 8' x 8' x 20* ISO c o n t a i n e r s , b u t  a l s o handle  length.  the next  60  c o n n e c t s 25 t e r m i n a l s c o n t i n u a l l y being  the present  e a s i l y become h a l f a  t h e most famous c o n t a i n e r  59  a n d 200,000  With an  per train,  could  within  C a r r y i n g 400-ton payloads,  is  c u r r e n t l y 18 h o u r s  econ-  i s accepted,  North American  c o n t a i n e r movements a r e  (1) L o c a l ,  therefore  and  (2) L o n g - h a u l r a i l The  ultimate  from coast the  industrial  be a two-way l a n d b r i d g e  unit  or  movement  o r a m o d i f i e d l a n d b r i d g e by u n i t  heartland.  S a n t a Fe R a i l r o a d  a u t o m a t i c a l l y moved b y t r u c k ,  movement.  scheme w o u l d  to coast  either  John G r y g i e l ,  train  between Japan and Europe,  trains  i n discussing  proposal f o r land bridge  indicated  to  the traffic  t h a t a minimum o f h a l f  a  62 million The  S a n t a Fe p r o p o s a l s  train, and  tons o f cargo would  moving  sixty  called  of these u n i t  traffic  f o r an 8 0 - c a r ,  3»000 t o n s e a c h way  a n i n v e s t m e n t o f 300 export  move i n e a c h d i r e c t i o n  trains  t o 500  every f i v e  would  million  320-container days.  be r e q u i r e d , dollars  annually.  One  hundred  necessitating  for this  import/  alone.  Canadian Experience  While  the major  Canadian r a i l w a y s are j u s t  commencing  c o n t a i n e r movement, C a n a d i a n e x p e r i e n c e i n t h i s endeavor have  i s f a r from l a c k i n g .  been moving  The W h i t e  area  of  P a s s and Yukon R a i l w a y  c o n t a i n e r s f r o m Skagway t o W h i t e h o r s e  over  63 their  110  major  Canadian r a i l r o a d s  400  m i l e narrow  guage r a i l r o a d have  container bogies (costing  their  current f l e e t s  o f 1,200  since  1955.  The  two  r e c e n t l y o r d e r e d an  additional  o v e r $8  supplement  million)  to  container-carrying  flatcars.  Both  t h e CNR a n d t h e CPR h a v e i n t e g r a t e d i n t e r m o d a l  systems o p e r a t i n g  from the t e r m i n a l s  Quebec C i t y r e s p e c t i v e l y f o r t h e Chicago setup  traffic,  o f H a l i f a x - S t . John and  Toronto-Montreal-Detroit-  b u t n e i t h e r r a i l w a y has i n s t i t u t e d  f o r Western The  container  a  similar  Canada.  Canadian N a t i o n a l  R a i l w a y a c t u a l l y moved i n t o  64 containers  i n 1967»  late  a s s o c i a t i o n with previously.  65  The C a n a d i a n P a c i f i c since  1964,  CPR s t a r t e d t h e i r stock  had had s e v e r a l  has had e x p e r i e n c e  until  19&9.  66  flats,  with  ISO  get into  B o t h t h e CNR a n d  c o n t a i n e r movements b y c o n v e r t i n g  into container  years  'boxes'  but i t d i d not r e a l l y  movement o f v a n c o n t a i n e r s  rolling  they  t h e c o n c e p t a n d h a d e v e n moved some  20-foot c o n t a i n e r s the  although  surplus  and by p l a c i n g  containers  6?, directly Pacific  on o r d i n a r y f l a t c a r s . ordered  flatcars flatcar  Late  i n 1970,  the Canadian  a n a d d i t i o n a l two h u n d r e d , 100-ton, 8 5 - f o o t  ($4 m i l l i o n ) t o s u p p l e m e n t t h e i r  68  fleet,  while  Canadian N a t i o n a l  current ordered  154  container  235  85-foot  69 flatcars.  These c a r s w i l l  two  40-footers,  has  experimented with  h a n d l e f o u r 20-foot  containers,  o r a c o m b i n a t i o n o f t h e two l e n g t h s . a center-sagged  container  The CNR  c a r capable  of  70 carrying first  6 c o n t a i n e r s , a n d c o s t i n g p e r h a p s $25,000.  use o f t h i s  units high  c a r , which c a r r i e s  on t h e l o w - s l u n g  center  containers  The  stacked  two  s e c t i o n between t h e t r u c k s ,  71 was i n May 1971- o u t o f H a l i f a x .  A partial  listing  of the  e q u i p m e n t u s e d b y t h e C a n a d i a n R a i l w a y s f o r t h e movement o f containerized  cargo  includes*  1.115  express  c o n t a i n e r s (8' x 8' x 20'); 923 c o n t a i n e r  flatcars.  72 CPR  - 273 u n i t s  including  t w e n t y 2 0 - f o o t CP R a i l  Containers.  VESSEL AND PORT E F F I C I E N C Y  As merely  f a r as the s h i p i s concerned,  containerization i s  the transformation o f break-bulk  bulk parcels.  I n world  cargo  into  standardized  t r a d e , e s t i m a t e s a r e t h a t 90% t o 95?$ o f  73 general  cargo  i s containerizable,  although  this  may n o t n e c e s s a r i l y be e c o n o m i c a l l y c o n t a i n e r i z a b l e . current  estimates suggest  increase  ( f r o m 200 m i l l i o n  per year u n t i l total  that world tons  general cargo  i n 1966) a t a r a t e  1975* a n d t h e n b y 5$ -  until  percentage Some  tonnage o f 5z?°  will -  I98O, w i t h  t o n n a g e o f b e t w e e n 375 m i l l i o n a n d 51° m i l l i o n  tons by  74 that  year. Dr.  Symposium  J . Tinbergen, on M i d d l e t e r m  speaking before the International and Longterm F o r e c a s t i n g f o r S h i p -  b u i l d i n g a n d S h i p p i n g i n J u n e 1970 a t The Hague o b s e r v e d t h a t " b e t w e e n 1950 a n d 1968 t h e e f f i c i e n c y o f t h e w o r l d merchant marine doubled. Replacement o f t r a d i t i o n a l s h i p s by c o n t a i n e r s almost i m p l i e d d o u b l i n g e f f i c i e n c y f o r each u n i t r e p l a c e d . " 75 Research H.J.  data presented  later  i n t h e same c o n f e r e n c e b y  M o l e n a a r was t h a t one c o n t a i n e r s h i p c o u l d s u b s t i t u t e f o r  3 to 6 conventional vessels, but p r i m a r i l y  p a r t l y because o f i n c r e a s e d s i z e ,  due t o t h e g r e a t e r number o f r o u n d  trip  voyages  from  c o n t a i n e r i z a t i o n , but suggested  that  had  had knowledge o f t h e , a t p r e s e n t ,  for  both  and  more m e a n i n g f u l r a n g e  conventional  point  by s u g g e s t i n g  would  double  do  vessels  " i f average v e s s e l  increase.  size  load  ships,  factors  a narrower  He summed up t h e ( i n deadweight  one c o n t a i n e r  2.7 t o 4.8 c o n v e n t i o n a l 77  t h e work o f  productivity  be o b t a i n e d .  vessels,  researchers  undisclosed  and c o n t a i n e r  could  f o r container  i f the  vessels",  vessel a  These f i n d i n g s s u p p o r t  tons)  could  270$ t o 480$  McKinsey's  78 I967 p r o j e c t i o n s ,  ( s e e F i g . 1.1^p.  borne out by p r a c t i c a l Port  experience.  and Route R a t i o n a l i z a t i o n  One o f t h e r e s u l t s o f t h i s the  must  the past,  area.  i t was f o u n d  terminals,  79  Britain,  possible  port  80  States,  and d i s t i n c t  85$  geographical  intermodal  c o n t a i n e r i z - '..  port  with  h i n t e r l a n d s , as observed 81 a n d Canada, become much  Tanner and W i l l i a m s  to concentrate  This  drew i t s  must o p e r a t e i n c o n j u n c t i o n  and t h e d i s t i n c t  port's  i n t h e number o f p o r t s .  the advent o f f u l l  the United  important.  small  a given  than d i s t a n c e .  t h a t any p a r t i c u l a r p o r t  m a i n l y f r o m a. f a i r l y  , the containerized  inland  less  r e s u l t i n a decrease  However w i t h  ation  increases  a s t i m e becomes more i m p o r t a n t  eventually  traffic  in  e f f i c i e n c y a l t e r a t i o n i s that  move t o c o n t a i n e r i z a t i o n e f f e c t i v e l y  hinterland,  In  3) a n d t h e y a r e b e i n g  noted  that  i t w o u l d be  of B r i t i s h - A u s t r a l i a n general  were so i n c l i n e d ,  but they question  w h e t h e r s u c h a move w o u l d  82 be  wise It  i n the long run. also  seems e n t i r e l y  Government c o u l d Halifax,  M.S.;  it  from  or St.  are  "no l o n g e r  lines...in  the Canadian  Coast p o r t ,  either  J o h n , N.B.; a n d t h e n e f f e c t i v e l y i n c l u d i n g Montreal,  even s t a r t i n g  i s , container  that  have c h o s e n one E a s t  prevented a l l others, Toronto  possible  Quebec C i t y , a n d  a deep-sea c o n t a i n e r  terminal.  s e r v i c e s t o and from the Great Lakes  p r o f i t a b l e f o r most N o r t h A t l a n t i c  competition  with  container  have  As  ports  freight  s h i p s which u n l o a d  their  83 c a r g o e s a t New Y o r k o r It one in  i s n o t y e t c l e a r whether a government d e c r e e  deep-sea the long  rapid  Montreal".  container  port  would have been t h e b e s t  term, b u t i t i s a d i s t i n c t  the h i n t e r l a n d s  f o r Canada  possibility.  20 a n d 30 h o u r t r a i n s t o M o n t r e a l a n d T o r o n t o  Halifax,  of only  o f a l l o f Canada's E a s t e r n  With the from cities  have  become merged. Apparently did  exist  the Japan 6 decided  but that  could  be more e c o n o m i c a l l y  (FMC)  sufficient  between Vancouver and S e a t t l e t o j u s t i f y  call,  Seattle,  that  t h o s e goods w h i c h m i g h t move t h r o u g h moved o v e r l a n d  i n late  at Seattle also  call  1970  (which r e q u i r e d  at Portland),  two p o r t s o f Portland,  to e i t h e r Oakland or  However f o l l o w i n g t h e U.S. F e d e r a l  ruling  differences  Maritime  Commission  that vessels  the Japanese v e s s e l s  calling began  voyage, f o l l o w e d by a d i v e r s i o n t o P o r t l a n d e v e r y o t h e r t r i p . c a l l i n g a t S e a t t l e a n d V a n c o u v e r , i n t h a t o r d e r , on e v e r y  marginal  profitability.  ECONOMICS OF CONTAINER!ZATION FOR  COSTS I N OCEAN  Costs other  TRANSPORTATION  i n ocean t r a n s p o r t a t i o n a r e s i m i l a r to c o s t s i n  t r a n s p o r t a t i o n modes, w i t h  between  long  and s h o r t  with,  because  the usual  run costs.  and W a l t e r s n o t e , i s t h a t deal  VESSELS  there  economic  The e x c e p t i o n ,  "ocean t r a n s p o r t a t i o n a r e no  'track  distinction  as Bennathan  i s easier to  c o s t s ' as i n the case o f  86 r o a d and r a i l " . tonnage  i s relatively  available only  i.e.  tonnage  inelastic  i s i n use.  designed  a t the point  More t o n n a g e  f o r some o t h e r  ships  carrying containers  container  capacity  overcapacity Pacific severe  of vessel  a t which a l l  c a n be  function.  The l a t t e r  has been  established,  on t h e d e c k s o f f r e i g h t e r s . o f pure c o n t a i n e r  seemed t o h a v e  outstripped  v e s s e l s and demand, a n d a n  s i t u a t i o n was e m e r g i n g on t h e m a i n A t l a n t i c a n d  routes.  No m a j o r r a t e war h a d o f f i c i a l l y  t e s t o f t h e c o n f e r e n c e method o f s h i p p i n g  inevitable,  obtained  o r by t h e use o f  method b y which, c o n t a i n e r i z a t i o n became  D u r i n g 19?0 t h e s u p p l y  a  run, the supply  by t h e r e a c t i v a t i o n o f l a i d - u p  vessels the  I n the short  8?  as companies  evaluated  their vessel  appeared, but appeared inventories  and r o u t e s t r e n g t h s and weaknesses. As e a r l y a s J u l y 1970, r u m o r s o f a s e v e r e r a t e war on t h e  Atlantic  began a p p e a r i n g  malpractices were n o t  within  being  the  i n the  press.  Shipping  Charges  Conferences,  controlled, reportedly  that  s u c h as  rebating,  l e d the A t l a n t i c  89 Container  Line  Also,  low  the  c a r g o wss route  to withdraw from a westbound rate  q u o t e d on  considered  instability.  t o be  conference.  s h i p m e n t s o f U.S.  military  contribuiting directly  to  trade  90  C a r g o Stov-T- 9~e  The  dimensions of  capacity,  distance,  ship  and  c a r g o stowage a r e  time.  weight,  cubic  A p a r t i c u l a r combination  of  " t h e s e f a c t o r s o c c u r s f o r e a c h v o y a g e f o r any g i v e n vessel. These f a c t o r s a r e e x t r e m e l y i m p o r t a n t i n s h i p p i n g e c o n o m i c s . . . A q u i c k l o o k a t the s t a t i s t i c s o f t h e w o r l d ' s t o n n a g e and t h e w o r l d ' s t r a d e m i g h t g i v e t h e i m p r e s s i o n t h a t s h i p p i n g as a whole u s e s l e s s t h a n 30 p e r c e n t o f i t s c a p a c i t y on a v e r a g e . . . S p e c i a l p r o b l e m s o f one-way t r a d e s and the "peak" p r o b l e m . . . e x p l a i n why s h i p p i n g s p a c e must a l w a y s be only p a r t l y used". In  the  may  bulk  have to  because This  the  trades, shut  out  lowered the  seem t o be  a t l e a s t not  commodities because of  92  container.  t o some e x t e n t  In  i n dry  cargo, a  c a r g o when s p a c e i s s t i l l  w e i g h t has  does n o t  cargoes,  and  any  the  ship  available,  v e s s e l t o i t s 'marks'.  problem with  f o r much o f  91  the  relatively  containerized  currently low  containerized  weights  per  c a l c u l a t i n g stowage f a c t o r s  " b u l k i s e x p r e s s e d i n measurement t o n s o f 40 c u b i c f e e t , and w e i g h t g e n e r a l l y i n l o n g t o n s . . . I f t h e stowage f a c t o r i s s a i d t o e q u a l one, i t means t h a t a c u b i c t o n o f t h a t commodity w e i g h s one t o n . . . a c a r g o w i t h a h i g h stowage f a c t o r w i l l r e q u i r e more t h a n 40 c u b i c f e e t o f s p a c e , .'.a low stowage w i l l r e q u i r e l e s s t h a n 40 c u b i c f e e t t o stow a weight ton". ' 93  However, s i n c e factors on  the  w e i g h t and  i n shipping, l a r g e r of  basis,  Ship  both  a basis  Tonnage  Ship  (1)  freight rates  either a  which  the  railways  limiting  usually or a  established  ton-measurement  r e f e r t o as  'revenue  tons'.  i s u s u a l l y quoted  i n any  or  a l l of  the  measures:  of  100  Net  cubic  tonnage  foot  registered  Deadweight cargo,  (grt);  'tons' of  tonnage  non-productive parts (3)  are  ton-weight,  Gross r e g i s t e r e d  (2)  volume a r e  Measures  capacity  following  cubic  tonnage  enclosed  (nrt);  of  the  the  number  space.  being grt  less  certain  vessel.  (dwt); being  b u n k e r s , and  equalling  provisions,  the  total  weight  including  water,  of  95 which w i l l While measures,  there Culfey  l o w e r the  i s no  vessel  consistant  suggests a  to her  'marks'.  r e l a t i o n s h i p between  'rule of  thumb' i s  these  that  96 grt  = 2/3  of  dwt,  and  registered  tonnage  cargo  a  that  Certain of  ship  nrt  = 2/5  i s only may  the  dwt.  a rough guide  Thus t h e  to  the  c a r r y when s p a c e i s t h e  a d j u s t m e n t s must be  ships  of  i s measured i n a  made, s i n c e  "the  ton-measurement of  volume  limiting cubic 100  net of factor  capacity  cubic  feet,  97 not  40  cubic  A better  f e e t as  are  measure o f  cargo  carrying  stowage f o r b u l k  cargo; bale  bales;  stowage f a c t o r  or  broken  tons". capacity  i s the  stowage, f o r cargo ( a 10$  reduction  grain  in  uniform  i n the  bale  stowage f a c t o r ) general  to account  break-hulk  equipment would it  than b a l e  cargoes.  Insulation or r e f r i g e r a t i o n  f u r t h e r reduce usable  w o u l d seem t h a t  less  f o r t h e many s i z e s a n d s h a p e s o f  container  ship  capacity.  capacity  stowage below d e c k s , w i t h  s a t i n g f a c t o r f o r above-deck c o n t a i n e r Associated ships  Container  Line's  h a v i n g a dead w e i g h t  equivalent  i n cargo  capacity  w o u l d be somewhat  a more t h a n compen-  space.  (ACL) " f i r s t capacity  On b a l a n c e ,  As a r e s u l t , the  generation  o f 14,000  container  tons...  s t y l e 35»000 dwt  to an o l d e r  98 break-bulk v e s s e l " , space  efficiency  were p r o b a b l y f a i r l y  of container  However t h e h i g h cargo negates container  vessel  space  has every  f a c t o r s o f much  cell  filled,  one  move  to world-wide  t o o v e r $15  a $160  e a c h 980  broken indicate  feet  million long  VESSELS  c o n t a i n e r i z a t i o n i s an expensive  D e p e n d i n g on s i z e ,  a new d e e p - s e a a l l - c o n t a i n e r c e l l u l a r  placed  the high  Trends  f o r a l l concerned.  $7 m i l l i o n  E v e n when t h e  utilization.  a n d Future,  The  containerized  i n s i d e the i n d i v i d u a l containers  REPRESENTATIVE INVESTMENT IN CONTAINER  Current  of the  ships.  some o f t h e s p a c e a d v a n t a g e s .  stowage f a c t o r s poor  cubic  typical  million. order  Recently  f o rfive  and c a p a b l e  ship  new,  the i n i t i a l may r a n g e  cost of  from  SeaLand S e r v i c e I n c . , 33 k n o t  o f c a r r y i n g 1,050  vessels, of the  ships  c u r r e n t l y i n u s e o n many o f t h e s h o r t e r  routes  carry a price  ship  conversion 100 $9 m i l l i o n . In larger  bulk bulk  tag  o f $8 t o $ 1 0 m i l l i o n  can involve  commodities  an i n v e s t m e n t  carrier  Even a  o f between $2 a n d  forced  to lower costs.  upon t a n k e r a n d 'obo*  owners b y t h e c l o s i n g o f t h e S u e z C a n a l . bulk  each.  t h e development o f i n c r e a s i n g l y  c a r r i e r s h a s been t h e r o a d  move was p r a c t i c a l l y  deep-sea  i n 1966,  was l a u n c h e d  vessel  The f i r s t  but by  100,000 dwt  19&9» 150,000 a n d  200,000 dwt obo c a r r i e r s were i n o p e r a t i o n , 101  while  300,000 dwt was on t h e p l a n n i n g  New t a n k e r s  approaching  boards.  500,000 t o n s a r e now b e i n g  This  planned.  one o f  The t r e n d t o  l a r g e r a n d f a s t e r c o n t a i n e r s h i p s c a r r y i n g 1,200 t o 1,5°0 c o n t a i n e r s , i s a l s o e v i d e n t . w i t h D a r t L i n e s o b t a i n i n g 23 k n o t , 102 23,000 dwt v e s s e l s , a n d S e a L a n d I n c . t u r n i n g t o 33 k n o t  103  vessels. Essentially of o i l and bulk  containerized tankers,  shape a n d o f u n i f o r m A.  Couper,  Institute small  i s a s homogeneous a s t h a t  t h e 'boxes* a r e a l l t h e same  s i z e f o r a given  vessel.  Professor  l e c t u r e a t t h e U n i v e r s i t y o f Wales  and Technology,  suggested  that  even  for  3»000 - 5»000 t o n q u a n t i t i e s , i t may be more e c o n o m i c a l  to b u l k a n d s h i p in  because  i n an i n a u g u r a l of Science  cargo  cargo  liners.  "transport  by s p e c i a l i z e d c a r r i e r ,  than t o use p a r c e l s  A s a r e s u l t more c o m p a n i e s w i l l  i n t e n s i v e p o l i c y (by)  w i d e l y between p l a n t s  adopt a  moving s e m i - p r o c e s s e d 104 i n different countries". As  materials  c o n t a i n e r i z a t i o n becomes f u l l y s a f e t y of "factors may  transportation will like  prove  labor  Professor container  ship  to  one  travel  S.G.  broaden  the  speed  the  market  availability  choosing  Sturmey p o i n t s  i s one way  so  c o s t s and  d e c i s i v e " i n the  accepted,  specialized  in ballast,  o f raw  of s i t e s out  because  that  materials  f o r new  t h a t the  carrier  and  plants.  cellular  which does n o t  i t has  a  have  payload  106 available ships are  at  dominate both  filling  With  e a c h end  the  of  on  return  utilization  and  C u r r e n t l y U.S. Pacific  trade  their available container  introduction of their  utilization the  i t s route.  the A t l a n t i c  o v e r 80%  Canadian P a c i f i c  on  of  three  new  Flag  routes  and  107  slots.  container  vessels,  S t e a m s h i p Company e x p e c t s t o o b t a i n '  the  90%  the  E u r o p e t o Canada r u n w i t h 84?& u t i l i z a t i o n 108 trip. The J a p a n 6 were o b t a i n i n g o v e r 70%  of t h e i r  container  slots  after  less  than a year  of  109 operation The  to  the  Pacific  North A t l a n t i c  North-West. trade  since  1966  has  progressed  from  " m o d i f i e d T-2 t a n k e r s and C-4 c a r g o ships...through... c o m b i n a t i o n c a r r i e r s to the f u l l y c e l l u l a r a l l c o n t a i n e r  110  ship".  Ships  or planned  can  40-foot cargo  van  which are  coming i n t o o p e r a t i o n ,  and/or w i l l  containers,  s h a p e s and  cellular  now  wheeled  ships  Matson, i n the  t o h a n d l e any  o f the  construction, 20,  35»  or  'boxes', o r a wide v a r i e t y o f  111  sizes.  container able  a c c o m o d a t e any  under  i n 1970,  launched  two  Hawaiian-San F r a n c i s c o  length  container  by  trade  adjustment  112 the  guide  have l o s t  rails.  While  the  f a v o r with  many o f  semi-container  the  ship  major c o n t a i n e r  seems t o  lines,  of  ships  each h a n d l i n g  conventional the  cargo.  combination  loading  1,100 c o n t a i n e r s Most l i n e s  desiring versatility  ro/ro-lo/lo vessels  and discharge  a n d 4,000 t o n s o f  permitting  of containers  prefer  simultaneous  from v e r t i c a l  c e l l s , and  113 'rolling'  cargo  short-sea  haul  tended  from s t e r n o r s i d e routes  o f Europe,  ports.  o r t h e U.S. West  t o be c o m p l e t e l y r o / r o , p e r m i t t i n g  unloading  Ships plying the  fast  Indies,have  l o a d i n g and  o f wheeled v e h i c l e s , and t h e r e b y e f f e c t i n g a f a s t  114  port  turnaround  World Container  of ships,  containers,  and trucks.  Fleet  I n a d d i t i o n t o a w o r l d o p e r a t i o n a l f l e e t o f a b o u t 300 p a r t i a l l y o r f u l l y c o n t a i n e r i z e d s h i p s c a r r y i n g 104,000  115 containers, vessels capacity  b y O c t o b e r 1970 a n a d d i t i o n a l 145 new  were u n d e r c o n s t r u c t i o n  o r planned, b r i n g i n g  116  container carrying  t o o v e r 175*000 c o n t a i n e r s .  1971 t h e number  of container  ships  By t h e end o f J a n u a r y 117 on o r d e r h a d r i s e n t o 221,  and  a m o u n t e d t o 1/3 o f t h e t o t a l g e n e r a l c a r g o t o n n a g e on 118 order, w i t h a n a v e r a g e s i z e o f 19,235 dwt ( s e e T a b l e 2.1).  Fifty The  s i x o f these vessels  most s i g n i f i c a n t  which p l a c e d quarter  a l t e r a t i o n was i n t h e p o s i t i o n o f t h e USSR,  17 o f t h e i r  o f 1970.  h a d a t o n n a g e i n e x c e s s o f 25,000 dwt.  18 c o n t a i n e r  Nine v e s s e l s  ship  orders  i n the l a s t  were a l l - c o n t a i n e r , t h e o t h e r s  119 were  part-containers. Present forecasts  a r e f o r more  t h a n 700. ( p a r t o r f u l l )  CONTAINER SHIPS ON ORDER  January 31, 1971.  Flae  #of Vessels  U.K. U.S.  41 38  1,038,210 733,^04  25,322 20,352  West Germany France  37 15  578,5^5 245,400  15,636 16,360  USSR Japan  18 7  220,000 212,800  12,222 30,400  Holland Liberia  8 8  208,000 158,980  26,000 19.872  Greece Sweden  8 9  130,420 114,970  16,302 12,77^  5 27  105,000 464,800  21,100 17,215  221  4', 251,029  19,235  Denmark Others* Total  Tons dw  Ave.  tons  * Only Flags which had over 100,000 dwt on order are shown separately.  Source:  , "Order Books Grow Even Faster; Massive Increase in Bulk Carrier Contracts", Fairplay International Shipping Journal. February 25, 1971. pp. 27-28.  370,000 c o n t a i n e r s . has  been t h a t  the  The  net  effect  warnings of gross  of t h i s  rapid  over-capacity  growth  i n the  world  121 containerized t o be  true.  trade, The  made as  inevitable  19&7,  e a r l y as r e s u l t has  are  now  proving  been c o n s o l i d a t i o n  or  122 withdrawal and it  of  even the must be  some c o m p a n i e s , implementation  remembered  automatically  result  Ideal Container  The land, is  sea,  ideal  size  handling clear.  size will  One  to  the  ideal  not  yet  to o b t a i n  vessels.  size The  speed, with  the  of  the  resulting  a d e c r e a s e i n the  ship  to  container  land  125  However not  1972.  for a container  whether  ship operation container  movements i s  third  that  increased  load/unload  equivalents.  The  Canadian P a c i f i c  16,000 dwt  there this port  not  issue of F a i r p l a y suggests  current  is likely  on  c o s t s , by  facilities will  the  'ship'  Presumably  present  h o u r s means t h a t vessels  123  does  maximum economy, b u t  author states  with  12  i n 1970  for  conferences,  structure.  been answered.  i n a recent  p r o b l e m s and  the 124  size  d e t e r m i n e d by  article  rate  over-capacity  f a c i l i t i e s , o r by  engineering ships  of  be  o f a new  o f new  Size  o r a i r has  a finite  formation  i n over-capacity  Ship  question  that  the  generation  the fuel  G e o m e t r i c Ram  5»000  Bow  featured  size  of  40-foot  126  ships,  along  3»000-container  about  container  increased  requirements,  time f o r a  container  container  problem of  maximum f u t u r e  t o be  limit  that  3  new  been  the  i n the has  ways o f a t t a i n i n g h i g h e r will  speeds  i s proceeding.  Whether  be  a c c o m p l i s h e d by n u c l e a r p o w e r e d v e s s e l s , 128 propulsion, i s y e t t o be d e c i d e d . The K a r l s t a d s  W e r k s t a d Co.  this  12?  or  jet  Mekaniska  is  " f i r m l y c o n v i n c e d t h a t the n o z z e l w i l l r e p l a c e the ordinary propeller...(because) j e t p r o p u l s i o n can compete w i t h p r o p e l l e r p r o p u l s i o n a t s p e e d s i n e x c e s s o f 35 k n o t s and v e r y h i g h r a t e s o f e n g i n e power, as i n the case of l a r g e c o n t a i n e r s h i p s " . 129 However t h e a very the  trends  important  i n movement o f  factor in limiting  One  Systems o f  of  the  new  containerization S H i p ) and  the  size  also  and  become  numbers  in  has  been the  President  river  i s that barges  i n a c c e s s i b l e to  ocean p o r t ,  or of  the the  ship-  from  the  trend  to  c o n c e p t o f LASH ( L i g h t e r A b o a r d  'Seabee' v e s s e l s w h i c h a r e  waterway p o r t s  Fiore,  Future  systems d e v e l o p i n g  T h e i r major advantage  U.S.  vessel  a i r may  future.  Container  the  c a r g o by  now  coming i n t o  can  be  ocean going  anchored  Ohio R i v e r  loaded vessels  i n the  Co.,  operation.  at  inland  and  towed  harbour.  Louis  which i s managing  t r a n s p o r t a t i o n f o r LASH, s t a t e s  to  the  that  " t h e new s y s t e m w i l l r e s u l t i n g r e a t e r s p e e d and e f f i c i e n c y we w i l l be a b l e t o e l i m i n a t e c o s t l y p o r t t i m e , w h i c h t o d a y s e e s s h i p s s p e n d i n g as much as 25% t o 35% o f t h e i r t i m e i n a port waiting f o r unloading or docking f a c i l i t i e s . We w i l l be a b l e t o e l i m i n a t e t h e n e e d f o r e x p o r t e r s t o make l a r g e , c a p i t a l e x p e n d i t u r e s f o r w a r e h o u s e s and d o c k f a c i l i t i e s at ports of entry. W i t h LASH t h e r e i s no n e e d f o r t h e s e h o l d i n g facilities. S a v i n g s w i l l a l s o come f r o m t h e f e w e r  The  Acadia  capacity,  a LASH t y p e v e s s e l o f 43,000 dwt  Forest,  c a r r i e s 73 l i g h t e r s ,  lifted  on a n d o f f t h e b o a t b y  131 a  510  ton gantry  contains  crane.  20,000 c u b i c f e e t o f b a l e c a p a c i t y , e q u i v a l e n t t o  20 c o n t a i n e r s . Steamship  This  Company,  f o r a load/unload 233.  E a c h one i s 6 l ' x 31' x 13', a n d  v e s s e l , owned by t h e C e n t r a l  t r a v e l s a t 18 k n o t s , cycle of a l i g h t e r .  Of n o t e ,  i s that  the Port  b u i l d i n g a $21  million  LASH t e r m i n a l ,  Gulf  and r e q u i r e s  15  Total lighter  o f San F r a n c i s c o  minutes  supply i s  i s currently  the world's f i r s t ,  to  132 open i n l a t e Also  1971.  a t the c u r r e n t  under c o n s t r u c t i o n  time,  the f i r s t  o f three  'Seabees' i s  i n Q u i n c y , Mass. f o r L y k e s B r o s .  Steamship  Co.  o f New O r l e a n s . "The l a r g e s t c a r g o t r a n s p o r t s h i p i n t h e w o r l d , t h e v e s s e l w i l l be 875 f e e t l o n g a n d 106 f e e t w i d e . It will c a r r y 38 f u l l y - l o a d e d b a r g e s c o n t a i n i n g a t o t a l o f 24,500 l o n g t o n s o f c a r g o . " 133 These t h r e e r e v o l u t i o n a r y barge and i n t e r m o d a l carriers "have a t o t a l c a p a c i t y o f 4800 c o n t a i n e r s o r t h e e q u i v a l e n t o f 4^ m i l l i o n c u b i c f e e t o f c a r g o s p a c e . And when c a r g o s t o w a g e p e r m i t s , t h e s h i p s c a n c a r r y a s much a s 15,000 t o n s o f l i q u i d c a r g o i n t h e i r deep t a n k s . . . I n d i v i d u a l c o s t o f each o f t h e t h r e e Seabee c l a s s g i a n t s b u i l d i n g a t G e n e r a l D y n a m i c s i s $37,000,000 w h i c h i n c l u d e s a c o s t o f $5,000,000 f o r b a r g e s t o s e r v i c e each s h i p " . 134  W i t h a s t e a m power p l a n t  o f 36,000 shp t h e ' S e a b e e s '  will  135 attain  a speed  The  o f 20  knots.  LASH and S e a b e e  apparently  concept  an e c o n o m i c a l l y  i s an e x p e n s i v e , b u t  v i a b l e a l t e r n a t i v e to the a l l -  container vessel. u n i t i z e d general and  Whether t h i s i s the f u t u r e trend o f cargo movement i s unknown, but some  a few steamship companies appear convinced  authors,  that t h i s i s  the method by which cargo w i l l be moved by the mid 1970's.  CONTAINERSHIP OPERATING COSTS  General  Factors  The  costs of operating a v e s s e l f a l l  c h i e f l y into either  t e r m i n a l c o s t s o r t r a n s i t c o s t s ; the former being i n c u r r e d a t both ends o f the voyage r e g a r d l e s s o f i t s l e n g t h , and the l a t t e r b e i n g d i r e c t l y r e l a t e d to the d i s t a n c e between p o r t s of call.  Containerships  are operated  on r e g u l a r l y  scheduled  r o u t e s , with a l i m i t e d number o f p o r t c a l l s a t each end o f the ocean voyage.  Because the d i v i s i o n o f ocean voyage and p o r t  c o s t s i s , to a l a r g e degree, simply a matter o f an a c c o u n t i n g a l l o c a t i o n , the r a t e s charged a r e p r i m a r i l y a matter o f 'what the t r a f f i c w i l l bear'.  F a c t o r s such as p o r t  congestion,  f a c i l i t i e s a v a i l a b l e , o r l a b o r p r o d u c t i v i t y may be c o n s i d e r e d in  ' c o s t i n g the s e r v i c e ' , but b a s i c a l l y r a t e s are value o f  s e r v i c e , not cost, oriented. In theory,  as the number o f c o n t a i n e r spaces a v a i l a b l e on  a p a r t i c u l a r route  i s increased, competition  p r i c e s b e i n g charged to decrease. by a p r o c e s s  should  T h i s should  f o r c e the  then be f o l l o w e d  o f c o n s o l i d a t i o n and r a t i o n a l i z a t i o n o f the  a v a i l a b l e space.  In p r a c t i c e , the v e r y high c o s t s o f e n t r y  into  a containerized  (into  r o u t e ' s t r a d e has  consortia) f i r s t ,  have d e v e l o p e d , although The  either  'grumblings' single  and  as y e t no  inside  the  large-scale  o r o u t s i d e the  mergers  rate  wars  conferences,  abound.  most i m p o r t a n t  operating a break-bulk  produced  factor  cargo-liner  i n the  i s the  'cost'  cost  of  of ship  board  136 labor,  f o l l o w e d by d e p r e c i a t i o n ,  as  illustrated  summary o f c o s t s f o r o p e r a t i n g b r e a k - b u l k in  Table  cargo  by  the  s h i p s shown  2.2.  TABLE  OPERATING COSTS OF  2.2  BREAK-BULK CARGO SHIPS  Depreciation Crew C o s t s R e p a i r s a n d Maintenance.' Insurance Management Fuel Port Costs Other V e s s e l Costs  17$ 25$ 14$ 8$ 7$ 7$ 7$ 5^  Total  100$  Source:  C. O ' L o u g h l i n , The E c o n o m i c s o f Sea T r a n s p o r t . Pergamon P r e s s . T o r o n t o . 1967. p~! 116.  structure  of  costs  O'Loughlin noted  f o r ocean g o i n g b r e a k - b u l k  that  i t  cargo  vessels,  was  " d i f f i c u l t to d i s t i n g u i s h between r o u t i n e m a i n t a i n e n c e and e x c e p t i o n a l m a i n t a i n e n c e and r e p a i r . . . ( b u t ) age (v/as) t h e most i m p o r t a n t c a u s e o f v a r i a t i o n . . . w i t h n o n - r o u t i n e maintainence costs i n c r e a s i n g sharply f o r v e s s e l s over seven y e a r s o l d " . 137 These  costs  amounted t o a b o u t  14$  of  total  costs.  While  the  " d e f i n i t i o n o f c o s t s r e l a t e ( d ) o n l y to o u t - o f - p o c k e t e x p e n s e s p l u s d e p r e c i a t i o n , t h e owner must a l s o c o n s i d e r ( f o r o l d e r v e s s e l s ) t h e 'per d i e m ' c o s t s o f e x c e s s i v e t i m e s p e n t u n d e r r e p a i r and t h e l o s s o f n e t r e v e n u e s f r o m b u s i n e s s s a c r i f i c e d t h r o u g h b r e a k d o w n s and d e l a y " . 1 3 8 Another cost insurance, observed that  usually  t o be  this  r e l a t e d to v e s s e l a g e , i s  as  5$  - 10$  high  division  can  as  of  total 139  18$.  vary  the  costs,  but  share  i n the  total"  on  of occasion  O'Loughlin hastens  widely,  and  i t " i s the  making f o r v a r i a t i o n s i n these p r o p o r t i o n s , exact  cost  that are  of  the  to  add  factors  rather  than  their 140  most i n t e r e s t .  141 The  Arthur  D.  Little  O'Loughlin's valid The  D.  the  d e p e n d on  both  which  Little  excluding  d e p e n d on  Vessel  observation  when a n a l y s i z i n g t h e  Arthur  costs,  Study  w o u l d a p p e a r t o be  operating  Study concluded  costs that  of  particularly  container  "annual  ships.  operating  fuel,...for  a l l p r a c t i c a l p u r p o s e s , do n o t 142 voyage l e n g t h " , while t o t a l "ship costs 143 the  s i z e and  s i z e i s determined i s a function  of  the  the  by  the  speed o f  the  volume o f  traffic  flow,  vessel".  cargo  and  carried,  vessel  speed  is  a  f u n c t i o n o f the  each p o r t ,  the  turnaround  time  The  number o f p o r t s  length  o f the  c h o s e n by  Little  of  round  the  call,  trip  the  time  spent  v o y a g e , and  the  in  voyage  operator.  S t u d y assumed t h a t v e s s e l t u r n a r o u n d  times  145 must be  in multiples  V/hile t h i s lines  criterion  operating  a d d e d and  probably operate  Because of  the  ? days f o r m a r k e t i n g  has  across  apparently  an  b e e n c h o s e n by  the A t l a n t i c ,  or  legal  libility  ; strict  purposes.  many o f t h e  s u c c e s s f u l l y on  stoppages); adherance  t i m e seems i m p o s s i b l e .  the  a published  weather,  and  10  schedule  only  day  schedule.  fog);  mechanical over long  With r o u n d - t h e - c l o c k ,  an  Japanese  (storms,  human and  t o any  steamship  i t a p p e a r s t o be  unnecessary r e s t r i c t i o n ;  v a g a r i t i e s o f the  (wildcat  of  of  labor,  falperiods  seven-days-  a-week p o r t o p e r a t i o n , f o u r - a n d - a - h a l f day s t e a m i n g s c h e d u l e s , as p r o p o s e d by S e a L a n d f o r t h e A t l a n t i c t r a d e , seem q u i t e 146 • feasible. The  Arthur  container  investment  Little  Study u t i l i z e d  s h i p m o d e l , d e v e l o p e d by  Architecture upon-Tyne.  D.  and  Shipbuilding at  22  knots,  annual operating  Because of the  cost;  U n i v e r s i t y of £4.9  Naval  Newcastle-  million  i n a 697-foot, 29*000 g r t c o n t a i n e r v e s s e l ,  c a r r y i n g 1 , 3 0 0 t w e n t y f o o t ISO  this  the  Department o f  T h e i r f i n d i n g s were t h a t f o r a  of  container  the  a s p e c i a l mathematical  ship  very  container  c o s t s w o u l d be  high  capital  c o n s t r u c t i o n , the  d e b t becomes o v e r w h e l m i n g l y t h e a p p r o a c h i n g 10  times the  wage  as  costs  annual  equivalents  at  shown i n T a b l e involved  costs  2.3.  in  of s e r v i c i n g  largest single bill.  capable  operating  ANNUAL OPERATING  COSTS  FOR A 29,000 g r t CONTAINER.SHIP TRAVELLING AT 22 KNOTS  Annual Wages  C a p i t a l Charge  ;£ 643,000 68,000  Subsistence Hull  6,000 13,000 4,000 10,000  Maintenance  Stores  P and I I n s u r a n c e H u l l Insurance Overheads Total  38,000 27,000 Cost  £ 8 4 0 , 0 0 0 p e r annum  F u e l c o s t s e q u a l £ 1.. 33 p e r s e a - m i l e s t e a m e d on a c o s t b a s i s o f "98/ p e r t o n u s e d a r a t e o f .4 l b / S H P h r . " ( S i n c e f u e l c o s t s have r i s e n c o n s i d e r a b l y t h i s c o s t d a t a i s u n d o u b t e d l y t o o l o w even f o r 1971 calculations,)  Sources  "Transhipment i n the S e v e n t i e s " , A Report to tne N a t i o n a l P o r t s C o u n c i l p r e p a r e d by A r t h u r D. L i t t l e L t d . L o n d o n . 1970. p.48.  very are  large not  capital  investment,  f a c t o r s which are  t a k e n as  only  the  i s discounted  ship  are  supposed and  any  Also  high  5$  of  total  capital  o v e r 15  probably f a i r l y  t o be  applicable  vessel  s u r p r i s i n g are  profit  costs, while  the  price  years at  realistic f o r any  s i z e f r o m 800  to  design  mentioned  of  the  the  3»5°0 c o n t a i n e r ship  these  model i s  s p e e d b e t w e e n 20  and  35  knot 14?  capacity.  owners has  i n c r e a s i n g speeds s t i l l  container  vessels,  i n more d e t a i l :  capital  construction  costs are  two  capital  estimated  to  not  been  built  into  Whether t h i s  new  container  ships  this  S t u d y on  i s unclear  to  a c t u a l l y increase  container  ships  by  ship  fuel  10$  to  the  author,  30  but  "for  12. t o  20  and the  at a faster rate.  indicates  that  a  be  time  12$  increased  designs of  should  expenses.  at  i n the  r e l a t i o n s h i p of  speed h o l d s f o r the  costs  and  costs  included  increase  increased  that  costs  cargo  being  items of  of a d d i t i o n a l speed  knot f o r a medium-sized 149  range".  are  since  (However  of  Speeds  In view of  extra  10$.  is  Trends  Increased  The  costs  the  p r o f i t a b i l i t y of container 148 e a r t h s h a k i n g to date. )  the  insurance  that  the  Future  annual  surprising either.  The  values  the  cost 40  of each  knot for  knot  indications The  U.N.  " s t r o n g and o f t e n a c o n t r o l l i n g i n f l u e n c e i n c o n t a i n e r s h i p o p e r a t i o n i s the combination o f l a r g e s i z e o f v e s s e l r e q u i r e d by the c e l l u l a r h o l d s t r u c t u r e and the s u b s t a n t i a l speeds r e q u i r e d by t h e economics o f voyage t u r n a r o u n d time ...A h i g h r a t i o o f h u l l c u b i c s p a c e t o w e i g h t o f c a r g o l i f t e d . . . ( i n d i c a t e d t h a t ) c o n t a i n e r s h i p s o f 20,000 t o 150 25,000 dwt w i t h s p e e d s o f 21 t o 25 k n o t s become e c o n o m i c " With fewer v e s s e l s b e e n f o r a number  but higher of consortia  capital  costs,  to develop  t h e t e n d e n c y has  on t h e m a j o r  trading  routes. Fuel engine fully  costs  are subject  t o wide v a r i a t i o n s , d e p e n d i n g on  type and the l o c a t i o n o f r e f u e l i n g depots. laden  v e s s e l u s e s 6$ more f u e l  Too, a  t h a n t h e same  ship i n  ballast. "But t h e g r e a t e s t c a u s e o f v a r i a t i o n o f f u e l c o s t i n a n y one v e s s e l i s s p e e d . The f o r m u l a f o r f u e l c o n s u m p t i o n r e l a t e d t o speed i s a c u b i c f u n c t i o n r e s u l t i n g from the e f f e c t s o f w a t e r d i s p l a c e m e n t on a d i s p l a c e m e n t h u l l . . . F o r speeds m a t e r i a l l y a b o v e . . . ( t h e most) economic speed t h e f u e l c o s t i n c r e a s e ( s ) e x c e s s i v e l y so t h a t f o r c e r t a i n h u l l s t w i c e t h e amount o f f u e l may be r e q u i r e d t o o b t a i n a s p e e d o f 22 k n o t s a s f o r 18 k n o t s . Below...economic speeds, a r e d u c t i o n i n speed does n o t b r i n g comparable... savings". 15* Obviously perhaps  t h e move f r o m 12 t o 16,  30 o r 40 k n o t v e s s e l s  change i n t h e d e s i g n fuel the  economies. costs  t h e n 20 a n d 23 a n d now t o  has o n l y  of vessel hulls,  However i n c r e a s e d  of these higher  been p o s s i b l e  with a  and a t the expense o f  payloads  seem t o h a v e o f f s e t  speeds.  N u c l e a r Power The  152  plans, powered  Vickers  Company  of B r i t a i n  e a r l y i n 1969  f o r the development o f an e c o n o m i c a l l y containership  which would develop  presented viable  nuclear  approximately  80,000 shp ( v s . 35,000 s h p i n t h e l a r g e s t v e s s e l s a t p r e s e n t ) .  The  Company c l a i m e d  four years, New  50  the ship could  Zealand-United  ship  t h a t by h a v i n g  percent  ECONOMICS  than  and speed,  i n capital  o n l y once  c a r r y 21% more c o n t a i n e r s  Kingdom r o u t e  o f t h e same s i z e  to r e f u e l  on t h e  a conventional  thereby  justifying  every  container the extra  investment.  OF CONTAINERIZATION FOR  PORTS  •  WORLD PORT  As  INVESTMENT  i s c o n c e r n e d , $5 t o $10  f a r as p o r t investment  seems t o be t h e minimum p o s s i b l e f o r a 1 b e r t h , 10  acre  back-up  container yard  1  development, with  million  crane, no a p p a r e n t  upper l i m i t  to the investment  t h a t may e v e n t u a l l y be i n v o l v e d .  In  10 y e a r s  o f London A u t h o r i t y has  the past  the Port  spent  153 4>80 m i l l i o n  on t h e T i l b u r y  competing p o r t s  terminal,  on t h e 400 m i l e s  Hamburg h a v e i n v e s t e d more t h a n  while  nine  major  o f c o a s t l i n e from Dunkirk to $180 m i l l i o n  i n preparing f o r  154 t h e c o n t a i n e r boom d u r i n g t h e p e r i o d I 9 6 6 - I 9 6 9 . The P o r t o f New Y o r k b u d g e t e d f o r e x p e n d i t u r e s of. $ 4 1 . 5 m i l l i o n on t h e i r  155 container f a c i l i t i e s  i n 1971 a l o n e ,  and w i l l  have s p e n t a t  156 l e a s t $175 m i l l i o n investment presented particular  b y 1973*  Some e x a m p l e s o f p o r t  f o r container f a c i l i t i e s i n Table regions  2.4.  by s e l e c t e d world  ports i s  D e t a i l s of port f a c i l i t i e s i n  of the world  are presented  by  Axelson,  157 Immer a n d some t r a d e j o u r n a l s . The J a p a n e s e S h i p p i n g and S h i p  Building Rationalization  EXAMPLES FOR  OF INVESTMENT BY SELECTED WORLD PORTS  DEEP  SEA CONTAINER HANDLING  FACILITIES  CONTAINER F A C I L I T Y  INVESTMENT ( $ U . S . )  COMPLETION DATE  $ 175 M i l l i o n 80 M i l l i o n  1973 1970  250 M i l l i o n  1972  4. Hamburg 5. A n t w e r p 6. M e l b o u r n e  25 M i l l i o n 50 M i l l i o n 20 M i l l i o n  1970  7. S i n g a p o r e 8. S e a t t l e 9. V a n c o u v e r  26 M i l l i o n 110 M i l l i o n 5 Million  1971 1975 1970  PORT  1. New Y o r k 2. T i l b u r y ( L o n d o n ) 3. Osaka, Kobe, Tokyo, a n d Yokahma  —  Sources 1.  2.  A . J . T o b i n , " C o n t a i n e r i z a t i o n Boom a t P o r t o f New Y o r k " , The W e s t s i d e r . West S i d e A s s o c i a t i o n o f Commerce, I n c . , New Y o r k , N.Y. F a l l 196?. p . 18+ " D e v e l o p m e n t s i n L o n d o n " , F a i r p l a y . J u l y 16, 1970. ?  pp. 32-33. 3. 4. 5. 6. 7. 8.  9.  J.P. C o u g h l i n , " C o n t a i n e r s - I n t e r n a t i o n a l A c c e p t a n c e " , The W e s t s i d e r . West S i d e A s s o c i a t i o n o f Commerce, I n c . , New Y o r k , N.Y. F a l l 1969. p . 50+ , "Germany's M a j o r C o n t a i n e r P o r t s E x p a n d " , Fairplay. J u l y 2, 1970. p . 128. N. H a c k i n g , " C r a n e S t a n d s M o s t l y I d l e " , The ( V a n c o u v e r ) Province. J u l y 22, 1970. p . 16. J . P . C o u g h l i n , op. c i t . , The W e s t s i d e r . F a l l 1969. P-50+ , "Van P u s h i n S i n g a p o r e " , D i s t r i b u t i o n W o r l d w i d e .  6ctob  er  1969.  p. 81.  J . E . Opheim, " C o n t a i n e r i z a t i o n i n t h e S e v e n t i e s " , A n address t o the P r o c e e d i n g s o f t h e Canadian T r a n s p o r t a t i o n R e s e a r c h Forum b y t h e G e n e r a l Manager o f t h e Port of Seattle. V a n c o u v e r , B.C. March 20, 1970. . " C o n t a i n e r P i e r Mow O p e r a t i o n a l " , B r i t i s h C o l u m b i a Business Journal. J u n e - J u l y , 1970. pp.. 22+  the  construction  berths  1972  of  12  container  and  facilities  that  would  i n v o l v e an  investment  The  steamship  i n v e s t m e n t s as  ships,  o v e r the  with  container  4 year period  by  the  planned  terminal  196Q-  $450 m i l l i o n  of approximately  c o m p a n i e s a l s o have e x t e n s i v e  evidenced  of  ship  port f o r SeaLand  159 at  Rotterdam  c o s t i n g $15  December 1970, terminal  to  agreed  the  Port  million.  to of  sell  Seatrain Lines,  their  33  acre  O a k l a n d f o r $20  Oakland  million  in  container  and  lease i t  160 b a c k a t an indicates port  estimated that  i s small  $1,500,000 a n n u a l l y .  C a n a d a ' s i n v e s t m e n t o f $5 by  This t o $15  data  million  per  comparison.  PORT TECHNOLOGY CHANGES  Port  Purpose>  Deep-Sea o r  Feeder  Hedden, i n d i s c u s s i n g t h e in  developing  countries  s e r v i c e s would tend U.S.,  to  predicted  concentrate  Europe, A u s t r a l i a ,  where t h e r e "feeder  i s a high  ships  will  planning that at  radiate  to  container  the  Japan, Puerto  inherent  for containerization  the  larger ports  Rico,  demand.  shipping  and  the  Hawaii  From t h e s e  Caribbean,  of  South  areas America,  161 the  Mediterranean, If  current of  the  the  trend  and to  be  developing  c o n t a i n e r i z a t i o n of  non-bulk ocean future w i l l  some o t h e r  cargo an  d e v e l o p s as  countries".  a large part expected,  e v e n more c a p i t a l  the  intensive  of  the  port  container  operations  will  o r become c o m p l e t e l y there  were 28  goal posts'  giant  on  the  e i t h e r switch  r e d u n d a n t and container  cranes  of  for early installation.  For  gantry  cranes  be  1972.  a t Rotterdam w i l l  Captain  S t i g Axelson,  presented  some c a l c u l a t i o n s t o t h e  Symposium  i n L o n d o n i n 1968  10$ less  cost of than  capital,  50$  conventional  f a v o r a b l y with Captain  the  Axelson  revolution  the  (perhaps cargo  on  was  more c r a n e s  are  the  number  from f o u r  Port  of  International  of to  ten  Gothenberg, Container  which i n d i c a t e d t h a t  only  30$)  of  the  cost of  a per-ton-moved b a s i s .  even u s i n g  t h a t day  take  place  by  saying  a was  moving  163  f i n d i n g s o f M c K i n s e y ' s 1967  not  giant  one  increased  the  1970  c o s t of moving c o n t a i n e r i z e d cargo  concluded  could  'like Not  example,  Manager o f  ports',  Early in  standing  c a p a c i t y , but  slated  by  unused.  'feeder  Northwest European coast.  w o r k i n g a t more t h a n 40$  162  into  This  compared 164  study. that  the  f o r e i t h e r shipowners or  ports  " w i t h o u t c a s u a l t i e s : t h o s e who d i d n o t have t h e f i n a n c i a l r e s o u r c e s and/or the courage and/or the r i g h t t r a d e and/or t h e r i g h t l o c a t i o n had, and h a v e , t o l o s e on t h e c h a n g e . G r e a t r i s k s a r e t a k e n by t h e s h i p o w n e r s and by t h e p o r t authorities". 165 T h i s v i e w has  been borne out  Pacific  of  trade  McCormack, and  container  by  the  by  the  withdrawal from  s e r v i c e s by  Furness,  Matson,  166  Royal M a i l , Fred  the  and  Olsen  North  Moore and  167 Westfall-Larsen The perhaps  Lines  problems of  because of the the  even L i v e r p o o l ,  Port  I69  are  competition.  of P o r t l a n d , the  result  168  Bristol,  and  of c o n t a i n e r i z a t i o n  and  t o some e x t e n t  l a b o r ' s response  to  this  'revolution' in  transportation. " T h i s i s o n l y r i g h t and p r o p e r w i t h an i n t e g r a t e d t r a n s p o r t a s t h e common g o a l . . . c o n t a i n e r i z a t i o n i s p a r t o f a d o o r - t o - d o o r t r a n s p o r t a t i o n s y s t e m , and the s h i p owner has "gone a s h o r e " . . . ( w h i l e ) t h e r o a d h a u l e r has "gone t o s e a " . . . F o r w a r d i n g a g e n t s . . . have d i s c o v e r e d . . . t h a t t h e new t r a n s p o r t a t i o n p a t t e r n a t s e a i s c r e a t i n g a demand f o r s e r v i c e s v e r y much l i k e t h o s e l o n g s i n c e a s k e d f o r i n i n t e r n a t i o n a l r o a d and r a i l t r a n s p o r t a t i o n . . . b u t t h e y have n o t -as f e a r e d - l o s t b u s i n e s s . " 170 The  technology  rapidly,  as  Mr.  Seattle,  pointed  Transportation  J.E. out  of a port  suitable f o r containers  Opheim, G e n e r a l when he  Manager o f  spoke b e f o r e  the  the  changes  Port  of  Canadian  R e s e a r c h Forum i n V a n c o u v e r i n M a r c h  1970  saying  "The o l d b r e a k - b u l k v e s s e l o p e r a t i o n u n d e r w h i c h b e r t h l i n e r s m i g h t . . . spend...two o r t h r e e weeks d i s c h a r g i n g and l o a d i n g o u t a t a...number o f p o r t s c a n n o t be c a r r i e d o v e r i n t o t h e new c o n c e p t . The h i g h c o s t o f b u i l d i n g and operating...container v e s s e l ( s ) and...container inventory and t e r m i n a l h a n d l i n g f a c i l i t i e s d i c t a t e s . . . a 24 h o u r o r so i n - p o r t p e r i o d a t two, o r a t t h e most, t h r e e p o r t s o f call. V e s s e l s i z e , s p e e d and c a r r y i n g c a p a c i t y w i l l be substantially increased. ( V e s s e l s on the p l a n n i n g b o a r d s t o d a y ) w i l l be t h e f o r e r u n n e r s o f e v e n l a r g e r v e s s e l s c a r r y i n g . . . 2 t h o u s a n d and more c o n t a i n e r s i n t h i s c u r r e n t decade... P o r t a u t h o r i t i e s w i l l f e e l . . . t h e almost overwhelming c o m p e t i t i v e r u s h and b u r d e n o f p r o v i d i n g t h e l a n d a r e a s and c a p i t a l f u n d s f o r t h e d e v e l o p m e n t o f c o n t a i n e r t e r m i n a l f a c i l i t i e s , c o n t a i n e r c r a n e s and y a r d h a n d l i n g e q u i p m e n t . . . Today.,.we ( a r e w o n d e r i n g ) i f a one t h o u s a n d f o o t b e r t h , f o r t y - f i v e to f i f t y ton c a p a c i t y cranes... t w e n t y - f i v e a c r e s o f c o n t a i n e r y a r d p e r b e r t h , and a t l e a s t t h r e e p i e c e s o f y a r d h a n d l i n g equipment p e r crane . . . w i l l be s u f f i c i e n t . By t h e end o f t h i s d e c a d e . . . a t l e a s t one o f t h e h i g h l y i n d u s t r i a l l o a d c e n t e r p o r t s . . . ( w i l l have) i n s t a l l e d a f u l l y a u t o m a t e d p i g e o n h o l e p a r k i n g s y s t e m . . . B y 1975 "the important trade r o u t e s . . . o f North A m e r i c a . E u r o p e . , . a n d Australia.,.should...be f u l l y containerized. I t w i l l be a b s o l u t e l y n e c e s s a r y t o c o m p u t e r i z e t h e documentation load...(and) s i m p l i f i c a t i o n of documentation and c u s t o m s i n s p e c t i o n s p r o c e d u r e s i n i n t e r n a t i o n a l commerce must come". 171  The  economies o f s c a l e f o r l a r g e  operating if  port  costs  p e r t o n as s i z e  working  "hardly  expect  "bulkers"  i s slow.  increases,  Cufley  to obtain  ships,  remarks t h a t  vessels  receive)  i n lower  c a n q u i c k l y be  maximum a d v a n t a g e  unless...(these  evident  lost  c a r r i e r s can  from...giant f a r better  dispatch  172 in  ports  optimal  than...conventional ship  size  tonnage".  Unquestionably the  v a r i e s almost d i r e c t l y  with  the speed o f  173 cargo h a n d l i n g capacities  on t h e d o c k s ,  of container  but with  terminals  being  t h a n t h e 10 t o n s p e r m e t e r o f b e r t h it  seems a x i o m a t i c  containerized The is  speed with  throughput  up t o 10 t i m e s  f o r conventional  t h a t most m a j o r t r a d e s  fairly  t o some e x t e n t  annual  will  174  greater,  175  cargo,  become  quickly. which  dock l a b o r  a reflection  i s replaced  by mechanization  o f t h e dockworkers age, s k i l l s  176 and  u n i o n m i l i t a n c y . . The M c K i n s e y R e p o r t  reduction years,  i n dock l a b o r r e q u i r e m e n t s  while  decrease  forecast a  over the next  an A u s t r a l i a n Longshore Union o f f i c i a l  i n t h e w a t e r s i d e work f o r c e  "from  90$  20 t o 30 foresaw a  21,000 t o 13»000 i n  177 ten to  years". some e x t e n t  sailings,  this  While  degree It  vessel size  when t h e demand i s f o r s m a l l e r seems t o be one o f t h e b e s t  containerization available  tramp o r l i n e r  using  speedier  (and f o r e c a s t )  the ultimate  size  has been f o u n d  will  vessels.  determine  more  limited  frequent  reasons f o r promoting The a g g r a g a t e  to a  o f the c o n t a i n e r  that  may be  demand  considerable  vessels.  t h e two m a i n i t e m s o f v o y a g e  to  some e x t e n t .  C e r t a i n l y d a i l y p o r t charges v a r y  directly  with the time spent i n p o r t , with the number o f p o r t s , and to some e x t e n t v/ith s h i p s i z e and number o f hatches. from bulk working  The s a v i n g  o r c o n t a i n e r i z a t i o n " w i l l be g r e a t e s t i n the  per diem c o s t s o f time saved, and to some extent i n d i r e c t 178  h a n d l i n g charges, but l e s s on p o r t f e e s as such".  Goss, i n  d i s c u s s i n g the turnround times encountered on cargo  liners  concluded t h a t 60$ o f the c o n v e n t i o n a l cargo s h i p ' s time was spent i n p o r t , and t h a t f o r o n l y 15$ o f t h i s time was cargo " b e i n g worked a t any hatch i n the s h i p . . . ( t h e r e f o r e ) o n l y 6$ o f 179  the year was spent i n l o a d i n g and d i s c h a r g i n g cargo". Compare t h i s with p r o j e c t e d turnaround times o f 36 hours f o r c o n t a i n e r s h i p s i n modern c o n t a i n e r t e r m i n a l s . S i n c e h a n d l i n g charges a r e mostly l a b o r c o s t s , they w i l l v a r y with the p o r t and the f a c i l i t i e s a v a i l a b l e .  Undoubtedly  b u l k cargoes can be worked more r a p i d l y than b a l e d cargoes, and the use o f s t a n d a r d s i z e d c o n t a i n e r s means f a s t e r h a n d l i n g than f o r mixed cargoes.  While  t h e r e a r e l i m i t s to the e x t e n t  to which c o n t a i n e r i z a t i o n can be implemented i n those t r a d e s i n v o l v i n g l a r g e export volumes o f raw m a t e r i a l s with much s m a l l e r volumes o f manufactured  goods inbound, world  t r a d e i s moving r a p i d l y towards the g e n e r a l l y quoted  ocean forecast 180  of  65$ to 75$ c o n t a i n e r i z a t i o n o f d r y cargo p o s s i b l e by 1975*  One o t h e r the  future  with  which  factor that  c o u l d have a s i g n i f i c a n t  demand f o r d e e p - s e a c o n t a i n e r c o n t a i n e r i z e d cargo begins  or a l l of i t s  ships  b e a r i n g on  i s the degree  t o move b y a i r f o r p a r t  journey.  " I t i s e s t i m a t e d t h a t t h e number o f c o n t a i n e r s t o be u s e d i n a i r l i n e s y s t e m s w i l l i n c r e a s e f r o m 1 0 , 0 0 0 ( i n 1966) t o 5 0 , 0 0 0 . . . ( s o * t h a t ) b y 1975 a b o u t 80$ o f a i r f r e i g h t w i l l be moved i n c o n t a i n e r s . A g r e a t number o f v a r i o u s s i z e d containers are r e g i s t e r e d f o r a i r f r e i g h t use, ranging i n s i z e f r o m 12 c u b i c f e e t t o t h e 8* x 8' c r o s s s e c t i o n ISO van c o n t a i n e r . " 181 Current  operating  o f 15 c e n t s  cost,  DC-8's c a r r y i n g 9 0 , 0 0 0 pound l o a d s  and with  rail  mile  i s being  o r ocean  With  notes  cargo by s e a t r a n s p o r t may be r i s i n g ) w h i l e  It  less  capacity,  than by s e a .  approximately  that the trend i s unknown,  the trend  costs are expected to  i n costs  (although  of unitized  i t appears  i n a i r transport  costs  i s down..(No  h a v e y e t b e e n done on a i r v s s e a c o n t a i n e r  i s possible that  competitive  the i n t r o d u c t i o n o f the L-1011  a 360,000 pound f r e i g h t 182 a b o u t 2f. p e r t o n - m i l e . 183  studies  i s not very  advanced f o r the Boeing ?4? c a r r y i n g  having  Sturmey,  f o r 707's  c a r r i a g e , b u t a f i g u r e o f 30 t o 5 0 p e r t o n -  250,000 l b s . o f cargo.  be  per ton-mile  cost  trends).  i n t h e f u t u r e , a i r t r a n s p o r t may e v e n Proposals  are being  cost  advanced f o r moving 184  containers Should  by H o v e r c r a f t  these  proposals  o r a i r s h i p s a t s p e e d s o f 100-150  develop,  e c o n o m i c a l maximum c o n t a i n e r for  deep-sea t r a n s p o r t a t i o n .  i t seems a l m o s t  vessel size  will  mph.  c e r t a i n t h a t an  s o o n be r e a c h e d  T h i s would l i m i t ,  o r perhaps  even  POTENTIAL CONTAINER  World  CARGOES  Scene  J o h n Immer c i t e s 38$ o f a l l A t l a n t i c with  s t u d i e s which  liner  22$ o f t h e P a c i f i c 185  being  suggest  will  will  t h a t b y 1973  be 58$ a n d 45$ r e s p e c t i v e l y .  t h a t 23$ o f t h e t o t a l  tons  trade  F o r e c a s t s a r e t h a t a decade l a t e r  world  liner  these  His figures  cargo  o f 5^.^  t o n s v / i l l be i n c o n t a i n e r s b y 1973» w i t h a f o r e c a s t million  up t o  move on c o n t a i n e r s h i p s ,  (Hawaii, A l a s k a , and F a r E a s t )  containerized.  percentages  cargo  indicate  million  o f 61.7  by 1983'  186 D a t a p r e s e n t e d b y Immer, a l s o showed t h a t c o n t a i n e r s m o v i n g f r o m t h e U.S., t o E u r o p e i n 1968 c o n t a i n e d a p p r o x i m a t e l y 8,2  tons  'box'.  187  Pacific  each,  the r e t u r n t r i p s  Similarly,  each  approximately  Port  with  carried  carrying  9.1  tons  c o n t a i n e r s moving westward a c r o s s t h e 9 tons  o f North American  exports, but only 188 6 t o n s p e r c o n t a i n e r was b e i n g moved e a s t w a r d .  o f Vancouver  The  1967  Kates,  Peat,  Marwick Study  of container  189 facilities arriving  i n each  f o r Vancouver,  indicated  c o n t a i n e r would p r o b a b l y  t h a t the average  convey o n l y 6 tons o f  P i e r confirm' that i n i t i a l l y  this prediction.  That Study a l s o i n d i c a t e d  containerized t r a f f i c  coming i n t o the P o r t o f  Vancouver from a l l c o u n t r i e s would be 70$ l o c a l and 30$ through-billed, gradually  changing to a 50-50 s p l i t as the  1975 a n t i c i p a t e d volume o f 50,000 c o n t a i n e r s  191  attained.  p e r year i s  T h i s change i n d i c a t e s the i n c r e a s i n g importance  of cargo a r r i v i n g from OCP o r i g i n t e r r i t o r y  (particularly  Japan), which c u r r e n t l y i s 30$ l o c a l and 70$ t h r o u g h - b i l l e d . It higher  c o u l d w e l l be t h a t the weight p e r c o n t a i n e r w i l l be i n the f u t u r e and t h e r e f o r e  less of a l i m i t i n g factor,  (see Chapter I V ) , i f f o r e c a s t changes i n the composition o f Japanese exports to North America a r e a t t a i n e d .  The c u r r e n t  60$ o f t o t a l c o n t e n t i n consumer goods i s expected t o decrease, so t h a t by 1975* 55$ o f Japan's exports w i l l o n l y 10$ w i l l be t e x t i l e s .  The value  Canada a r e f o r e c a s t to i n c r e a s e  be machinery and  o f Japanese imports from  from the p r e s e n t  $1.1  billion  to $2.2 b i l l i o n , w h i l e Japan's e x p o r t s to Canada a r e p r o j e c t e d  192 to t r i p l e  from today's $560 m i l l i o n to $1.3 b i l l i o n .  PORT OF VANCOUVER CENTENNIAL PIER CONTAINER TERMINAL  Since  193  t h i s study deals p r i m a r i l y with c o n t a i n e r i z e d  cargo  moving t o Canadian OCP d e s t i n a t i o n s , a b r i e f d i s c u s s i o n o f the container handling  f a c i l i t i e s a t Centennial  P o r t o f Vancouver i s i n order.  P i e r #6 i n the  The C e n t e n n i a l  T e r m i n a l ^ l o c a t e d on the South shore o f B u r r a r d  Pier  Container  I n l e t a t the  foot  of Dunlevy S t r e e t immediately  marshalling yards, Harbour's Board lease  by  Furness,  o f Canada, b u t  68?  diesel  feet,  113i  feet.  for  20  and  can  a l s o be  l o n g b e r t h i s equipped gantry  a total  The 40  spreader  foot  used  has  of  the  the  under a 5  National year  This crane,  2.1  (for details  f o l l o w i n g major  from  o f 40  long-ton  distance of dockside  locking  a special  of  attachment attachment,  containers containing loads that  ( i . e . loads  on page 64  with  that protrude The  above t h e  hoist  speed  a horizontal-moving see A p p e n d i x  illustrates  of  fpm,  trolley  speed  V). orientation  These c o n s i s t  of  the  areas:  ( a ) a 100,000 s q u a r e  foot  shed  f o r storage  of cargo  stowage i n a c o n t a i n e r o r a w a i t i n g f o r w a r d i n g d e s t u f f i n g from  stuffing  and  (location  destuffing  i s a t the  a C o n t a i n e r Yard two  awaiting  after  a container;  ( b ) a C o n t a i n e r F r e i g h t S t a t i o n (CFS)  stacked  are  corners  i s 100  the p h y s i c a l  container terminal f a c i l i t i e s .  (c)  of  a 'Starporter'  beam t r a v e l l i n g  c o n t a i n e r s , and  to l i f t  with  an a u t o m a t i c  container i t s e l f ) .  fpm,  Map  crane.  spreader  under a 30-ton l o a d , w i t h 400  i s operated  i n c l u d i n g a maximum o u t - r e a c h  'over h e i g h t ' 8 foot  foot  electric  has  193a  of  I t i s owned by  CNR  W i t h y ^ a n d Company L i m i t e d .  capacity,  the  2.1).  of the  t h e E m p i r e S t e v e d o r i n g Company L t d . , a s u b s i d a r y  This type,  ( s e e Map  northwest  layers  of containers i s  doors  (CY)  where t h e a c t u a l  o f the  where f u l l  performed  shed); containers are  h i g h a v / a i t i n g l o a d i n g on  board  G a n t r y Crane Office\ . 300 T o n C r a n e Containers^ being DestuffedX C o n t a i n e r s b'eing CONTAINER Stiffed S TORAGE L i q u o r Cage Scale \ Equipment Storage \ G a t e House S t r a d d l e C a r r i e r Garage P o o l c a r L o a d i n g Dock \ 10 Containers For d i r e c t R \ i l Movement \ H  6 7 8  9 10 11 12  CNR MARSHALLING YARDS  f\ *  »  5  w  PORT OF VANCOUVER CONTAINER TERMINAL MAP  2.1  ON  ship  f o r export,  o r p l a c e m e n t on  i n b o u n d movement of  the  (location  d o c k between t h e  rail  or truck f o r  i s towards the  west  r a i l w a y t r a c k s and  end  the  gantry  crane); (d) a CY-CFS a r e a where f u l l placed  c o n t a i n e r s of cargo  awaiting destuffing  or truck, without through  the  shed  the  d i r e c t l y into  are  a railcar  goods b e i n g moved i n t o  (location  i s between the  and  CY  and  the  CPS) j (e) R e e f e r •  Container  refrigerated (location  (f)  i s south  a r e a and  storage  and  and  Service area  containers stacked of the  empty c o n t a i n e r s t o r a g e reefer  (g)  Storage  south  two  railway  area  positioning  layers  60  high  tracks);  (located  of f r e i g h t  for  surrounding  shed);  of containers  requiring  repairs; (h)  4,300  feet  of p a r a l l e l railway trackage  accommodate o v e r (i)  a 10' either  The clear the  x 70'  f i f t y - t o n Toledo  t o t a l back-up a r e a  the  the  incoming loaded  s e p a r a t i o n i s made between a n y  of:  monitoring  area;  area.  o f the  the  This  t o 15  trucks. and  CY-CFS s t o r a g e  i s o n l y 12  CFS  storage  area;  no  or  the  c r e a t e s some p r o b l e m s f o r  location  d o c k , p a r t i c u l a r l y when t h e  Most o t h e r  Scale f o r weighing  acres  empty c o n t a i n e r s t o r a g e continuous  container f l a t c a r s ;  c o n t a i n e r s or the  physiographic  CY;  80  s u f f i c i e n t to  of every  g r o u n d has  container  a c o v e r i n g of  deep-sea c o n t a i n e r p o r t s segregate  the  CY  and  on snow. the  Immediately adjacent north  t o t h e CFS s h e d ,  sides o f theb u i l d i n g ,  spaces'  t o which  destuffing.  are  CFS-destined  a number o f a n g l e d  Once c o n t a i n e r s have b e e n p o s i t i o n e d i n a row one i n these  containers  are p o s i t i o n e d i n thef i r s t  are  angled  w e s t o f s h e d #5>  heavy l i f t  crane.  stacked  a number;  spaces,  the  In this  Each  t h e bottom l a y e r  being  bottom  layer, this  CFS s t o r a g e  Containers  p o s i t i o n s are o f high  value  the trucks arrive  loaded  containers  p o s i t i o n has  odd-numbered, w i t h  t h e even  t o t h e t o p o r 2nd l a y e r .  area  For  container and loaded subjected  spots*  goods  immediately  (e.g.  2nd l a y e r .  west o f t h e  t o be CY-CFS  a r e s t o r e d here  be removed d i r e c t l y  directly  into  procedure  storage.  T.V. s e t s w h i c h  f o r removal o f t h e cargo  to a period o f storage  shown t h a t t h i s  in  t o t h e shed would o c c u r i n  considered  T h e s e goods may t h e n  In  the  container storage  e v e n t u a l l y b e d e s t u f f e d i n t h e CFS)  almost  immed-  4:2, 4:1, 4:4, 4:3, e t c .  'container parking  storage  area.  area  a n d 4"2, 4:4, 4:6.... i n t h e  f o l l o w i n g order:  until  d o z e n rows  i n Row 4 t h e p o s i t i o n s w o u l d be 4:1, 4:3, 4:5....  The CFS  half  discharged  b a s e o f t h e 300-ton  CFS s t o r a g e  2 layers high.  Removal from the  subsequently  a s f a r as the  number p o s i t i o n s b e i n g a l l o c a t e d example,  'parking  c o n t a i n e r s a r e moved f o r  layer high  iately  on t h e w e s t a n d  (sealed)  from the  dock  from the  the truck, without  i n t h e shed.  will  being  Experience has  e l i m i n a t e s damage a n d p i l f e r a g e  entirely. t h e CY s t o r a g e  area are  p o s i t i o n e d a l l those  containers  which  are destined  These  may  shipment  be  type  for local  east  Future  f o r removal from the w a t e r f r o n t  t o L o c a l o r OCP  plans  call  o f crane to span  unloading  Vancouver  flatcars  or  d e l i v e r y , or f o r trans-  points  by  f o r the purchase the r a i l r o a d bogies.  area.  either truck  or  rail.  of a * t r a n s t a i n e r '  tracks f o r loading  and  SUMMARY  I t i s d i f f i c u l t to obtain an accurate, up to date, total world investment i n containerization. The number of container ships, plus other vessels which carry containers, can be obtained from  Lloyd's  Register  i n London  along with the builder,  owner, ship type, propulsion, gross, and deadweight tonnage, 194 but value data i s kept confidential, that  Lloyd's  would release  a  although i t may be  'total value'.  I t would be even more d i f f i c u l t to determine the total investment in new port f a c i l i t i e s (cranes., container yards, and container handling equipment).  Even  the total number and  value of containers in operation around the world i s probably unknown.  ( T h e N a t i o n a l Academy  of  Sciences  —  National  Research  presented a conservative 'rule of thumb* that 3 containers are required for each container slot on ocean 195  Council  shipping.  ) I n the future as the speed of vessels increases,  and as more companies turn to using containers as Hemporary' weatherproof storage f a c i l i t i e s , the number of containers required may be increased.  I t may also happen that the  current multitude of container lengths w i l l gradually be replaced by containers of only 2?, 35» or 40 feet lengths and 8'6" in height because these "are the only sizes that can be 196 freely and economically interchanged with the inland carriers". A  further problem i s :  What  amount of money have the land  and a i r carriers invested in container handling equipment? The world investment in container r a i l equipment i s unknown,  involvement  o f motor c a r r i e r s i n the  container  transport  197 field.  Undoubtedly both  questions  could  would a l s o (1)  be  answered,  substantial. total  Even i f these  containerization  investment  include:  the  value  of  containers (2)  are  the  the  and  their  investment  companies  computers used  document  contents;  i n e q u i p m e n t by  (straddle  t o t r a c k and  carriers,  permanently stationed  the  stevedoring  fork l i f t s ,  tractors f o r ro/ro  and operations);  and (3)  "the  investment  m e t h o d s , and The reports of  the  altering  number o f man on  i n u p g r a d i n g manpower t e c h n i q u e s ,  hours  thinking  involved  containerization i s also a  concept, but  significant  i n the  probably  the  patterns.  i n studying  and  cost  implementation  to  the  preparing  m o n e t a r y amount i s n o t  overall picture.  and  As  an  very  example however,  the  198  r  McKinsev Report The  current  for  the  i s reputed  research  t o have  project  Canadian Transport  cost  over  i n t o Canadian  C o m m i s s i o n has  i 50*000 ($150,000).  containerization, a projected  budget  199 f o r Phase I I A  for to  over  $100,000  plus  computer  costs.  s i m i l a r s u b s t a n t i a l e f f e c t ( i n i n d i v i d u a l terms,  probably not costs  of  very  of having  that port's labor  movement.  unrest,  200  significant  to a v o i d  a  hinterland  overall),  has  been the  chosen p o r t ,  and  unload  at a neighboring  or p o l i t i c a l  port,  i n t e r f e r e n c e v/ith  but  added containers  either  cargo  due  f i n a n c i n g new of and  current  c o n t a i n e r i z a t i o n e q u i p m e n t , and t h e d i s p o s a l  equipment which has n o t y e t been  is still  mechanically  Theoretically  u s e f u l , but i s t e c h n i c a l l y  the investment  i n this  c o n t a i n e r i z a t i o n h a s made o b s o l e t e ) should  be i g n o r e d ,  railway  companies  without  comment,  In  the f i n a l  but the p o r t s ,  is a  this  (which  'sunk c o s t ' and  steamship  o r more o f t h e i r  a n a l y s i s however,  obsolete.  o l d e r equipment  c a n h a r d l y be e x p e c t e d 50$  'depreciated out'  lines,  and  to 'just write o f f ,  cargo h a n d l i n g  writing-off of  investment. undepreciated  i n v e s t m e n t may be t h e o n l y a l t e r n a t i v e , i f a p a r t i c u l a r or p o r t wishes 201 trade.  to remain a competitor  f o r the general  company  cargo  CHAPTER II 1. S.G. Sturmey, "The Impact of World Seaborne Trade on Changes in Shipping Costs", Lecture delivered to The International Symposium on Middleterm and Longterm Forecasting for Shipbuilding and Shipping, Stichting Maritieme Research, The Hague. June 16-18, 1970. pp. 35-55. 2. J. Anderson* writing on "English Transportation", cited in L.S. Crane, Coordinated Transportation, which is in turn cited in "Containerization, The Long Revolution", Transportation and Distribution Management. Nov. 1970. pp. 22. cf. Sturmey, i b i d . 3. Interstate Commerce Commission Activities 1937 - 1962. Supplement to the Annual Report, U.S. Government Printing Office, Washington, D.C. 1962.  pp.  13I-I36.  4. This classification and terminology, and the following discussion on the development of co-ordinated transport services in the United States is based on material presented in the ICC A c t i v i t i e s 1937-1962, cited above. 5. i b i d . 6. i b i d . 7. i b i d . cf. A . J . Tobin, Executive Director of Port of New York Authority attributes Seatrain Lines with the f i r s t real ocean going intermodal service when i t began moving railcars in coastal service from i t s 2-berth Edgewater N.J. f a c i l i t y in 1929. A . J . Tobin, "Containerization Boom at Port of New York", The Westsider, F a l l 1969. pp.18+ 8. J.R. Immer, Container Services of the North Atlantic, Work Saving International, Washington, D.C. 1967. pp. 3 cited in G.S. Rees, "Analysis of Potential Container Traffic i n the Port of Vancouver", unpublished M.B.A. Thesis, University of British Columbia. 1969. pp. 11. I have been unable to verify the existance of the advertisement purported to have been in the A p r i l 11, 1911 issue of National Geographic Magazine. 9. ICC Activities 1937-1962, op_. c i t .  pp. 1 3 I - I 3 6 .  10. "Denmark - U.K. Trade Rationalization",  May 7,  1970.  pp.  68-70.  Fairplay,  11. G. Fromm, Transport Investment and Economic Development, Paper by H. Hunter, "Transportation in Soviet Development", The Brookings Institution, Transport Research Program, Washington, D.C. 1965. pp. 139. 12. ICC Activities 1937-1962, op_. c i t .  pp. 131-136.  13. Containerization International Yearbook 1970, National Magazine Co. L t d . , London. 1969. p. 20. 14. Port of Sydney, March 1970. Advertisement on pp. v i i at the back of the issue. 15. J.P. Coughlin, "Containers - International Acceptance", The Westsider, F a l l 1969. pp. 50-53. 16. C. Clapham, "Containerization in the Seventies". Proceedings of the Canadian Transportation Research Forum, Panel Discussion, Vancouver, B.C. March 20, 1970. p. 2. 17. A . J . Tobin,  op_. c i t . , The Westsider, F a l l 1969. pp. 18+  18. Coughlin, OJJ. c i t . ,  pp. 52.  19. " F u l l Container Service", Advertising and Information Publication, Yamashita-Shinnihon Steamship Co. L t d . , Tokyo. Sept. 1970. cf. D. Spink, Personal Interview. c f . " ' ^ Lines Pacific Service", Fairplay, Jan. 7, 1971. P. 33. 20. i b i d . 21. i b i d . 22. Examples would be Singapore and Hong Kong, see Shipping World and Shipbuilder, July 1970. p. 945+, 951+; Also South America and South Africa, see The Westsider, F a l l 1969. p. 50+, and Fairplay, May 7, 1970. p. 83. 23. "A New White Pass Container Route Serves the Yukon and Northern British Columbia", Advertising literature of the White Pass and Yukon Railway Company, pp. 1-2. 24. "Container Operations in Vancouver", Purchasing in Western Canada, Feb. 9171. pp. 6-9. 25. "Container Pier Now Operational", British Columbia Business Journal, June-July 1970. pp. 22+ cf. The Province, June 1, 9170.  28. June 18, cf. The J.  The  " S h i p b u i l d i n g and S h i p p i n g i n J a p a n Today", 1970. p. 67. D. S p i n k , G. Cameron, P e r s o n a l I n t e r v i e w .  Fairplay,  29. N. H a c k i n g , "U.S. P o r t S q u a b b l e V a n c o u v e r ' s P r o v i n c e , Aug. 28. 1970. p. 1+ 30. S. Shaw, G.  G a r r o d , G.F. F r o n t a i n , C F . C r o o k , A.G. Payne, P e r s o n a l I n t e r v i e w s .  31. N. H a c k i n g , " C o n t a i n e r Dock R o l l s P r o v i n c e , A p r i l 7, 1971. p. 17. 32.  at Royal  Gain", Thomson,  City",  ibid.  33. " H a p a g - L l o y d Announce New P a c i f i c H a r b o u r and S h i p p i n g , J a n . 1971. p. 79. 34. "New C o n t a i n e r s h i p Launched H a r b o u r and S h i p p i n g , J a n . 1971. p. 35.  G.  36.  See  Cameron, P e r s o n a l Tables  3.19  and  Coast S e r v i c e " ,  i n ScanStar 27.  Joint Service",  Interview. 3.20.  3?. J.R. Immer, op_. c i t . , 19°7 c f . J.R. Immer, C o n t a i n e r S e r v i c e s on t h e A t l a n t i c 1970, Work S a v i n g I n t e r n a t i o n a l , W a s h i n g t o n , D.C. 1970. p. 174. 38.  "Container  39.  Rees, op_.  J a n . 1970.  P o r t s " , S h i p p i n g W o r l d and S h i p b u i l d e r ,  pp. 111-121.  c i t . , 1969.  P«  39.  40. R.F. C h u r c h , B a c k g r o u n d Note on t h e D e v e l o p m e n t o f C o n t a i n e r i z e d I n t e r n a t i o n a l S h i p p i n g , The T r a n s p o r t a t i o n C e n t e r , N o r t h w e s t e r n U n i v e r s i t y , 1968. p. 1. 41. R.G. G i b b e n s , " C o n t a i n e r R e v o l u t i o n Ahead o f C a n a d i a n B u s i n e s s , Aug. 1970. pp. 38-42. 42.  ibid.  43.  "What Comes A f t e r  J a n . 7. 1967.. p.  Containers",  The  Schedule",  Economist,  50.  44. C o n t a i n e r s , P a l l e t s , and O t h e r U n i t i z e d Methods f o r t h e I n t e r m o d a l Movement o f F r e i g h t ; A p p l i c a t i o n t o D e v e l o p i n g C o u n t r i e s , D e p a r t m e n t o f E c o n o m i c and S o c i a l A f f a i r s , P u b l i c a t i o n No. ST/ECA/120, U n i t e d N a t i o n s . 1970. p. 49.  Oct.  45. N. Hacking, "2nd Big C o l l i e r In", The Province, 15, 1970. p. 31.  46. "Matson Cites Imbalance in Shipping", The Star-Bulletin, May 20, 1971. 47. Esra Bennathan, and A.A. Walters, The Economics of Ocean Freight Rates, New York. 1969. pp. v i - v i i . cf. "Warning A l l Shipping", The Economist, Feb. 27, 1971. 48. op_. c i t . , ST/ECA/120, United Nations. 1970. p. 49. 49. "Containerizationt How Ship Operators are Making It Pay", Marine Engineering/Log, June 15, 1966. pp. 67-70 50. R.E. Howell, "Containerization 1970. The Dangers and Opportunities", Distribution Worldwide, March 1970. pp. 49-52. 51. op_. c i t . "Containerization. . . . . " , Marine Engineering/ Log, June 15, 1966. pp. 67-70. 52. Church, ttp_. c i t . , 1968. p. 1. 53. .££• _cit. ST/ECA/120, United Nations. 1970.  p. 48.  54. "There are Ways of Measuring the Speed of Change", Canadian Transportation and Distribution Management, Oct. 1970. p. 17. 55* "New Maritime Program's Success Depends on Shipper, Labor Attitude", Traffic Management and Physical Distribution, A p r i l 1970. p. 16". ~ 56. C. Crook, A.G. Thomson,'f Personal Interview. 57. i b i d . 58. "Foreign Railroads...the Innovators", Distribution Worldwide, Jan. 1970. pp. 40-42. 59. i b i d . 60. B. Wright, "Britain's Freightliner Success Prompts New Attitudes", Canadian Transportation and Distribution Management, Oct. 1970. pp. 30+ 61. op. c i t . , Distribution Worldwide, Jan. 1970. pp. 40-42.  62. J.A. Grygiel,."The Land Bridge and Its Impact on United States Land Transportation", Paper presented to 48th Annual Meeting of the Committee on Freight Transportation Economics, The Highway Research Record, #281. "Use of Containerization in Freight Transportation", Highway Research Board/National Research Council, Public #1658, Washington, D.C. 1969. pp. 17-21. 63. PP. 1-3. cf. of _ _ Naval _ _  T  I  op_. c i t . , Advertising literature White Pass and Yukon, G. Payne, "The Container Way", Speech to the Institute Vancouver. April 23,  Architects and. Marine Engineers, _ _  64. G. Frontain, Personal Interview. 65. Immer, p_p_. c i t . , Container Services on the Atlantic, 1970. pp. 79-81. 66. i b i d . , p. 82. 67. "A Research Base for Development of a National Containerization Policy", Phase I of a Report to The Canadian Transport Commission prepared by Matson Research Corporation, San Francisco. July 1970. p. 95* 68. " C P . Rail Orders 200 Container Flatcars", Harbour and Shipping, Oct. 1970. p. 604. 69. "CNR Order Flatcars for Container Transport", Harbour and Shipping, Oct. 1970. p. 626. 70. C.Crook, A.G. Thomson, Personal Interview, cf. op_. c i t . , CTC Study, p. 95. 71. "CN Flatcar Centre-Sagger", The Province, May 27, 1971. p. 29. 72. "Piggyback...", Distribution Worldwide, Guide Issue, Aug. 1970. pp. 4-19. cf. "Freight Equipment", The Official Railway Equipment Register, Transportation Department of C P . R a i l , Oct. 1, 1970. 73. "Where is Containerization Leading?", Far East Trade and Development, July 1970. pp. 344-348. 74. i b i d . 75. J. Tinbergen, "The Scope and Methodology of Forecasting for Shipbuilding and Shipping — Structural Development and Cyclical Movements", Lecture delivered to The International Symposium on Middleterm and Longterm Forecasting for Shipbuilding and Shipping, Stichting Maritieme Research, The Hague. June 1618,  1970.  pp.  27-3^.  76. H.J, Molonaar, "productivity of Shipping Space", Lecture delivered to The International Symposium on Middleterm and Longterm Forecasting f o r Shipbuilding and Shipping, Stichting Maritieme Research, The Hague. June 16-18, 1970. pp. 153-178. 77. i b i d . 78. Containerization> The Key to Low Cost Transport, Report f o r the British Transport Docks Authority, London. June 1967. pp. 14. 79. "Britains Foreign Trade", Report by the Martech Consultants, f o r the Port of London Authority, 1966. Cited in M.F. Tanner and A . F . Williams, "Port Development and National Planning Strategy", J. Transport Economics and Policy, Sept. 1967. pp. 315-324. 80. The President of Interpool noted thatt "50$ of a l l export traffic in the U.S. originate(d) within 300 miles of a major port (and) more than 75$ within 600 miles. Most of some 14 States (were) outside of these ports' accessibility". See Howell, o_p_. c i t . , Distribution Worldwide, Sept. 1969. pp. ^9-53.  81. R. Robinson, "Spatial Structuring of Port Linked Flows, Port of Vancouver 1965", Unpublished PhD (Geography) Thesis, University of British Columbia. 1968. Chapter 6. 82. M.F. Tanner, and A . F . Williams, "Port Development and National Planning Strategy", J. Transport Economics and Policy, Sept. 1967. pp. 315-324. 83. N. Hacking, "Former Empress to Call During Cruise", The Province, Oct. 16, 1970. p. 26. 84. N. Hacking, "Largest Potash Cargo Loaded", The Province, Sept, 25, 1970. p. 21. cf. Hacking, o_p_. c i t . , The Province, Aug. 28, 1970. p. 1. c f . Hacking, P o r t l a n d Loses Round", The Province, Oct, 20, 1970. p. 21. cf. Hacking, "China Wheat Ships to be Speeded", The Province, Oct. 28, 1970. p. 19. cf. Hacking, "Portland's Gain Our Portfs Loss", The Province, Nov. 12, 1970. p. 3^. 85. D. Spink, Personal Interview. 86. Bennathan and Walters, op_. c i t . , 1969.  p. 4.  87. "Containers Now Have Their Problems", Shipping World and Shipbuilder, Sept. 1970. p. 1273. cf. Immer, op. c i t . , Container Services on the Atlantic 1970,  pp. 174-200.  88. "Maritime Unit Studies Shippers 'Rate War* in the North A t l a n t i c " , Wall Street Journal, July, 6, 1970. 89. A . F . Schoedel, "Depressed North Atlantic Ocean Rates Seen Improving", The Journal of Commerce (New York), Sept, 17» 9170.  90. R. Basco, "Marine Agency Drops Disputed Rate Legislation", The Baltimore Sun, Nov. 22, 1970. 91. C. O'Loughlin, The Economics of Sea Transport, Pergamon Press, Toronto. 1967. p. 75. 92. P. Senior, Personal Interview. cf. Table 4.5, Table of Container Load Plans, cf. Immer, o_p_. c i t . , 1970. p. 152. cf. "Britain's Growing Container Traffic", Shipping World and Shipbuilder, Jan. 1970. p. 137+ 93. O'Loughlin, op_. c i t . ,  p. 73.  94. The revenue tons used by the railways are 40 cubic feet of space or a weight ton of 2000 pounds (not a long ton). 95. J. Bess, Chartering and Shipping Terms, Baker and Howard, London. 1956"^ p. 156, p. 192. Cited in K. Studer,. "Ship Size", unpublished M.B.A. Thesis, U . B . C , Vancouver. 1969. p. 21. 96. C.F.H. Cufley, Ocean Freights and Chartering, Staples Press, London. 1962. p. 276. Cited in K. Studer, i b i d , p. 23. 97. O'Loughlin, op_. c i t . , 98. Immer, op_. c i t . , 1970.  p. 73. p. 178.  99. "Sea-Land's Big Boost", Distribution Worldwide, Sept. 1969. p. 7^. 100. op., c i t . , Shipping World and Shipbuilder, Sept. 1970.  p. 1273.  101. "Nuclear Container Ships 1 Are the Costs Right", New Scientist, Feb. 3» 1969. P- 336+ 102. op_. c i t . , Shipping World and Shipbuilder.  p. 1273.  cf. Immer, OJJ. c i t . , 1970.  Sept. 1970.  pp. 17^-200.  103. op_. c i t . , Distribution Worldwide, Sept. 1969.  p. ?4.  104. "Economics of Bulk", Fairplay, June 25, 1970. 105. i b i d .  p. 8.  106. Sturmey, O J J . c i t . , pp. 35-55cf. It is rumored that SeaLand 'breaks even' on their U.S. Government contract to serve Viet Nam, and that the cargo they pick up for the return trip from Asia to Seattle (including 2000 containers a month which are subsequently moved to Vancouver) is a l l profit. Similarly the Japan 6 are thought to be approximately breaking even on the Japanto-North America haul (80$ utilization) with the 70$ u t i l i z e d back-haul of pulp, malt, and ores being 'gravy'. C. Crook, A.G. Thomson,"- K. Cox, P. Senior, Personal Interviews. 107. "Container Pricing in Disarray; New Rate Structures S t i l l Resisted", Traffic Management' and Physical Distribution, March 1970. p. 19. 108. "Containerization", Canadian Shipping and Marine Engineering, Feb. 1970. pp. 19-25. 109. P. Senior, Personal  Interview.  110. Immer, op_. c i t . , 1970.  p. 1?4.  111. "Matson Tries 40-Footers", Distribution Worldwide, Sept. I969. p. 70. 112. "Common Carrier Capabilities", Transportation and Distribution Management, March 1970. p. 27. 113. Immer, O J J . c i t . , 1970. pp. 175-176. See the discussion of Associated Container Lines new container ships. "A Port for A l l Seasons", Canadian Shipping and Marine Engineering, June 1970. pp. 26-28. cf. op_. c i t . , Port of Sydney, March 1970. p. 42. 114. Immer, op_. c i t . , 1970. 1970.  p. 1£4.  115. "Container Leasors", Distribution Worldwide, Sept. pp. 58-59.  116. O J J . c i t . , Canadian Transportation and Distribution Management, Oct. 19707 p. 16. 117. "Order Books Grow Even Faster; Massive Increase in Bulk Carrier Contracts", Fairplay, Feb. 25, 1971. pp. 27-28. pp.  118. "Fourth Quarter Shipbuilding",, Fairplay, Feb. 4, 1971. 25-27.  119. OJJ. c i t . , "Order Books Grow Even F a s t e r . . . " , Feb. 25, 1971. p. 28. 120. op_. c i t . , Distribution Worldwide, Sept. 1970. 121. OJJ. c i t . , McKinsey and Company Report, 1967.  Fairplay, pp. 58-59* pp. 12-15.  122. op_. c i t . , S h i p p i n g W o r l d a n d S h i p b u i l d e r , S e p t . 1970. p. 1273. c f . " C o n t a i n e r i z a t i o n E n a b l e s S h i p p e r s t o Show D e c r e a s e d C o s t s , H i g h e r F r e i g h t V o l u m e s " , The T o r o n t o G l o b e a n d M a i l , O c t . 15, 1970. p. B I . c f . H a c k i n g , oj>. c i t . , The P r o v i n c e , Nov. 28, 1970. p. 26. 123.  ibid.  124. "Meeusen I n t e g r a t e d S y s t e m s f o r A u t o m a t e d C o n t a i n e r H a n d l i n g " , F a i r p l a y , June'4, 1970. p . 42+ 125.  ibid.  126.  "Geometric  Ram Bows", F a i r p l a y , A u g . 27, 1970.  127. op_. c i t . , New S c i e n t i s t , 128. " S h i p b u i l d i n g R e s e a r c h : F a i r p l a y , Aug. 27, 1970. p . 47. 129.  F e b . 13, 1969. New P r o p e l l e r  p. 31.  p . 336. Research",  ibid.  130. R.E. H o w e l l , "Growth a n d P r o b l e m s o f C o n t a i n e r i z a t i o n " , D i s t r i b u t i o n W o r l d w i d e , S e p t . 1970. p p . 37-41. 131. Immer, op_. c i t . , 1970. pp.  132. H o w e l l , 37-41. 133. 134. 135.  p . 180.  op_. c i t . , D i s t r i b u t i o n W o r l d w i d e , S e p t .  1970.  ibid. Immer, op_. c i t . , 1970.  p . 188.  ibid.  136. O ' L o u g h l i n , op_. c i t . , 137.  ibid.,  138.  ibid.,  p . 112.  139. i b i d . ,  p . 113.  140.  p . 116.  ibid.,  p . 116.  141. " T r a n s h i p m e n t i n t h e S e v e n t i e s ; A S t u d y o f C o n t a i n e r T r a n s p o r t " , A R e p o r t on t h e C o m p a r i s o n o f C o s t s o f C o n t i n e n t a l a n d U n i t e d Kingdom P o r t s , P r e p a r e d f o r t h e N a t i o n a l P o r t s C o u n c i l (U.K.) b y A r t h u r D. L i t t l e L t d . , L o n d o n . 1970. 142.  ibid.,  p . 15.  144. i b i d . 145. i b i d . , p. 20. 146. i b i d . , p. 9. 147. i b i d . , p. 45. 148. The Cunard Shipping Line aims to obtain a 15$ return on investment, although companies i n "the Australian and New Zealand trades commonly bargain on the basis of achieving a 10$ return". Gross return on capital for the industry rose from 4.6$ in the f i r s t quarter of 1970 profits to 12.6$ i n the last quarter. However Cunard reported a loss of £ l . 9 million for the year. This loss was totally unexpected as the Company had earned £3*1 million in 1969 after tax. op_. c i t . , The Economist, Feb. 27, 1971. p. 82. 149. O'Loughlin, op., c i t . ,  p. 116.  150. op_. c i t . , ST/ECA/120, United Nations. 1970. p. 17. cf. Bennathan and Walters, op., c i t . , 1969. 151. O'Loughlin, op_. c i t . , 1967. p. 115. 152. OJJ. c i t . , New Scientist, Feb. 13, 1969. p. 336. 153. "Developments in London", Fairplay, July 16, 1970.  pp. 32-33.  154. N. Hacking, "Crane Stands Mostly Idle", The Province, July 22, 1970. p. 16. 155» "New York's Construction Program", Fairplay, Jan. 28, 1971. p. 10. 156. Tobin, OJJ. c i t . , The Westsider, F a l l 1969. p. 18. This seems to be an understated, but often quoted figure. Mr. D.L. Glickman of the PNY (Economics Dept.) on Dec. 5, 1968 noted that he was responsible for forecasts leading to spending by the Port Authority of $150 million, but " i n the short span of five years, we...found that our assumptions were much too pessimistic, that the actual developments...ran far ahead of our expectations, and we were required to undertake a . . . re-evaluation; we were forced to accelerate the port development program...The whole pace of our development has changed...over the past five or six years". Taken from comments made after "Research and Forecasting for Container F a c i l i t i e s " , Lecture by D.L. Glickman to Colloquium on Investment Planning for Ports and Airports, T.D. Heaver, editor, Monograph No. 4., Faculty of Commerce and Business Administration, U . B . C , 1970. pp. 19-32.  157. In 1967, Stig Axelson in The Seaport, Cited in op. c i t . , ST/ECA/120, United Nations. 1970. p. 16. gave details on 25 ports i n Europe, North America, Japan, and Australia. He increased this number to 31 ports in 1968 in "Container F a c i l i t i e s at Ports Throughout the World", Lecture presented before The International Container Symposium, London. 1968. pp. 21-43. For a very concise up-to-date summary of 12 leading V/estern European ports see Canadian Transportation and Distribution Management, October 1970. pp. 35-36. Similarly, Immer, op. c i t . , 1970. presents a summary of the extent of involvement of American steamship companies in containerization of the Atlantic Trades, pp. 174-200. 158. "Shipbuilding and Shipping in Japan Today", Fairplay, June © , 1970. p. 67. 159. "Sea-Land's New Rotterdam Terminal", Fairplay, June 4, 1970. p. 55. 1971.  160. "Oakland to Buy Seatrain Terminal", Fairplay, Jan. 7, p. 27.  161. W.P. Hedden, Mission. Port Development, The American Association of Port Authorities, Washington, D.C. 1967. p. 16. 162. Hacking, op_. c i t . , The Province, July 22, 1970. p. 16. 163. Stig Axelson, "Container F a c i l i t i e s at Ports Throughout the World", International Container Symposium, London. 1968. pp. 21-4"9*. 164. OJJ. c i t . , McKinsey and Company Report, 1967. p. 37. 1968.  165. Axelson, OJJ. c i t . , International Container Symposium, pp. 21-49.  166. N. Hacking, "Matson Line Sails from the Crowd", The Province, Aug. 6, 1970. p. 18. 167. N. Hacking, "Furness Bows Out", The Province, Nov. 28, 1970. p. 26. 168. "Trouble at Britain's Front Door", The Economist, Nov. 7-13, 1970. p. 70. 169. Hacking, op_. c i t . , The Province, July 22, 1970. p. 16. 1968.  170. Axelson, -op_. c i t . , International Container Symposium, pp. 21-49.  171. J . E . Opheim, "Containerization in the Seventies'/, Address to the Proceedings of the Canadian Transportation Research Forum, Vancouver. March 20, 1970. pp. 1-8.  173. T. T h o r b u r n , S u p p l y and Demand f o r W a t e r T r a n s p o r t a t i o n , Stockholm, i960. C i t e d by R.O. G o s s , "Toward a n E c o n o m i c A p p r a i s a l o f P o r t I n v e s t m e n t s " , J . T r a n s p o r t E c o n o m i c s and P o l i c y , S e p t . 1967. pp. 2 4 9 - 2 7 2 . 174. "Portburyt R e a s o n s f o r t h e M i n i s t e r ' s D e c i s i o n Not to A u t h o r i z e t h e C o n s t r u c t i o n o f a New Dock a t P o r t b u r y B r i s t o l ' , H.M.S.O. 1966. S e p t . 1967. pp. 2 4 9 - 2 7 2 . c f . B e n n a t h a n and W a l t e r s , op_. c i t . , 1969.  175. ST/ECA/97, 176.  "The T u r n - a r o u n d Time o f S h i p s United Nations. 1967. op_.  c i t . , McKinsey and  i n Port",  Company R e p o r t ,  oi-  - c:;t-«  1967.  p.  57.  177. One o f f i c i a l o f t h e W a t e r s i d e W o r k e r s F e d e r a t i o n c l a i m e d t h e number o f w a t e r s i d e w o r k e r s w o u l d be " h a l v e d i n a few y e a r s " . A second o f f i c i a l suggested a r e d u c t i o n from "21,000 to 13,000 i n t e n y e a r s " . E x c e r p t s f r o m " R e p o r t on M a r i n e C o n t a i n e r s " , I n t e r n a t i o n a l W o r k e r s F e d e r a t i o n , Dec. I 9 6 6 . C i t e d i n op_. c i t . , S T / E C A / 1 2 0 , U n i t e d N a t i o n s . 1970. p. 51, 178.  O'Loughlin,  OJD. c i t . , p.  114.  179. G o s s , op., c i t . , " T u r n r o u n d o f C a r g o L i n e r s a n d I t s E f f e c t on C o s t s " , J . T r a n s p o r t E c o n o m i c s and P o l i c y , J a n . 1967. pp. 75-89. c f . R.O. Goss, "Turnround and C o s t s o f C o n v e n t i o n a l C a r g o L i n e r s ; U.K. - I n d i a R o u t e " , J . T r a n s p o r t E c o n o m i c s and P o l i c y , J a n . 1970. pp. 55-65. c f . "The T u r n - a r o u n d Time o f S h i p s , i n P o r t " , ojo. c i t . , ST/ECA797, U n i t e d N a t i o n s . I 9 6 7 . 180. Immer, op_. c i t . , 1970. pp. 1 4 9 - 1 5 9 . c f . " C o n t a i n e r s , P a l l e t s , . . . " , op_. c i t . , S T / E C A / 1 2 0 , U n i t e d N a t i o n s . 1970. p. 39. 181. " C o n t a i n e r s , U n i t e d N a t i o n s . 1970.  Pallets,...", p. 22.  op.,  c i t . , ST/ECA/120,  182. J . M e t h v e n , " C o n t a i n e r i z a t i o n i n t h e S e v e n t i e s " , P a n e l D i s c u s s i o n , Proceedings of the Canadian T r a n s p o r t a t i o n R e s e a r c h F o r u m , , V a n c o u v e r . March 20, 1970. pp, 9-11. c f . " C o n t a i n e r s , P a l l e t s , . . . " , op., c i t . , S T / E C A / 1 2 0 , U n i t e d N a t i o n s . 1970. pp. 2 2 = 2 3 . I83. S t u r m e y , op. F o r e c a s t i n g . . . , 1970.  c i t . , I n t e r n a t i o n a l Symposium pp. 35-55*  on  184. "Airships Resurgent", Fairplay, July 23, 1970. p. 35. In a review of Airships Make-Sense, Maxmillian Rynish suggests that in the next 10 to 15 years airships may be used to carry up to 40 ISO van containers at speeds of 100 mph. cf. G.E. Kristensson, "Future of Containerships", Paper presented before the Eastern Canadian Section of the Society of Naval Architects and Marine Engineers. It was suggested in this paper that in 10 to 15 years completely unmanned (Container A i r Bubbles) ships may be crossing the Atlantic as freight transport equipment. Canadian Shipping and Marine Engineering, May 1969. pp. 28-29. 185. Immer, op_. c i t . , 1970. 186. i b i d . ,  pp. 149-150.  p. 152.  187. Immer's data is in agreement with that presented in "Britain's Growing Container T r a f f i c " , Shipping World and Shipbuilder, Jan. 1970. p. 137+ 188. Immer, op_. c i t . , 1970.  p. 152.  189. Clapham, op_. c i t . , Panel Discussion, Vancouver. March 20, 1970. pp. 4. 190. Table 3.19 for Tons per Container for Imports on Vessels of Japan 6. 1970.  191. Clapham, op. c i t . , Panel Discussion, Vancouver. p. 4.  192. "Canada-Japant A Rising Sun on Trade", Canadian Business, Aug. 1970. pp. 20-30. 193. L» Carlyle, G. Payne, P. Senior, J. Shaneman, Personal Interviews. cf. "Fact Sheet" published by the National Harbour's Board describing the Container Terminal (see Appendix V). cf. "The Container Way", Advertising literature, Empire Stevedoring Co. L t d . , Vancouver. A p r i l 1971. cf. Payne, op_. c i t . , Speech to the Institute of Naval Architects and Marine Engineers, Vancouver. A p r i l 23, 1971. 194. J. Cashman, "What Lloyd's Register of Shipping Has to Offer to the Shipping Community S t a t i s t i c a l l y " , Lecture to The International Symposium on Middleterm and Longterm Forecasting for Shipbuilding and Shipping, Stichting Maritieme Research, The Hague. June 16-18, 1970. pp. 130-152. 195. "Maritime Transport of Unitized Cargo", National Academy of Science-National Research Council, Pub. No. 745, Washington, D.C. 1959. p. 28. cf. "Inland and Maritime Transport of Unitized Cargo", National Academy of Science-National Research Council, Pub. No. 1135* Washington, D.C. 1963. p. 55. cf. "Containers, P a l l e t s , . . . " , op_. c i t . , ST/ECA/120, United Nations. 1970. p. 14.  197. C o n s o l i d a t e d F r e i g h t Lines have r e c e n t l y a c q u i r e d a 51$ i n t e r e s t i n the P a c i f i c Far E a s t Line f o r $25 m i l l i o n . On Oct. 1, 1970 the PFEL took over Matson's former Far E a s t r o u t e and the two l a r g e c o n t a i n e r s h i p s under c o n s t r u c t i o n i n the Eastern U.S.A. In June 19711 PFEL took d e l i v e r y of the f i r s t of t h e i r s i x LASH v e s s e l s . These LASH v e s s e l s w i l l have 5°$ more c a p a c i t y than the s h i p s b e i n g r e p l a c e d , and w i l l reduce average voyage time from 70 to 39 days. See " T r u c k e r Takes To Sea And A i r " , and "The Truckers Ocean Going P a r t n e r " , Business Week,  Oct. 3, 1970. pp. 46-48.  198. C o n t a i n e r i s a t i o n I n t e r n a t i o n a l ; 1970 Yearbook, N a t i o n a l Magazine Co. L t d . , London. 1969. p . 2~3Ti 199'  op_. c i t . .  CTC Study,  1970.  p.  180.  200. For a d i s c u s s i o n of the problems encountered by L a b o r ' s r e f u s a l to work c o n t a i n e r s h i p s a t T i l b u r y Docks see Chapter V o f t h i s s t u d y . c f . For a d i s c u s s i o n of the e f f e c t s of p o l i t i c a l i n t e r ference by the U.S. F e d e r a l Maritime Commission and the P o r t of P o r t l a n d see the f o l l o w i n g ; Hacking, op_. c i t . , The P r o v i n c e , Aug. 28, 1970. p . 1. N. H a c k i n g , " C o n t a i n e r s W h i z z i n g " , The P r o v i n c e , Oct. 9» 1970. p . 22. N. Hacking, " U p s t a r t C o n t a i n e r V i c t o r y " , The P r o v i n c e ,  Nov. 4, -1970.  p . 15.  Hacking, op_. c i t . , The P r o v i n c e , Nov. 12, 1970. p . 34. N. Hacking, " C o n t a i n e r C a l l s R e s t o r e d " , The P r o v i n c e , Nov. 1970. p . 25.  26,  201. To a v o i d bankrupcy, the P o r t . o f L i v e r p o o l 'wrote down' about o n e - t h i r d of the c a p i t a l debt of £ 84,000,000 and d e f e r r e d the m a t u r i t y date on e x i s t i n g stock and bonds f o r an a d d i t i o n a l two y e a r s . "Merseyside and N.W.* Confidence R e t u r n i n g " , F a i r p l a y . J a n . 7, 1971. p . 77.  OVERLAND COMMON POINT TARIFFS AND TRAFFIC  OVERLAND COMMON POINT TARIFFS Ocean t a r i f f s ,  published by the steamship lines and  conferences operating on Pacific Ocean trade routes from Australia, New Zealand or Asian countries to the North American West Coast ports are divided into two c l a s s e s » (1) Local rates; (2) Overland Common Point (OCP) or Overland Common Territory Rates. The rate applied to any particular shipment is determined by the origin, destination, and inland carrier for the goods involved, providing that the movement occurs within the guidelines established in the respective ocean and inland carriers' t a r i f f s .  Both of the above mentioned tariffs  ocean carrier tariffs  and they should not be confused with  railroad or motor carrier t a r i f f s , names.  These tariffs  are  which may have similar  apply to shipments through both Canadian  and United States West Coast ports, although the details of the tariffs  are not necessarily identical.  In addition, the ocean and inland carriers absorb the terminal charges when certain conditions are met.  T r a f f i c to OCP areas,  be  t e r r i t o r y must o r i g i n a t e i n  o f f - l o a d e d a t West Coast p o r t s , and  by approved i n l a n d c a r r i e r s to OCP  designated  be  transferred  destinations.  In Canada,  these are  east o f the Manitoba-Saskatchewan border; and  the U.S.,  east of a l i n e formed by the e a s t e r n boundary of  Montana, Wyoming, Utah, and A r i z o n a and between Wyoming and territory). be  Colorado (see Map  in  the common boundary  J.l  f o r OCP  destination  Cargo f o r d e s t i n a t i o n s west of these l i n e s would  c l a s s e d as L o c a l , even though the cargo met  q u a l i f i c a t i o n s f o r the OCP  a l l other  tariff.  While the f i n a l d e s t i n a t i o n i s a n e c e s s a r y requirement, it  i s a l s o n e c e s s a r y to s t a t e the o r i g i n of the cargo.  general,  OCP  west o f the o 30  In  ocean r a t e s a p p l y o n l y to t r a f f i c o r i g i n a t i n g o 170 m e r i d i a n West l o n g i t u d e , and e a s t of the  meridian East longitude.  B a s i c a l l y this includes  the  west of a l i n e drawn through the Hawaiian I s l a n d s and  the  B e r r i n g S t r a i t , and  area  e a s t of a l i n e through Lenningrad,  Istanbul, Alexandria,  and  Johannesburg.  However a l l p o i n t s i n  1 Oceania, except the Hawaiian I s l a n d s , w i l l q u a l i f y , (see Map  3.2  f o r OCP  APPROVED CARRIERS AND  o r i g i n areas) PORTS  To q u a l i f y f o r OCP t h a t cargo b e i n g  r a t e s , three f u r t h e r c o n d i t i o n s  imported must  are  MAP 3.1 LOCAL and OVERLAND COMMON POINT TERRITORY  ONTARli^  QUEBEC  DESTINATIONS  S  PACIFIC f  1  LOCAL^TERRITORY  OVERLAND- COMMON POINT TERRITORY  \  J] Tokyo PusantJ <4.>.?Nagoya Nagasaki «ft Osaka Hong  \ Hawaiian Islands  Colombo Singapo  'Durban  ORIGIN AREAS FOR TRAFFIC- MOVING TO OVERLAND COMMON POINT CENTERS East  30° E  -  1?0° W  /  180° / 170°/ We /  /  (2) at approved ports, and (3) then "must move via and on B i l l s of Lading or Waybills 2  issued by...approved inland carriers". The major Canadian ports involved are Vancouver, New Westminster, Victoria, and Prince Rupert.  Seattle, under a different,  but  similar, agreement also qualifies as an approved port for movement of Canadian OCP cargo. The approved (Canadian) inland carriers are the two transcontinental railways, (CNR, CPR), the two transcontinental airlines (Air Canada and Canadian Pacific A i r ) , and since October 1970," the motor carriers who are members of the Pacific 3 Import Tariff Association (PITA).  However a distinction  exists with the motor carriers moving OCP cargo in "that they do not qualify for the partial absorption of the terminal charges by the steamship lines".  The significance of this  point w i l l be discussed in Chapter IV. The U.S. railways are not included as approved carriers for Canadian cargoes, but cargo w i l l qualify for the OCP rates and Canadian Railway terminal absorptions,  i f i t is moved to  Vancouver for subsequent shipment east by a Canadian railroad. If the traffic is moved east from Seattle via a U.S. railroad, i t w i l l not qualify for any terminal absorptions, but i t does qualify for the OCP (ocean) rates, i f i t s destination is in 5 OCP territory.  UNITED STATES Rate Structure The idea of Overland Common Point rates can probably be traced to the early U.S. Transcontinental Railroad rate structure.  These class and (later) commodity rates have been  modified and altered over the past 70 years, resulting in the current rate structure. point class rates.  Originally a l l rates were point-to-  However, as the r a i l network increased  (in mileage and number of companies), i t became the usual practice (indeed almost necessary) to group 'distance-related* destination cities together in a zone and refer to a l l as Common Points, for freight shipments originating from a single point.  It was not long before the same grouping procedure was  being followed with the points of origin.  Fourth Section Provisions A l l rates, were subject to the long-and-short-haul provisions of the U.S. Transportation Act under which carriers were subject to penalties i f the quoted rates to a more distant point were less than to an intermediate point. Similarly, Section 4 of the Interstate Commerce Commission (ICC) Act forbade carriers charging more for (a) a through  haul, than (b) the sum of the local rates for the aggragate parts of the haul, without ICC permission.  Generally carriers  protected themselves by stating that the lower of (a) or (b) would apply. Class and Commodity Rates The early U.S. Railroad t a r i f f structure was based on 'classes* of goods with the rates related to distance. class had a rating of  'X<fo'  Each  of the ' f i r s t class' t a r i f f ranging  from 35$ to 400$, with ratings also l i s t e d for carload, less7  than-carload, and any-quantity shipments.  As the volume of  particular goods being shipped increased, the use of commodity rates became general. Originally, with only one railroad serving the U.S. West coast (with terminals only at the ports of San Francisco and Oakland), no problems with the terminal rate structure were encountered.  Later more terminals became functional, and not  a l l of these were actually on the seacoast (e.g. San Jose). Rates to a l l termini were kept the same, however because intercoastal water rates were identical regardless of harbor, and the ocean carriers absorbed the Local freight rate from the actual port to the 'inland port*. 9 rates,  8  Railroad commodity  authorized by the ICC between these coastal  'ports'  and eastern points, were less for many years prior to the opening of the Panama Canal, than the rates between these same eastern centers and intermountain c i t i e s .  canned goods, asphaltum, dried fruits, and wine), began moving by water at the expense of the r a i l carriers.  After  hearings, the ICC permitted the installation of low carload rates from Pacific to Atlantic ports in order that the railroad would compete for this traffic on a co-ordinated 10  railroad-inland-and-Gulf-waterway movement. In 1916 (with the Panama Canal closed due to slides) the ICC received petitions that these 4th clause exemptions were no longer justified.  After investigation, the carriers were  ordered to raise rates so that they would be in s t r i c t accordance with the long-and-short haul clause.  Further 4th  11  section expmptions were ordered denied. U.S. Container Rates In 1931 the ICC approved a f l a t 3rd class rate, based on the weight of a container and i t s contents (the minimum weight per container to be 4,000 l b s . ) , "with the provision that the charge should not be less than the highest carload class rate for any article in the container or less than the class rate next lower than the amount specified as an 'any-quantity* rate for any a r t i c l e in the container". 12 In 1932 the ICC suspended its order and ruled (apparently instead) that 'ferry trucks' be permitted to operate. This allowed goods to be transported in locked and sealed trailers or truck bodies on specially constructed flatcars, with a  flat  c h a r g e o f 300  Apparently  these regulations  competitive, ICC  Ruling  and c o n t a i n e r s  o f 1954  *Freight-All-Kinds'  Since  ( p e r cwt) f o r a minimum o f 20,000 l b s . and r a t e s proved  t o be n o n -  faded'from the scene u n t i l the  (discussed  on page 9 5 ) .  Rates  19^0 U . S . r a i l  c a r r i e r s have been p e r m i t t e d  to  q u o t e a n * a l l - f r e i g h t - r a t e * o r T r e i g h t - a l l - k i n d s • (FAK)  15 tariff. the  This  method o f r a t e  m a k i n g was i n t r o d u c e d  r a i l r o a d s t o meet t h e c o m p e t i t i o n  water l i n e s .  The FAK r a t e  involved a  or the container  t o the weight  t o t h e t y p e o f commodity  i n which i t i s being  charge which covers a r t i c l e s  included  o f the motor c a r r i e r and  i s a charge a p p l i e d  of a shipment without any r e f e r e n c e  moved.  the  I ti s  of different descriptions  i n a s i n g l e consignment, without r e q u i r i n g t h a t the  g o o d s be d i s t i n g u i s h e d f r o m one a n o t h e r , n o t t h a t raised  to enable  and lowered i n accordance w i t h  the r e l a t i v e  t h e r a t e be contents o f  shipment. The  'all-freight-rate'  c a r l o a d ** o r p o o l c a r container  became t h e b a s i s  o f t h e mixed  r a t e , a n d h a s now b e e n a p p l i e d  and f u l l - t r u c k r a t e .  1.6  These r a t e s  to the  permit the  shipper  G e n e r a l l y t h e m i x e d c a r r a t e h a s a w o r d i n g s i m i l a r t o R u l e 100 i n t h e CFA-254-B T a r i f f w h i c h s t a t e s 1 "Except as otherwise p r o v i d e d , when a number o f a r t i c l e s f o r w h i c h t h e same o r d i f f e r e n t r a t e s a r e p r o v i d e d i n t h i s t a r i f f , when s h i p p e d i n s t r a i g h t c a r l o a d s , a r e s h i p p e d a t one t i m e b y one c o n s i g n o r . . . .  or  the  freight  them a t a  carload  combination rate being in  forwarder rate,  to  "combine c o n s i g n m e n t s and  even though each element i n 17  i s offered i n small that  of  the  highest  amount",  with  rate applicable  to  ship  the  the  carload  t o any  article  the combination. Daggett n o t e d t h a t because the " a l l - f r e i g h t method o f r a t e m a k i n g was i n t r o d u c e d t o meet t h e c o m p e t i t i o n o f m o t o r a n d w a t e r l i n e s , ( i t ) was e x p e c t e d t h a t r a t e p r a c t i c e s w o u l d be adjusted...enabling a l a r g e r number o f s m a l l s h i p p e r s t o o b t a i n t h e b e n e f i t s of carload rates". 18  While r e t a i l merchants approved, some U.S. FAK  the  motor c a r r i e r s  Government Departments o b j e c t e d  r a t e s ^ "make f o r p o o r u t i l i z a t i o n  t h e y d i s r e g a r d the 19  sound and  on  the  even  grounds  of r a i l r o a d  tested principals  and  cars,  of  that  and...  classif-  ications...". In rate  spite  of  structure  opposition  has  from v a r i o u s  survived,  and  i t has  sources,  the  found ready  FAK  acceptance  20 in  present  container  tariffs  i n b o t h Canada and  However, i t seems e n t i r e l y r e a s o n a b l e volume o f p a r t i c u l a r the  shippers,  commodities being  carriers  l o w e r commodity  and  to  expect  the  t h a t as  shipped i s  consignees w i l l  agree  U.S. the  increased, to use  the  rates.  t o one c o n s i g n e e a n d d e s t i n a t i o n , i n a c a r l o a d , t h e y w i l l be c h a r g e d a t the a c t u a l o r a u t h o r i z e d e s t i m a t e d w e i g h t a t the c a r l o a d commodity r a t e a p p l i c a b l e i n t h i s t a r i f f to each article. The c a r l o a d minimum w e i g h t w i l l be t h e h i g h e s t p r o v i d e d f o r a n y a r t i c l e i n t h e m i x e d c a r l o a d , and any deficit i n t h e w e i g h t w i l l be c h a r g e d f o r a t t h e l o w e s t c a r l o a d r a t e a p p l i c a b l e to any a r t i c l e i n the mixed c a r l o a d , (see Exception). Exception: D e f i c i t i n minimum w e i g h t w i l l be c h a r g e d f o r a t t h e h i g h e s t c a r l o a d r a t e a p p l i c a b l e to any a r t i c l e i n the mixed c a r l o a d when s u c h d e f i c i t e x c e e d s 25$ o f t h e a c t u a l w e i g h t o f the shipment,"  The ICC has been involved for many years in questions relating to the legality of these services, the suitability of 21  the rates, or the status of the carriers.  However, an ICC  order of July 30, 1954 set forth the current legal relations, limitations, and obligations incurred when transporting highway trailers on railroad flatcars.  It was competitive  pressures and this order which f i n a l l y stimulated, and economically permitted, carrier interest in truly co-ordinated transportation of cargo.  To retain t r a f f i c ,  instituted a trailer-on-flatcar  some railroads  (TOFC) service for  less-than-  carload shipments, while others permitted and even encouraged, piggyback service, in place of over-the-road truck movement.  The relevant points contained in the ICC order #293 ICC 93 are: "A railroad may transport i t s own freight in i t s own trailer-onflat-car without holding any authority under Part II of the Actj The motor operation of trailers by railroad i n collection and delivery service at the termini of the r a i l movement i s within the partial exemption o f . . . t h e Act; A railroad under proper tariffs and without holding any authority under Part II, may transport freight-laden trailers of motor common carriers or private carriers by motor vehicle on flat cars, the trailers having a prior and/or subsequent highway movement, but i t may not do so for contract carriers by motor vehicles A railroad engaged in TOFC service under joint-rate arrangements with some motor common carriers may refuse to enter into such arrangements with other motor common carriers since the section of the Act in regard to such arrangements (is)...permissive only: railroads and motor common carriers are connecting carriers where r a i l service is substituted for motor service; Railroads may transport freight-laden trailers on f l a t cars when such trailers have a prior and/or subsequent highway movement in freight-forwarder service; and railroad and freight forwarders may not establish through routes and joint r a t e s . . . covering movement of the freight forwarder's t r a i l e r on railroad f l a t car."  provided by the railroads may have been due to the weather factors as much as to economies of the system.  The result  was that both carriers and shippers "found that co-ordinated service reduced loss and damage claims and expedited less22  than-truckload service". In inaugurating these TOFC services, many railroads were carrying the truck body without the chassis, providing in essence, a container movement.  After the ICC's 1954 order,  a rapid expansion of TOFC traffic occurred, and the water carriers took steps to obtain the advantages of co-ordinated service by converting, and later building, vessels for the transport of van containers and highway t r a i l e r s . CANADA Historical Development It has been the practice for many years to apply a common class rate to a l l points within the triangle formed by Sudbury, Windsor and Montreal, on the one hand, and stations i n Western 23  Canada on the other.  This was a direct result of the  competitive factors affecting the triangle including the shorter mileages by U.S. railroad, and the favored location by which most stations could move goods by any of» (1) water (2) r a i l  (3) rail-water-rail (4) water-rail. Like the U.S. railroad t a r i f f structure, the early Canadian r a i l rates also contained a multiplicity of classes.  Over  time these have become modified, with the result that today most traffic moves on either commodity or agreed charge rates. Intact containers move on either a FAK or a commodity rate. Class Rates From the time of publication of the f i r s t Canadian Freight Classification Tariff in 1884, until 1955* the railway class rate structure has been divided into two parts: (1) the Standard Mileage Class Rates representing the maximum rates that the railroad were permitted to 24 charge,  and adher^JLng closely to the distance  principle of rate making. (2) the Special Class Rates published to. meet "competitive conditions...(and) applied usually from specific large shipping points to general destinations" with rates "on a lower basis than the Standard Mileage Rates".  These were eliminated 25  by the equalized class rates i n 1955« In conjunction with the freight classifications, certain rate territories were established at various times between 1874 and 1955« as follows:  26  There were three main territories comprised  ( 1 ) Maritime - a l l areas east of Diamond Junction and Levis, P.Q. ( 2 ) Eastern - a l l areas between Diamond JunctionLevis, Quebec, and Port Arthur-Fort William (Thunder Bay)-Armstrong, Ontario. (3) Western - a l l areas west of the Lakehead. Commodity Rates  Commodity rates had also been established at various 27  dates i n one of two general typest ( 1 ) mileage commodity rates - which gave rates for various mileage blocks, ( 2 ) specific commodity rates - which applied to certain individual or groups of commodities, to or between particular points. The Western Provinces, particularly Alberta, complained for many years of unequal treatment because of the lower rates generally applicable i n Eastern Canada.  The 1951 Royal  Commission on Transportation recommended a uniform scale of mileage, class rates and mileage commodity rates.  Finally on  March 1 , 1 9 5 5 , "standard mileage class rates, identical throughout Canada except for the Maritimes, came into effect, 28 together with a new freight classification". However "there were exceptions to equalization such as joint international ratest import and export rates related to rates through U.S. ports; competitive rates; agreed charges; rates within the Maritimes and statutory grain rates resulting from the Crow's Nest Pass Act". 29  the One and One-Third Rule which provided that "the rates to and from points intermediate to British Columbia points should not exceed by more than one-third the transcontinental 30  competitive rates to the more distant points".  The  competitive rates had been established to meet competition (particularly water), and the railroad evaded this rule by leaving Alberta rates unchanged, cancelling many transcontinental competitive rates to British Columbia, and publishing agreed charges. Import and Export Rates and Tariffs It has been Canadian Government policy for many years that import rates must "be such as w i l l allow business to move from the seaboard on a reasonable basis, but...not be so low as to create a preferred basis for...foreign products in 31  competition.•.with Canadian produced goods".  At the same  time export rates must allow Canadian goods to compete in foreign markets.  In accordance with this policy, commodity  and class rates have been established for both import and export shipments.  These class rates differ from domestic  class rates in that many of the charges for services performed at the point of entry, such as loading or unloading, switching 32  and wharfage are incorporated into the t a r i f f  structure.-'  This situation applies to the rates on traffic moving to OCP destinations through Vancouver, where the railways have  3  3  The import/export commodity rates,  applying to those  goods moving in substantial volume, have been established on a basis which reflectst (1) the rates and tariffs  in effect in contiguous U.S.  territory, (2) the combination of r a i l and ocean rates on goods moved via the Panama Canal. 3^ The terms of the Japan-West Canada Freight Conference Tariff (for extracts of Tariff see Appendix VI), are supposed to prohibit the movement of Canadian destination OCP traffic through the Port of Seattle, i f i t is to be forwarded via the U.S. r a i l lines ( i . e . Burlington Northern).  It is also  supposed to be prohibitive by cost because no carrierabsorption of terminal charges apply on traffic so moving. In addition, documentation time and customs procedures do not 35 encourage this path of freight forwarding. CANADIAN OCP TRAFFIC 36 HISTORY OF OCP RATES The history of OCP traffic in Canada begins near the turn of the century.  At that time the Canadian Pacific  Railway was operating steamships on the trade route between the Orient and Vancouver, and established a consultation  Japan, whose members were the steamship lines that operated out of the Port of Vancouver.  This resulted in the steamship lines  establishing an ocean rate on cargo to Eastern Canada which, when combined with the Railway Tariffs, was competitive with that charged by vessels using the Panama Canal to New York, Halifax, and/or Montreal.  The agreement provided f-or the  establishment of a lower ocean freight rate between the Orient and Vancouver for cargo moving to a l l points east of the Manitoba-Saskatchewan border.  In return the railways agreed  to a reduction i n their normal rate level between Vancouver and the eastern terminals of Toronto and Montreal. These were not and are not 'through* rates; rather they are combination rates.  The combination of the OCP rates and  the railway rates "were and are significant to any importer in eastern Canada, because they...provide...a dollar and cents  37 basis for...(selecting)  one mode of transport over another",  for imported commodities.  It was noted in The Queen v. J.W.  Mills & Son Ltd. et. a l . thatx "an importer had...and s t i l l has a meaningful choice... of taking advantage of these two rates and...(importing his) commodities from the...designated areas...to Vancouver and then to...Toronto or Montreal by r a i l . . . or...(having them) delivered to him by ship to New York and by truck to Toronto or Montreal, o r . . . b y ship directly to Montreal (or) Toronto...(He) also had the option of using a i r transport either directly from the Orient or from Vancouver". 38 The result is that when OCP ' o r i g i n ' freight is consigned to an OCP destination, the ocean rate w i l l be reduced by $X per revenue ton.  39  This i s a commodity t a r i f f , not a Freight-All-  Kinds, and the variance from the Local rate on the same commodity can range from nothing to as much as $20.00 per 40 cubic feet, depending on the commodity, see Table 3.1 or Appendix VII)  (for some examples  The average reduction would be  in the order of $5.00 per revenue ton for traffic destined OCP, when compared with Local rates.  Although there does not appear  to be a definite schedule for the variances, (presumably) the conference steamship lines have determined the landed cost in Toronto via the Panama Canal and have adjusted their rates accordingly. The Judge i n the Vancouver poolcar operators case noted 40 that the "eastern Canada rate was about 10 per cent less" than the rates on commodities "destined for Vancouver only, or, for transportation by non-rail f a c i l i t i e s . . . f o r points west of the SaskatchewanManitoba border, or for transportation by non-rail f a c i l i t i e s to inland points". 41 An example would be the rate variance granted on dry goods. The commodity rate to Local territory is approximately $42 per revenue ton, but the OCP rate would be about $4 per revenue 42 ton less.  EXAMPLES OF COMMODITY RATES CHARGED UNDER THE JAPAN-WEST CANADA FREIGHT CONFERENCE TARIFF No. 2 ITEM  LOCAL RATE  OCP RATE  $  $  Typewritersi Value less than $1300.00/revenue ton more " 1300.00/ " " Water turbines:  42.75 55.00 32.50  39.00* 51.00* 32.50  Cameras: Value less than $500.00/revenue ton more " 500.00/ " "  49.25* 64.75*  46.00* 55.25*  Linen Piece Goods and Yarn:  56.00*  50.50*  48.50*  40.75*  Ramie Piece Goods and Yarn:  48.50*  42.75*  Rayon Fiber:  30.00*  28.75*  Nylon and Other Synthetic Fiber: Piece Goods and Yarn  * These commodities are eligible for a $3.00 reduction when shiped in unitized shipments, subject to Rule 40 of the t a r i f f . Source:  Japan-West Canada Freight Conference Tariff No. 2. Effective October 1, 1970. (See Appendix VI) pp. 237, 251, 303, 304.  There i s , in addition, one more inducement provided by the ocean and r a i l carriers to encourage importers to use the combination of the OCP ocean and preferential r a i l rates through Vancouver.  In 1925, the Canadian railroads (CPR,CNR)  followed the pattern established earlier by the American railroads, and signed a rail-water agreement with the steamship lines in which the carriers consented to absorb the terminal charges of handling, wharfage and carloading that would normally be assessed by the steamship companies, docks, and railroad companies.  The original agreement, in effect from  1925 to October 1, 1970, provided that the wharfage charges would be shared 5 0 $ by each of the steamship and railwaycompanies, while the steamship lines would absorb 100$ of the vessel unloading handling charges, and the railways would absorb 100$ of the r a i l carloading charges.  This absorption  practice, of course, would only apply to cargo coming from OCP origin areas which moved through Pacific Coast ports and did, in fact, move to OCP destinations on the Canadian railways (the ^approved' inland carriers). On October 1, 1970, this agreement was altered.  The  steamship lines, including both members of the Japan-West Canada Freight Conference and some non-conference lines, agreed to absorb 6 0 $ of the terminal charges v/ith the approved inland carriers ( i . e . CNR,CPR) absorbing 40$ of the terminal charges.  More specifically, on "freight which is drayed to  portion of wharfage, handling and car loading charges up to a maximum of $11.38 per 2,000 l b s . " .  43  44  increased to $11.92 per 2,000 lbs.)  (This has since been Included i n this  figure is a carloading charge which the r a i l carriers w i l l absorb up to a maximum of $9.00 per 2,000 l b s . , and this charge w i l l be absorbed even when the freight has been  ^5 discharged at the Port of Seattle,  i f i t s subsequent move-  ment is by the Canadian railways to Eastern Canada. For many years the Canadian truckers have sought to obtain arrangements with the Shipping Conference which would be identical to those enjoyed by the railways.  "Apparently  in the United States the truckers have (had) the same OCP 46  privileges" as the railways  for a number of years.  Until  the October 1970 agreement, these privileges were not forthcoming, even though this 'discrimination' had been cited in 47  court.  This meant that cargo coming from OCP origin areas,  imported via West Coast ports, and moving to OCP destinations would not qualify for the lower ocean rates i f i t was moved on trucks.  Neither did i t qualify for any absorption of terminal  charges by the steamship lines.  On October 1, 1970 however,  motor carriers who were members of the Pacific Import Tariff Association (PITA), were approved as inland carriers for OCP cargo. As a result, cargo now moved by truck w i l l qualify for the lower ocean rate. Perhaps equally important, the revised agreement did not alter the absorption practices; the motor carriers must s t i l l absorb 100$ of the terminal charges.  48  These practices place the truck lines at a disadvantage in relation to the railroads when s o l i c i t i n g OCP t r a f f i c .  The  ocean ' l e g ' of the transport journey has the same 'price* into Vancouver, whether the cargo subsequently moves inland by r a i l or by truck.  But because of the higher percentage of the  terminal charges that are absorbed by the truckers, the inland motor carrier rate must be higher proportionally.  These  factors are further compounded when considering the movement of container t r a f f i c , because a l l inland carriers encounter a problem in u t i l i z i n g their weight and volume capacity properly, when moving cargo i n intact containers.  It is estimated that  the cost (per hundredweight) to move containerized cargo by truck may be 75$ greater than to move the same cargo (after destuffing)  in a truck t r a i l e r .  CANADIAN RAILWAY IMPORT TARIFFS The currently applicable Canadian Import Rail Tariffs to Eastern Canadian destinations for cargo moving in intact containers are« (1) CFA-263, for traffic imported through Vancouver and (2) CFA-589-A, for traffic moving through Atlantic Coast ports.  (This latter traffic does not, of course,  •  qualify for either OCP rates or the terminal absorptions.) Since the majority of 'actual* OCP traffic moves from freight forwarders premises in Vancouver, either in railway poolcars,  CFA-38-L.  The r a i l tariffs discussed below are a l l classed  as "Competitive Rates" which means they have been "issued to meet motor truck and/or water competition and w i l l not apply 50  from or to intermediate points'?.  CFA-2 54-B Canadian Freight Association Eastbound Import Tariff No. 254-B for Import Carload Commodity Ratesj from Vancouver and New Westminster to stations in Canada east of Armstrong and ThunderBay, Ontario^,  J. l o is the t a r i f f commonly referred  to as the Poolcar Tariff, and was agreed to and published jointly by the CNR and CPR.  While the CFA-70-C (see below)  t a r i f f is s t i l l i n effect, i t is used relatively seldom. (It is s t i l l used for American shipments, or for points not named in CFA-254-B.)  If an importer had sufficient tonnage  to occupy the minimum weights specified in the various  'items'  he could order a car from the railroad and u t i l i z e CFA-254-B himself.  If his tonnage was insufficient,  the importer most  l i k e l y would engage a freight forwarder, who would then consolidate this individual's shipment with that of other consignees, (who also had less than the minimum tonnage), 51  forwarding to eastern Canadian destinations.  for  CFA-263  Canadian Freight Association Import and Export Freight Tariff 263 is for commodities in "containers owned by other than railway or highway common carriers", with rates for empty containers.  Importation must be from Vancouver to stations in  Canada, and exportation from stations i n Canada through Vancouver, with application of rates and charges "only to or from piers, wharves, or ocean carriers* f a c i l i t i e s at Vancouver, 52  B.C.".  As a result containers imported via port  facilities  in Seattle do not qualify for the rates shown in CFA-263, CFA-38-L Canadian Freight Association Tariff 38-L ; • • > . a p p l i e s to motor carrier owned trailers being moved piggyback across Canada.  This t a r i f f applies only to truck t r a i l e r freight,  does not apply to containerized freight.  Therefore containers  moved piggyback on truck chassis do not qualify for this tariff.  However a recent Supplement to CFA-263 permits  containers on chassis owned by the ocean carrier to be moved 53  eastward from Vancouver under that  it  tariff.  CFA-70-C Canadian Freight Association Eastbound Import Freight Tariff 70-C is for commodities in mixed carloads.  The f i r s t  p u b l i c a t i o n by  the  Canadian F r e i g h t A s s o c i a t i o n  of  an  5^ ammendment i n 1955 permitted into  a  losing  the  consolidation  single r a i l  car,  o f two  because  t h i s b u s i n e s s to the  the volume of more t h a n a Orient  to t h e i r T a r i f f  traffic  small  70-A".  the  r a i l r o a d s were  of t o t a l  could  The  55  poolcar  56  tariffs, and  r a t e s , as  juncture  for a  had  While  "never been  t o Canada f r o m  to eastern so  that  t h e i r rates  the  lower than the  c e r t a i n type of  and  railways  f o r LCL  CL  the  for  Canada,  e s t a b l i s h e d under the  were c o n s i d e r a b l y  " a t one  reportedly  purported reason  M o n t r e a l , was  r e t a i n , without reduction,  shipments.  rates  imports  e s t a b l i s h m e n t of a mixed c a r l o a d r a t e t o T o r o n t o and  shipments  Panama C a n a l - b o u n d s h i p s .  moving through Vancouver, the  especially  rates  o r more commodity  moved a t p o o l c a r  portion"  These  and  CL  original  o r LCL  rates,  s h i p m e n t was  just  57 a  little  more t h a n one  h a l f of  the  LCL  was  t h a t f o r cargo which q u a l i f i e d  and  s t e a m s h i p l i n e s made t h e i r r e g u l a r  c h a r g e s , and of the  great  rail  majority  CFA-254-B as  f o r OCP  The  tariffs,  absorption  rate.  the  While  of poolcar  described  terminal  above.  absorption,  CFA-70-C has s h i p m e n t s now  not  result the  of  small-shipment consignee received  lower ocean r a t e ,  preferential the  the  rate".  terminal  the and  been  move on  railways  benefit the abolished,  tariff  Canadian F r e i g h t A s s o c i a t i o n 589-A a p p l i e s rail  t o commodities  Container  i n containers  o r h i g h w a y common c a r r i e r s  Freight  owned b y o t h e r  This  considered  tariff  is  considered  imported  58  ports". currently  It  that  t o be " a n o r i g i n  o r ecported  enters with  this  OCP  reason  discussion.  "origin*  these Eastern designation,  cargo w i l l that  should  be  as Vancouver  or destination f o r containers  volume o f b r e a k - b u l k  Canada t h r o u g h  containerized  i s f o rthis  container  tariff  t h r o u g h one o f t h e . . . e a s t e r n  A considerable  from n a t i o n s are  ports  than  moving f r o m t h e p o r t s o f  Quebec, M o n t r e a l , S t . J o h n , o r H a l i f a x . as an E a s t e r n  Tariff  Canadian  traffic Canadian  ports  and i n d i c a t i o n s  do t h e same i n t h e f u t u r e .  CFA-589-A h a s b e e n i n c l u d e d i n  Ill  TYPE OF CARGO Basically OCP tariffs  relate to imported break-bulk cargo  which a l l moves on a commodity rate on the high seas, regardless of whether i t is loose, palletized, or containerized. is nothing inherent in the OCP rate which applies  There  specifically  or generally to container movement, although a reduction is given for 'unitization' (palletization) of many commodities. After i t has been discharged however, cargo moving intact in the originating container to any inland destination, whether Local or OCP, may move on a class, Freight-All-Kinds (FAK), or commodity t a r i f f , rate reductions,  and intact containers do receive some  (see Chapter IV)  Theoretically the intermodal movement of cargo in containers to either Local or OCP territory, should follow once the container has been off-loaded at the West Coast port. Since the current containerized OCP traffic is  essentially  the same as has always moved in break-bulk form, this should apply to consumer goods of the following classesJ (1) high value seasonal goods, e.g. Christmas lights,  59 Easter baskets, Halloween costumes; (2) goods of high individual piece value, e.g. tape 60  recorders, stereos, and T . V . ' s i (3) perishable goods, e.g. biscuits, onions, and fresh f r u i t such as apples or Japanese oranges;  (4) dense commodities, e.g. snowmobile and motorcycle engines, cement, b a l l bearings, and some auto parts. With these items transit time is very valuable, and a late arrival could mean that the seasonal market had passed or that spoilage had begun.  It also permits the consignee to maintain  smaller stock inventories because 'outages* can be more quickly replaced.  The time period from order placement to  delivery used to be 6 weeks? even with only containerized ocean 61 delivery, this time has now been halved. CONTAINERIZABLE EXPORT CARGOES As this study deals with Overland Common Point Tariffs and traffic,  only limited l y reference w i l l be made to export  cargoes.  However i t must be noted that the major portions of  such cargoes through B.C. ports are the 'bulk* commodities of grain, coal, sulfur, potash, pulp, lumber, and metallic ores. Generally speaking these items are not suitable for containerization, simply because other, more efficient, means have 62 been developed for their transfer. An analysis of the exports from both Eastern and Western Canadian ports demonstrates that significant tonnages of •containerizable' cargo do exist for most nations in OCP ' o r i g i n ' territory, i f their export in containers is deemed desirable,  (see Table 3.2)  This does not, of course, solve  the problems of imbalanced or poorly co-ordinated shipping schedules.  Ignoring the bulk commodities, exports of cont-  MAJOR EXPORT CARGOES FROM CANADA TO SELECTED "OCP ORIGIN" COUNTRIES BY CANADIAN REGION 1966 to 1968 Origin Nation  Containerizable Commodities From Atlantic and From British Great Lakes Ports Columbia Ports  Noncontainerizable Bulk Commodities  Australia  Newsprint, steel products,asbestos  Lumber, pulp, asbestos  Barley, flax, sulfur, potash  Ceylon  Newsprint, asbestos  Wheat flour,newsprint, machinery  Mainland China  Scrap  Zinc and alloys, lumber  F i j i and Oceania  Newsprint,autos  Lumber, pDywood, wheat flour  Hong Kong  Newsprint,general cargo, plastics  Wheat flour,news- Wheat, sulfur print,aluminum  India  Newsprint,wheat flour, zinc  Fertilizer,newsprint,lead,zinc  Wheat, sulfur, potash  Japan  Zinc, newsprint, asbestos,iron and scrap  Lumber,aluminum, pulp,livestock feeds, steel  Cereals,soybeans, flax,rape,logs, coal,copper,iron  Korea  Asbestos, newsprint, chemicals  Zinc,fertilizer, lumber  Cereals,sulfur, flax,logs,po tash  New  Aluminum,steel products,asbestos  Aluminum,fertilizer,lumber  Sulfur,potash  Pakistan  Fertilizer,pulp, animal o i l  Fertilizer,pulp, zinc,animal o i l  Wheat, sulfur  Philippines  Newsprint, pulp, autos  Malt,pulp,paper, newsprint  Cereals,sulfur, potash  Taiwan  Scrap, asbestos, bricks  Plastics, pulp, f e r t i l i z e r , zinc  Wheat,rape,soybeans, copper  Zealand  Sources  Wheat  "Shipping Report". Part 1. D.B.S. # 54-202. cf. Appendix VIII,  BY CANADIAN PORT REGION 1966 - 1968 (Thousands of Tons) COUNTRY  ATLANTIC AND GREAT LAKES PORTS  PACIFIC COAST REGION PORTS  1966  1967  1968  1966  1967  1968  JAPAN  254.1  298,2  525.5  1668.2  1995.2  1957.4  AUSTRALIA  198.2  230.9  252.6  319.2  347.3  421.5  INDIA  91.0  131.2  47.0  100.7  178.0  173.0  NEW ZEALAND  30.7  26.8  32.3  145.1  105.3  108.0  PHILIPPINES  34.1  37.8  35.2  22.4  34.1  37.7  HONG KONG  22.3  23.6  28.9  28.9  32.3  30.1  2.8  0.9  22.5  63.I  37.8  39.7  TAIWAN  Source«  , Shipping Report. Part 1. 1966, 1967, 1968.  D.B.S, # 54-202.  ainerizable commodities (see Table 3.3 for tonnages of major containerizable exports) in 1968 amounted to almost 2 million tons to Japan from B.C. ports and another 500,000 tons from Atlantic and Great Lakes ports.  Containerizable exports to  Australia totaled 420,000 tons from B.C. ports and 250,000 from Eastern ports.  Exports to India were 173f000 and 47,000  tons respectively while New Zealand imported 140,000 tons of Canadian containerizable goods, THE PORT OF VANCOUVER Importance The overwhelming dominance of Vancouver as the major B.C. port was demonstrated by Robinson in his analysis of port 63  linked cargo flows through 30 B.C. harbors.  Table 3.4  compares the Port of Vancouver to a l l British Columbia ports on the basis of total cargo imports and general cargo unloaded from 1965 to 1970 . :  It shows that between one - .half and one-  third of a l l cargo discharged at B.C. ports is off-loaded in the Port of Vancouver,  More important from the viewpoint of  this study, approximately one-third of a l l imported general cargo is discharged in Vancouver,  FOR  TOTAL INTERNATIONAL SEABORNE AND FOR GENERAL CARGO UNLOADED ( Thousands o f S h o r t  Tons)  1965 - 1970  ALL BRITISH COLUMBIA PORTS  TOTAL CARGO DEEP SEA GENERAL CARGO  PORT OF VANCOUVER  TOTAL CARGO DEEP SEA GENERAL CARGO Source:  1965  1967  1968  1969  1970  3.938  3,844  4-,235  4,511  3,315  n/a  2,225  2,810  2,625  n/a  1,816  1,972  1,777  2,278  1,849  1,074*  1,191'  742  806  820  w e i g h t o r measure  tons  S h i p p i n g S t a t i s t i c s . ( M o n t h l y ) DBS. # 54-002. O t t a w a . 1967-1970 S h i p p i n g R e p o r t . DBS. # 54-202. P a r t I . O t t a w a . 1965 - 1968. N a t i o n a l H a r b o u r s B o a r d . V a n c o u v e r , B.C.  THROUGH THE PORT OF VANCOUVER  1962 - 1970 (Thousands o f S h o r t Tons)  1962 IMPORTS  1,020  EXPORTS  6,458  j Imports ^ Exports  16$  Source*  1963  1964  1965  1966  1967  1968  1969  916  1.171  1,816  1,869  1,972  1,777  2,278  1,849  11,153  12,113  11,240  16,931  , 18$  15*  8,482  10,321  9»^78  10,703  11$  12$  19$  17$  N a t i o n a l Harbours Board, Vancouver, B.C.  20$  1970  11$  As shown i n Table 3«5» "the majority of cargo moving through the Port of Vancouver i s export-bound. i n 1970 was the greatest on record.  Total volume  Exports were more than  double the tonnage of 1963, with the largest single year-toyear growth occurring i n 1970.  Import tonnages have also  r i s e n s i g n i f i c a n t l y since 1963, but no consistent growth has been evident since 1965* Vancouver's dominance of a l l B.C. ports i s furtheri l l u s t r a t e d i n tonnage terms i n a comparison of the Ports of Vancouver and New Westminster (the two busiest Canadian West Coast ports) by quarterly data f o r the years 1967-1970 on a basis of 'O.ther' cargo unloaded.  (see Table 3.6)  The data  shows that Vancouver handles from 7 to 10 times the tonnage of i t s nearest competitor annually. However, as shown i n Table 3»7 s i g n i f i c a n t portions (up to 50$) of 'general cargo' are r e a l l y 'bulk* commodities such as asbestos, bauxite,•salt, and sugar.  While p h y s i c a l l y  containerizable, these are not prime container cargo.  Perhaps  i t i s s i g n i f i c a n t to note that the volume of general cargo imports classed as 'Other' (which can be economically containerized) has not shown any s i g n i f i c a n t growth i n the l a s t 3 years.  This may well be a r e f l e c t i o n of the increase i n  containerized imports moving through the Port of Seattle, or of diversion to Eastern Canadian ports.  SeaLand estimated that by  l a t e 1971, t h e i r company alone had diverted approximately  TONNAGE OF A L L INTERNATIONAL SEABORNE CARGO CLASSED AS "OTHER  COMMODITIES"  UNLOADED BY MAJOR PORT IN B. C. 1967 - 1970 (Quarterly) (Thousands o f S h o r t PORT of IMPORT  First Quarter  Vancouver New W e s t minster  Second Quarter  Tons)  Third Quarter  Fourth Quarter  Yearly Total  1262 329.8  369.0  345.4  519.6  1563.8  41.2  29.0  41.5  40.6  152.3  1968 Vancouver New Westminster  343.0  376.9  720.9  514.4  1955.3  5^.3  37.6  52.0  53.5  197.^  19_6£ Vancouver New Westminster.'  392.2  475.6  379.8  352.7  1600.2  87.2  72.4  40.5  47.6  247.7  1970 Vancouver New Westminster  Source:  367.9  274.1  295.3  449.0  1386.3  45.8  52.4  37.5  20.9  156.6  S h i p p i n g S t a t i s t i c s . (Monthly) DBS. #54-002. Queens P r i n t e r .  1967, 1968. 1969, 1970.  Ottawa.  THOUSANDS OF SHORT TONS OF GENERAL CARGO UNLOADED A T B R I T I S H COLUMBIA PORTS BY SELECTED MAJOR COMMODITY  GROUP  1967 - 1970 (Quarterly)  Commodity Group  First Quarter  Second Quarter  Third Quarter  Fourth Quarter  Yearly Total  16.3 116.7 79.8 34.4 312.3  25.6 97.2 81.2 38.9 351.9  84.7 431.8 305.2 124.4 1273.9  30.3 119.7 91.2 31.8 649.0  37.1 119.3 85.9 11.8 454.7  125.2 521.1 357.8 92.4 1714.8  44.6 170.6 73.2 16.8 344.7  27.1 122.8 76.3 16.8 309.5  135.7 611.1 354.6 66.8 1461.9  25.3 21.5 148.8 17.1 275.9  36.0 54.2 94.7 67.6 292.6  147.5 395.9 350.0 111.7 1144.7  1967 Asbestos Bauxite Salt Sugar Other  20.2 125.1 68.0 3^.7 240.8  22.6 92.9 76.2 16.4 368.9 1968  Asbestos Bauxite Salt Sugar Other  24.4 206.9 86.8 32.0 320.8  33-5 75.3 93.9 16.8 290.4 1969  Asbestos Bauxite Salt Sugar Other  36.0 221.4 88.6 28.5 364.1  28.0 96.3 116.5 4.7 443.5 1970  Asbestos Bauxite Salt Sugar Other  Source:  35.9 192.3 106.5 16.7 289.4  50.3 127.'9. 10.3 286.8  S h i p p i n g S t a t i s t i c s . (Monthly) International Seaborne S h i p p i n g . DBS. # 54-002. Queens P r i n t e r . O t t a w a . 1967, 1968, 1969, 1970.  to  the Port of Seattle.  These 3 5 - f o o t  via  Burlington Northern Railroad 64 disposition.  with  the estimate that  moved  t o Vancouver f o r subsequent  VOLUME OF OCP CARGO MOVED TO EASTERN  No d a t a i s a v a i l a b l e  c o n t a i n e r s then  CANADA  but p r a c t i c t i o n e r s generally  t h e v o l u m e o f OCP t r a f f i c  agreed  through 65  Vancouver would t o t a l also  that  about  2 5 0 , 0 0 0 tons p e r year.  Note  one e s t i m a t e o f t h e c u r r e n t v o l u m e o f J a p a n e s e  cargo  m o v i n g t o E a s t e r n C a n a d a v i a t h e Panama C a n a l i s a l s o  66 250,000 It  tons a n n u a l l y . i s estimated t h a t approximately 7 0 $ o f the cargo  imported  from  'OCP o r i g i n *  n a t i o n s moves t o OCP  destinations,  67  primarily  Toronto  and Montreal.  Yasuyuki  Mizuno,  Chairman  o f t h e Japan C o n t a i n e r A s s o c i a t i o n n o t e d t h a t 4 4 0 , 0 0 0 t o n s o f c o n t a i n e r i z a b l e c a r g o moved f r o m J a p a n t o Canada i n 1 9 6 9 * o f 68  w h i c h 2 5 3 , 0 0 0 t o n s was d e s t i n e d f o r i n l a n d p o i n t s . One f r e i g h t s a l e s manager e s t i m a t e d t h a t t h e 1 9 7 0 v o l u m e o f J a p a n 69  Vancouver-Toronto (If from  a boxcar  holds  the Orient,  (see Table  c a r g o was a p p r o x i m a t e l y 8 , 0 0 0 b o x c a r s . the e q u i v a l e n t o f 3 ? c o n t a i n e r s o f cargo,  which weigh an average  3 . 2 1 ) t h e tonnage  1 7 5 , 0 0 0 and 2 0 0 , 0 0 0  tons.)  involved  o f 6 i tons  each,  w o u l d be b e t w e e n  E a c h r a i l w a y moves a p p r o x i m a t e l y t h r e e - e i g h t h s volume,  w i t h the  t r u c k f i r m s h a n d l i n g 20$ o f t h e  of  traffic,  w h i l e the American r a i l r o a d s handle the remainder. three-quarters  of  t h e OCP  70  Approximately  the p o o l c a r s a r e l o a d e d by V a n c o u v e r  freight  71 forwarder  firms.  Because of  the unused space c a p a c i t y  most 2 0 - f o o t v a n c o n t a i n e r s t h a t m u s t be c h a r g e d ) , the  long distance  Neither are  CFA-38-L i s a p i g g y b a c k container t a r i f f . movement,  643 t o n s  2,156  tons.  this  traffic  truck t a r i f f ,  by r a i l , not a  t o engage i n by r o a d . because  piggyback  of containers  13 t o n s p e r c a r l o a d ) ,  t o I63 c a r l o a d s ;  carrier.)  weighing  moved i n  the  W h i l e the Western volume this s t i l l  o n l y amounted  volume i s v i r t u a l l y n o n - e x i s t a n t . of containers,  averaging  In  to  T h i s volume i n c r e a s e d by a f a c t o r  t h e w e i g h t p e r c a r l o a d r i s i n g t o 36 t o n s .  a s s u m e d t h a t a l l W e s t e r n movements  1969,  28 t o n s p e r  carload  of 4 i n This  s u p e r i o r equipment u t i l i z a t i o n i n E a s t e r n Canada, is  container  must be owned b y t h e o c e a n  T a b l e 3*8).  rates  Compared w i t h t h e v o l u m e i n t h e E a s t e r n R e g i o n ,  2,548 c a r l o a d s were moved.  containers  moved p i g g y b a c k  o n l y 53 c a r l o a d s  (and averaging  t r i p l e d i n 1970  reluctant  (CFA-263 d o e s p e r m i t p i g g y b a c k  Western Region (see  with  consignees are  but the c h a s s i s  D u r i n g 1969  ( w i t h the r e s u l t i n g h i g h  movement o f i n t a c t  containers  of a t r u c k moving  c o n s i s t e d of  1970  indicates  even i f  it  containers  on 4 6 - f o o t r a i l c a r s a n d a l l E a s t e r n movement was o n 8 5 - f o o t  TABLE 3.8 CONTAINER ON FLAT CAR MOVEMENT EASTERN AND WESTERN RAIL REGIONS 1969 - 1970  1969  Eastern Cars Tons  Western Cars Tons  J anuary February  77 107  1236 1943  March April  116 100  2039 2309  MayJune  215 216  4133 5223  2 2  July August  169  241  3443 5298  1 13  September October  293 333  10511 11367  November December  348  TOTAL  254"8  333  Source 1  1970  Eastern Cars Tons  Western Cars Tons  482 708  13893 16939  11  104  857  840  26918 24874  12 33  448  30  72  990 911  32843 33157  11. 6  87 72  15  187  855 752  33967 27196  12 13  55 58  9 10  79 91  772 963  38357 43201  12 20  174 438  11305  10497  9 6  79 74  948  968  39291 38585  9 10  204  69302  53  54"3  367221  163  2156"  1  16  10WZ  Monthly Railway Carloadings. DBS. # 52-001. Queens Printer. Ottawa. 1969? 1970.  14  129 51  336  cars.  Neither assumption is entirely valid, although the  tendency was for these types of container movements. Table 3 . 9 indicates the much greater significance of poolcar traffic in both regions. Eastern Region poolcar traffic  A modest 3.8$ increase in  (from 58,000 cars in I969 to  60,000 cars in 1970) is shown, accompanied by a 16.5$ increase in tonnage moved as the weight of cargo per carload increased from 14 to 1 6 tons.  During the same two year period Western  poolcar movements declined by 18$ (from 23,100 to 18,800 cars), with no significant change in the weight per carload. The conclusions derived from the above data and Tables is that OCP cargo accounts for less than one-third of current Western r a i l t r a f f i c , and that the diversion of major quantities of this total OCP volume to trucks, or to Seattle, or to Eastern ports could easily result.  A l l necessary  components presently exist i f such diversion were deemed desirable. CONTAINERIZABLE CARGO VOLUME 72  Several studies,  (see below), have been undertaken in  the past three or four years in an attempt to estimate the probable volume of container units that w i l l be passing through the Port of Vancouver.  In almost every case the imput  commodity data was two or more years old.  This is most  unfortunate because the decisions of 'when and how far' to containerize are being made on outdated information.  In an  EASTERN AND WESTERN RAIL REGIONS  Cars  Eastern  1969  Tons  1969'-1970  Western Cars Tons  Eastern Cars Tons  1970 Cars  Western  Tons  January February  4561 5323  66300 76900  1463 1703  18400 20300  ^385 5218  69000 86000  1732 1184  21500 12400  March April  4785 4080  66100 55500  2138 1654  28300 20400  5204 5222  85500 88900  1508 1460  16900 16400  May... June  5165 4824  75000 67700  1782 1811  22300 22400  4728 4954  79700 82100  1231 1736  13900 21500  July August  4740 4863  698OO 89000  2185 2157  27500 26500  4823 4944  82800 81900  1608 1459  20600 19700  September October  5257 5697  72200 79^00  2110 1893  26000 24500  5411 5797  85200 92600  1873 1777  27400 25600  November December  4656 4056  65400 58100  2120 1957  26600 23700  5172 4329  81200 66300  1596 1594  21500 21300  TOTAL 58007  841300  23073  286800  60187  981200  18758  238700  Source*  Monthly Railway Carloadings. DBS. # 52-001. Queens Printer. Ottawa. 1969, 1970. ro  Land Bridge Many of the proponents of a large container terminal f a c i l i t y i n the Port of Vancouver have pointed to the large volume of traffic that is moving by the Panama Canal to Eastern Canada and Europe.  The visionaries can see an  extensive land bridge u t i l i z i n g the trans-continental r a i l system for both a pure-land bridge and a modified or partialbridge cargo movement.  Both types of cargo movement do 73  qualify for the OCP rates.  Currently, a North American  land bridge for Japan-Europe traffic does not appear economically viable.  The modified land bridge concept of moving cargo to  the Great Lakes Region does appear feasible, but this is almost identaical with OCP t r a f f i c . For comparative purposes, Table 3*10 indicates the potential market for container traffic using both a pure portto-port land bridge between Japan and Europe, and an import/ export land bridge providing a vessel-to-Great Lakes movement. Because the system apparently lacks sufficient incentives, and containerized vessels are planned for the Japan-Eastern North America ports in 1972, this study ignores this traffic.  'possible'  TABLE  3 o IP-  POTENTIAL CANADIAN CONTAINER TRAFFIC USING THE TWO LAND BRIDGE CONCEPTS  PURE LAND BRIDGE Japan / Western Europes  Containerizable Traffic (tons)  Equivalent Container Loads  Eastbound Westbound  500,000 150,000  75,000 15,000  IMPORT/EXPORT Japan-Far East / Eastern Canada:  Eastbound Westbound  233,000 270,000  20 - 40,000 27,000  Japan-Far East / Western Canada:  Eastbound Westbound  240,000 367,000  28 - 32,000 37,000  Japan / Chicago Customs D i s t r i c t 1 : (by vessel 1967)  Eastbound Westbound  750,000 800,000  75 -100,000  U.K.-Western Europe / Eastern Canada:  Eastbound Westbound  527,000 495,000  52,000 49,500  U.K.-Western Europe / Western Canada:  Eastbound Westbound  200,000 93,000  22,000 9.300  U.K.-Western Europe / Chicago Customs District ( I 9 6 7 )  Eastbound Westbound  2 500,000 1,450,000  1  9  250,000 145,000  ^ h e Chicago Customs area includes: Pembina, N. Dakota? Duluth, Minn.; Cleveland, Ohio; Milwaukee, W i s e ; Detroit, Mich.; Minneapolis, Minn.; Chicago, 111.; and St. Louis, Mo. Sources  Canadain National Railways. Cited by John R. Immer, Container Services of the Atlantic. 1970. 2nd Edition. Work Saving International. Washington, D.C. 1970. p. 74.  The Canada Department of Trade and Commerce prepared estimates of the volume of economically containerizable cargo, by Canadian Port Region for 1965 "trade.  This Study indicated  that 16.0$ or 1,866,000 tons of Pacific Coast port export cargo and 24.4$ or 600,000 tons of import cargo was containerizable.  The CTC Study.  concluded that for 1967 approximately  1,741,000 tons of Canadian West Coast exports and 436,000 tons  of Imports through B.C. ports could have been containerized? both values being somewhat more conservative than the Department of Trade and Commerce•Study. Since the only container f a c i l i t y in the foreseeable future w i l l continue to be located in the Port of Vancouver, an analysis of the trade moving through this harbor has been 76  undertaken.  Sheriff's Report,  indicated that total  containerizable imports in 1965 would have been about 200,000 tons with an additional 113,000 tons of containerizable 77  exports.  The Johnston Terminal Report,  estimated 1965  import 'suitable* containerizable traffic at approximately 372,000 tons with exports at 108,000 tons.  Rees, i n a study of potential container traffic through the Port of Vancouver for 1967» concluded that 785,000 tons of exports were containerizable. 79  of  *prime*  78  He assumed that 480,000 tons  cargo would occupy 38,300 20-foot containers  (an average of 12.3 ton) although he states that the "average weight of inbound containers on a l l routes was 10.4 tons...  (with an) average weight i n outbound c o n t a i n e r s ( E i t h e r h i s l o g i c o r h i s c a l c u l a t i o n s appears here* because  the commodities  ( o f ) 13*5 tons  to be f a u l t y  he has c l a s s i f i e d as ' s u i t a b l e ' ,  'marginal', and ' r e e f e r ' cargoes a l l have a g r e a t e r d e n s i t y than the 'prime' The I 9 6 7  commodities.)  Kates, Peat, Marwick and Go; Study f o r e c a s t  c o n t a i n e r i z a b l e tonnages  o f the f o l l o w i n g amounts*  1968 - 290,000 tons 1972 - 360,000 tons 1975 - 420,000 tons  (see F i g u r e 3.1)  The g r e a t m a j o r i t y (70$-80$) was expected to a r r i v e from the O r i e n t w i t h o n l y 5-7$ from A u s t r a l i a - N e w  Zealand.  F3.gu.re. 3,1 PROJECTED CARGO TONNAGES (TO BE SHIPPED IN CONTAINERS [THROUGH THE PORT OF VANCOUVER  300,000  -  1968-197$  TONNAGE MOVED  200,000  100,000  19  Source: "Study o f The P o r t of Vancouver" Keats, Peat, Marwick & Co. 1967.  PORT OF VANCOUVER  1968 YEAR  Japan/Hong Kong  - 1975  E u r op e/Br i t a i n  1968  1700  600  1969  3633  1700  1970  8866  3500  1971  15083  6100  1972  23433  9320  1973  28833  11360  1974  32833  12580  1975  35900  13600  Sources  Australia/New Zealand  20 60 500 1080 1740 2520 3240 3840  , "Study o f P o r t o f Vancouver", K a t e s , P e a t , M a r w i c k & Co. 1967.  TOTAL  2320 5393 12866  22263 34493 42713 48708 53340  actually handled in Vancouver would rise from 2,000 in 1968 to about 50,000 by 1975.  (see Table 3.11)  They recognized  that a significant tonnage of cargo currently moves from the Orient, especially Japan, through the Panama Canal to Eastern Canadian ports.  The Report suggested that:  " i f some agreement can be reached with the transcontinental railways, i t is possible that a substantial portion of this tonnage may be handled through Vancouver...This increase cannot be predicted with any certainty". 80 Containerizable Cargo Tonnages from 'OCP Origin' Nations This author concludes that i t is at least as l i k e l y that traffic currently moving via Vancouver and the inland carriers may be diverted through the Panama Canal.  The existance of  the current OCP (ocean) rate structure and the associated terminal charges absorption practices is based on the desire of the steamship and railroad companies to divert Panama Canal to cross-Canada land t r a f f i c .  It is therefore somewhat  surprising to find the current large volumes of both import and export traffic moving via the Panama Canal. The latest available import data by Port Region by commodity for each exporting country i s presented in a group of Tables labeled Imports by Country By Commodity By Canadian Region By Year (see Appendix IX,X) which have been summarized in Table 3.12.  The ocean mileages from representative OCP origin  c i t i e s to the various Canadian ports are presented in Table 3.13*  IMPORTS BY CANADIAN PORT REGION FOR SELECTED " CONTAINERIZABLE" COMMODITIES FROM " OCF> ORIGIN" COUNTRIES 1967 - 1968 Atlantic 1967  &  Great Lakes 1968  Pacific Region 1968 1967  Australia Ceylon  103,500 21,390  107,660 17,570  41,680 420  42,750 890  Japan Indonesia  122,4-30 930  143,440 450  357,400  365,970 500  Hong Kong India  26,550 71,230  17,540 52,630  24,520 8,590  24,320 8,760  740  10,590 180  4,420 4.510  China Fiji  130 mm mm  Korea Malaysia  1,700 38,270  500 49,580  2,080 7,890  4,250 3,410  New Zealand Oceania  13,000  20,880 2,530  5,660 6,500  7,100 5,850  Pakistan Philippines  15,860 5,980  21,470 2,400  660 3,110  1,330 10,770  Singapore Taiwan  33,850 23,480  36,090 37,370  5,380 29,730  6,480 49,770  Thailand  2,390  1,860  1,520  1,790  480,700  512,710  505,910  542,870  TOTAL  Source:  Appendix IX, X. "Imports by Country by Commodity By Canadian Region by Year". Shipping Report. Part I. International Seaborne Shipping. DBS. # 54-202. Queens Printer, Ottawa. 1967, 1968.  SEA DISTANCES BETWEEN MAJOR PORTS (Nautical Miles)  The Orient - Canada - Australia Yokohama Vancouver  Hong Kong  Sydney  4,262  5,648  6,843  Halifax  10,020  11,533  10,012  St.  10,043  11,557  10,035  Quebec  10,747  12,260  10,739  Montreal  10,886  12,399  10,878  John  Source:  Distances Between Ports 19&5. H.O. Pub. No. 151. U.S. Naval Oceanographic Office, Government Printing Office, Washington. 1965. Cited by , "A Research Base for Development of a National Containerization Policy". Phase I of a report to the Canadian Transport Commission. Matson Research Corporation. San Pranscisco. July 1970. Appendix p. B-3.  An analysis of these two Tables shows that approximately half as much Japanese cargo moves to the Atlantic Coast of Canada as to the Pacific ports, although the distance is two and one-half times further.  The same trend is noted for goods  from the Philippines, Hong Kong, and Taiwan, except that the volumes are more nearly evenly s p l i t between the two coasts and the distance is only slightly over twice as great to Montreal as to Vancouver. The Australian and New Zealand trade volumes are shifted markedly in favor of the Atlantic Coast ports, being two and one-half to three times larger than Pacific Coast shipments. Distances are more nearly balanced, being 7,000 miles from Sydney to Vancouver, and only 10,000 to Halifax or St. John. The very heavy ratio of Atlantic vs Pacific shipments from India, Ceylon, and Pakistan is not entirely unexpected. Certainly when the Suez Canal was functional Canada's East Coast was much closer than Vancouver. composition (tea,  Also the commodity  jute, molasses, and coffee) would favor an  East Coast routing. Data on the imported tonnages of a l l cargo from selected OCP origin nations is presented in Tables 3.14 (for a l l Pacific Coast ports) and Table 3*15 (for the Port of Vancouver).  In  both Tables manufactured steel products have been included, although admittedly these goods are adequately handled by other means, perhaps more efficiently than in containers. this qualification in mind, detailed commodity composition Tables have been prepared for the 4 'major* and 10 'minor'  With  IMPORTED TONNAGES FROM SELECTED "OCP ORIGIN" COUNTRIES  THROUGH CANADIAN PACIFIC COAST PORTS (Short Tons) 1961  1963  1965  1967  1968  50,345  30,825  40,125  63,485  152,525  1,400  2,085  19,440  12,725  4,415  12,415  15,185  22,325  24,660  24,175  Japan  152,915  172,720  339,670  356,685  366,150  Korea  1  220  Singapore k Malaysia  4,475  Taiwan  COUNTRY Australia Mainland  China  Hong Kong  TOTAL  1.145  2,110  4,300  5,695  3,045 4,355  5,480 7.895  6,470 3,330  4.781  10,703  1^,280  29,770  49,5?0  224,340  237,435  m*m  50^,810 .  .610,955  g,432,000  3,938,000  ALL" "COUNTRY TOTAL 2, 129,000 Sourcei  844,000  4,23$,000  , "Oargoes Unloaded at Canadian Ports from Foreign Countries Shipping Report. Part 1, International Seaborne Shipping. DBS, queehs Printer. Ottawa, # 54-202. Shipping Report. Part 2, International Seaborne Shipping by Port, DBS, Queens Printer. Ottawa. # 54-203.  TABLE 3.15 CARGO UNLOADED AT PORT OF VANCOUVER  *  COUNTRY  1961  IMPORTS FROM SELECTED "OCP ORIGIN" COUNTRIES Thousands(Short Tons) 1963  1965  1967  1968  #•55-  1969  *•  1970  Australia  41.2  27.1  28.6  40.8  55.3  51.8  28.9  Mainland China Hong Kong  1.4  2.1  14.4  12.8  14.2  16.3  9.1  12.4  15.0  22.3  22.5  25.2  30.0  27.7  Japan  145.7  165.3  313.^  39^.5  31^.3  379.0  437.O  Korea  —  .2  1.1  2.1  5.3  6.6  5.2  7.8  7.7  10.2  7.9 42.4 558.2  1,849.0  Singapore Malaysia Taiwan  2.1  4.2  4.8  10.2  ISO  29.5  44.5  Total  207.6  224.1  39?.6  510.0  466.6  42.3 5?6.2  TOTAL ALL COUNTRIES  967.1  1,176.4  2,067.3  1 .777.^  2,278.3  Source 1  *  1. 995.0  , "Origin and Destination for Selected Ports". Shipping Report. Part IV. DBS. Queens Printer. Ottawa. #54-206. Table 2 3 . I96I-I965. ** , "Deep Sea Imports". National Harbour's Board. Vancouver. cf. Appendix IX.  OCP 'origin nations' by commodity imported through the Port of Vancouver for the years 1 9 6 7 , 1 9 6 8 , 1 9 6 9 , and 1 9 7 0 .  (These are  presented in Appendix IX, and summarized in Table 1 6 . ) In  1969*  2 . 2 8 million  tons of cargo was off-loaded at the  Port of Vancouver (Table 3-15)• 22$  (500,000  Of this total, approximately  tons) of a l l general cargo was received from the  four major OCP nations (Japan, Australia, Hong Kong, and Taiwan) with the great majority being from Japan. data was  535*900  In 1 9 7 0 , the comparable  tons of general cargo from the same four  countries, with Japan again supplying the most. As illustrated in Table  3»l6  Japan has consistently been  the single largest supplier, and in 380,000  tons, including  180,000  1969*  accounted for almost  tons of steel, pipe, and wirej  while Australia i n second place supplied just over including  26,000  tons of steel products,  and Hong Kong with suppliers. (1)  30,000  5°,000  Taiwan with  tons  42,000  tons  tons were the third and fourth largest  The comparable figures for 1 9 7 0 weret  Japan -  437,000  tons including  225,000  tons of steel  products, (2) Australia - 2 9 , 0 0 0 tons including  6,200 tons of steel  products, (3) Taiwan - 42,500 tons, and (4) Hong Kong - 27,500 tons.  (see Table 3«l6)  Table 3 . 1 7 outlines the total tonnages of commodities, excluding steel products and ores, which moved from OCP origin nations through the Port of Vancouver classed as containerizable.  1967-I970  which could be  These values appear to agree  CANADIAN  (CONTAINERIZABLE) IMPORTS  FROM "OCP  ORIGIN"  BY YEAR  NATIONS  THROUGH  THE PORT OF VANCOUVER (tons) 1967  1968  40760  38430  51770  28880  415  1400  1120  1200  12725  14240  16325  9145  1645  2060  260  230  22485  25230  30045  27655  India  8465  8660  7085  6735  Japan  394470  313845  378805  436955  Korea  2065  5300  6620  5210  New  5105  7795  9675  12005  775  I830  5190  Australia Ceylon China  Mainland  F i j i and Oceania Hong Kong  Zealand  Pakistan  615;  .1969  1970  Philippines  3115  4680  2895  4445  S i n g a p o r e and Malaysia  7840  7220  10225  7945  29505  44535  42300  42415  1570  2220  885  2760  530780  476390  559820  590770  Taiwan Thailand  TOTAL  Source 1  A p p e n d i x IX.  CONTAINERIZABLE TONNAGES OF CANADIAN S T E E L AND FROM "OCP  IMPORTS  ORES EXCLUDED  ORIGIN" NATIONS  BY YEAR THROUGH THE PORT OF VANCOUVER  1967  1968  1969  1970  Australia  26040  27000  25610  22620  China  12730  14240  16330  9150  22230  25230  29020  27650  Japan  203390  175530  191000  213120  Korea  1700  5300  6100  3530  S i n g a p o r e and Malays i a  1760  7220  10230  7950  29200  44540  42060  42180  294050  299060  320820  326210  19450  26540  23390  32510  313500  326600  344210  358720  Mainland  Hong Kong  Taiwan TOTAL THESE COUNTRIES Other  Nations  TOTAL A L L "OCP ORIGIN" COUNTRIES  Source:  Appendix  ix  the CTC Phase #1 Study.  Kates, Peat, Marwick and Co. have  forecast that as the volume of Pacific Rim trade increases in the next few years, the amount of cargo imported into Canada through British Columbia ports should increase to 800,000 tons 82  by 1975.  Most of this should move through the Port of  Vancouver and about half is expected to be containerizable. Their Study also forecast that 75$ of the containerizable 83  quantity (or 300,000 tons) would actually be in containers. The data presented in Table 3.17 indicates that the 300,000 tons in containers may be r e a l i s t i c , but that the 800,000 tons moving through the Port of Vancouver may be unattainable.  The fact that cargo tonnage through the Port  of Vancouver is growing at a slower rate than Canada's foreign trade with these 'OCP origin nations' indicates that cargoes are being deverted away from the Port of Vancouver.  Any loss  of the Japanese trade* in particular, means that the Port of Vancouver is in serious trouble.  Considering that total  Japanese exports to Canada have increased from $274 million to $480 million from 1967 to 1969 (see Table 3.18), i t appears that the Port of Vancouver is being bypassed. The conclusions that are drawn from these data are« (1) the OCP rate structure is such that the low cost of ocean transport is not able to effect a change in modal routing: i . e . the OCP rates are not entirely operational: and (2) a very slight upward shift in the total freight cost  from  the O r i e n t  could  through Vancouver  see the d i v e r s i o n  o f much o f t h e OCP  moving through the P o r t Eastern  Canadian  Japanese  Trade  In  view  Table the  3.18  to b r i e f l y  $274.2 m i l l i o n  to  traffic  OCP  discuss  and  increase  $45.8  In  the v a l u e i n c r e a s e d  a 76$  class  - f r o m $31.5  - f r o m $6.4  as a group  t o $82.4 m i l l i o n ,  increase  over  the l a r g e s t t o $102.8  t o $61.8  from  the of.the  d o u b l e d f r o m $146.8 growth  was i n :  million,  million,  and  - f r o m $22,6 t o  two  did increase  i n value  showed marked d e c l i n e s  V e r y moderate i n c r e a s e s  commodity t o m a i n t a i n c o n s i s t e n t t h e s e changes  from  segments; C o t t o n F a b r i c s ,  and  i n both q u a n t i t y  o c c u r r e d i n the c l a s s  L i g h t I n d u s t r y P r o d u c t s ' w i t h S p o r t i n g Goods t h e  All  trade.  million.  Textiles  Rayon F a b r i c s ,  imports,  o c c u r r e d i n the p r o d u c t s  Within this  Heavy M a c h i n e r y  or to  c a r g o movements, i t seems  1969  (3) C o m m u n i c a t i o n s E q u i p m e n t  value.  to S e a t t l e  ports.  Chemical I n d u s t r y c l a s s , which  (2) A u t o m o b i l e s  $58.1  either  area  currently-  e x p o r t s t o Canada b y v a l u e .  1968,  Most o f t h i s  While  traffic  the composition of t h i s  t o $481.0 m i l l i o n ,  $304.9 m i l l i o n . (1)  and  l i s t s Japanese  H e a v y and  destination  o f the d o m i n a t i n g p o s i t i o n o f Japanese  t h r e e y e a r s 1967»  period.  o f Vancouver  o r N o r t h - E a s t e r n U.S.  on b o t h V a n c o u v e r appropriate  t o t h e OCP  Spun  and 'Other  only  growth.  i n commodity i m p o r t a n c e  indicate  that  TABLE  3.18  JAPANESE EXPORTS TO 1967 (Millions COMMODITY CLASS ( S e l e c t e d  — of  Items)  CANADA  1969 Dollars)  1967  FOODS TUFFS: Fish 5.6 .8 M a n d r i n Oranges (canned) 11.6 TOTAL RAW MATERIALS AND F U E L S : 2.1 TOTAL LIGHT INDUSTRY PRODUCTS: Textiles - cotton fabrics 6.7 - woolen f a b r i c s 6.5 - spun r a y o n 3.3 - carpeting 1.4 - clothing 20.1 Total 58.1. Non-metalic M i n e r a l Products 4.0 - pottery - tiles 2.9 .6 - g l a s s and g l a s s p r o d s Total Other L i g h t I n d u s t r y Products - plywood 5.2 - toys 5.3 - footwear 7.0 - s p o r t i n g goods 3.8 - musical instruments 3.6 46.0 Total 113.5 TOTAL  %±  1968  1969  5.1 .9 11.6  6.4  1.3 12.6  1.7  2.1  5.4 7.1 2.8. 2.0 23.8 6?.?  4.9 8.1  4.0 3.8 1.9 10.6 9.2 6.1 9.1 5.2 3.6 57-3  2.3  2.6  26.4 ' 82.4  5.1 5.2 2.3  13.6  8.8 6.2 7.7 6.7 ^.3 65.2 161.3  HEAVY AND CHEMICAL INDUSTRIES: C h e m i c a l and P h a r m a c e u t i c a l . 9.0 Total 6.5 Z^8 M e t a l s and M e t a l P r o d u c t s - i r o n and s t e e l ( b a r s , 55.7 r o d s , p l a t e , s h e e t , p i p e ) 35«8 31.3 - metal products (wire, 24.3 nails,bolts,tools) 19.2 19.3 Total 55.8 81.6 51.3 M a c h i n e r y and I n s t r u m e n t s 22.4 - g e n e r a l machinery 18.5 35.^ - e l e c t r i c machinery 39.6 61.7 8?.9 (inc. TV,radios) 74.2 37.2 - transport (autos,bike)13.3 - cameras,microscopes 3«2 3.0 3.8 214. 3 Total 84.5 135.2 194.4 TOTAL 14~678 304.9 481. 0 346.3 TOTAL VALUE A L L EXPORTS 274.2 S o u r c e : F o r e i g n Trade o f J a p a n 1970. Japan E x t e r n a l T r a d e O r g a n i z a t i o n . Tokyo. October 1970.  the "cheap* textile and toy industries.  This trade is now  being suplied more and more by the home based industry of Korea, Hong Kong, Okinawa, and Singapore. Japan has become renouned as an exporter of sophisticated electronic equipment, typewriters, cameras, and optical equipment, as well as chemicals, specialized groceries and the more expensive bamboo furnitures nearly a l l of which are 84 'high value* but low density commodities. However Japan is also exporting dense materials such as steel (in plate, bar, pipe or sheet form), b a l l bearings, 85 heavy industrial machinery, cement, and auto and engine parts. Tonnages have doubled, but the value has risen only about 6 0 $ . Most of the latter were thought to be only marginally suited to containerization, but the volume of these cargoes moving in containers is increasing.  In 1968, approximately 2,300 containers (being handled as 86  deck-cargo) passed through the Port of Vancouver. 87  number was doubled to 4,581  containers in 1969.  This  These totals  are totals of both imports and exports, and (presumably) are the number of container units, not of 20-foot container equivalents. The number of containers handled i n the Port of Vancouver increased greatly i n 1970.  From January 1st u n t i l May 30th, 88  3,759 containers were handled,  although the division between  exports and imports is unknown.  The commencement of the Japan 6  service i n June provided a rapid increase in total container traffic. and  Table 3.19 provides the data on container imports  Table 3.20 presents the export data for the 14 vessel  voyages of 1970, and the f i r s t dozen trips of 1971. Up to December 31, 1970 a total of 3,317 f u l l twenty foot and  238 f u l l fourty foot containers had been imported.  the same period 485 empty containers were imported.  During  The total  number of containers exported i n this seven month period totaled 4,535 — 1,133  3,084 f u l l 20-foot units, 318 f u l l 40-foot units, and  empty containers. The actual number of containers moved for the whole of the  Port of Vancouver for.1970 is unknown.  A total of between  15,000 and 18,000 units can be derived, but the accuracy of this 89  figure cannot be verified at this time.  However i t does  appear safe to assume that the total number of containers moved  CONTAINERS IMPORTED ON VESSELS OF THE JAPAN 6 LINES  1970 - 1971  CY  CFS  1970 GA 1 GA 2 GA 3  64 61 45  167 174 188  231 235 233  GA GA HM  4 5 1  38 95 95  156 235 227  GA BM HM  6 1 2  65 65 31  GA BM HM  7 2 3  3 4 1970  Vessel Trip  BM HM  TOTAL  1971  TOTAL R A I L MOVE F U L L EAS WARD  FULL  40ft 20ft 40ft UNLOAD  6 33 1  203 221 198  28 14 35  21 4  —  —  —  194 330 322  10  17 10 23  20 59 16  —  33  177 320 299  200 267 83  265 332 114  7 10 10  246 318 110  19 14 4  29 33 5  44 79 45  199 179 163  243 258 208  11 1 12  225 248 199  18 10 9  23 105 28  116 60  244 169  360 222  —  345 208  16 21  20 51  3317  238  418  67 4040  340 90 246  34 36 6  3 120 50  —  13 61 10  14 25 17  —  1 4 8  903  2651  3554  IV  148  --  GA BM HM  9 4 5  58 32 40  316 84 212  374 116 252  GA BM HM  10 5 6  63 155 64  206 307 237  269 462 301  36 25  256 401 291  GA BM HM  11 6 7  96 159 89  193 232 224  289 391 313  31 24 24  252 345 248  37 46 65  GA BM HM  12 7 8  95  180  275 398 241  25  231 363 210  44 35 31  3273  418  TOTAL  TOTAL  EMPTY  20ft  n/a n/a  n/a n/a  (Jan-April) GA = G o l d e n Source:  ,?681  4 18 —•  n/a n/a  8  222 389 338  32 6  326 371 119  —  ——  —  9 —  —  12  —  243  7  283 487 325  8  290 395 329  3  275 398 245  —  —  381 296  377 237 308  —  —  266 372 236  1 6 —  —  1  252 239 233  25 3949  Arrow: HM = H o t a k a Maru; BM = B e i s h u M a r u .  F i l e s o f Empire S t e v e d o r i n g , V a n c o u v e r . '.May, 1971.  Centennial  Pier,  CONTAINERS EXPORTED ON VESSELS OF THE JAPAN 6 LINES 1970-1971 Vessel Trip 1970 GA 1 GA 2 GA 3  CY  CFS  TOTAL R A I L MOVE FULL EMPTY TOTAL FULL WESTWARD 20ft 4 0 f t 2 0 f t 40ft" LOADED  26  273 150  299  97 99  144 189 141  43  7^  126  GA GA HM  4 5 1  47  GA BM HM  6 1 2  59 65 108  82 187 47  GA BM HM  7 2  77  3  124 141 196  263  BM HM  3 4  173 10  378 161  1223  2179  137  211 104  1970  TOTAL  1971 GA BM HM  9 4 5  GA BM HM  10 5 6  GA BM HM  11 6 7  GA BM HM  12 7 8  1971  90  67  101  204  63  266 42  141 58  130  56  n/a n/a  193  200  '••99166  138  92  89  201 404 33^  _  127 15^ 161  17 35 5  63 392  135  6 6 6  —  --2 mm  4 2  246 149  mm mm  187  6 6 24  14 75  187  113  86 4  ** 18** 6  329 313  21  ,58  19 24  7 1 1032  -—  15  211 610 376  5 18 7  259  _ _  207  29 23  — —  3402  91  3084  318  348  20  15  275 203  73 2 24  24  150  357 186  2 53 11  303 298 299  37 47 21  49*  110  22  75(7531 * 8  22  23*  205 296 152  320 132 531  241  22  23  16  8  -—  3  n/a n/a  272  46l 24l  70  323 227 272  4  -1  340 345  76  44  24 34 57  m  199  n/a n/a  23 23  532 149  551  410 197  287 190  276 170 156  252 155  144  155  2 26 10  —— —  356  166  404' 392  558  174  101 4535 348  --76*  ---  70*  12* 152  —  100* 48  205 296  ---  423 197  __  370  -—  --5  345  368  215 561 263  3617 13 3819 TOTAL ( J a n -• A p r i l ) 191 3155 384 A l l T r a n s h i p p e d c o n t a i n e r s t o P o r t l a n d , and S e a t t l e are o m i t t e d f r o m above t o t a l s . GA = G o l d e n Arrow; HM = H o t a k a Maru; BM = B e i s h u Maru. Source:  F i l e s o f Empire S t e v e d o r i n g , C e n t e n n i a l V a n c o u v e r , B.C. May, 1971.  Pier,  (imported plus exported) during  1971  c o u l d approach  Marwick had of  well  o f 15*000 u n i t s  i n excess  1970.  Prospects are that in  was  t h e number o f c o n t a i n e r s t o be the  moved  30,000 u n i t f i g u r e t h a t K a t e s , P e a t , 90  f o r e c a s t f o r 1972.  I n any  case, t h e i r  forecast  50,000 u n i t s by 1975 a p p e a r s much t o o c o n s e r v a t i v e , a s 91  number may At  and  m o v i n g b y 1973*  t h e p r e s e n t t i m e v e r y few  intact  containers are  m o v i n g e a s t o f V a n c o u v e r ( s e e T a b l e 3«19)»  actually 1970  e a s i l y be  less  t h a n 15$  a substantial  this  of a l l imported  During  c o n t a i n e r s moved b y  p r o p o r t i o n o f t h e s e went t o A l b e r t a  rail, and  92 Saskatchewan, not only  5$  by r a i l  o f the Japan last  One eastward While  t o OCP  destinations.  6 imported  y e a r and  As  shown i n T a b l e  c o n t a i n e r s moved o f f t h e  only s l i g h t l y  more a r e d o i n g so i h  o f t h e m a j o r r e a s o n s why  the c o n t a i n e r s are not  intact  l i g h t weight  Rees h a d  i s the r e l a t i v e l y assumed a n a v e r a g e  weight  3.19,  dock 1971. moving  i n each c o n t a i n e r .  o f 10.4  tons  (and h i s  93 data  indicated  12,3),  the Keats, Peat, Marwick Study  estimated  94 of 6  an average  weight  Table  shows t h a t  did  3.21  contain just  t o n s f o r each the average  over 6  full  existed  Japan  tons o f c a r g o , and  c o n t a i n e r s o f cement w e i g h i n g a l m o s t problem  20-foot c o n t a i n e r imported.  20  6 Line container  this  included  tons each.  on e x p o r t c a r g o a s w e i g h t s  o f 15  p e r l o a d e d c o n t a i n e r were o b t a i n e d e v e r y t i m e  No  t o 18  86  weight tons  ( s e e T a b l e 3.22).  I N I T I A L VOYAGES JAPAN 6 LINES TO VANCOUVER B.C.  GENERAL CARGO  #  #  #  #  BY COMMODITY GROUP 1970 - 1971 CEMENT REEFER  #  VESSEL TRIP  CONT  TONS  T/C  CONT  GA 1 GA 2  199  1165 1320  5.8 6.2  28  20  399  19.3 20. 0  4  215  GA 3 GA 4  219  1242  180  957  5.9 5.3  10 6  199 119  GA 5 HM 1  314 313  1910 1890  6.2 6.0  16 3  322 60  GA 6 BM 1  265 332  1471 2086  HM 2 GA 7 BM 2  114  739 1564 1772  238 256  CARGO  #  A L L CARGO  #  TONS  T/C  CONT  TONS  T/C  -  33  8.3  231 235  1740  1719  7.5 7.3  19.9 19.7  2 2  19 16  9.5 8. 0  231 188  1460 1092  6.3 5.8  20.1 20.0 19.3  1 3  12 12.0 20 6.7  321  2234  6.8  322  2028  6.3  5.6 6.3  265 332  1471  2086  5.6 6.3  6.5 6.5 6.8  114  739 1564 1812  6.5 6.5 6.6  2735 17945  o76"  Sources  TONS 542  3[conc) 58  2  40  T/C  CONT  —  20.0  F i l e s o f Empire S t e v e d o r i n g , C e n t e n n i a l V a n c o u v e r , B.C. F e b r u a r y , 1971.  238 258  Pier,  CO  TABLE  3.22  TONS OF EXPORTS PER CONTAINER INITIAL VOYAGES JAPAN 6 LINES FROM VANCOUVER  1970 - 1971 VESSEL TRIP  NUMBER OF FULL CONTAINERS 20 f t 40 f t  TOTAL EXPORT TONNAGE  AVERAGE TONS/ CONTAINER  GA 1 GA 2  276 170  23 23  4975 3242  16.7 16.7  GA 3 GA 4  156  127  44 17  2126  3315  16.6  GA 5 HM 1  154 l6l  35 5  2871 2410  14.5  GA 6 BM 1  135  246  6 6  2017 4244  14. 3 16.8  HM 2 GA 7  149 187  6 14  2604 3269  16.8 16.2  BM 2 HM 3  329 313  21  75  7296 5915  18. 0 17.7  BM 7  461  HM 8  241  1784  22  -121  3442  15.2  15.8  7312  70  14.7  9096  3934 4439 578T9  21^1  16.2 22.9  17.1  16.8  TFT?  GA = Golden Arrow: HM s= Hotaka Maru; BM = Beishu Maru. Source:  F i l e s o f Empire S t e v e d o r i n g , C e n t e n n i a l P i e r , Vancouver, B.C. May 1971.  T h i s Chapter has t r a c e d the development rail  tariffs  tariffs  o f Common P o i n t  i n both the U n i t e d S t a t e s and Canada, and OCP  i n Canada.  container t a r i f f s  A d e s c r i p t i o n of the c u r r e n t Canadian as these r e l a t e  Canadian d e s t i n a t i o n s  to t r a f f i c  has been p r e s e n t e d .  moving to E a s t e r n  Cargo  qualifying o  f o r OCP ocean r a t e s must move from n a t i o n s west of the m e r i d i a n West l o n g i t u d e ,  through P a c i f i c p o r t s ,  North American d e s t i n a t i o n s .  If  this  170  to E a s t e r n  i n l a n d movement i s  the Canadian r a i l r o a d s , the cargo w i l l a l s o q u a l i f y a b s o r p t i o n of the t e r m i n a l charges a t  the P o r t of  via  for  Vancouver,  and p a r t i a l a b s o r p t i o n of t e r m i n a l charges a t the P o r t of Seattle.  These a b s o r p t i o n p r a c t i c e s  w i l l be d i s c u s s e d  in  Chapter I V . The dominance of Vancouver as the l e a d i n g Canadian West Coast p o r t i s s u b s t a n t i a t e d  and the commodity c o m p o s i t i o n of  cargo d i s c h a r g e d a t t h i s p o r t from OCP ' o r i g i n '  nations  been s t u d i e d .  forecast  potential  T h i s study has not attempted  c o n t a i n e r movements  d a t a on the tonnage 1967-1970 i s  to  i n the P o r t of Vancouver,  of c o n t a i n e r i z a b l e  cargo f o r the  but  years  presented.  The c o n c l u s i o n reached was t h a t the OCP r a t e s o n l y moderate  has  have had  success i n promoting on A s i a - V a n c o u v e r - E a s t e r n  Canada movement as opposed to a movement v i a the Panama C a n a l . As t h i s  t r a d e becomes  containerized,  OCP ocean and p r e f e r e n t i a l r a i l  rates  the e f f e c t i v e n e s s can be expected  of to  the  container movement are implemented.  Such changes may be  uneconomic to part of the Canadian transportation industry. The Atlantic trade routes have experienced a rapid switch to containerized break-bulk cargoes, and these containers are moving intact to inland cities such as Montreal, Toronto, Detroit and Chicago.  While the water portion of the Pacific  trade is becoming containerized, very definite problems and disadvantages are currently associated with the inland movement of these goods from Vancouver.  This result apparently arises  because of the type of cargo involved.  Basically there appears  to be a problem with the density (or volume to weight ratio) of the Pacific Coast containerized t r a f f i c .  While the Atlantic  Coast trade does move cargo averaging about 9 tons per 20-foot container, v/ith some containers weighing up to 20 tons;  traffic  95  to Pacific ports is about 30$ less dense.  This matter of  'density' w i l l be explored in Chapter V. Unless the charges for containerized cargo movement and in particular, the inland container rates, become more competitive with the lower cost of moving containers by water, the future of inland intermodal van container movement from Vancouver to Eastern Canada for OCP cargo does not appear very promising.  FOOTNOTES  CHAPTER I I I  1.  Canadian F r e i g h t  Association  2.  Japan-West Canada F r e i g h t  Tariff  Conference  No. 254-B, R u l e 20. Tariff  No. 2, R u l e 3.  3. J . Shaw, P e r s o n a l I n t e r v i e w . 4.  ibid.  5. G. K i n g , P e r s o n a l I n t e r v i e w . 6. T h i s d i s c u s s i o n o f U.S. Common P o i n t R a t e s i s b a s e d on S. D a g g e t t a n d J.P. C a r t e r , The S t r u c t u r e o f T r a n s c o n t i n e n t a l R a i l r o a d R a t e s , Bureau o f B u s i n e s s and Economic R e s e a r c h , U n i v e r s i t y o f C a l i f o r n i a P r e s s , L o s A n g e l e s , C a l i f . 1947. pp. 23-36. and I n t e r s t a t e Commerce C o m m i s s i o n A c t i v i t i e s 1937 - 1962, S u p p l e m e n t t o t h e A n n u a l R e p o r t , U.S. Government P r i n t i n g O f f i c e ,  W a s h i n g t o n , D.C. 1962.  p p . 1-13? 130-136.  7. A new c l a s s i f i c a t i o n s c h e d u l e became e f f e c t i v e i n May, 1952 e s t a b l i s h i n g a r a n g e f r o m 1 0 0 $ down t o 27$ o f F i r s t C l a s s rates. M u l t i p l e s o f t h e f i r s t c l a s s r a t e were a l s o p e r m i t t e d . 8. By 1914 t h e r a i l r o a d s h a d c l a s s e d 193 c i t i e s a s ' p o r t terminals'. See 29 ICC 65, 1914. S a n t a R o s a T r a f f i c A s s o c i a t i o n v . S o u t h e r n P a c i f i c ; a n d U.S. v . M e r c h a n t T r a f f i c A s s o c i a t i o n , 37 Supreme C o u r t Rep. 24, 1 9 l 6 . C i t e d i n D a g g e t t , op_. c i t . pp.35« 9. The c o m m o d i t i e s i n v o l v e d were i n 'Group B', t h o s e w h i c h were s u i t a b l e t o b o t h r a i l a n d w a t e r t r a n s p o r t a t i o n , a n d 'Group C , those which l e n t themselves"to a pre-eminent degree t o t r a n s p o r t a t i o n b y w a t e r a n d t h e r e b y w o u l d move a t a l o w r a t e . " See ICC A c t i v i t i e s 1937-1962. op. c i t . p p . 6-9 10. The f o l l o w i n g r a t e s were a p p r o v e d : b e a n s a n d b a r l e y @ 40#/cwt. ; w i n e @ 450/cwt. ; a n d d r i e d f r u i t s @ 600/cwt. i b i d . 11. cit.,  ibid.  12. See 173 ICC 377, 1931. C i t e d p . 31«  i n D a g g e t t a n d C a r t e r , op_.  13. See 185 ICC 787, 1932; a n d 182 ICC 653, 1932. C i t e d i n D a g g e t t a n d C a r t e r , op_. c i t . p . 31. 14.  ibid.  15. ICC A c t i v i t i e s 1937-1962, p_p_. c i t . pp. 6-9. Since the FAK r a t e i s a p p l i e d on t h e b a s i s o f a minimum w e i g h t p e r b o x c a r , i t becomes a r a t e o n ' s p a c e a v a i l a b l e ' w h e n e v e r t h e minimum w e i g h t  is and  not attained  by the shipment.  16. " C e r t i f i c a t e C o u r s e " , C a n a d i a n I n s t i t u t e o f T r a f f i c T r a n s p o r t a t i o n , Toronto. pT I-3. I?.  D a g g e t t and C a r t e r ,  18. i b i d . , 19.  20.  op..cit. ,  p p . 3°-31'  p . 32.  ibid.  See CFA-263; CFA-589-A.  fef. CFA-47-D: GTvV-239-A; Soo L i n e 533? Soo L i n e 534. C i t e d i n "A R e s e a r c h Base F o r D e v e l o p m e n t o f a N a t i o n a l C o n t a i n e r i z a t i o n P o l i c y " , Report t o the Canadian T r a n s p o r t Commission P r e p a r e d by M a t s o n R e s e a r c h C o r p o r a t i o n , P h a s e I , S a n F r a n s c i s c o . J u l y 1970. p . 99. 21. The S u p p l e m e n t t o t h e A n n u a l R e p o r t n o t e d t h e c o n t r a d i c t o r y s t a n d s t a k e n b y t h e ICC i n s u c e s s i v e c a s e s b y s t a t i n g : "The C o m m i s s i o n h a s r u l e d u n d e r some c i r c u m s t a n c e s t h a t t h e r a t e s s h o u l d be on a c l a s s i f i c a t i o n b a s i s t h a t r a t e s c a n be on a w e i g h t b a s i s r e g a r d l e s s o f . . . commodity..., t h a t c h a r g e s on a p e r v e h i c l e b a s i s a r e p r o p e r , t h a t r a i l r o a d s can r e c e i v e a f l a t c h a r g e p e r t r a i l e r t r a n s p o r t e d a s i t s share o f a j o i n t motor-rail-motor r a t e , that s u b s t i t u t e s e r v i c e c o n s i s t i n g o f a c o m b i n a t i o n o f l i n e - h a u l movements i s a j o i n t s e r v i c e a n d . . . t a r i f f s should provide for... s u b s t i t i o n . . . , t h a t t r a i l e r s h i p o p e r a t o r s a n d m o t o r common c a r r i e r s should conduct t h e i r o p e r a t i o n s as j o i n t s e r v i c e s t h a t i t w o u l d be r e p u g n a n t . . . ( f o r a ) common c a r r i e r . . . to l i m i t s e r v i c e t o a p a r t i c u l a r c l a s s o f c a r r i e r s , and t h a t w a t e r s e r v i c e c a n be p r e f o r m e d w i t h c o m m o d i t i e s c o n t a i n e d i n r a i l r o a d c a r s o r motor v e h i c l e s . . . ( T h e ) Commission ( a l s o ) d e c i d e d t h a t a s t e a m s h i p company t r a n s p o r t i n g r a i l r o a d c a r s was n o t a common c a r r i e r b y r a i l r o a d . " C i t e d i n ICC A c t i v i t i e s 1937-1962, op_. c i t . , p p . 133-134. 22.  ibid.  23. C a n a d i a n c i t . , p . 5 »8.  Institute of Traffic  and T r a n s p o r t a t i o n ,  24. R e g u l a t i o n o f t h e s e r a t e s was b y t h e B o a r d Commissioners, o r i t s p r e d e c e s s o r . cit. ,  25. C a n a d i a n p.~"k~t~k~.  Institute of Traffic  26. i b i d . ,  p . 4.3.  27. i b i d . ,  p . 4 15.  of  op.  Transport  and T r a n s p o r t a t i o n ,  op.  28. F o l l o w i n g t h e p a t t e r n e s t a b l i s h e d i n t h e U.S., t h e new c l a s s i f i c a t i o n c l a s s e s "now r a n g e f r o m C l a s s 100 ( h i g h ) t o C l a s s  27  (low),  plus  five  multiples  29.  ibid..  p.  4*6.  30.  ibid.,  p.  4*9.  31. i b i d . ,  P.  17*1.  32. i b i d . ,  P.  5*15.  33. i b i d . ,  P.  17:11.  of Class  100."  ibid.,  p.  4*5.  34. T h i s i s the S t e a m s h i p C o n f e r e n c e o f Lanes w h i c h move c a r g o f r o m p o r t s i n J a p a n , K o r e a , and Okinawa t o s p e c i f i e d B.C. ports. On O c t o b e r 1, 1970 e l e v e n S t e a m s h i p L i n e s were r e g u l a r members and a n o t h e r two were a s s o c i a t e members. T h i s C o n f e r e n c e h a d f o r m e r l y b e e n known as t h e T r a n s - P a c i f i c F r e i g h t C o n f e r e n c e o f Japan. 35*  K.  36. S. Interviews.  Cox,  Personal  G a r r o d , C.  Interview.  Crook,  A.  G.  Thomsons  J . Shaw,  Personal  c f . See a l s o t h e J u d i c i a l R e p o r t o f t h e ' V a n c o u v e r P o o l c a r C a s e ' r e c o r d e d i n t h e C a n a d i a n E x c h e q u e r C o u r t R e c o r d as "Between* Her M a j e s t y t h e Queen, and J.W. M i l l s & Son L i m i t e d , Kuehne & N a g e l ( C a n a d a ) L i m i t e d , O v e r l a n d Import A g e n c i e s L i m i t e d , Denning F r e i g h t Forwarders L i m i t e d , Johnston Terminals Limited?,  Vancouver,  B.C. Nov. 1967.  37. 2 Ex. C. R. 1968. 38.  ibid.,  pp.  2 Ex. C. R. 1968.  p.  pp. 280-297.  284.  284-285.  39. F o r a more e x t e n s i v e d i s c u s s i d n o f t h i s p o i n t s e e C a r l e e n O ' L o u g h l i n , The E c o n o m i c s o f S e a T r a n s p o r t , Pergamon P r e s s , T o r o n t o . 1967. p . 75. c f . R u l e 34(b), J a p a n - W e s t Canada F r e i g h t C o n f e r e n c e T a r i f f No. 2 s t a t e s t h a t a ' r e v e n u e t o n ' may be "40 e f t , o r 2000 l b s " , w h i c h e v e r p r o d u c e s the g r e a t e r revenue, e x c e p t t h a t f o r c e r t a i n c o m m o d i t i e s o n l y " r e v e n u e t o n s o f 2000 p o u n d s " s h a l l be u s e d .  40. 2 Ex C. R. 1968., op. c i t . , to  41. truck 42.  i b i d . Presumably the l a s t p o r t i o n o f t h i s t r a n s p o r t i n t o OCP t e r r i t o r y . C.  Crook,  A.G.  Thomson,.. J . Shaw, P e r s o n a l  43. CFA-254-B, S u p p l e m e n t No. O c t o b e r 29, 1970. 44.  p. 284.  CFA-254-B, R u l e 1 0 - A ( c ) .  6,  Rule 5-A(c),  Effective  remark r e f e r s Interviews. Effective  F e b r u a r y 1,  1971.  46.  2 Ex. C. R. 1968. . p_p_. c i t . ,  4?.  ibid.  cf.  J . Shaw, P e r s o n a l  p . 291.  Interview.  48. J a p a n - W e s t C a n a d a F r e i g h t C o n f e r e n c e T a r i f f No. 2, R u l e 3 names t h e a p p r o v e d i n l a n d c a r r i e r s a s " R a i l w a y c a r r i e r . . . , A i r Canada, C a n a d i a n P a c i f i c A i r l i n e s , L t d . , M o t o r C a r r i e r s , P a r t i e s t o P a c i f i c Import T r a n s p o r t A s s o c i a t i o n Import F r e i g h t T a r i f f No. 2 s e r i e s . . . " p . 10. 49. J . . Shaw, P e r s o n a l  Interview.  50. T h i s s t a t e m e n t i s c o n t a i n e d i n a l l o f t h e f o l l o w i n g T a r i f f s : CFA-254-B, R u l e 50: CFA-263, R u l e 20; CFA-589-A, Item 40. 51. F o r t h i s c o n s o l i d a t i o n s e r v i c e , t h e f r e i g h t f o r w a r d e r w i l l l e v y a f e e o f up t o $.60/cwt., w h i c h i s i n a d d i t i o n t o t h e i t e m r a t e s e t o u t i n t h e CFA-254-B T a r i f f . 52. CFA-263, R u l e  5.  53. CFA-263, S u p p l e m e n t No. 4, F e b r u a r y 28, 1971.  items  54. 2 Ex. C. R. 1968. , op_. c i t . , 55. i b i d . , 1961j  253 a n d 283.  Effective  p . 282.  p p . 282-283.  56. CFA-70-A, e f f e c t i v e J u l y 1951i CFA-70-C, e f f e c t i v e May 1963.  57. 2 Ex C. R. 1968.. op. c i t . , 58. op. c i t . , CTC S t u d y , 1970.  CFA-70-B, e f f e c t i v e  June  p . 282. p . 98.  59* These a r e ' h i g h v a l u e ' b e c a u s e t h e y a r e v e r y s e a s o n a l in nature. Items s u c h a s C h r i s t m a s o r V a l e n t i n e ' s Day c a r d s , o r E a s t e r b a s k e t s , a r e v e r y v a l u a b l e t h e week o r two b e f o r e t h e 'day' b u t become r e l a t i v e l y v a l u e l e s s t h e d a y a f t e r . 60. These ' h i g h v a l u e ' g o o d s have a h i g h p r i c e a s s o c i a t e d w i t h them, and e v e n a d o u b l i n g o f t h e t r a n s p o r t a t i o n c h a r g e i s n o t l i k e l y t o p r o d u c e any n o t i c a b l e e f f e c t i n t h e f i n a l p r i c e . 61. G. P a y n e , "The C o n t a i n e r Way", S p e e c h t o t h e I n s t i t u t e o f N a v a l A r c h i t e c t s and M a r i n e E n g i n e e r s , V a n c o u v e r . A p r i l 23, 1971. P. 9. 62. I t must be n o t e d h e r e t h a t some ' b u l k ' c o m m o d i t i e s , e . g . d r i e d m a l t , p u l p , and a l f a l f a p e l l e t t s , h a v e b e e n c o n s i s t e n t e x p o r t l o a d s f o r c o n t a i n e r s m o v i n g f r o m V a n c o u v e r on J a p a n 6 L i n e v e s s e l s d u r i n g 1970 - 1971. The J a p a n e s e L i n e s h a v e a l s o  c f . R e c e n t l y t h e f i r s t s h i p m e n t o f p o t a s h was moved Oakland t o Hawaii i n c o n t a i n e r s . "Potash i n C o n t a i n e r s " , J a n . 1971.  from Fairplay,  63. R. R o b i n s o n , " S p a t i a l S t r u c t u r i n g o f P o r t L i n k e d F l o w s ; The P o r t o f V a n c o u v e r , Canada, 1965", U n p u b l i s h e d P h . D. T h e s i s , U . B . C , V a n c o u v e r . O c t . 1968. p p . 35-38. 64. K. Cox, P e r s o n a l I n t e r v i e w . 65. C. C r o o k , A.G. Thomson,; E. S t a t o n , P e r s o n a l I n t e r v i e w s .  ern  G. Payne,  D. S p i n k , G. Cameron,  66. " C o n t a i n e r O p e r a t i o n s i n V a n c o u v e r " , C a n a d a , F e b . 23, 1971. p p . 8-9.  67. D. S p i n k , G. Cameron, C. C r o o k , Interviews.  P u r c h a s i n g i n West-  A.G. Thomson,, P e r s o n a l  68. " C o n t a i n e r i z a t i o n 70: F u l l Steam Ahead i n J a p a n , B u t C a n a d i a n I n l a n d Movements Cause W o r r i e s " , C a n a d i a n T r a n s p o r t a t i o n and D i s t r i b u t i o n Management, O c t . 1970. p p i 16-17. 69.  A.G. Thomson,  E. S t a t o n , P e r s o n a l I n t e r v i e w s .  70. B. L i n d s a y , P e r s o n a l I n t e r v i e w , 71. The m a j o r V a n c o u v e r F r e i g h t f o r w a r d i n g f i r m s a r e Lemar, J.W. M i l l s , J o h n s t o n T e r m i n a l s L t d . , F o r t e x , a n d F r e i g h t C o n s o l i d a t o r s o f Canada. 72. The s t u d i e s r e v i e w e d c o n s i s t e d o f t h e f o l l o w i n g : " C o n t a i n e r i z a b l e Cargo H a n d l e d a t C a n a d i a n P o r t s i n I n t e r n a t i o n a l T r a d e D u r i n g ' t h e Y e a r 1965", P r e l i m i n a r y E s t i m a t e s , D e p a r t m e n t o f Trade a n d Commerce, Ottawa. M a r c h 1968. C i t e d by R e e s , p . 54. ( see below) "Study o f the P o r t o f Vancouver", A n a l y s i s by Kates, P e a t , M a r w i c k a n d Co., V a n c o u v e r . 1967. W.J. S h e r i f f , "The P o r t o f V a n c o u v e r G e n e r a l C a r g o Requirements", R e p o r t f o r the N a t i o n a l Harbour's Board, B r i t i s h C o l u m b i a R e s e a r c h C o u n c i l , V a n c o u v e r . J a n . 1968. C i t e d by Rees, p. 57. ( s e e b e l o w ) "Cargo C o n t a i n e r i z a t i o n and t h e P o r t o f Vancouver", R e p o r t t o t h e N a t i o n a l Harbour's Board by Johnston^ T e r m i n a l s L i m i t e d , V a n c o u v e r . F e b . 1967. C i t e d by Rees, p . 58. ( s e e below) G.R. Rees, " A n a l y s i s o f P o t e n t i a l C o n t a i n e r T r a f f i c i n The P o r t o f V a n c o u v e r " , U n p u b l i s h e d M.B.A. T h e s i s , U . B . C , V a n c o u v e r . S e p t . 1969. op_. c i t . , CTC S t u d y ,  1970.  74. Containerizable cargoes were defined as that cargo which was physically containerizable plus that cargo which had other characteristics which would make containerization profitable op. c i t . , Trade and Commerce Study, 1968. 75. op_. c i t . . CTC Study, 1970. 76. Sheriff, op_. c i t . , 1968.  p. 71. p. 33.  77* op_. c i t . , Johnston Terminals Report, 1967. 78. Rees, op_. c i t . , 1969. ities rates their Major cube.  pp. 10-14.  p. 80.  79* Rees defined •prime* container cargo as being "Commodof high value with relatively high handling and shipping which can be readily packaged in containers, thus reducing high degree of susceptibility to damage and pilferage. physical c r i t e r i a are size and the relation of weight to Examples are canned meat, apparel,liquor" ibid. 80. op_. c i t . , Keats, Peat, Marwick Study, 1967. 81. op_. c i t . , CTC Study, 1970.  p. III-3.  p. 71.  82. C. Clapham, "Containerization in the Seventies", Proceedings of the Canadian Transportation Research Forum, Panel Discussion, Vancouver. March 20, 1970. p. 3. 83. ibid. 84. 'Low density* is another way of saying high cubic. It means that a short ton of such cargo occupies several times the space that a 'low cubic* or dense commodity would require. 85. See Table 3.18. cf. C. Crook, A.G. Thomson, Personal Interviews.  S. Garrod, D. McGregor,  86. op_. c i t . , Keats, Peat, Marwick Study, 1967,  p. 1-1.  87. L. Carlyle, Personal Interview. 88. ibid. 89. 1970 Japan 6 Lines - Imports  Exports  3555 f u l l  + 485 empty 3402 f u l l + 1133 empty  6957 Total = 8375 Other Lines - Jan. 1 - May 31= 3759  lSlg  - June 1 - Dec 31= 5240 (at same rate) Feasible Yearly total = 17t575 units. It is unknown whether the totals for the Other Lines are for both f u l l and empty containers of any length, but have assumed so.  90. G. Payne, op. c i t . , S p e e c h t o t h e I n s t i t u t e o f N a v a l A r c h i t e c t s and M a r i n e E n g i n e e r s , 1971. A t t h a t t i m e he c l a i m e d t h a t c o n t a i n e r movements t h r o u g h ' t h e P o r t o f V a n c o u v e r c o u l d be a t a r a t e o f 35.000 u n i t s by t h e end o f 1971. p . 11. 91.  ibid.  92.  C. C r o o k ,  93«  R e e s , op_. c i t . ,  94.  op_. c i t . ,  cf.  Clapham, op_. c i t . ,  A.G.  Thomson,- P e r s o n a l I n t e r v i e w s . p . 80.  Keats, Peat, Marwick Study, 1970.  1967.  p . 4.  c f . The J o h n s t o n T e r m i n a l s S t u d y h a d u s e d 20 t o n s a s t h e f a c t o r f o r c o n v e r t i n g t o n n a g e s moved t o number o f c o n t a i n e r s . 95.  Immer, op_. c i t . ,  1970.  cf.  T a b l e s 3.21  3.22.  and  p.  152.  OCP RATES AND TERMINAL CHARGE APPLICATION FOR CARGO IN CONTAINERS This Chapter discusses the application of the OCP t a r i f f and rates of terminal charge and the absorption practices, of the various carriers.  Relevant rules of the Japan-West Canada  t a r i f f are analyzed and their implication for containers (both those destuffed on the Vancouver waterfront and those which move intact to OCP destinations)  are explained.  This involves  an examination of the way the terminal charges are levied and collected as set out in the published wharf t a r i f f used at the Vancouver Container Terminal for break-bulk, palletized and containerized cargo. Examples of the charges for cargo moving eastward by poolcars and in intact containers are presented in Table 4.1. This is followed by a description of the Port of Vancouver terminal charges that apply to cargo of various arriving by different methods. Table 4.2.  densities  A summary is presented in  Calculations of the dollar amount of terminal  absorptions applicable to containerized cargo, and the cost to the consignee for the movement from ship's tackle to his own warehouse by poolcar and by intact container are then derived. The major problem encountered with OCP t r a f f i c ,  as  alluded to in Chapter III,  is one of cargo density.  Since a  large portion of this traffic has been composed of consumer items with a relatively high individual value but low weight factor, the inland carriers encounter equipment productivity problems when they attempt to move the intact container.  The  result has been unattractive rates for container movement. Some reference to the current ILWU Agreement is made in this Chapter but most of the discussion of the 'container clause' is left for Chapter V. OCP CHARGES The Japan-West Canada Freight Conference Tariff consists of two major sections.  The f i r s t portion is a l i s t i n g of the  rules which apply to OCP cargo and includes items such asi (1) the ports involved, (2) the participating carriers, (3) the general regulations for OCP cargo movement including the application of rates and definition of terms, (4) forms and procedure followed when applying for a rate adjustment, and (5) rules for containerized cargo. The relevant sections of the Tariff are included in the Appendix VI. The second part of the Tariff l i s t s , by commodity, the ocean rate to be charged each shipment of cargo, depending on  whether the With of  destination i s a Pacific  literally  the  tariff  presented  apply  Charge  general  to  point.  this  portion  Some e x a m p l e s  are  VII.  OCP  TRAFFIC  Determination  provisions  i n Chapter I I I .  only  OCP  commodities i n v o l v e d ,  CONTAINER PROVISIONS FOR  Ocean F r e i g h t  described  o r an  i s understandably voluminous.  i n Appendix  SUMMARY OF  The  thousands of  Local  of  the  OCP  tariff  have  been  However c e r t a i n p r o v i s i o n s  containerized  cargo.  The  o r i g i n s and  and  rules  destinations  1 are  as  explained  whether L o c a l  or  i n Chapter I I I , OCP,  are  but  the  ocean f r e i g h t charges,  e f f e c t i v e from the  CFS  or  the  CY  of  2 the  loading  The  terminal  trucks alone  port  CY  or  CFS  of  the  destination  charges f o r l i f t i n g containers  or r a i l or  to the  cars are  a b s o r b e d by  i n conjunction  with  the  the  t o and  port.  from  chassis,  oacean c a r r i e r s ,  inland carriers.  This  either applies  3 at  both  the  loading  Reduced r a t e s container for  and are  i s p a c k e d by  u n i t i z a t i o n i f the  container. excluded  The  provided the  use,  ports.  f o r u n i t i z a t i o n of  carrier,  but  cargo i s shipped  no  container  10$ has  of  the  total  be  is  i f  the  granted  shipper-packed  the  pallet  weight or  b e e n p a c k e d by  f r e i g h t charges w i l l  cargo  reduction  in a  w e i g h t o r measurement o f  t o a maximum o f  When t h e exclusive  discharging  the  subject  is measurement.  shipper to a  for  his  minimum  5 utilization  requirement.  I f the  container  carries a  single  the inside cubic capacity of the container.  If the single  commodity is rated on a weight basis, the minimum w i l l be 95$ of the weight capacity, and " i f the total measurement and weight is less than the above stated minimums, freight shall be assessed on the lower deficiency at the rate applicable to 6  the highest rated commodity" in the shipment. The carriers are permitted to containerize break-bulk cargo for their own convenience, however this cargo qualifies for none of the conditions or concessions to containerized 7 cargo.  It may show on the ship's manifest as containerized  cargo but the B i l l s of Lading are not to be so claused. "The approved inland carrier to which cargo has been released for transportation to an OCP (destination) must within 14 days...furnish to the ocean c a r r i e r . . . a copy of the 8  inland carrier's B i l l of Lading, Waybill, or Freight B i l l " , to show that the specific cargo was in fact forwarded.  This  B i l l of Lading must show the "name of the importing vessel, port of origin, ocean carrier's B i l l of Lading number, voyage number, final inland destination, and date of actual forwarding to such destination".  9  If this proof is not provided within 14 days of discharge from ship's tackle, freight charges on the basis of Local rates are collected.  Similarly, i f the cargo leaves the ocean  carrier's custody prior to forwarding, freight charges based on Local rates together with the applicable terminal charges are collected. With the change in the designation of approved inland  the  inland  tariff",  absorption  b u t now  of t e r m i n a l charges  custody  of the i n l a n d  applies  whether the  a freight  cargo  forwarder.  date  vessel),  OCP  move t o a n  lower)  OCP  carrier  rate.  forwarding,  n o t make  carriers".  i s released  This  to the  of o f f - l o a d i n g destination,  f o r adjustment  T h i s c l a i m must be  o r i f the shipment  condition  consignee  does from  or to  subsequently the  a c l a i m may  importing be  filed  from  the L o c a l  to  filed  w i t h i n 90  days  i s forwarded  any  the  10  However i f t h e c a r g o  11  the ocean  carriers will  on c a r g o w h i c h l e a v e s  o r ocean  ( w i t h i n 6 months f r o m  with  "ocean  on l o t s ,  (the of  within  12 90 d a y s o f f o r w a r d i n g t h e f i n a l  Rail and  F r e i g h t Rate  Determination For  Break-Bulk  C o n t a i n e r i z e d Cargo  The  r e l e v a n t p o o l c a r and  discussed tariffs  i n Chapter  appear  almost  weight  i s considered.  to  same s h i p m e n t  the  charges may  portion.  to the  n o t be  III.  container r a i l  These import  identical,  tariffs  competitive  to discourage  the  difference  intact  c o n t a i n e r movement, b u t f o r most consumer i t e m s w i t h a of  approximately 4 i l ,  the p r i c e  of  'security'  c o n t a i n e r becomes e x p e n s i v e , a l t h o u g h n o t prohibitive.  tariff  different  F o r dense commodities  significant  hundred-  o f each  o f goods p r o v i d e s markedly  sufficiently  freight  i f o n l y the r a t e p e r  However t h e a p p l i c a t i o n  consignee.  were  density  i n a sealed  necessarily  The following examples illustrate the comparative linehaul charges incurred by a shipment of four container loads of goods from Vancouver to Toronto by both Container (CFA-263) and Poolcar (CFA-254-B) rates.  The FAK class of CFA-263  (Item 316 Supplement 2) applies to the movement of two or more loaded containers on either a 46 or 85-foot flatcar from Vancouver to Toronto, and requires the return of the empty containers to Vancouver.*  The minimum weight is 20,000 lbs.  f o r containers on a 46-foot flatcar or 40,000 lbs. on a 85-foot car at a rate of $4.50/cwt. at a flat charge of $1.50/cwt.  Any excess weight moves  Return of the containers is  at a nominal charge of $100.00 each.  The Canadian railroads require that the consignee pay for the loaded movement east and that he also pay for the return of the empty container to the Vancouver waterfront. However the American railroads charge only for the loaded movement and agree to return the empty for nothing. At 'face value', this would indicate a lower price is being charged by the American railroads for the round trip container movement. However i t i s not quite this simple. The American railroads are paying the container owner a 'per diem' allowance for each day that the container is in the hands of the railroad. As a result, the railroad members of the Transcontinental Freight Bureau are in financial trouble. Having established this procedure for pricing container movement, the American railroads are not i n a strong enough position to revoke the practice. The CNR and CPR did not allow themselves to be 'trapped' by the steamship companies, and are strong enough to prevent such a situation in the future.  Suppose t h e shipment c o n s i s t s o f f o u r 20-foot w e i g h i n g 8,000 l b s . e a c h  containers  ( i . e . a c a r g o d e n s i t y o f 6:1) m o v i n g  from Vancouver t o Toronto and back-haul cargo i s n o t a v a i l a b l e . The  FAK i n t a c t  container  r a t e o f $4.50 i s a p p l i e d t o t h e  minimum w e i g h t o f 40,000 l b s . , p r o v i d i n g a t o t a l $1800.00.  Therefore  the t o t a l  charge o f  l i n e - h a u l charge w i l l  be  $2200.00, o r a n a v e r a g e c h a r g e o f $6,88/cwt o f c a r g o moved. The  poolcar  commodity c l a s s , The  (CFA-254-B) does n o t c o n t a i n a FAK  b u t I t e m 70 a p p l i e s t o a m u l t i t u d e  Using  o f goods c a r r i e d poolcar  t h e a b o v e example, a l m o s t t h e e n t i r e q u a n t i t y i n the four  (see r a i l  containers  c o u l d be p l a c e d i n  c a r c a p a c i t y d i s c u s s i o n on pagel85) a n d  t h u s t h e minimum w e i g h t p e r c a r w o u l d be a t t a i n e d . the  o f goods.  r a t e i s $4.33/cwt, on a minimum w e i g h t o f 30,000 p o u n d s /  carload.  one  tariff  poolcar  movement w o u l d be $4,33/cwt t o t a l l i n g $1385.60, o r  $4.33/cwt o f c a r g o a c t u a l l y moved. it  should  by  road  Example  All  Cost o f  be f e a s i b l e  (The t r u c k i n g f i r m s  claim  t o move t r u c k - l o a d q u a n t i t i e s o f c a r g o  f o r approximately  $4.00/cwt)  2  details  except that  o f the shipment a r e i d e n t i c a l with  the containers  Example  now w e i g h 12,500 l b s . e a c h ,  is  the average weight of containers  to  V a n c o u v e r i n 197Q)  1,  (This  moved by t h e J a p a n 6 L i n e s  The r a t e f o r s h i p m e n t b y p o o l c a r i s  again $4.33/cwt, (minimum weight of 30,000 lbs. under CFA-254-B, Item 70) and $4.50/cwt by the container rate (CFA-263, Item 316). Here the minimum required weight of 40,000 lbs. i s exceeded so the excess moves at a rate of $1.50/cwt. is $1800 + 150 + 400 = $2350.00.  The total charge then  The actual rate for cargo  moved would be (1) poolcar - $4.33/cwt, (2) container - $4.70/cwt including return of the empties. Unquestionably, rates of these levels present a serious deterrent to the eastward intermodal movement of the voluminous import cargo arriving at the Vancouver waterfront in intact containers from the Orient,  Table 4.1 presents a comparison  of the charges incurred for different commodities under these two r a i l tariffs  i l l u s t r a t i n g that in a l l cases the movement  of the intact van containers is more expensive than via poolcar shipment.  FOR COMMODITIES MOVED BY POOLCAR AND IN INTACT CONTAINERS (Two c o n t a i n e r s p e r 4 6 - f o o t f l a t c a r ) May 1971 CFA-263 E x a m p l e 1. Container rate CANNED FOODSTUFFS: Item 316 Minimum w e i g h t / c a r l o a d 20,000 l b s Rate/cwt. 5J54.50 f o r min.wt. $1.50 f o r e x c e s s Shipment s i z e (30,000 l b s / c o n t a i n e r ) 60,000 l b s Line h a u l charge F o r B a s i c - $ 900.00 For Excess600.00 Empty r e t u r n 200.00 TOTAL $1,700.00 Example 2. BAMBOO FURNITURE:Item Minimum w e i g h t / c a r l o a d Rate/cwt.  316 20,000 l b s $4.50 f o r min.wt. $1.50 f o r e x c e s s  Shipment s i z e (8,000 l b s / c o n t a i n e r ) 16,000 l b s L i n e h a u l c h a r g e - F o r ' b a s i c weight-$900.00 For excess Empty r t n . 200.00 $1100.00 Example 3. RADIOS, T V ' s , STEREOS: Item Minimum w e i g h t / c a r l o a d Rate/cwt  316 20,000 l b s $4.50 f o r min.wt. $1.50 f o r e x c e s s  Shipment s i z e (12,000 l b s / c o n t a i n e r ) 24,000 l b s L i n e h a u l c h a r g e - F o r b a s i c w e i g h t $900.00 For excess 60.00 Empty r e t u r n 200.00 $1160.00  CFA-254-B Poolcar rate 50 40,000 l b s $2.25/cwt. 60,000 l b s $ 1,350 $  — 1,350  80 40,000 l b s $4.6l l6,000 l b s $737.60 — $737.60  210 40,000 l b s $4.23 24,000 l b s $1,015.20 — $ 1015.20  TERMINAL CHARGES DEFINED Terminal charges consist of the handling, wharfage, service and f a c i l i t y , and truck or carloading charges assessed by the steamship lines, inland carriers, and dock operators. Recent attempts have been make to consolidate these charges into a single 'terminal levy* in a manner similar to that 13  employed in the Port of Seattle. "Handling is the service performed i n moving cargo from 14 ship's tackle to the f i r s t place of rest on the terminal", be this railroad car, motor carrier, barge, lighter, other vehicle, or in the case of containers, to the f i r s t placement on the dock, whether or not this requires further dockside movement by straddle carrier.  The handling charge applicable  is that "named i n the applicable terminal tariffs for breakbulk cargo", except that for cargo in containers delivered to the destination port's CY, "the handling charge w i l l be 15  reduced by 3 0 $ " . 'Ship's tackle' is defined to mean "that location immediately accessible to cargo gear used for l i f t i n g cargo 16  and/or containers to or from the vessel".  Wharfage is a  per ton levy made by the dock authority, on a l l cargo, including containerized cargo, and the proceeds are used for maintenance and service of the dock f a c i l i t i e s . The truck loading or carloading charge is the 'price* for  a l l cargo including containers, delivered at the CFS or CY of the destination port. In addition a l l cargo "shall be assessed a service and 17 f a c i l i t i e s charge of U.S. $0.65 per revenue ton".  No  similar charge i s levied by the Port of Seattle. 18 TERMINAL CHARGE APPLICATION The Empire Stevedoring Company Limited and Terminal Dock Ltd. Wharf Tariff No, 4, sets out the charges to be levied on cargo moved across Centennial Pier in Vancouver.  Basically  these same charges are levied at a l l piers in Vancouver. A l l charges are based on the revenue ton, being 2,000 lbs. or 40 cubic feet, which ever yields the greater revenue. Only the class of cargo designated as ' A l l Goods, N.O.S.' (Not Otherwise Specified) w i l l be discussed, but i t must be appreciated that many shipments are covered by commodity clauses which are different from the N.O.S. rate, usually but not always, being higher as they are based on weight tons. summarizes these charges,  Table 4.2  (see page 173)  Wharfage and Handling Wharfage charges are Can. $0.60 per revenue ton to a maximum of 4:1.  This means that even i f the cargo i s 10:1  ( i . e . i t requires 400 cubic feet of space to equal 2,000 lbs.)  the  maximum w h a r f a g e w o u l d o n l y be 4 x . 6 0 = $ 2 . 4 o / r e v e n u e  ton  o f cargo.  ton  f o r c a l c u l a t i o n purposes,  Handling charges a r e a l s o  p e r t o n ( w e i g h t o r measure Again  charge  Both  will  (W/M)), f o r ' A l l Goods, basis  an  cargo  to break-bulk cargo.  the h a n d l i n g charges w i l l  20  i s containerized,  ocean-going  vessel  I f the cargo i s  be r e d u c e d b y 3 J%» (  If  ( i . e . has been d i s c h a r g e d from  t h e CY t o t h e i n l a n d  carrier  i n the  c o n t a i n e r ) a n d h a s b e e n moved b y members o f t h e Japan- 6  Lines, a reduction granted. any  possible  i n a c o n t a i n e r , moved t o t h e CY, a n d  subsequently r e l e a s e d from intact  s o t h e maximum  be 4.60 x 4 = $18.40 p e r t o n W/M.  19 the  N.O.S.'.  o f the r a t e s f o r wharfage and h a n d l i n g a r e the  charges a p p l i c a b l e unitized,  on t h e r e v e n u e  w i t h t h e l e v y b e i n g Can. $4.60  t h e maximum l e v y i s a 4J1  handling  based  o f 30%, i n t h e h a n d l i n g c h a r g e  is, i n effect)  I f t h e c a r g o i s c o n t a i n e r i z e d , a n d i s moved b y  other steamship  line  b u t the Japan  6, a 40$ r e d u c t i o n i n  21 h a n d l i n g charges is  levied  plainly  i s granted.  S i n c e no ' a l l - i n c l u s i v e ' f e e  f o r t h e s e c o n t a i n e r movements, t h e 40$ r e d u c t i o n i s  evident i n the consignee's  bill.  E m p i r e S t e v e d o r i n g h a s a c o n t r a c t w i t h t h e J a p a n 6 t o move a l l o f t h e i r c o n t a i n e r s , a n d one o f t h e p r o v i s i o n s o f t h i s c o n t r a c t i s t h a t Empire w i l l l e v y an ' a l l - i n c l u s i v e ' f e e f o r movement o f t h e c o n t a i n e r s f r o m t h e v e s s e l i n t o t h e CY, f r o m t h e CY o n t o r a i l c a r o r t r u c k , a n d t h e n o f f t h e dock. T h u s w h i l e t h e 30% r e d u c t i o n i s g r a n t e d i t d o e s not a p p e a r a s s u c h on t h e c o n s i g n e e ' s b i l l .  Service and F a c i l i t y Charge Besides the wharfage.(600) and handling ($4.60) charges, a l l cargo moving across Centennial Pier is assessed a service and f a c i l i t y charge of Can. $0.65 per ton W/M.  This charge is  made by Empire against the steamship company, and the steamship company passes i t on to the customer.  (The fact that they are  able to do so may be reason enough, but the justification for so doing i s not clear.) Loading The dock operators also levy a loading charge against imported cargo.  For ' A l l Goods, N.O.S.' the charge is $4.60  per ton W/M unless the truck or r a i l c a r can be loaded with handling by fork l i f t equipment only. w i l l be $1.70 per ton W/M.  In this case the charge  If the container has been destuffed  in the CFS, the cargo is considered to be break-bulk and therefore the $4.60 per ton charge is levied.  However i f the  container is to be moved off the dock intact, the flatcar or truck flatbed  loading charge is only Can. $0.75/ton W/M.  These charges are the same whether i t is a Japan 6 vessel involved or some other company's container ship.  Again, the  loading, handling, wharfage and service and f a c i l i t y charges are a l l consolidated into the one all-inclusive fee by Empire to the Japan 6 and there is no necessary reason to assume that the individual parts of the total container-moving fee are  divided the  i n exactly  this  manner.  A l s o many goods a r e named i n  t a r i f f a n d t h e 'commodity r a t e s "  are different  from the  N.O.S. r a t e . The  r a i l w a y s absorb  a carloading  2,000 l b s , a g a i n s t t h e c a r g o . realistic handled  figure  at this  charge  They f e e l  o f $9.00/ton o f  that  this  f o r the low-density-high-volume 22 port.  is a  traffic  T h i s same $ 9 . 0 0 ( C a n a d i a n )  u s e d when d e t e r m i n i n g t h e a b s o r p t i o n t o be a p p l i e d  being  charge i s to imported  cargo which a r r i v e s v i a S e a t t l e .  Crane  One o t h e r a p p l i c a b l e steamship matters of  cargo  lines  little  charge  levied  a g a i n s t the  f o r the use o f the g a n t r y crane.  Since i t  w h e t h e r t h e c o n t a i n e r h a s 4.000 l b s . o r 40,000 l b s .  i n i t (the transfer  o p e r a t o r s have  i s that  time  i s almost  t h e u s e df  'priced'  t h e same), t h e d o c k  t h e crane a t $9.00 p e r  container. If arriving  f o r some r e a s o n , a s deck cargo  may be g r e a t e r t h a n  t h e consignee h a s a c o n t a i n e r  on a c o n v e n t i o n a l v e s s e l ,  i f i t was b r e a k - b u l k .  h i s charges  F o r e x a m p l e , he  would pay a l l t h e t e r m i n a l charges n o r m a l l y a s s e s s e d a g a i n s t break-bulk  cargo, p l u s a charge  the v e s s e l  deck i f the use o f a mobile  This  i s not to say that  f o r l i f t i n g the c o n t a i n e ro f f crane  h i s s a v i n g s from  damage w o u l d n o t be s u f f i c i e n t  that  would s t i l l  T a b l e 4.2  prove  profitable.  i s required.  loss,  pilferage or  t h e c o n t a i n e r movement summarizes t h e  RELATIVE FOR TERMINAL CHARGE ITEM  TERMINAL CHARGES PER REVENUE TON PORT OF VANCOUVER CARGO ARRIVING BY D l F F E R E N T METHODS  FOR BREAKBULK CARGO  FOR CARGOES ARRIVING IN CONTAINERS ON ON ON OTHER CONVENT-• JAPAN 6 LINE CONTAINERIZED IONAL VESSELS VESSELS VESSEL CY . CFS CY CFS  FOR CARGO OF 1:1 Wharfage SerM & F a c Handling Loading-manually -fork l i f t  .60 .65 4.60  .60 .65 4.60  4.60 1.70  4.60 1.70  DENSITY  FOR CARGO OF 4:1 2.40 Wharfage S e r v & Fac 2.60 18.40 Handling Loading18.40 -manually -fork l i f t 6.80  2.40  2.60  18.40  Rate * R e d u c t i o n  18.40  46.00 17.00  .60 .65 4.60  4.60 1.70  .75  4.60 1.70  2.40  2.40  2.40  2.60 2.60 12.88* 18.40 3.00  FOR CARGO OF 10:1  6.50  .75  .60 .65 2.76+  2.40  6.80  2.40  .60 .65 4.60  DENSITY  18.40  2.40 Wharfage 6.50 Serv & Fac Handling 18.40 Loading46. 00 -manually - f o r k l i f t 17.00  .60 .65, 3.22*  18.40  6.80  2.60  11.04+  3.00  18.40 6.80  DENSITY  2.40 2.40 6.50 6.50 12.88* 18.40 7.50  46.00 17.00  2.40  6.50  2.40  11.04+  7.50  o f 30$, a n d + R e d u c t i o n o f 4 0 $ f r o m  Source:  2.60  18.40  6.50 18.40 46. 00  17.00  breakbulk.  E m p i r e S t e v e d o r i n g Company L i m i t e d a n d T e r m i n a l Dock L i m i t e d Wharf T a r i f f No. 4. E f f e c t i v e A p r i l 15, 1971. V a n c o u v e r , B.C.  terminal charges levied against general cargo (N.O.S.) in the Port of Vancouver. TERMINAL CHARGE ABSORPTIONS As mentioned earlier (Chapter III)  the railways and  steamship companies have agreed to absorb the terminal charges of handling, wharfage, and carloading.  The current OCP Agreement  i s that the steamships w i l l absorb 60%> and the railways 40$ 23  when the cargo does move to OCP territory.  These absorption  shares refer to break-bulk cargo. On traffic which arrives in containers, is destuffed at the CFS, and then loaded into boxcars for Eastern Canadian destinations, the carriers make their regular absorptions. This is because the container is considered to be part of the ship, so this cargo is classed as 'break-bulk-.  However an  important difference must be noted for containers that are moving to OCP destinations intact.  On these through-put  containers the railways make absolutely no absorptions of any kind.  The only reductions for which this cargo qualifies are  the (lower) OCP rates and the reduced terminal handling charges, (either 30% or 40$ depending on the line involved).  Since the  r a i l container rates are essentially the same as those charged for commodities moving at carload (CL) rates on a "private 24 siding or team tracks within interswitching limits" basis, the significance of this non-absorption becomes evident.  In  addition, i f the containers f a i l to attain the minimum carload  weight requirements,  the  c o s t o f m o v i n g an  becomes p r o h i b i t i v e l y h i g h  in  i n r e l a t i o n to  intact the  container  poolcar  rates  CFA-254-B. At  the  present  time a s t e a m s h i p - a i r l i n e  combination i s  of  25 little  importance  to hold its  much p r o m i s e f o r t h e  present  being  i n Western Canada, future  form i s considered.  used i n ocean t r a n s p o r t  and  i t does n o t  appear  when c o n t a i n e r i z a t i o n i n  The  van  is built  container  currently  to withstand  the  stresses  26 and  s t r a i n s imposed by  result  i t has  o f most o f If  i n the  container fitted  the  shippers  which i s of  like  a  Examples o f  sleeve  and  the  lightweight i n s i d e the  ocean van  Since absorption OCP  the  a  weight  destinations.  to the  construction,  Practices  Ocean and  a b s o r b e d by  i n T a b l e 4.3.  s i g n i f i c a n c e of  densities  OCP  to  As  use  and  container,  of  can  a  be  this  change.  charges that are  the  to  c a r r i e r s turn  Inland  A number o f e x a m p l e s o f t h e  presented  ocean voyages.  transported  the A b s o r p t i o n  F o l l o w e d by  and  tare weight i n p r o p o r t i o n  cargo being  future  s i t u a t i o n may  as  a high  both land  As  the  of Terminal  Charges  Carriers  relative  amounts o f  i n l a n d and  these values  these absorptions  are  terminal  ocean c a r r i e r s are per  revenue  ton,  f o r cargoes of d i f f e r e n t  i s r e a d i l y apparent. the by  m o t o r c a r r i e r s do the  steamship l i n e s  d e s t i n a t i o n cargo,  this  not of  receive the  discussion  any  terminal  deals  only  partial charges with  the  for  railway-steamship absorption practices. According to Rule #10 of the Rail Tariff, the " r a i l carriers w i l l absorb a portion of the wharfage, handling, and 27 carloading charges up to a maximum of $11.92 per 2,000 l b s , " . The Japan-West Canada Freight Conference Tariff contains a clause which states that " i n no event w i l l ocean carriers 28 absorption exceed $21.08 (Canadian) per 2,000 l b s . " . In both cases the cargo must be delivered directly from the ocean carrier to the on-going r a i l carrier for the absorption provisions to apply.  In addition, paragraph 2 of Rule 10 of  the Rail Tariff states that the r a i l "carriers w i l l absorb the cost of carloading only of $9.00 per 2,000 l b s . " for cargo 29 discharged at Seattle, Washington. The examples in Table 4.3 illustrate that regardless of the 'airiness* or low density of the cargo, terminal charge absorptions are levied on a maximum of a 4 » 1 volume to weight. A l l of these charges apply to goods discharged in the Port of Vancouver in break-bulk form, and destined for OCP centers. If the cargo arrives at the dock in Vancouver in a container, and is destined for OCP territory, i t must be forwarded in one of two manners* (1) move in the intact container (in which case the railways and steamships w i l l make no absorptions of the terminal charges) but the handling charge is reduced, or (2) be destuffed completely by the longshoremen on the Vancouver waterfront, in the Container Freight Station (CFS), and loaded into boxcars by the longshoremen on  EXAMPLES OF TERMINAL CHARGE ABSORPTIONS BY OCEAN AND R A I L CARRIERS FOR CARGO OF VARIOUS DENSITIES  EXAMPLE 1. F o r c a r g o o f 1:1 d i m e n s i o n s ( i . e . a w e i g h t o f 2000 l b s . i n a s p a c e o f 40 c u b i c f e e t ) t h e c h a r g e s w o u l d be d i v i d e d as f o l l o w s : Carloading Handling Wharfage  $ 9.00/weight t o n 4.60/revenue t o n .60/ " "  R a i l r o a d share Steamship share -  = =  4 0 $ o f $14.20 60$ o f 14.20  = =  = $ 9.00 = 4.60 .60 $14.20  $ 5.68 8.52  EXAMPLE 2. F o r c a r g o o f 2:1 d i m e n s i o n s ( i . e . 2000 l b s = 80 c u . t h e c h a r g e s w o u l d be d i v i d e d a s f o l l o w s : Carloading Handling Wharfage R a i l r o a d share Steamship share  $ 9.00/ wt. t o n 4.60/ wt. t o n X 2 .60/ wt. t o n X 2 = =  4 0 $ o f $19*40 60$ o f 19.40  = $ 9-00 = 9.20 = 1.20 $19.40  = $ 7.76 = 11.64  EXAMPLE 3. F o r c a r g o o f 4:1 d i m e n s i o n ( i . e . 2000 l b s = 160 c u . The c h a r g e s w o u l d be d i v i d e d a s f o l l o w s : Carloading Handling Wharfage R a i l r o a d share Steamship share  $ 9.00/wt t o n 4.60/wt t o n ,60/wt t o n = 4 0 $ o f $29.80 = 60$ o f 29.80  X 4 X 4  Carloading  R a i l r o a d share Steamship share  $ 9.00/wt  (max i s 4:1) (max i s 4:1)  = $ 11.92 = 17.88  ton  4.60/wt t o n X 4 .60/wt t o n X 4  = 4 0 $ o f $29.80 = 60$ o f 29.80  ft.)  = $ 9.00 = 18.40 = 2.40 $29.80  EXAMPLE 4. F o r c a r g o o f 15:1 d i m e n s i o n ( i . e . 2000 l b s = 600 c u . t h e c h a r g e s w o u l d be d i v i d e d a s f o l l o w s : Handling Wharfage  ft.)  = $ 11.92 = 17.88  = $  = =  ft.)  9.00  18.40 2.40 $29.80  by the ocean and r a i l carriers. Cargo in any form moved by truck w i l l not qualify for any terminal absorptions.  This means that the terminal charges to  the consignee on containerized OCP cargo may be higher than the charges for the same cargo which has been destuffed at the CFS.  For examples assume a given cargo has dimensions of 6:1,  has arrived at the Vancouver dock i n a container, is destined for Toronto, and that the consignee has directed that the goods be transferred to a boxcar for forwarding. this must be done by ILWU labor on the docks.  By agreement  The resulting  absorptions would bet Carloading Wharfage Handling  $9.00 ' .60 x 4 4.60 x 4  =9.00 = 2.40 (max. is 4.1) =18.40 (max. is 4:1) $29.80  The entire $29.80 w i l l then be absorbed by the carriers.  If  the cargo had gone forward i n the intact container the terminal charges would have been: Carloading $9.00 Wharfage 2.40 Handling 4.60 -40$= 2.76 x 4 = 11.04 $22.44  (max. is 4»1)  However the carriers make no absorptions on intact containers, so the consignee would be held responsible for these terminal charges.  The result is that the cargo becomes more costly in  a container than out. Using the same commodity and shipment size examples  SOME EXAMPLES OF COMPARATIVE TOTAL LINE HAUL CHARGES TO THE CONSIGNEE FOR OCP CARGO MOVED THROUGH THE PORT OF VANCOUVER BY THE JAPAN 6 L I N E S ~ SHOWING THE RELATIVE ABSORPTIONS IN POOLCARS v s INTACT CONTAINERS May 1971 EXAMPLE l .  CANNED FOODSTUFFS:  2 c o n t a i n e r s , 60,000 l b s . D e n s i t y o f 1.7.1  Intact Container: Wharfage: .60 x 1.7 =$ 1.02 NO Handling: 3.22 x 1.7 = 5.50 ABSORPTIONS Loading : .75 x 1.7 = 1.28  CFS - P o o l c a r Movement: .60 x 1.7 = 1.02 Wharfage: Handling: 4.60 x 1.7 = 7.82 L o a d i n g : 1.70 x 1.7 = 2.90  S e r v & F a c : .65 x 1.7 = 1.10 x 30= 33.00 L i n e H a u l : (From T a b l e 4.1 ) =1700.00 TOTAL COST TO CONSIGNEE IN TORONTO $1964.00  S e r v & F a c : .65 x 1.7 x 30 = 33.OO L i n e H a u l : ( T a b l e 4.1) =1350. 00 TOTAL COST TO CONSIGNEE $1383. 00  7.80 x 30=$234. 00  EXAMPLE  2.  BAMBOO FURNITURE:  Intact Container: Wharfage; .60 x 4 Handling: 3.22 x 4 Loading: .75 x 6.2  2 c o n t a i n e r s , 16,000 l b s . D e n s i t y o f 6.2:1  =2.40 NO = 12.88 ABSORPTIONS = 4.66  19T94 x 8 = 159.52  S e r v & F a c : .65 x 6.2 = 4.03 x 8 = 32.24 L i n e H a u l : (From T a b l e 4.1) 1100.00 TOTAL COST TO CONSIGNEE IN TORONTO *Carloading: 9.00 x Wharfage : 1.02 x Handling : 7.82 x Maximum A b s o r p t i o n s T e r m i n a l Charges Unabsorbed p o r t i o n  $ 11.74  ALL CHARGES ABSORBED  30 = 270.00 30 = 3O.6O 30 = 234.00 = $ 534.60 = 352.20 =  $1291. 76  CFS - P o o l c a r Movement; .60 x 4 ~= 2.40 Wharfage: 4.60 x 4 =18.40 Handling: L o a d i n g : 1.70 x 6.2 =10.50  NOT ALL CHARGES ABSORBED  31.30 6.2 = 4.03 x 8=32.24 S e r v & F a c : . 65 x L i n e H a u l : (From T a b l e 4.1) 737.60 Unabsorbed T e r m i n a l Charges 12. 00 TOTAL COST TO CONSIGNEE $ 78.1.64 C a r l o a d i n g : 9.00 x 8 = 72.00 Wharfage : 2,40 x 8 = 19.20 Handling :18.40 x 8 =147.20 Maximum a b s o r p t i o n s = 238.40 Terminal Charges = 250.40 Unabsorbed p o r t i o n = 12.00  as p r e s e n t e d calculated  i n T a b l e 4*1,  c o s t s to the  i n T a b l e 4:4.  have  T h i s data demonstrates the  o f t h e h i g h e r c o n t a i n e r r a t e s and terminal  consignee  been  effects  the n o n - a b s o r p t i o n  of  the  charges.  CONDITIONS UNDERSCORING DESTUFFING ON  THE  VANCOUVER  WATERFRONT  LABOR UNION AGREEMENT  The and  l a b o r agreement w i t h  Warehousemen's U n i o n  the I n t e r n a t i o n a l Longshoremen's  (ILWU), s i g n e d i n 1970,  contains a  ' 5 0 - m i l e c l a u s e ' w h i c h g o v e r n s t h e movement o f c o n t a i n e r s i n t h e L o w e r B.C. This CFS  Mainland.  ( s e e A p p e n d i x XI  c l a u s e s t a t e s t h a t c o n t a i n e r s must be a t t h e w a t e r f r o n t by  following (1)  two the  longshore  c o n d i t i o n s has  been  c o n t a i n e r i s t o be  f o r exact  wording)  d e s t u f f e d i n the  l a b o r , u n l e s s one  of  the  satisfied:  moved b e y o n d Hope, B.C.  before  being destuffed, or (2)  the  c o n t a i n e r i s b e i n g moved d i r e c t l y  own  premises,  or leases),  and  'beneficial  receiver',  the  will  forwarders,  prevents  acting  maintains,  consignee  owns t h e  who  entire  third  consignee's  (not rents  i s the contents  d e s t u f f the e n t i r e  c o n t a i n e r a t t h a t one  clause e f f e c t i v e l y  freight  owns and  t h a t the  c o n t a i n e r and  o f the This  w h i c h he  to the  contents  location. parties,  on b e h a l f o f t h e  of  such  consignee  as in  The ILWU enforces t h i s agreement by having 'spotters* follow containers that are leaving the C % i f the Union suspects the containers are not being moved to the b e n e f i c i a l reveiver's own warehouse f o r complete destuffing.  I f the container  movement does not, i n f a c t , q u a l i f y f o r a l l the conditions s t i p u l a t e d i n Item 2 (above),  'pickets* w i l l begin marching 30  around that container and thereby prevent i t being destuffed. To date, containers of imported cargo a r r i v i n g v i a SeaLand or American Mail Lines at S e a t t l e , and being moved to Vancouver by truck or the Burlington Northern Railroad to the premises of f r e i g h t forwarders  (such as Johnston Terminals, M i l l s , or Leimar)  or to trucker's terminals (such as G i l l , CP Transport, or Midland Superior), have not been a f f e c t e d by the longshoremen. For these same reasons, Western Assembly bring t h e i r shipments 31  i n through S e a t t l e .  EMPTY CONTAINER RATES FROM THE PRAIRIES  The majority (Table 3 » 1 9 ) of a l l containers a r r i v i n g a t the Port of Vancouver are being destuffed on the dock by the longshoremen i n the CFS, and the contents are being moved by Teamster Union members to a f r e i g h t forwarding s t a t i o n or other l o c a t i o n f o r consolidation into truck load or poolcar 32  consignments f o r shipment eastward.  Of the 1 0 $ - 1 5 $ of  containers that are moving East i n t a c t , the great majority are heading f o r Alberta destinations, with some moving to Regina.  T h i s P r a i r i e t r a f f i c has developed almost d i r e c t l y as a r e s u l t of a lowering  o f the p r i c e charged by the r a i l w a y s f o r the  r e t u r n o f an empty c o n t a i n e r to Vancouver: from $70 - $80 previously* Regina.  down to a c u r r e n t $30 f o r A l b e r t a , and $40 f o r  33  CARGO CHARACTERISTICS  The  marked tendency toward d e s t u f f i n g of the c o n t a i n e r i n  Vancouver can be a t t r i b u t e d t o three main cargo (1) the type and value trade  characteristics:  o f the goods moving i n import  ( d i s c u s s e d i n Chapter I I I ) ,  (2) the s o r t a t i o n procedure t h a t i s u t i l i z e d i n l o a d i n g the c o n t a i n e r s (3)  i n the O r i e n t ,  the d e n s i t y c h a r a c t e r i s t i c s o f the cargo r e l a t i v e to modal equipment.  The  Problem o f 'Mixed Shipments'  Often  the OCP ' o r i g i n - a r e a ' s h i p p e r s pack consignments  f o r Vancouver, C a l g a r y ,  Winnipeg, o r o t h e r OCP d e s t i n a t i o n  p o i n t s i n t o the same c o n t a i n e r .  T h i s may be because they  (1) have i n s u f f i c i e n t volume f o r each p o i n t , (2) they do n o t a p p r e c i a t e the Canadian (3)  the p h y s i c a l d i s t a n c e between  cities,  they have 'always done so', o r  (4) f o r some o t h e r ^ p r i v a t e reason.  Some e x a m p l e s o f t y p i c a l containers from  are i l l u s t r a t e d  stowed  has  a weight over  i n Table  i n t h e same c o n t a i n e r .  f o r CFS  4i5.  destined  W e i g h t s range.-,  e i t h e r contains  practice  E v e n when t h e c o n t a i n e r  30,000 l b s . a n d i s d e s t i n e d f o r OCP t e r r i t o r y , a diversity  of d e s t i n a t i o n s , o r both  o f c o m m o d i t i e s o r h a s a number  ( s e e #3,  #4,  i n Table  makes i t m a r i d i t o r y t h a t t h e c o n t a i n e r  Vancouver and  loads  6,000 t o o v e r 32,000 l b s . , a n d a g r e a t d i v e r s i t y o f g o o d s  are  it  container  ( i . e . on t h e d o c k s b y ILWU  stuffing'  labor).  procedure has thus e f f e c t i v e l y  of  t h e b e n e f i t s t h a t c o u l d have a c c r u e d  of  this  Considerations  This  'sortation  eliminated  many  from c o n t a i n e r i z a t i o n  m a t t e r o f c a r g o d e n s i t y becomes v e r y  boxcars,  of containers  or trucks.  of this  When a c o m p a r i s o n i s made w i t h  semi-trailer,  of the r a i l  when  by the type west-bound  east  o f cargo cargo.  the weight/volume  b o x c a r and t h e highway t r u c k o r  the inadequacies  rate schedule,  important  I n a d d i t i o n , t h e movement  i s g o v e r n e d t o some e x t e n t  characteristics  Capacity  move e a s t w a r d i n c o n t a i n e r s ,  moving westward, and t h e source  present  be d e s t u f f e d i n  i n R e l a t i o n t o Equipment  c o n s i d e r i n g whether cargo w i l l railroad  This  traffic.  Cargo D e n s i t y  The  4*5).  become  o f the c o n t a i n e r , obvious.  under the  SAMPLE CONTAINER LOAD PLANS FOR IMPORTED CFS CONTAINERS VANCOUVER CONTAINER TERMINAL May 1971 Sample # 1. 100 c a r t o n s l a d i e s s a n d a l s 7 " p o r c l e a n wares 20 " dried vegetable cole 25 " g i r l s jeans 17 ' " cotton overalls  Sample # 2. 42 c a r t o n s , mens c o t t o n T - s h i r t s 5 " cotton shirts 21 " willow baskets 21 " t a b l e mats  4400 l b s . 540 l b s . 1764 l b s .  3527 l b s . 2425 l b s . 12665 l b s . 5700 l b s . 617 " 1087 " 1568 " 8972 ~ ir  Sample # 3. 403 48  cartons  9 3  42  13 1 Sample # 4.  tools tools buttons r a c h e l l e edgeing s p o r t i n g goods pet supplies tools  26174 l b s . 3462 648  lace  32H9I  312 c a r t o n s  125 15  25082 l b s . iron pipe f i t t i n g s 3000 " wrought i r o n c a n d l e h o l d e r s  360  Marked  <*5  6 60  cartons  hardware pumps braids d r i e d mushrooms  Sample # 6. 12 c a r t o n s g l a s s h e a d e d p i n s 59 " v i n a l baskets 17 " r a y o n c h e n e l stemware 88 " stoneware  Source:  "  28442 ~ V a n c o u v e r ; W i n n i p e g v i a V a n c o u v e r - OCP; T o r o n t o v i a V a n c o u v e r - OCP; M o n t r e a l v i a V a n c o u v e r - OCP; and V a n c o u v e r .  Sample # 5* 170  253 1753 509 99  I8850 l b s . 2985 " 311 "  i860 24006  "  ~  544 l b s . 1811 1020 3256  6631  " " "  "*~  C o n t a i n e r Load P l a n s ( C L P s ) f r o m c o n t a i n e r s imported through the P o r t of Vancouver v i a t h e G o l d e n Arrow v o y a g e // 13. May 1971.  Container Capacity The average 20-foot container carried by vessels of the Japan 6 has a cargo load of about 6 tons (Table 3:21), yet i t has a load limit of 40,000 lbs. and a space capacity of 1050 to 1100 cubic feet.  If the container contains dense (1:1)  cargo, the maximum allowed weight would occupy only 800 cubic feet of space, but since the majority of the imports from the Orient approach a 4:1 dimension, the volume constraint reached f i r s t with only 6 to 7 'weight-tons' of cargo.  is In  addition, a broken stowage factor of 10$ to 25$ means that only 800 to 1000 cubic feet of space actually is useable in most containers. The 40-foot container has a proportionally higher utilizable volume (about 2200 cubic feet), but the load limit is only 1,5 times that of the 20-foot unit at 60,000 pounds. These factors, combined with the physical problems encountered with the big containers, have limited the number of 40-foot units arriving and departing from the Port of Vancouver to less 35  than 10$ of total movements. Rail Boxcar Capacity  The regular r a i l boxcar (40'6" long inside) has a weight capacity of 100,000 to 140,000 lbs. and a volumetric capacity of 3900 cubic feet; equal to 3J or 4 twenty-foot  containers  on both measures, but requiring the same space in a train as  two 20-foot containers on a 46-foot flatcar.  The railway  tariffs were established on the basis of two containers per 46-foot flatcar or four containers on an 85-foot container bogie with minimum weights of 10,000 lbs. per 20-foot unit. If a two-container shipment does not weigh the minimum amount, the consignee must be prepared to pay for the dead freight 37  difference i f the container is to move east intact.  Road Equipment Capacity A highway truck tractor can pull two 26-foot t r a i l e r s , having a capacity of 1850 cubic feet each, while the 35-foot t r a i l e r has a volume limit of 3700 cubic feet.  To move two  20-foot containers on truck flatdeck provides only 1900 cubic feet of space.  Since almost a l l the cargo from two 20-foot  containers can be stowed into one 26-foot truckbox, there is no incentive to move 20-foot containers. The motor carriers find that their cost to move a 40-foot container unit on a chassis (with 2200 cubic feet of space) is about the same as to move their own equipment with 3700 cubic 38 feet of revenue producing space.  The cost is v i r t u a l l y the  same, whether i t is moved piggyback or over-the-road. Actually the price of piggyback traffic is detrimental to the movement of containers as piggyback traffic because the r a i l rate is quoted on a minimum of 40,000 l b s . , but with only 9-12  tons in a 40-foot container, the consignee w i l l have to  pay for 10,000 to 20,000 pounds of dead freight.  The  weight o f imported  factor.  cargo u s u a l l y i s n o t a  When h e a v y c a r g o on one B i l l  container  does a r r i v e ,  e a s t by r a i l , established  of Lading  i n p r a c t i c a l l y every  because t a r i f f s  by the r a i l r o a d  limiting  i n one  instance  i t moves  f o r dense commodities as  a r e more f a v o r a b l e  than the  39  truckers is  that  can supply  f o r long hauls.  t h e motor c a r r i e r s  container  traffic  equipment.  containers  trailers,  f o r comparable  a p p e a r s t o be a t l e a s t by road  The r e s u l t  n o t moving c o n t a i n e r s  consignees w i l l  than those  service.)  75$ g r e a t e r  The  own  being price  t o move  cargo  t h a n t o move t h e same g o o d s i n t r u c k  when t h e d e t e r m i n a t i o n  weight b a s i s . is  than f o r t h e i r  (These r a t e s a r e a l s o h i g h e r  differential  result  a r e f o r c e d t o quote r a t e s f o r  t h a t a r e much h i g h e r  quoted by the r a i l w a y s  in  The i n e v i t a b l e  i s made on a p e r h u n d r e d  i s obvious?  the t r u c k i n g i n d u s t r y  o f a through-put nature  n o t p a y f o r t h e dead  freight.  because t h e  SUMMARY It appears that the railroads have not made any effort to establish container rates that w i l l encourage intermodal movement from Vancouver.. They have used the argument that these rates w i l l be established as soon as the carriers are guaranteed volume movement of containers, but this volume must be on their own line ( i . e . CNR or CPR), not just on the railway system.  Further, the railways protest that they have  a very large investment in a large number of perfectly usable boxcars, which have not yet been 'depreciated out'.  They  question the rational of 'rushing out to buy the new container bogies' at a cost of $17,000 to $20,000 each, when they have no assurance that containerization w i l l provide the intermodal answers everyone is seeking for Canadian Westcoast imports.  CHAPTER  1. J a p a n - W e s t Canada F r e i g h t 2.  ibid.,  Rule  101.  3.  ibid.,  Rule  108.  4.  ibid.,  Rule  104.  5.  ibid.,  Rule  115.  6.  ibid.  IV  Conference  Tariff  No.  2,  Rule  3.  7. i b i d . , R u i e 116. T h i s R u l e i s s l a t e d t o e x p i r e June 3 0 , 1971, u n l e s s e x t e n d e d . The P a c i f i c - W e s t b o u n d F r e i g h t C o n f e r e n c e w h i c h a p p l i e s t o t r a f f i c f r o m West C o a s t P o r t s t o J a p a n and t h e F a r E a s t , h a s a s i m i l a r r u l e . See P a c i f i c Westbound C o n f e r e n c e L o c a l T a r i f f No. 3 . R u l e 70 B, Item 12. 8.  ibid.,  9.  ibid.  10.  ibid.  11.  ibid.  12.  ibid.  (Japan-West  Canada) Rule  3.  1 3 ' A m e e t i n g between t h e S h i p p i n g Companies, A g e n t s , R a i l ways, and S t e v e d o r i n g Companies was h e l d i n V a n c o u v e r May 1 3 - 1 5 , 1971 i n a n a t t e m p t t o e s t a b l i s h a s i n g l e , a l l - i n c l u s i v e , 'dock' f e e , on a b a s i s s i m i l a r t o t h e p r a c t i c e c u r r e n t l y f o l l o w e d i n the P o r t o f S e a t t l e . 14.  op_. c i t . , J a p a n - W e s t Canada. R u l e  15.  ibid.  16.  ibid.,  Rule  22.  17.  ibid.,  Rule  23.  23.  18. The f o l l o w i n g d i s c u s s i o n i s b a s e d on E m p i r e S t e v e d o r i n g Company L i m i t e d and T e r m i n a l Dock L i m i t e d Wharf T a r i f f No. 4 , a p p l i c a b l e t o B e r t h s 4 , 5 , 6 , C e n t e n n i a l P i e r , V a n c o u v e r , and e f f e c t i v e i n r e v i s e d form A p r i l 15, 1971. cf.  G.  Payne, P e r s o n a l I n t e r v i e w .  19. U n i t i z e d cargo i s d e f i n e d as b e i n g "a c o n s o l i d a t i o n o f uniform s h i p p i n g packages secured t o p a l l e t s " w i t h the i n d i v i d u a l packages h e l d s e c u r e l y together forming a s i n g l e s h i p p i n g u n i t t o f a c i l i t a t e m e c h a n i c a l h a n d l i n g . See i b i d . , Item p.  2.1.(g).  7.  20. C o n t a i n e r i z e d goods a r e d e f i n e d a s b e i n g "goods r e c e i v e d i n a c o n t a i n e r v/hich i s f o r movement i n t a c t b e t w e e n v e s s e l a n d i n l a n d c a r r i e r " . See i b i d . , Item p.  2.1.(h).  21.  ibid.,  Item  2.29.(b).  22. C. C r o o k , P e r s o n a l Interview.  p.  8.  13.  Interview.  A.G. Thomson,  Personal  23. F o r m e r l y t h e c h a r g e s were s h a r e d 50$ by t h e S t e a m s h i p L i n e a n d 50$ by t h e R a i l w a y . See op_. c i t . , J a p a n - W e s t Canada T a r i f f , a n d C a n a d i a n F r e i g h t A s s o c i a t i o n T a r i f f No. 24.  See  CFA-254-B,  Rule  254-B.  80.  25. I n t h e V a n c o u v e r P o o l c a r C a s e , t h e Judge n o t e d t h a t t h e a i r l i n e s a r e n o t r e a l c o m p e t i t o r s w i t h t h e r a i l w a y s and t r u c k e r s f o r t h e t r a n s - s h i p m e n t o f OCP c a r g o , a n d t h e s i t u a t i o n w o u l d n o t a p p e a r t o be m a t e r i a l l y d i f f e r e n t a t t h i s t i m e , p a r t i c u l a r l y f o r c o n t a i n e r i z e d goods. See 2 E x . C. R. 1968. 26. I n t e r m o d a l v a n c o n t a i n e r s must have much g r e a t e d s t r u c t u r a l s t r e n g t h than'road-only' c o n t a i n e r s , and c o n s i d e r a b l y more t h a n ' a i r - o n l y ' u n i t s b e c a u s e o f t h e much more s e v e r e t w i s t i n g , b u c k l i n g a n d c r u s h i n g t e n d e n c y t h a t r e s u l t s f r o m wave action. As w e l l , o n l y i n o c e a n c a r r i a g e w o u l d t h e c o n t a i n e r be s u b j e c t e d t o l o n g p e r i o d s o f c o n t i n u a l t i l t i n g a t up t o 15° i n o p p o s i t e d i r e c t i o n s i n t h e s p a c e o f a few m i n u t e s .  27. See CFA-254-B, R u l e 10.A. T h i s $11.92 i s composed o f a $ 9.00 c a r l o a d i n g c h a r g e , p l u s t h e h a n d l i n g c h a r g e o f $4.6o/ton W/M, t o a maximum o f 4:1 (4.60 x 4 = $18.40), p l u s the wharfage o f $.6o/ton W/M t o a maximum o f 4:1 ( .60 x 4 = $2.40). Added t o g e t h e r t h e s e c h a r g e s t o t a l ( 9.00 + 18.40 + 2.40) $29.80. Fourty percent of $ 29.80 = $11.92. 28. op_. c i t . , J a p a n - W e s t Canada, R u l e 3« The v a l u e m e n t i o n e d a p p l i e d i n t h e T a r i f f No. 1, a n d w h i l e t h e a c t u a l v a l u e i n t h e c u r r e n t T a r i f f has n o t been determined, i t i s s u f f i c e n t l y high t h a t i t p r e s e n t s no d e t e r e n t t o t h e movement o f c a r g o .  29.  CFA-254-B,  Rule  10 A.  30. C. C r o o k , A.G. Thomson;. P e r s o n a l 31.  K. Cox, P e r s o n a l  32.  C. C r o o k , A.G. Thomson,-  Interviews.  Interview. Personal  Interview.  34. G. Cameron, P e r s o n a l 35«  Interview.  C. C r o o k , A.G. Thomson,., P e r s o n a l  Interview.  36. CFA-263. 37. Up t o t h e p r e s e n t t i m e t h i s h a s n o t b e e n t h e g e n e r a l r e a c t i o n o f c o n s i g n e e s , a l t h o u g h a few e x c e p t i o n s have b e e n noted. N i s a n Automotive L t d . has been moving i n t a c t c o n t a i n e r s o f a u t o p a r t s ( p a r t i c u l a r l y f e n d e r s a n d body p a n e l s ) t o E a s t e r n Canada, e v e n t h o u g h t h e c o n t a i n e r s h a v e w e i g h t s o f o n l y 6,000 t o 8,000 p o u n d s . D. S p i n k , A.G. Thomson,., P e r s o n a l I n t e r v i e w s . 38. J . Shaw, P e r s o n a l 39. S e e t h e commodity  Interview. r a t e s e s t a b l i s h e d i n CFA-263.  LABOR UNION RESPONSE TO INTERMODAL CONTAINERS "Containerization is a wonderful bit of progress; at a time of high unemployment, they have figured out a way to increase the number of jobless." . . . . A Vancouver Longshoreman.The previous Chapter dealt with the major deterrent to intermodal OCP freight movement (cargo density and rates), but another factor, labor is also very important.  To some extent  this problem i s reflected in the rates and tariffs,  but because  of i t s importance a more inclusive discussion of labor's response to containers is undertaken here. This Chapter presents a general world-wide longshore union reaction to containerization, followed by a study of specific areas that have influenced the reaction of the dock workers in Vancouver.  The effects of competition are illustrated  in the reactions of European unions, while the major U.S. dock unions have been able to 'negotiate' from a position of strength.  The current labor contract in the Port of Vancouver  shows the influence of both these positions. A discussion of eastern Canadian dock labor problems is also included because the containerization response of Seattle, New York, and Montreal longshoremen may well be the deciding factor as to whether OCP traffic as presently constituted, w i l l  continue  t o move t h r o u g h  Vancouver,  diverted  to S e a t t l e ,  York,  Quebec  New  Halifax  - S t . John,  or  be the  ports.  LABOR UNION RESPONSE TO  B e f o r e any rate  o r whether i t w i l l  conclusions or decisions  of ( i n use)  detailed  containerization  analysis  be u n d e r t a k e n .  c a n be  possess  British,  determined,  American,  and  t h e power t o d i c t a t e  the terms under which  the Japanese  r e g a r d i n g the  growth  a  o f l a b o r ' s p o s i t i o n v i s a v i s c o n t a i n e r s must  Currently,  longshore unions industry*  CONTAINERIZATION  t o the ' s h i p p i n g  c o n t a i n e r s may  longshore unions possess  this  Canadian  be moved.  If  power, t h e y have  not  1 exercised  i t up  to t h i s  time.  I n many c a s e s , i n c l u d i n g and  power have a l m o s t  mechanization  and  lessened  unitization  in  of cargo movement.  c l a u s e s i n the longshore  the  pilferage,  cost  savings that  breakage  and  time  (into The  'destuffing'  greatly  and  or  greatly  from r e d u c t i o n s  s h o r t a g e s ; as a r e s u l t  savings are also  that  containers) offered  c o n t r a c t s have  expected  demands  the advantages  should r e s u l t  r a t e s have n o t been d e c r e a s e d as Expected  the union's  completely n u l l i f i e d  f o r undisturbed door-to-door 'stripping'  Vancouver,  insurance  predicted.  reduced.  REDUCED HANDLING EXPECTED TO LOWER INSURANCE COSTS  One of  of the major advantages  cargo was  proposed  for containerization  the marked r e d u c t i o n i n the number of times  i n d i v i d u a l items or packages of cargo would be handled T h i s was  supposed  to l e a d to lower i n s u r a n c e c o s t s .  that  manually.  Certainly  employees o f the s h i p p e r and consignee must continue moving each i n d i v i d u a l package, but t r u e l y i n t e r m o d a l cargo  transfer  ( i n c o n t a i n e r s ) p r e s e n t s o n l y a s e a l e d 'box' f o r each and c a r r i e r employee to handle. if  every  Compare t h i s with up to 20 (more,  transhipment i s n e c e s s a r y ) i n d i v i d u a l h a n d l i n g s u s i n g the  t r a d i t i o n a l break-bulk method, (see F i g u r e 5»1)  To have a  c o n t a i n e r s t u f f e d i n the CFS a t one p o r t , and d e s t u f f e d a t another p o r t ' s CFS  e l i m i n a t e s o n l y 4 or 5 h a n d l i n g s , and  s t u f f i n g and d e s t u f f i n g must s t i l l  this  be done on the w a t e r f r o n t by  longshore l a b o r . Granted not a l l cargo w i l l be handled t h i s o f t e n even under break-bulk methods, but some cargo which i s c o n t a i n e r i z e d d u r i n g p a r t of i t s journey may handlings. shipments  Damage and breakage  still  have two  dozen manual  i n c u r r e d i n some of these  has been e x t e n s i v e i n some i n s t a n c e s , and i t can be  d i r e c t l y a t t r i b u t e d to the f a c t t h a t the goods were handled so 2 often before being a c t u a l l y placed i n a container. H a n d l i n g damage and breakage  l o s s e s have not been e l i m i n a t e d  by the i n t r o d u c t i o n of c o n t a i n e r i z a t i o n because c a r r i e r , o r l a b o r r e l u c t a n c e , or i n a b i l i t y c o n t a i n e r i z a t i o n t o the f u l l e s t r a t e s have not decreased.  extent.  of s h i p p e r ,  to a c c e p t and  utilize  As a r e s u l t i n s u r a n c e  FIGURE 5.1 NUMBER OF TIMES CARGO •  IS HANDLED FROM  SHIPPER  TO THE CONSIGNEE  SHIPPER'S WAREHOUSE Truck T a i l Gate . >  . Unload  Store i n Freight  Boxcar  Shed  p —  '  TRUCK —  Stored  Truck  Unload Rail  Stowed i n Truck  in  Load  Freight  Shed  Railcar  RAIL  —  Move t o Ship's Tackle OCEAN  Lift from Hold  Place on Wharf ,  Unload Truck j—  — — ~ in  —  —  Load Aboard  Stow in —  Ship  Hold  TRIP  Move t o Freight Shed Stored  in  Freight  Shed  — S t o r e d and Sorted in F r e i g h t Shed Load  into  Truck  TRUCK — Unload Consignee's Truck Dock CONSIGNEE'S WAREHOUSE  -~~ Loaded into Boxcar  A second reason why insurance rates have not been lowered, (and in some cases have actually been increased),  is  that entire containers have 3  (1) been lost overboard, (2) had their cargo partially or completely destroyed because of faulty packing, or (3) been stolen intact from the waterfront, or while in 5  transit. Understandably the carriers and dock operators are reluctant to talk about thefts from their f a c i l i t i e s , but the potential for a very substantial loss exists.  Significantly,  insurance rates have not been decreased, although this may be due primarily to the large l i a b i l i t y that container carriers could incur for each container. CONTAINERIZATION RESULTS IN INCREASED HANDLING SPEED Whereas manual handling of break-bulk cargo occurs at rates of 10 - 25 tons/hour/hatch, a single-crane container terminal may easily handle 15 to 20 containers of up to 20 tons each per hour.  It has been noted that a "conventional ship  working six hatches can average 1200 tons a day (while) a container ship worked by only two cranes can easily do 3 or 6 4 times that quantity in the same period of time". At the same time as the tonnage handled is being increased 10 fold, the number of dock workers required might theoretically 7 be decreased by 80$. Assuming the remaining labor force were  the  more s k i l l e d  higher  wages) s a v i n g s  possible. direct or  a n d d e p e n d a b l e men  That  these  'tribute*  of the order savings  ( a n d t h u s w o u l d draw  50$-60$  of  have n o t m a t e r i a l i z e d i s a  to the strength  of the longshore  i n Port  unions,  Numbers  Because o f t h e l a r g e and e x t e n s i v e going  containers  investment  i n ocean-  a n d v e s s e l s , t h e number o f p o r t s must be h e l d  a minimum, a s must t h e t i m e t h a t a v e s s e l s p e n d s i n any-  particular  port.  productivity decline  This  implies  of container  which  That t h i s  terminal port  e f f i c i e n c y and l a b o r , with  l o s e out i n the 'container type  a coincident  not materialized i s again  the  longshore  'automation* political  unions,  to see t h e i r  the unions by t h e i r t h a t an e v e n t u a l  f a r from blameless  universal  inability  approach*  to union  facilities  of the strength of 'fear' of  t r a n s p o r t mode u n i o n s a n d " n a t i o n a l i s t i c  d e c i s i o n s by governments.  However t h e s t e a m s h i p  result  of port  a c c o m p a n i e d by t h e w i d e - s p r e a d  among s u r f a c e  w o r k e r s do n o t w i s h  ensuring  a direct  number  race*.  o f economic r a t i o n a l i z a t i o n  has  time,  increased  o r e l i m i n a t i o n o f demand f o r l a b o r a t t h e l a r g e r  of ports  are  be  t h e w e a k n e s s o f management.  Reduction  to  should  jobs  I t i s understandable disappear,  that  b u t a t t h e same  r e s t r i c t i v e demands seem t o be e l i m i n a t i o n of union  owners, a g e n t s , i n this  to provide demands.  jobs  will result.  and s t e v e d o r i n g  operators  problem, because o f t h e i r a  'strong united  almost  management  The p o r t s where u n i o n  power h a s  been curbed very  WHO  keen  have b e e n s u b j e c t e d  FROM CONTAINERIZATIONt  Employers  in  direction  and/or  competition.  BENEFITS  advent  t o government  and o p e r a t o r s  express  of c o n t a i n e r i z a t i o n w i l l  LA30R, MANAGEMENT, OR  the o p i n i o n t h a t the  b e n e f i t the dock worker,  wages a n d i n j o b o p p o r t u n i t i e s , a s t h e r e  "substitution  of c a p i t a l  BOTH  continues  both  t o be a  i n t e n s i v e systems f o r the l a b o r 8  intensive  practices inherited  from the days o f s a i l  and  steam".  T h e y know t h a t t h e c o n t a i n e r t e r m i n a l w o r k e r h a s a physically expected  exhausting,  results  being  but higher  skilled  job to perform;  h i g h e r p a y a n d more  l e a d e r s and e x e c u t i v e s  t h a t the progress  means c h a n g e s i n t h e p a t t e r n s o f t h o u g h t , but  not the e l i m i n a t i o n of the c u r r e n t l y  the  job s e c u r i t y .  However t h e e m p l o y e r s h a v e a s y e t b e e n u n a b l e union  less  to convince being  the  sought  a c t i o n s , and employed l a b o r  jobs, force.  Traditionally " l o n g s h o r e o p e r a t i o n s have b e e n v e r y much a c a s u a l i z e d i n d u s t r y , where p e o p l e a r e h i r e d w i t h a 1 0 0 $ t u r n o v e r e v e r y day. I t ' s o n l y i n t h e p a s t few y e a r s t h a t d o c k o p e r a t o r s h a v e b e e n a b l e t o e n c o u r a g e a r e g u l a r work f o r c e and permanent employees". 9 At  t h e same t i m e  dissolve  however,  the longshore  t h e p e r m a n e n t work  unions  are t r y i n g  to  force.  " T h e y want t o make i t so t h a t e v e r y man r e g i s t e r e d w i t h t h e u n i o n g e t s some work, r a t h e r t h a n t r y i n g t o p r o t e c t t h e permanence o f t h e employment o f t h e men p r e s e n t l y working." 10 The w h o l e a r g u m e n t reap  i s b a s e d on a d e t e r m i n a t i o n  the b e n e f i t s of c o n t a i n e r i z a t i o n .  o f who  The s h i p owners  will  have  large capital investments in vessels and containers, and the ports and dock operators have substantial (although smaller) investments in shoreside f a c i l i t i e s .  Both these groups  measure their benefits in terms of higher productivity of the invested dollar, i . e . a greater tonnage moved per man per shift hour.  This mea.ns either a higher through-put with the same  size work force, or an equal volume moved with a smaller work force. The only way the longshore unions visualize their members benefiting from containerization is by either (1) being paid high wages whether they work or not, or (2) being 'guaranteed work* through very restrictive containerization clauses in their contracts. Their reasoning is that the total man-tons handled w i l l be the basis of payment, as this determines the number of hours worked. The union is unconcerned whether this means handling one ton 10 times, or ten tons once.  The Union Locals do not expect a  10 fold increase in traffic,  so they have opted for the 'make  work' clauses, although they have occasionally been willing to U  accept payment for not working. One of the most forceful presentations of the dock worker union's case regarding containerization was made in October 1968, by Thomas W. Gleason, President of the International Longshoremen's  Association (ILA), as he attempted to  the Union's demand for a .60% wage increase.  justify  He maintained that  the advent of containerization spelled 'doom' for the longshoremen! that the industry was intent on replacing men with 'boxes'.  However he claimed that the ILA was equally  determined erization.  to reap i t s f a i r share of the b e n e f i t s of  contain-  "Management must not expect to take i t a l l . 12  of the g a i n must be shared with the  Part  dockworkers."  The unions have claimed t h a t t h e i r demands f o r l a r g e wage increases  are j u s t i f i e d by the s a v i n g s and p r o d u c t i v i t y  increases  t h a t accrue from c o n t a i n e r i z a t i o n .  But a t the same  time the unions have s t r u c k f o r ' s t u f f i n g ' and ' s t r i p p i n g ' clauses  to be w r i t t e n i n t o t h e i r c o n t r a c t s .  The Wall S t r e e t  J o u r n a l noted t h i s paradox when i t s a i d e d i t o r i a l l y : "Thus the union wants a pay r a i s e based on a r i s e i n p r o d u c t i v i t y and a t the same time ( i t ) wants t o e l i m i n a t e the a l l e g e d b a s i s f o r the boost. Anyone who f i n d s t h i s s u r p r i s i n g . . . h a s been out of touch l a t e l y with maritime l a b o r ' s maneuvers."  13  I f the unions r e a l l y wish to see t h e i r members share i n the b e n e f i t s of c o n t a i n e r i z a t i o n , without wholesale l o s s of jobs due  to l a c k o f work, i t would appear d e s i r a b l e and to  the dock worker's advantage,  to i n s i s t on an e f f e c t i v e ban  h i r i n g s (as has been done i n M o n t r e a l ) .  on  Then the b e n e f i t s of  c o n t a i n e r i z a t i o n would accrue to the p r e s e n t work f o r c e . However the longshore unions (and p a r t i c u l a r l y the m i l i t a n t I L A ) , have u s u a l l y been u n w i l l i n g to a c c e p t such a ban, p r e f e r r i n g i n s t e a d to a l l o w an i n c r e a s e  i n numbers even to the  d e t r i m e n t of the e x i s t i n g members' employment and e a r n i n g s .  The response  a brief  survey  o f the  o f dock workers t o c o n t a i n e r i z a t i o n i n C o n t i n e n t a l  Europe, and  following section presents  the United  Canada w i t h  Kingdom, E a s t e r n a n d W e s t e r n U n i t e d  special  United States P a c i f i c  CONTINENTAL  States,  e m p h a s i s on t h e C a n a d i a n a n d t h e  Northwestern p o r t s and  unions.  EUROPE  Containerization, "three-shift,  a c c o m p a n i e d by t h e i n t r o d u c t i o n o f  multi-purpose  b e r t h s , and the u n q u a l i f i e d  14 adoption  o f mechanical  remarkably This  h a n d l i n g equipment",  w e l l accepted  i n a l l non-English  h a s been speaking  nations.  may be due t o a n a b s e n c e o f b r o t h e r l y l o v e b e t w e e n  worker unions,  but i n a region with  short  dock  geographical  d i s t a n c e s between p o r t s , each n a t i o n and each p o r t i s l i t e r a l l y competing with is  apparent  With  extensive  charges  lesson  rail  and r o a d  can expect  links  competitive  criss-crossing  t o compete f o r l o n g ,  to get out of l i n e  to which  rational  "and t h i s  f r o m t o p management down t o t h e y o u n g e s t  E u r o p e , no p o r t its  a l l i t s neighbors,  with  apprentice"  North  West  i f i t allows  i t s neighbors.  t h e d o c k w o r k e r s have made a n  feeling  This i s a  economically  response.  '•THE UNITED KINGDOM  The  major B r i t i s h  p o r t s have b e e n t h e s u b j e c t o f  "over  labor.  The  September  1962,  "as  well  as  Rochdale Report, submitted  to P a r l i a m e n t  dealt with harbor administration  with  the  status  of dockworkers,  in  in  general  to w i t ,  decasual-  17 ization  and  training".  ization  had  not  However 2 y e a r s  significantly  later,  p r o g r e s s e d and  "decasual-  the  ports  of  Great  B r i t a i n . . . w e r e p l a g u e d w i t h l a b o r d i s s a t i s f a c t i o n and 18 wildcats". As a r e s u l t , t h e D e v l i n I n q u i r y i n t o d e c a s u a l ization  and  R e p o r t was  "causes of presented  i m p l e m e n t e d by This  was  d i s s e n t i o n " was  to P a r l i a m e n t  September expected  15»  established.  i n 1965,  and  The  Devlin  ordered  196?.  to usher i n a  "new  era  of  co-operation  The  r e s u l t s were  19 b e t w e e n e m p l o y e r s and  unions"  in Britain.  disappointing:  productivity f e l l  workers r e f u s e d  to handle  Trade  (Overseas Containers  consortia  Container Transport)5 o c c u r r e d i n 1969? and point  of v i r t u a l The  question  of  the  Ltd.,  two and  (London) dock Australian Associated  20 an e x p e n s i v e and c r i p p l i n g d o c k s t r i k e t h e P o r t o f L i v e r p o o l was f o r c e d t o t h e  21  b a n k r u p t c y by  January 1st,  1971.  d o c k l a b o r p r o b l e m s have c e n t e r e d  on  of  does what' a t b o t h  locations  members be  A  containers  Tilbury  British  away f r o m  of  25$;  'who  the  docks.  given  containers,  Union leaders  jurisdiction  a point  the  over  the  CFS  insisted the  and  at  that  the  their  ' s t r i p p i n g ' and  e m p l o y e r s were u n w i l l i n g t o  'stuffing' concede.  work s t o p p a g e r e s u l t e d and " t o t h e u t t e r s u r p r i s e and b e n e f i t o f c o n t i n e n t a l d o c k w o r k e r s . . . c o n t a i n e r s bound ( t o ) and f r o m A u s t r a l i a (had) t o be t r a n s f e r r e d t o and f r o m A n t w e r p and R o t t e r d a m ( a t ) an a d d i t i o n a l c o s t r e p u t e d t o be JC50 p e r c o n t a i n e r " . 22  While the switch to European ports was not permanent,  the  costs involved were considerable, and the vulnerability of every non-competitive European port has been emphasised. THE UNITED STATES EAST COAST The International Longshoreman's Association is comprised of a number of autonomous Union Locals which negotiate as a group, and have adhered to a policy of ' s t r i k i n g ' a l l East Coast U.S. ports, unless a l l have agreements in force at the same time.  In practice this policy has meant that the New  York (ILA)  Local would negotiate with the New York Shipping  Association (NYSA), and their collective agreement established the pattern for a l l U.S. East Coast port agreements. 1 9 6 8 Contract Negotiations Negotiations on the 1 9 6 8 contract began 4 months before expiry of any of the ILA contracts.  However agreement could  not be reached and a 5 ^ day strike resulted.  A complicating  feature of the 1 9 6 8 negotiations was the division which developed in the stand taken by the various ports.  #  The ILA is the single bargaining unit for the entire port's many locals dealing with the New York Shipping Association. The NYSA is a "membership corporation" composed of approximately 140 steamship companies, stevedores, and other waterfront employers i n the Port of New York.  compete as successfully as the Port of New York Authority (PNYA) for the containerized trade, these ports were unwilling, and perhaps unable to accept the terms of the NYSA-ILA Agreement.  As a result some of the Eastern U.S. ports remained  'struck* for almost 100 days. 24 as $15 million daily.  Losses were estimated as high  Longshore Agreement Container Clauses The agreements f i n a l l y reached between the various Shipping Associations and the ILA Locals a l l contained the '50-mile' clause which stated that a l l containers originating from, or destined to, points within 50 miles of the dock must- be "stuffed and stripped by ILA labour at longshore rates on a waterfront f a c i l i t y " .  (see Appendix XII)  Failure to have the  designated containers handled in this manner brought into action a penalty clause which required that the Steamship Company pay •liquidating damages of $250 per container' to the Welfare Fund. In June 1970, the matter of ' l o c a l ' containers being moved across the waterfront and paying the penalty rather than being handled by ILA labor on the dock was brought to a head. ILA President ordered the dockers 'to strip and s t u f f  The all  containers (except the through-put units) and in two days, this action completely jammed the piers.  After negotiations, the  NYSA agreed to the ILA demand that the penalty be raised to 25  $1,000.00 per container.  that  the  packing  ILA  employees  the  stuffing  located  and  unpacking  o f c o n t a i n e r s must be  " a t w a t e r f r o n t p i e r s and o f c o n t a i n e r s was  i n the  dock a r e a  done by  "carried  no  docks". ILA  The  labor at  weight  ( i f ) the  done fact  by that  premises packing  26 was  not  done on  the  waterfront".  However m e a s u r e s t h a t p r o t e c t l a b o r " a r e to  look  c l o s e l y at other ports not  clauses,  "The  interest  covered"  c a u s i n g many  by  such  restrictive  i n E a s t e r n C a n a d i a n p o r t s where  compulsary s t r i p - a n d - s t u f f  clauses exist  and  no  users  no  royalty  27 payments a r e p a i d , i s a p r i m e  THE  example."  UNITED STATES WEST COAST  In  c o n t r a s t to the  containerization  on  turbulent history  the A t l a n t i c  has been r e l a t i v e l y calm w i l l p e r s i s t through the  Coast, 28  s i n c e i960. summer o f 1971  o f the ILA  t h e U.S.  and  Pacific  Coast  Whether t h i s s i t u a t i o n remains a debateable  29 q u e s t i o n a t the p r e s e n t  time.  Because  the P o r t o f  Seattle  is  a p a r t y t o t h e p r e s e n t West C o a s t A g r e e m e n t , a b r i e f  of  the  factors  i n v o l v e d i n the acceptance  Agreement are p r e s e n t e d The  Warehousemen's U n i o n  owners a n d a  committee  Agents, called  and  terms o f  the  here.  d o c k w o r k e r s a r e members o f t h e  men's and  and  history  (ILWU), w h i l e  Stevedoring  the P a c i f i c  I n t e r n a t i o n a l Longshorethe  Steamship  Companies n e g o t i a t e  Maritime  through  A s s o c i a t i o n (PMA).  N e g o t i a t i o n s aimed a t d e f u s i n g the (then) t r o u b l e d West Coast l a b o r s i t u a t i o n r e g a r d i n g the i n t r o d u c t i o n of mechani z a t i o n and  c o n t a i n e r i z a t i o n began i n 1956•  Harry B r i d g e s ,  P r e s i d e n t of the ILWU made a ' r a d i c a l ' p r o p o s a l to the ILWU delegate caucus i n March 1956  when he  said:  "We have r e s i s t e d the impact o f l a b o r - s a v i n g machinery, mechanization, a u t o m a t i o n . . . p o s s i b l y with g r e a t e r success than any o t h e r o r g a n i z a t i o n . I t has (now) become a l o s i n g battle...We can continue to f i g h t a l o s i n g b a t t l e , and we w i l l l o s e i n more ways than one and f i n a l l y a f t e r we have thrown away a l o t of energy and a l o t o f b a r g a i n i n g power, we w i l l put on a showdown, l a s t - s t a n d f i g h t , and we w i l l l o s e t h a t one t o o . " 30 The P r e s i d e n t ' s approach was f a v o r e d mechanization job  not w e l l r e c e i v e d as the d e l e g a t e s  o n l y so f a r as i t made the dock worker's  e a s i e r , but they r e j e c t e d h i s i d e a t h a t they g i v e up men  the job.  However B r i d g e s p e r s i s t e d , and was  persuade the  'rank and f i l e '  e v e n t u a l l y a b l e to  to endorse mechanization  f i n a n c i a l b e n e f i t i n which both the steamship  on  as a  owners and  the  w a t e r f r o n t workers c o u l d share.  C o n t a i n e r Clauses i n The Agreement  In  October  Mechanization  i960, the ILWU and the PMA  s i g n e d the West Coast  and M o d e r n i z a t i o n Agreement, which has s i n c e  become known as the  ' p e a c e f u l agreement'.  I t contained  p r o v i s i o n t h a t the " b e n e f i t s of mechanization  and  the  modernization  31 should be shared with the workers".  The  t h a t the dock workers would s e l l t h e i r  'property r i g h t s ' of r e s -  trictive  l a b o r p r a c t i c e s f o r a lump sum  settlement provided  payment t o t a l i n g $10  million,  payable  over  jointly  (ILWU-PMA) a d m i n i s t e r e d w a g e - g u a r a n t e e f u n d .  additional  5 years, with  "$15  anticipated  million  profits  t h e monies t o be p a i d  from  increased productivity"  32  Outlook  came up f o r r e n e w a l  1966.  that  was p a i d  into  t h e c o n t r a c t was i n  ization  i n 1966.  c o n d i t i o n s have changed c o n s i d e r a b l y  The m a j o r a l t e r a t i o n h a s b e e n t h e r a p i d  the P a c i f i c  Other  years  i nthe  F o r 1971  Economic and p o r t  of  An  O n l y m i n o r c h a n g e s were deemed n e c e s s a r y when t h e  contract  since  a  r e p r e s e n t i n g the workers share  a pension fund over the f i v e force.  into  t r a d e from  at a level  rapidly  f a c t o r s almost  domestic, t o i n t e r n a t i o n a l c o n t a i n e r approaching  certain  t h a t a U.S. West C o a s t  conversion  that  of, t h e A t l a n t i c .  to provide s u f f i c i e n t  dock workers s t r i k e  will  labor unrest  develop  i nthe  summer o f 1971, a r e (1) t h e i n t r o d u c t i o n containerization  o f Japanese,  Australian  cargo."::-; t o t h e P a c i f i c  (2) t h e ' e f f e c t i v e n e s s *  and  European  Coast  ports,  o f the E a s t Coast ILA s t r i k e i n  1968, (3) t h e ' s u c c e s s ' o f t h e c o n t a i n e r i z a t i o n 1970  clause of the  V a n c o u v e r ILWU c o n t r a c t , a n d  (4) t h e g r o w i n g container  realization  traffic  o f what t r u l y  intermodal  c a n mean t o t h e modern p o r t ' s  labor  force. Should a s t r i k e exhibited  by both  develop,  the c o - o p e r a t i v e a t t i t u d e  t h e ILWU a n d t h e PMA  o v e r t h e p a s t 10 y e a r s  demands.  I t appears almost c e r t a i n that West Coast ILWU  negotiating teams w i l l not s e t t l e f o r less than the current Vancouver ILWU Local has achieved  regarding a containerization  33 clause, and the American Unions may well demand more.  EASTERN CANADA Up to the present  time, the introduction of containerization  does not appear to have been a contributing f a c t o r i n any A t l a n t i c coast or St. Lawrence River port labor disputes. Apparently, enough other factors existed that t h i s a d d i t i o n a l one was unnecessary ( i f one may judge by the findings of a  34 number of port labor i n q u i r i e s held i n the l a s t 10 years). Montreal and Quebec C i t y with (1)  numerous longshore disputes,  (2) low labor p r o d u c t i v i t y , (3)  an unfavorable geographical  l o c a t i o n because of winter  i c e conditions and a slow water journey, and (4)  a lack of cargo security,  have witnessed a transfer of considerable quantities of cargo to other ports p a r t i c u l a r l y Halifax, St. John (N.B.), Boston, and New York. Labor Minister Mackasey, i n discussing p r o d u c t i v i t y a t Canadian East Coast ports, indicated that from 1964  to 1969, the  p r o d u c t i v i t y of Montreal longshoremen i n terms of tons moved  35 per man hour had declined by 26%.  He added that i n absolute  terms Montreal handled one-third less tonnage/hour, and took  t w i c e as actions  long  t o u n l o a d a v e s s e l as  resulted in a  d i v e r s i o n of  longshoremen r e t a l i a t e d  Labor  that  attempt Dr.  the to  to o t h e r  even l o n g e r  and  on  the  Federal  St,  When  these  ports,  the  to unload  Lawrence w a t e r f r o n t  G o v e r n m e n t s e t up  d e t e r m i n e ways, t o l e s s e n  Picard's  size  taking  cargo  John.  cargo.  Inquiries  Conditions bad  by  did St.  (1967)  Inquiry  the  work, a n d  "rationalization  general  inquiries  labor  of  with  the  operations,  improvement i n w o r k i n g  in  so  an  problems.  recommended a d e c r e a s e  improved working c o n d i t i o n s ,  of achieving  two  p i e r s became  in  broad  gang objective  stabalization  conditions"  at  of  the  37  M o n t r e a l , Q u e b e c , and  Trois-Riveres  ports.  38  The  Arthur  recovered general in and as  the  labor  much o f  tone of  1968  the  the  longshore  the the  I. Smith Inquiry, same g r o u n d a s  S m i t h R e p o r t was  situation  contract.  principle  dated  He  had  the  October 2,  P i c a r d Report.  that  little  r e s u l t e d from  b l a m e d a weak a n d  r e a s o n f o r an  1969,  the  improvement Picard  divided  u n d i s c i p l i n e d and  The  Inquiry  management  inefficient  force.  Containerization  The  Clauses  l a b o r agreement between the  the  employers  and  b a s e d on  i n the the  most f a v o r a b l e  St.  Lawrence R i v e r  findings  anywhere  C a n a d i a n ILA  to  of  the  Picard  container  ports,  signed  Inquiry,  operators.  unions  1968,  in  i s one That  and  of  the  agreement  provided  for a freeze  number o f men  per  ports.  contract These  contained may  have n o t The  be  as  East  'stuffing*  volume o f  could  be  and/or  demanded i n t h e of  the  traffic  this  the  to  guaranteed  the  ILA  o r i g i n nations  via  (see  vessels  on  i n 1972  Table i f the  the  introduction  a reduction  e n j o y when m o v i n g a t OCP  conjunction terminal (3)  failure  with  labor  by  the  contracts  favorable than the  the  rail  and  many g o o d s ocean r a t e s  in  steamship absorptions  of  charges, inland carriers  transcontinental (k)  status  Canal-  with  (2)  favorable  This  Japan-Panama  coincided  and the  3.12)  l a b o r problems i n Vancouver and/or S e a t t l e ,  presently  members  Coast  (1)  i n the  guard  the A t l a n t i c  s u b s t a n t i a l l y increased,  Coast North America run  through  matter.  f r o m OCP  container  contract  apparently,  been c o n s i d e r a b l e .  cellular  the  cargo,  bankruptcy of t h e i r but  the  'stripping' clauses.  next  moving to  directly  in  a l e v y upon c a r g o g o i n g  for containerized  become m i l i t a n t on  Panama C a n a l has  of f u l l y  by  h a p p e n e d i n 19^9,  Great Lakes p o r t s  volume  no  a re-occurance  wage f u n d  a g u a r a n t e e d wage f o r  financed  Most i m p o r t a n t  clauses  against  u n i o n membership, a r e d u c t i o n  gang, and  l o n g s h o r e m e n t o be the  on  to  container i n East  rates,  competitive  or  Coast ports  containerized  agreements  to e s t a b l i s h  that prove  shipments moving  more  intermodally  i n Vancouver and/or S e a t t l e .  CONTRACT NEGOTIATION PROBLEMS  One  o f the  most p r o t r a c t e d l a b o r n e g o t i a t i o n s  p o r t h i s t o r y b e t w e e n The Warehousemen's U n i o n Association bargaining  c o n c e p t on 3  (ILV/U) and  negotiations  the  informal  and  Canadian Maritime  i n 1969-1970.  continued  signed, but  the  i n Vancouver  I n t e r n a t i o n a l Longshoremen's  (CMEA) o c c u r r e d  a g r e e m e n t was  39  f o r 10  Formal  collective  months b e f o r e  d i s c u s s i o n s on  changing port operation  Employees  had  the  an  whole  taken place  for  years. The  B.C.  competitors  Shipping  with  respect  methods o f h a n d l i n g many a r e a s ,  and  role  a change i n the  management h a d  types  of  Port  P i e r was  the  expiration  on  the  employed and  of Vancouver.  no  A new  opened, the  longer  a  new  the  so  bulk container  'proposed  alterations in  in  plan', the  N a t i o n a l H a r b o u r ' s B o a r d were underway,  demographic s t r u c t u r e of both union  J u l y 31,  began i n A p r i l  of the  When no  ILWU s t r u c k  s i x weeks.  ships  its  and  occurred.  S e p t e m b e r 25th. date,  of  behind  Suddenly changes, p r e v a l e n t  to the  Actual negotiations  for  , the  gradually fallen  s p e c i a l i z e d v e s s e l s were d o c k i n g ,  structure and  had  a t R o b e r t s Bank was  terminal at Centennial new  to  cargo.  c a u g h t up  loading f a c i l i t y  Industry  waterfront  However n e g o t i a t i o n s  a g r e e m e n t s were r e a c h e d on  months  o l d a g r e e m e n t and  settlement  the  1969,  had  continued  b e e n r e a c h e d by  in a strike continued  October 17th,  before until  that  which l a s t e d  and  tentative  November 1 s t ,  and  January  31st.  E a c h one  membership. was  A  finally  fourth  accepted  u n i o n membership. entation The  of  the  contract E.M.  settlement, by  r e j e c t e d by  reached  a n a r r o w 55$  new  conditions  expires  J u l y 31,  President  negotiations  ILWU  February  13th,  taking place  with  on  9th, of  the  implem-  February  23,  1970.  1972.  o f B.C.  as  on  the  a f f i r m a t i v e vote  Work r e s u m e d F e b r u a r y  Strang,  commented on  i n t u r n was  Maritime  Association*-  follows:  "The r e a l d i f f i c u l t y i n o b t a i n i n g a c c e p t a n c e by t h e r a n k and f i l e was t h e f e a r o f c h a n g e . . . Change comes h a r d , and i n a n i n d u s t r y s u c h a s l o n g s h o r i n g , where a man w o r k s f o r a number o f d i f f e r e n t e m p l o y e r s , a l t e r a t i o n o f o l d h a b i t s is difficult. Perhaps i t i s j u s t as w e l l t h a t the time t a k e n was a s l o n g a s i t was, and t h a t t h e m a t t e r came b e f o r e t h e membership so many t i m e s , b e c a u s e i n t h e - l o n g r u n i t h e l p e d t o u s h e r i n t h e c h a n g e s t h a t a r e now taking p l a c e i n work h a b i t s . . . T h e r e has b e e n some s t u b b o r n r e s i s t a n c e to the changes...but the a d j u s t m e n t i s t a k i n g place. R e s u l t s c a n n o t be a n y t h i n g b u t b e n e f i c i a l t o both p a r t i e s . " 40 Discussions Centennial are  with  'rank-and-file*  P i e r would i n d i c a t e t h a t 41  perhaps o v e r l y  accomplished  on  optomistic.  the  u n i o n membership.  o f u n i o n members, and who  have been g i v e n  s h o r e m a n has  a  not  t o work t h e s e  No  W h i l e work i s  are  has  being  opposition  been p l a c e d  on  the  the  prospect  shift,  of  earning  from number  seniority  average  a guarantee of y e a r l y earnings,  r e g a r d e d as shifts.  forecasts  round-the-clock,  meeting strong  ceiling  at  e x c e p t f o r t h o s e members w i t h  Even the  week-day g r a v e - y a r d  apparently  Strang's  p e r m a n e n t employment,  neither  h o u r s o f work.  Mr.  Vancouver docks, the  seven-day-a-week o p e r a t i o n s the  ILV/U members  longnor  of  $9.56 a n h o u r f o r  o r a Sunday d a y - s h i f t , i s  sufficient  'compensation' f o r  ( f o r a p p l i c a b l e wage r a t e s  see  having  Appendix  XI)  t o p a y t h e h i g h wage b i l l s so s c h e d u l e  f o r as l i t t l e  resulting overtime  obtain reasonable p r o d u c t i v i t y l a b o r ' working  with  regular day-shift  from  operation.  work a s f e a s i b l e , ' h o p i n g t o  from  extra  Because  ( a n d 60$  70$  cargo.  Undoubtedly  break-bulk The  extended  of port  the-clock  overtime though,  o f the imported  labor,  t h e r e l u c t a n c e t o work  delays the forwarding of  i tis still  faster  than  the former  methods.  containerization concept  gangs o f ' c a s u a l  of the exported u n i t s are 42  s t u f f e d ) a t the Vancouver w a t e r f r o n t , or to hire  work, a n d  t h e p e r m a n e n t l o n g s h o r e gangs d u r i n g t h e  containers are destuffed  'shift',  overtime  n e g o t i a t i o n s and s t r i k e i n particular," but rather  over  the whole  operations ( i n c l u d i n g mechanization,  seven-day-operation,  elimination  were n o t o v e r  reduced  o f work r e s t r i c t i o n s ) .  round-  gang s i z e , and  However t h e c o n t a i n e r i z a t i o n  43 " c l a u s e was a k e y t o f i n a l i z i n g  CONTRACT CONDITIONS REGARDING  Container  CONTAINERIZATION  Clause  Basically Agreement,  the agreement".  the deep-sea  #26.05  c o n t a i n e r c l a u s e i n t h e ILWU-CMEA  ( s e e A p p e n d i x XI f o r a c t u a l w o r d i n g ) p r o v i d e s  t h a t any c o n t a i n e r b e i n g imported of  V a n c o u v e r must be d e s t u f f e d  ILWU l a b o r u n l e s s t h a t following  conditions»  into  Canada, t h r o u g h  the P o r t  on t h e V a n c o u v e r w a t e r f r o n t b y  c o n t a i n e r meets one o f t h e two  (1)  i t must have a d e s t i n a t i o n t h a t f o l l o w i n g areas of  the  south  l o w e r B.C. to  Island, (2)  the  the or  Vancouver L o c a l a r e a  Mainland  Prince  e n t i r e contents and  of that  by  that  v/ith t h e  consignee a t  container  returned  Vancouver w a t e r f r o n t Similar restrictions containers  >(i«e. t h e y  waterfront  by  following  directly by  the  destuffed with  to the  the Port  of  placed  must be  on  a l l export-bound  s t u f f e d on  ILWU l a b o r ) u n l e s s  these  the  Vancouver  containers  meet  the  conditions:  (2)  the  e n t i r e c o n t a i n e r has  (or  h i s employees) a t  with to  originate outside  the  the  net  completely  intact  effect  halt  forwarder.  the  shipper's container  the  of  these  from fewer h a n d l i n g s the  own  above,  the  or  shipper  warehouse,  then being  c o n t r a c t c o n d i t i o n s has  movement o f t o any  B.C.  intact  containers  Lower M a i n l a n d  With dockside. d e s t u f f i n g , the  to  designated  been s t u f f e d by  the  (sealed)  area  admitted  CY.  Vancouver waterfront  A  are  they  subjected  the  area.  (1)  The  moved  t o be  directly  or  owned by  t h a t owned f a c i l i t y ,  then being  Vancouver  maintained  e n t i r e contents  (B.C.),  areaj  are  i s being  owned and  Hope  a l l of  container  that container  the comprised  f a r as  Rupert L o c a l Port  a warehouse f a c i l i t y  consignee,  e a s t as  U.S.A.-Canadian border,  the  consignee, to  the  i s outside  co-ordination of plans  by  the  from  to  the  freight  potential benefits  i s g r e a t l y r e d u c e d , and  'pilferage situation*  been  the  w h i c h has  c o n s i g n e e and  the  cargo always  is  still  existed.  stevedoring  companies nil,  by  can  reduce  o p p o r t u n i t i e s f o r p i l f e r a g e to  t r a n s f e r r i n g the  Vancouver-CFS-destined the  goods f i r s t  similar, the  although  goods a r e  Size  being  container  d e s t u f f e d and  not  q u i t e as  Structure  One  other  of  stored  effective  Container  been the  Crew on  reduction  has  shown t h a t a gang o f 8 men  the  l o a d i n g and  discharge  Centennial  of  from  per  i n the  without  CFS  container  Vancouver  shed.  waterfront Experience  from a f u l l y men  poolcar.  Pier  i s adequate  t o 100  A  when  to a  o f gang s i z e .  shift  up  imported  truck,  Centennial  containers  P i e r , while  the  measure, o c c u r s  from a  major c o n d i t i o n o f the  c o n t r a c t has  vessel at  contents  into a waiting  transferred directly  and  labor  container's  almost  per  to  handle  containerized  shift  would  be  44 required The  on  conventional  container  operator, received  a  break-bulk v e s s e l .  handling  drawn f r o m a p o o l training  i n gantry  crew a t B e r t h  #6  includes  o f 3°  ILWU members who  crane  o p e r a t i o n , and  3  one  crane  have straddle  c a r r i e r d r i v e r s . From 6000 t o 8000 t o n s o f c a r g o a r e c u r r e n t l y b e i n g exchanged d u r i n g each Japan 6 v e s s e l ' s v i s i t to Vancouver'  •  with  45  average  Experience  s h i p working time of l e s s  has  crane handlers to  the  a l s o improved f r o m an  initial  current rate of  These r a t e s are  23  obtained  transfer  system, r a t h e r  employed  i n container  One  the  t h a n 48  p r o d u c t i v i t y of the  r a t e of  17  containers/hour using  the  than the  hours.  containers/hour (net).  (see  'single cycle'  'double  46  container  cycle*  (net)  Table  container  normally  terminals.  m a j o r f a c t o r , w h i c h has  a s s i s t e d i n improving  labor  5»1)  I N I T I A L VOYAGES OF JAPAN 6 LIMES  1970-:1971  VESSEL TRIP  1970 GA 1 GA 2 GA 3  CONTAINERS DISCHARGED (number)  CONTAINERS LOADED (number)  252 239 233  323 227 272  7.25 5.25 9.50  15.54 14.24 12.80  CRANE AVERAGE NUMBER CONTAI DELAYS HANDLED PER HOUR (hours) GROSS NET  18.25 16.93 16.87  GA GA HM  4 5 1  222 389 338  211 610 376  4.00 5.00 6. 00  15.86 . 19.30 19.42-  GA BM HM  6 1 2  326 371 119  259 356 166  4.25 6.75 3.75  21.27 19.65 18.10  25.16 24.03 23.75  GA BM HM  7 2 3  266 372 236  207 422 392  ^.75 8.75 5.75  18.45 17.67 18.33  22.73 21.87 22.04  BM HM  3 4  381 296  558 174  9.25 3.25  18. 32 19.42  22.36 22.43  1971 GA 9 BM 4 HM 5  377 237 308  348 281 296  4.50 8.50 5.75  20.68 16.34 18.88  23.70 22.26 23.00  5.25  18.33 .21.36 23.24  GA BM HM  10 5 6  283 487 325  234 423 297  k.75  3.00  19.23 20.93 20.41  23.53 23.44 22.58  GA BM HM  11 6 7  290 395 329  370 394 368  ^.75 6.25 3.50  19.85 16.99 21.13  23.05 19.62 23.60  GA BM HM  12 7 8  275 398 245  290 561 286  5.00 9.00 3.00  17.94 I8.38 20.38  21.32 22.17 23.01  GA = G o l d e n Arrow HM = H o t a k a Maru BM = B e i s h u MaruSource:  F i l e s o f Empire S t e v e d o r i n g , C e n t e n n i a l P i e r , Vancouver. May 1971.  productivity, waterfront Terminal,  has  been the  operations.  trend to d e c a s u a l i z a t i o n of  G o r d o n P a y n e , Manager o f  d e s c r i b e d the  labor situation  on  the  Container  Centennial Pier  as  follows: " A p p r o x i m a t e l y 70$ o f a l l t h e w o r k e r s on C e n t e n n i a l P i e r e a c h day, work o n l y f o r E m p i r e S t e v e d o r i n g on C e n t e n n i a l P i e r . . . T h e b i g t h i n g has b e e n t o t r a i n t h e men...then t h e y r e a l i z e t h a t t h e j o b t h a t t h e y a r e d o i n g t o d a y w i l l be t h e same tomorrow, a n d maybe t h e y s h o u l d e n d e a v o r t o do a b i t b e t t e r j o b t o d a y t o h e l p t h i n g s f o r tomorrow. While the crane o p e r a t o r i s not p a r t o f the r e g u l a r work f o r c e , t h e f o r k l i f t a n d s t r a d d r i v e r s a r e . The c r a n e o p e r a t o r s w o u l d be t o o , i f we had enough work f o r them...The p r e s e n t p a t t e r n o f c r a n e o p e r a t o r h i r i n g ( f r o m t h e U n i o n D i s p a t c h H a l l ) means t h a t i n s t e a d o f h i r i n g t h e b e s t 6 men, we o n l y have a p i c k o f a n a v e r a g e c r a n e man...but we a r e s u r e o f g e t t i n g one o f t h e JO who have been t r a i n e d . . . A l l our key c h e c k e r s a r e permanent work f o r c e , and o f c o u r s e t h e f o r e m e n a r e o u r f i r s t l i n e of supervision." 47  The  Outlook  With  the p r e s e n t  contract i n force until  t h e P o r t o f V a n c o u v e r s h o u l d be  assured  disruptions  union  in  f o r some t i m e .  composition,  with  The  o f no  July  31,  m a j o r work  membership has  many y o u n g e r a n d  more  1972,  changed  ' f a m i l y men'  now  included.  D e c a s u a l i z a t i o n o f t h e work f o r c e i s d e s i r e d b y  employers,  and  resigned  to the  e v e n some o f t h e u n i o n idea.  However t h e r e  rank  and  continues  file to  are  the  becoming  be  "tremendous p r e s s u r e (from the u n i o n ) to d i s s o l v e the p e r m a n e n t work f o r c e . . . T h e y want t o make i t so t h a t e v e r y man r e g i s t e r e d w i t h t h e u n i o n can g e t some work, r a t h e r t h a n t r y i n g t o p r o t e c t t h e permanence o f t h e men p r e s e n t l y working." 48 A q u e s t i o n mark f o r t h e the  P o r t o f Vancouver i s the  future of container operations i n direction  o f the  current  U.S.  contracts  t h e A m e r i c a n ILWU L o c a l s h a v e n o t  'handling  penalty'  performed  ( i n t h e manner o f t h e  preferring U.S.  i n s t e a d to  West C o a s t  'stuffing  i n the  and  form  'share  of a East  i n the  ILWU members a r e  stripping'  clause  the  Vancouver w a t e r f r o n t .  the  Vancouver c o n t r a c t seeking  cash  opted  payment f o r work  Coast  ILA  "In f a c t  that they  not  Locals),  benefits'.  attempting like  for a  At  present,  to n e g o t i a t e  the  a  currently in force may  go  a defined area  further  o f up  on  than  t o 200  miles"  49 from  the  distance  port and  center.  However e v e n i f t h e y were t o e x t e n d  o b t a i n perhaps a  500  mile  limit,  the  " i t i s most  50 unlikely The and a  to  extend  past  Canada-U.S.  ILWU members o f M e x i c o ,  border".  California,  Oregon,  B r i t i s h Columbia have n e v e r r e a l l y h e l p e d  strike,  with  the  result  t h e work c o u l d e a s i l y L o c a l a t the the  the  be  t h a t when one  a d d e d work.  In f a c t ,  other on  port.  port while  their  during  strike, The  always been w i l l i n g  s t r i k i n g members o f one  b e e n known t o work a t a n o t h e r being  L o c a l was  d i v e r t e d to another  d i v e r s i o n p o r t has  each  Washington,  to  union handle  L o c a l have  own  contract  was  settled. The  net  result  of t h i s  situation,  as  f a r as  the  Ports  of  S e a t t l e and V a n c o u v e r a r e c o n c e r n e d may be " t h a t an i n t e r c h a n g e o f c o n t a i n e r s between p o r t a r e a s can p r o b a b l y be e x p e c t e d . T h i s w o u l d mean t h a t t h e C a n a d i a n c o n t a i n e r i z e d c a r g o i s g o i n g t o be d i s c h a r g e d i n S e a t t l e and moved by r a i l t o t h e V a n c o u v e r a r e a f o r d i s t r i b u t i o n o r c o n s o l i d a t i o n , w i t h a l l goods c o n s i g n e d t o S e a t t l e b e i n g d i s c h a r g e d i n Vancouver. This i s t e r r i b l y i l l o g i c a l , y e t t h e s h i p p e r and t h e b u y e r a r e g o i n g t o be f o r c e d t o h a n d l e t h e i r c o m m o d i t i e s t h i s way." 51  SUMMARY  The  British  turbulence 'who  and  and  unrest  does what' as  effort big  to  has  has  obtained  t u r n to g r e a t e r mechanization  in  The  been t o persuade  l e s s e n the  been n o t a b l y  of  other  o v e r the  ocean s h i p p i n g  the  l a b o r unions  unsuccessful,  as  the  To  date  to  the  an  accept must  industry  u n i o n s have demanded  d e s t u f f i n g c l a u s e s , and/or  of  industry's  t e c h n o l o g i c a l advances, which  demand f o r l a b o r .  royalty rights,  b e e n one  question  productivity.  c o n t a i n e r i z a t i o n and inevitably  dock l a b o r scene has  f o r many y e a r s  ports  increase  challenge  American  and  the  52 retention If in  the  of unnecessary p o s i t i o n s .  the  currently projected  Port  to a r r i v e  growth r a t e s f o r c o n t a i n e r i z a t i o n  of Vancouver m a t e r i a l i z e , c o n t a i n e r s  and  depart  can  be  a t a t h r o u g h - p u t r a t e o f 40,000 t o  expected 60,000  53 'boxes' a n n u a l l y volumes w i l l response of America.  by  the  a c t u a l l y be l a b o r on  The  with  the  risk  Likewise, the  and  achieved the  unions hold  the  delay  Whether t h e s e  or not  West a n d  East  ensuring  sharing  their  the  Coast of  or reverse  the  trend  p e r m a n e n t damage t o  to  the P o r t  resulting  mutual f u t u r e  other  of  of  Vancouver.  encouraging  cargo  b e n e f i t s , and  livelihood.  use  mechanization,  management c o u l d work t o g e t h e r  i n the  North  ILWU c o u l d r e t a r d t h e  d e v e l o p m e n t o f c o n t a i n e r i z a t i o n and  practices,  d e p e n d s on  'heady'  'key'.  power, t h e  of doing  l a b o r and  1973»  of  both  Because of t h e i r containers  end  unitizing  thereby  " F o r t h e i r p a r t , t h e e m p l o y e r s must r e c o g n i z e t h a t t h e y have an o b l i g a t i o n t o s h a r e t h e b e n e f i t s o f p r o d u c t i v i t y w i t h the d o c k e r s . A t t h e same t i m e . . . : .:.::; t h e d o c k work f o r c e c a n o n l y d e c l i n e t h r o u g h a t t r i t i o n and t h i s may t a k e some t i m e . I t i s t h e i r job to persuade the e x i s t i n g longshoremen t h a t the p r a c t i c e o f featherbedding w i l l do t h e w o r k e r g r e a t harm i n t h e l o n g r u n . " 54 If  either party  revolution well  on  become a  Seattle  their part  C a n a d a ' s West C o a s t , t h e 'casualty'.  w o u l d be  Vancouver's  ignores  only  demise.  too  i n the Port  Management a n d willing  to f i l l  containerization  of Vancouver  labor the  i n the  could  Port  vacuum l e f t  by  of  CHAPTER V  1. B e c a u s e o f t h e e f f e c t i v e J a p a n e s e F e d e r a l Government a c t i o n s i n Japanese s h i p p i n g i n d u s t r i a l matters, i t i s concluded t h a t t h e J a p a n e s e l o n g s h o r e and seaman u n i o n s a r e n o t e x e r t i n g any s i g n i f i c a n t p r e s s u r e on t h e movement o f c o n t a i n e r s . The members o f t h e J a p a n 6 L i n e s were f o r c e d t o o p e r a t e 'together' by Government d e c r e e , and t h e w o r l d s h i p p i n g c h a r t e r m a r k e t h a s been v e r y s e n s i t i v e t o the w i t h d r a w l o f Japanese i n t e r e s t s i n t h e l a s t q u a r t e r o f 1970 - f i r s t q u a r t e r o f 1971. 2. Many o f t h e g o o d s a r r i v i n g a t C e n t e n n i a l P i e r t h a t h a v e been t r a n s - s h i p p e d from Mainland China r e q u i r e r e - c o o p e r i n g as a d i r e c t r e s u l t o f b e i n g h a n d l e d s o many t i m e s :enroute. 3. " S h i p C o n t a i n e r R a t e s B a c k e d b y M c D o w e l l " , J o u r n a l o f Commerce ( N . Y . ) , r e p r i n t e d i n "News o f I n t e r e s t " , Todds S h i p y a r d s C o r p o r a t i o n , New Y o r k . A p r i l 30? 1970. p . 5« 4. G. P a y n e , P e r s o n a l I n t e r v i e w . One s h i p m e n t o f p u l p i n c o n t a i n e r s on b o a r d a J a p a n 6 V e s s e l b r o k e l o o s e i n a s t o r m on t h e t r i p f r o m V a n c o u v e r t o P o r t l a n d , c a u s i n g e x t e n s i v e damage.  The  5« G. K i n g , P e r s o n a l I n t e r v i e w . cf« B . T i e r n e y , " C o n t a i n e r i z e d C a r g o e s , . . . a m i x e d B l e s s i n g " , P r o v i n c e , S e p t . 16, 1970. p . 5.  6. E . P a r r o t , " C a r g o H a n d l i n g " , P a p e r i n P o r t o f V a n c o u v e r , C o l l i e r , ed. , U . B . C , V a n c o u v e r . 1966. p . 43. c f . G. P a y n e , "The C o n t a i n e r Way", S p e e c h t o t h e I n s t i t u t e o f N a v a l A r c h i t e c t s a n d M a r i n e E n g i n e e r s , V a n c o u v e r . A p r i l 23, 1770. p . 9. R.W.  7. " C o n t a i n e r i z a t i o n : The Key t o Low C o s t T r a n s p o r t " , R e p o r t f o r t h e B r i t i s h Dock A u t h o r i t y b y M c K i n s e y a n d Co., London. 1967. p . 57. 8. J . R o l f e , " P o r t s , S e r v i c e s a n d L a b o r F a c e E f f e c t s o f C o n t a i n e r i z a t i o n " , T o r o n t o G l o b e and M a i l , O c t . 16, 1970. p. 9. G. P a y n e , P e r s o n a l 10.  B7.  Interview.  ibid.  11. An example w o u l d be t h e d e s t u f f i n g p e n a l t y c l a u s e o f t h e U.S. E a s t C o a s t I L A A g r e e m e n t . See p a g e s 203-205 o f t h i s s t u d y .  12. T.W. G l e a s o n , "The L i f e and D e a t h o f the L o n g s h o r e m e n " , Paper r e a d a t the B a l t i m o r e C o n t a i n e r E x h i b i t i o n , Baltimore, O c t . 1968. Quoted i n f u l l i n C o n t a i n e r i z a t i o n I n t e r n a t i o n a l : 1970 Y e a r b o o k , London. 1 9 6 9 . pp. 32-35. July  13. 16,  1969.  14. C o n t a i n e r i z a t i o n p. 31. 15.  " M a r i t i m e Maneuvers", 1968. p. 16.  ibid.,  p.  ( E d i t o r i a l i Wall Street  International:  1970  Journal,  Yearbook,  London.  40.  16. A r t h u r I. S m i t h , " R e p o r t o f I n q u i r y I n t o C e r t a i n C o n d i t i o n s , C o n d u c t , and M a t t e r s G i v i n g R i s e t o L a b o u r U n r e s t a t t h e P o r t s o f M o n t r e a l , T r o i s - R i v i e r e s , and Quebec, P.Q.", C a n a d a D e p a r t m e n t o f L a b o u r , Queens P r i n t e r , Ottawa. Oct. 2, 1969. • Annex A* , p. 3« ibid.,  'Annex A',  p.  4.  18.  ibid.,  'Annex A',  p.  6.  19.  C o n t a i n e r i z a t i o n t Yearbook;  20.  ibid.,  21.  " M e r s e y s i d e and p. 77.  p.  t  op.  c i t . , p.  38.  38. N.W.:  Confidence  Returning",  Fairplay,  7, 1971.  Jan.  p.  17.  22.  Containerization:  23.  " T i l b u r y - 24  10.  Yearbook,  Hour W o r k i n g " ,  op.  cit.,  Fairplay,  p.  38.  Jan  28,  1971.  24. H. M c D o n a l d , " L a b o r and C o n t a i n e r i z a t i o n " , U n p u b l i s h e d M.B.A. G r a d u a t i n g E s s a y , U.B.C., V a n c o u v e r . May 1971.  June  25. 25,  "U.S.A. - M a r i t i m e 1970. p. 52.  Bill  Passed  i n House",  Fairplay,  26. " I n t e r n a t i o n a l C o n t i n e n t a l C o n t a i n e r T r a n s p o r t C o r p o r a t i o n v§_. New Y o r k S h i p p i n g A s s o c i a t i o n , I n c . , and International L o n g s h o r e m e n ' s A s s o c i a t i o n " , F a i r p l a y , Feb. 25, 1971. p. 23. 27. " C o n t a i n e r L a b o r P r o b l e m s A p p r a i s e d by and S h i p p e r E x e c u t i v e s " , T r a f f i c Management and J u n e 1970. pp. 22-23.  Union, C a r r i e r , Distribution,  28. Some o f t h e d i s r u p t i o n s t h a t have o c c u r e d were t h e r e s u l t of i n t e r - u n i o n r i v a l a r y . I n the f a l l o f 1969 the T e a m s t e r s o b j e c t e d t o t h e l o s s o f work i n s t u f f i n g and d e s t u f f i n g c o n t a i n e r s a t t h e t r u c k company CFS l o c a t e d n e a r the d o c k s i n San Franscisco. The d i s p u t e f i n a l l y had t o be r e s o l v e d i n C o u r t . See " T e a m s t e r s , P i e r U n i o n R i f t i n San F r a n s c i s c o Goes t o C o u r t Today", W a l l S t r e e t J o u r n a l , S e p t . 15, 1969. p. 6.  ings,  30. H. B r i d g e s , S p e e c h March pp.  1956.  t o t h e ILWU C a u c u s ,  202-203.  31.  C o n t a i n e r i z a t i o n : Yearbook,  32.  ibid.  33«  G. P a y n e ,  K. Cox, P e r s o n a l  Caucus  op. c i t . , p .  Proceed-  31.  Interviews.  34. See. t h e D e s c h e n e s , P i c a r d , a n d A . I . S m i t h L a b o u r I n q u i r y Reports. Relevant p o r t i o n s a r e quoted i n the Smith R e p o r t , op. c i t . , pp.  l65-195«  and  35» " P o r t s - M a c k a s e y on P r o d u c t i v i t y " , C a n a d i a n M a r i n e E n g i n e e r i n g , S e p t . 1970. p . 28. 36.  Smith,  op_. c i t .  Shipping  ;  37. "Summary b y Dr. P i c a r d o f P r i n c i p a l C o n c l u s i o n s o f I n q u i r y i n t o S t . Lawrence P o r t s " , C a n a d a D e p a r t m e n t o f l a b o u r . Queens P r i n t e r , O t t a w a . 196?. 38.  Smith,  op. c i t .  39. This d i s c u s s i o n i s based "Waterfront S t r i k e Settlement H u r t by F e a r " , a n a r t i c l e by E.M. S t r a n g , P r e s i d e n t o f t h e B.C. M a r i t i m e Employers A s s o c i a t i o n , i n Western B u s i n e s s and I n d u s t r y : J o u r n a l o f Commerce ( V a n c o u v e r ) , A p r i l 13, 1970; a n d on G. P a y n e , a n d P. S e n i o r , P e r s o n a l I n t e r v i e w s . 40.  Strang,  op. c i t . ,  p. 13A.  41. ILWU members c l a i m t h a t t h e r e h a s b e e n a ' b i g c h a n g e ' i n t h e U n i o n member's a t t i t u d e s s i n c e t h e summer o f 1970 - a l l f o r t h e w o r s e - a s f r u s t r a t i o n s w i t h t h e i r f e l l o w u n i o n members, f e l l o w g a n g w o r k e r s , f o r e m e n , a n d management, i n c r e a s e s t e a d i l y . ILWU members, P e r s o n a l I n t e r v i e w s . 42. "The C o n t a i n e r Way", A d v e r t i z i n g l i t e r a t u r e , S t e v e d o r i n g Co., V a n c o u v e r . A p r i l 1971. cf.  and  Tables  3.19j  Empire  3.20.  43. G. P a y n e , P e r s o n a l I n t e r v i e w . 44. G. P a y n e , S p e e c h t o t h e I n s t i t u t e M a r i n e E n g i n e e r s , A p r i l 23, 1971.  o f Naval A r c h i t e c t s  45. W h i l e t h e a v e r a g e t o t a l w o r k i n g t i m e i s l e s s t h a n 48 h o u r s , a n d u s u a l l y l e s s t h a n J6 h o u r s , t h e J a p a n 6 s h i p s a r e o f t e n i n P o r t f o r a p p r o x i m a t e l y 72 h o u r s . 46.  G. P a y n e , P e r s o n a l  Interview.  48.  ibid.  49.  K. Cox, P e r s o n a l I n t e r v i e w .  50.  ibid.  51.  ibid.  52. D u r i n g t h e F a l l o f 1969 t h e s a i l i n g o f t h e w o r l d ' s f i r s t LASH v e s s e l , t h e A c a d i a F o r r e s t , was d e l a y e d f o r weeks a t New O r l e a n s , u n t i l l t h e o p e r a t o r a g r e e d t o : a . u s e more l o n g s h o r e m e n t h a n n e e d e d , and b. p a y a p e n a l t y f o r i n l a n d l o a d e d barge cargo. c f . I n U.S. West C o a s t p o r t s , 4 l v e s s e l s were s t r u c k u n t i l W a t s o n c o m p r o m i s e d i t s p l a n t o c u t s h i p b o a r d crews on new container ships. c f . I n New Y o r k , t h e f r i n g e b e n e f i t s have b e e n i n c r e a s e d f r o m $1.50/man h o u r t o $2.07/ton o f c a r g o h a n d l e d , a move t h a t can o n l y p e n a l i z e c o n t a i n e r cargo. A. Van C r a n e b r o c k , " L a b o r Demands P o r t e n d T u r b u l e n t T r a n s p o r t E r a " , T r a f f i c Management and P h y s i c a l D i s t r i b u t i o n , M a r c h , 1970. pp. 68-74. 53. P a y n e , op. c i t . , S p e e c h t o t h e I n s t i t u t e A r c h i t e c t s and M a r i n e E n g i n e e r s , 1971. p . 11. 54.  McDonald,  op_.  cit.  of Naval  OTHER  FACTORS WHICH TEND TO PREVENT INTERMODAL  TRANSFER  OF CONTAINERIZED CARGO  The  last  two C h a p t e r s have d w e l t a t l e n g t h  major f a c t o r s which a r e p r e v e n t i n g movement t h r o u g h V a n c o u v e r . a number o f o t h e r preventing  t h e movement o f i n t a c t  Specific  areas  o f each  this  diversity those all  o f Vancouver.  o f everyone  t o embrace c o n t a i n e r i z a t i o n a s t h e  cargo.  connection  must be m e n t i o n e d ,  o f v i e w s , a n d i n some c a s e s  actively  even emphasized, t h e  conflicting  perhaps the g r e a t e s t  deterrent  intermodal  system i s the deeply  ingrained belief  of  and i n d i v i d u a l  containers,  materials  opinions, of  e n g a g e d i n c o n t a i n e r movement i n V a n c o u v e r .  these,  corporate  to  constraints associated  and the r e l u c t a n c e  the steamship l i n e s )  ' o n l y way' t o move In  do n o t  r e f e r r e d t o a r e the problems encountered i n  c o n t a i n e r i z e d cargo,  (except  probably  w o u l d be n e c e s s a r y  i n the Port  documentation and customs, t h e l e g a l with  mentions  perhaps n o t a c t u a l l y  containers,  More s t u d y  the importance  container  section briefly  f a c t o r s , which, while  e n c o u r a g e s u c h movement. determine  This  intermodal  on t h e two  that this  handling  to a  p a r t i e s associated with 'new d e v i c e '  i s not really  Cf  completely b y many t h e movement  o r new a p p r o a c h t o  permanent.  wisdom o f s p e n d i n g m i l l i o n s on a n o p e r a t i o n  They q u e s t i o n the w h i c h may be  1 CUSTOMS The  customs problems encountered i n i n t e r m o d a l  movement o f cargo have u s u a l l y been f a i r l y minor.  container The  matter  of convenience u s u a l l y i s the d e c i d i n g p o i n t , i f the matter 2  does a r i s e . The  The  major instrument of import c o n t r o l ,  Canadian Customs A c t , a p p l i e d through implementation of  the r e g u l a t i o n s of the Customs T a r i f f has  the f o l l o w i n g  purposes: (1) revenue producer (customs and  excise duties),  (2) l e g a l b a r r i e r a g a i n s t f o r e i g n c o m p e t i t i o n  (including  dumping), (3)  l e v e r to secure  trade agreements more f a v o r a b l e  to  Canada,  3 (4) method of promoting Canadian i n d u s t r i a l development. The r e g u l a t i o n s s p e c i f y t h a t " a l l imported goods, whether d e s t i n e d to a p o r t of e n t r y i n Canada, or to any p l a c e i n Canada, or f o r t r a n s p o r t a t i o n i n t r a n s i t through Canada, s h a l l be d e s c r i b e d on a m a n i f e s t executed by a bonded c a r r i e r . T h i s m a n i f e s t must g i v e f u l l d e t a i l s of the shipment as d e s c r i b e d on the b i l l o f lading". 4 T h i s i s because a l l imported goods are s u b j e c t to an ad valorem and/or s p e c i f y duty, u n l e s s clearance  s p e c i f i c a l l y exempt.  Customs  " s h a l l be...at a p o r t of e n t r y where a Customs-House  5 is lawfully established". The  containers  themselves encounter no  problems, so l o n g as they are of t h e i r  'importation'  date.  're-exported'  customs i n s p e c t i o n w i t h i n s i x months  Most customs i n s p e c t i o n , because o f the volume o f traffic,  i s more an examination o f documents, than an  examination o f c o n t e n t s .  Normal procedure would be f o r the  customs o f f i c e r to check the contents  o f one o r a few c a r t o n s ,  and a f t e r v e r i f y i n g t h a t i t checks with the packing  l i s t , he  c l e a r s the e n t i r e shipment without p h y s i c a l l y examining each c a r t o n , n o r checking extensive  the count.  P r o v i s i o n s e x i s t f o r a more  check, i f i t i s deemed to be warranted.  Customs i n s p e c t i o n o f cargo can occur a t any o f a v a r i e t y of l o c a t i o n s , depending on the method, mode, and t i m i n g o f importation. waterfront  For containers discharged  a t the Vancouver  and moving to the CFS o r o t h e r f r e i g h t shed,  i n s p e c t i o n would n o r m a l l y container i s destuffed.  occur a t the w a t e r f r o n t  as the  Should the same c o n t a i n e r have been  moved t o the CY and loaded aboard a r a i l  c a r f o r shipment  e a s t , customs i n s p e c t i o n s c o u l d occur a t the r a i l h e a d , a t the team t r a c k s , o r a t the consignee's premises. c o n t a i n e r s h o u l d be f o r r e - e x p o r t  However i f t h a t  to the U.S. o r to Europe,  customs i n s p e c t i o n would be l i m i t e d to e n s u r i n g  t h a t the  i n t a c t c o n t a i n e r so moved. If  the same goods i n the same c o n t a i n e r had been  discharged  i n S e a t t l e f o r t r a n s f e r to Vancouver f o r movement e a s t , the customs procedure would be b a s i c a l l y the same, although the r e g u l a t o r y d e t a i l s would d i f f e r . of goods had been d i s c h a r g e d  I f f o r example, t h a t  container  i n t o the CY a t the P o r t o f S e a t t l e ,  p l a c e d on a c h a s s i s and moved to the B u r l i n g t o n Northern yards i n that c i t y , to  loaded  rail  on an 89-foot f l a t c a r and t r a n s p o r t e d  the B.N. t e r m i n a l i n Vancouver, the f o l l o w i n g procedure would  V a n c o u v e r on a n I m p o r t T r a n s i t a n d E x p o r t a t i o n Vancouver, container  customs  clearance  d e s t u f f i n g , which  would could  occur  Order,  a t the p o i n t of  be a t t h e S e a C o n  warehouse, o r as i n t h e case o f Western Assembly at  the f r e i g h t  forwarder's  However i f t h a t Vancouver  Services 6  cargo,  premises.  container  'over the r o a d '  h a d b e e n moved f r o m S e a t t l e t o  on a U.S. I m p o r t T r a n s i t a n d  Exportation  Order,  the  c o n s o l i d a t o r ' s warehouse, the c o n s i g n e e ' s  or  freight (on r a r e  Seattle road  discharged  or r a i l ,  inspection  customs i n s p e c t i o n c o u l d  occasions)  could  container,  occur  or a t the consignee's  have o c c u r r e d  a t the Canadian border.  be d e s t i n e d  at  premises,  Should  a  moved t o V a n c o u v e r by e i t h e r  f o r an i n t a c t  a t the r a i l own  In  movement  eastward,  h e a d , a t t h e team  tracks,  premises.  DOCUMENTATION  A  serious  delayed in  o r improper documentation.  proper order  inspected is  l o s s o f cargo forwarding  the container  nor destuffed.  completed  after  traffic, the  the container  Pacific.  after  Since  the container the p o r t ,  leaves  of  ship's  vessels  Lading  manifest  i t must be  I n t h e case o f the Japan-West require  only  I f t h e documents a r e d e l a y e d  the v e s s e l  stowage p l a n  Without the B i l l  from  o f g o o d s c a n n e i t h e r be f o r w a r d e d ,  the v e s s e l leaves  f o r w a r d e d by a i r m a i l .  time o f t e n r e s u l t s  seven days t o c r o s s f o r two o r t h r e e  J a p a n i t may w e l l h a p p e n t h a t  a r r i v e s i n Seattle only  Coast  t h e day b e f o r e  days  the ship  the v e s s e l .  Vancouver i s f o r t u n a t e provides  one  or  vessel.  The  reverse  V a n c o u v e r may To with  be  increased  systems b e f o r e  be  last  the  port  of  call  as  this  on  the  return  needs of  been determined.  journey  and  that  m o v i n g , most E u r o p e a n  t h e y have i n s t a l l e d e i t h e r the  should  as  arises  a u t h o r i t i e s have b e e n f o r c e d  Immer s t a t e s  prepared at o r i g i n  incoming  departure.  containers  some c a s e s  the  of  tremendous documentation l o a d  volumes of  In  second port  s i t u a t i o n occurs  North American p o r t  computerize.  the  a d d i t i o n a l days to p r e p a r e f o r the  the  cope w i t h  Eastern  has  two  t o be  port  that  serve  or  and  to  computerized the  document  "documentation  should  a l l purposes f o r  the  7 entire  trip".  In Ports  At  1968,  the  Council  the  present  time t h i s does n o t happen. 8 EASAMS R e p o r t ^ was p r e p a r e d f o r t h e N a t i o n a l  of Great B r i t a i n  documentation.  This  Report  •paperwork* a s s o c i a t e d number o f p a r t i e s who ;.In A u g u s t o f  with  the  ways t o  documented the  s i m p l i f y and  speed  up  t r e m e n d o u s amount  of  c a r g o movements, and  require  that year,  on  some o r a l l o f  the  SITPRO Committee was  the  large  same  information.  established  "to s t u d y documentation i n i n t e r n a t i o n a l t r a d e . . . a n d the c o m m e r c i a l and g o v e r n m e n t a l p r o c e d u r e s a s s o c i a t e d w i t h i t . . . i n t h e l i g h t o f t h e w i d e n i n g use o f c o m p u t e r s and d a t a l i n k s , a n d t o make r e c o m m e n d a t i o n s t o a s s i s t t h e more e f f i c i e n t f l o w o f t r a d e . " 9 A  number o f  Australia,  s i m i l a r committees are C a n a d a , Hong Kong, and  SITPRO R e p o r t  contained  and  as  a c t i o n by  Rail, as  the  w e l l as  Council,  J2  diverse^a  also the  United  g r o u p as  the  the  Port  Shippers Lloyds,  A u t h o r i t i e s , and  in  States.  major recommendations f o r  Smaller Business Association, SITPRO,  operational  the  The consideration  Council, and  H.M  British  Treasury,  National  Port  caused  serious  container increase  use at  delays through  at the  i t s present  'misplaced*  capers,  Vancouver Harbor f a c i l i t i e s . Port  pace,  delayed  of  If  Vancouver continues  instances  of  s h i p m e n t s , and  'lost'  to  containers,  frustrated  shippers,  10 carriers  and  consignees are  inevitable,  unless  documentation procedures, perhaps i n v o l v i n g a  efficient  computer  are  installed. No  d i s c u s s i o n of  will  be  attempted  that  these are  and  efficient  carrier  in this  intricately  liabilities  study.  I t must be  i n v o l v e d with  customs p r o c e d u r e s .  h a v e e s t a b l i s h e d t h a t The  or  insurance  problems  recognized  proper  Also, recent  documentation court  Hague R u l e s l i m i t i n g  decisions  liability  $500 p e r p a c k a g e does n o t mean $500.00 p e r c o n t a i n e r , $500.00 f o r e a c h  carton  i n the  however  to  but  container.  SORTATION PROCEDURES  One  of  the  most t i m e and  encountered with discharged not  on  import  the  tolerated at  cargo  d o c k by the  Port  labor  consuming p r a c t i c e s  i s the  Bill  m a t t e r o f goods n o t  of Lading.  of S e a t t l e .  This  being  'dumping' i s  However t h e r e  are  no  12 effective a  regulations  major problem with  moved away f r o m destined  the  container  shipments from  to prevent  i t i n Vancouver.  'containerized*  goods as  dock f o r d e s t u f f i n g . shipments,  This  is  these u n i t s  However w i t h  are  any  t i m e i s w a s t e d when s e v e r a l  several shippers  for different  consignees  not  in  CFS  different well  cities  a r e packed  be a r e f l e c t i o n  of small  that a better s t u f f i n g least the  plan  order  size,  Particularly  minimum,  from Japan, and i n l i g h t  i n that a t  a l l be d e s t i n e d t o  t o t h e same union  area.  problems  o f the f a c t  i t should  with  be a r e l a t i v e l y  cargo f o r o n l y  were d o n e , l e s s  cargo  Vancouver waterfront,  should  simple  have  that  q u a n t i t i e s o f c a r g o has been t r a n s h i p p e d  ports,  containers  should  s i n c e no s e r i o u s l o n g s h o r e  been r e p o r t e d significant  o r a t the very  T h i s may-  b u t i t a l s o seems  c o u l d be f o l l o w e d ,  t h e goods i n a s i n g l e c o n t a i n e r  same c i t y ,  other  i n a single container.  from  matter to s t u f f  one d e s t i n a t i o n c i t y .  I f this  have t o be d e s t u f f e d on t h e  and i n t e r m o d a l  c a r g o movement  would  result. S h o u l d a b e t t e r stowage p l a n of a t t r a c t i v e very  significant  costs  ILWU  savings  carry this  advantages  that  by many more  cargo  larger traffic  their  p o s i t i o n very  ILA i n Montreal  d e s i r e d end, t h e  the container,  and t r u s t  t r a n s f e r method w o u l d volumes through  t h i n k i n g , the union similar  consignees.  to i t s ultimate  t h e i r work w o u l d a c t u a l l y i n c r e a s e .  readjust  movement,  o f time, and (perhaps) o f t r a n s p o r t a t i o n  procedure  of this  the i n t r o d u c t i o n  rates f o r container  w o u l d have a l s o t o ' a c c e p t '  sufficiently  the  and/or road  c o u l d be e x p e r i e n c e d To  the  rail  coincide with  could  that  generate  the Port  o f Vancouver  I f th'ey do n o t find  itself  in a  t o t h a t o f t h e T i l b u r y dock workers and  with  lowered p r o d u c t i v i t y causing  cargo to  13 be  t r a n s f e r r e d to a competing p o r t  l o n g s h o r e m e n may n o t be f o r t u n a t e trade  either!  The n e t r e s u l t  f o r discharge.  Vancouver  enough t o r e g a i n  w o u l d be e v e n l e s s  this  lost  work on t h e  docks o f Vancouver.  One  way  t h a t the longshoremen c o u l d  ensure t h a t the p r e s e n t ILWU members do not s u f f e r would be ' p r o f e s s i o n a l i z e ' t h e i r union and p l a c e l i m i t s on who  can  to  gain  admittance to work on the docks.  OTHER FACTORS  S e v e r a l o t h e r f a c t o r s e n t e r the p i c t u r e when c o n s i d e r i n g the i n t e r m o d a l (1)  The  movement of c o n t a i n e r s , i n c l u d i n g the f o l l o w i n g !  r a i l w a y s do not quote piggyback r a t e s f o r  containers  (with the e x c e p t i o n  of o c e a n - c a r r i e r owned  c h a s s i s under T a r i f f C F A - 2 6 3 ) . t h e r e f o r e while  they  w i l l i n g to c a r r y the t r u c k t r a i l e r s piggyback,  they  i n s i s t t h a t the c o n t a i n e r s move over the road or r a i l flatcars.  (Neither i s competitive  car or truck rate.)  The  with  are  on  the p o o l -  r e s u l t i s t h a t cargo f o r  OCP  d e s t i n a t i o n s does not move piggyback i n c o n t a i n e r s . (2)  The  c o n t a i n e r i t s e l f must r e t u r n to the p o r t of  w i t h i n s i x months of i t s ' i m p o r t a t i o n ' i n o r d e r remain duty f r e e . any  ed' c o n t a i n e r s by the importer stop.  to  While t h i s requirement has not been  problem per se, the domestic use  to one  entry  of these  'import-  or c a r r i e r i s l i m i t e d  I n a d d i t i o n , c o n t a i n e r s have not moved  e a s t because back-haul t r a f f i c has not been a v a i l a b l e . The  ' p r i c e ' f o r r e t u r n i n g empty c o n t a i n e r s  from Toronto i s $ 1 0 0 . 0 0 each, minimum of 2 per shipment. charge.  The  consignee must pay  to Vancouver containers  t h i s back-haul  (3) Many consignees are i m p o r t i n g from the O r i e n t on s p e c u l a t i o n  containerized  ( j u s t as they have  always done w i t h break-bulk cargo) and  selling  goods w h i l e i n ocean t r a n s i t , Vancouver storage,  freight  hands of the i s able  to r e a l i z e  u n t i l discharge utilize  forwarder s t o r a g e ,  inland carrier.  p o r t i o n of the  distribution  out and  can  to from  shipment moving to  OCP  forwarded, u s u a l l y  d i r e c t l y to Toronto ( o r Oshawa, o r M o n t r e a l ,  The  moved to a Toronto  r e s t of the shipment, scheduled f o r  L o c a l d e l i v e r y p o i n t s , can a l s o be forwarded On  importer  i n being able  o r Quebec C i t y ) without f i r s t b e i n g warehouse.  the  a t Vancouver} a t the same time he  d e s t i n a t i o n s i s separated by p o o l c a r ,  or w h i l e i n the  the advantages of c o n t a i n e r i z a t i o n  break the shipment f o r m u l t i - p o i n t The  the  waterfront  In t h i s way  the f l e x i b i l i t y p r o v i d e d  Vancouver.  cargo  directly.  t h i s l a t e r p o r t i o n , an upward adjustment on  the  ocean t r a n s i t r a t e i s made to the l e v e l a p p l i c a b l e f o r the L o c a l d e s t i n a t i o n s In the end, traffic is s t i l l the  has  involved.  however the major reasons why  OCP  not moved e a s t from Vancouver i n i n t a c t  destination containers  the u n a t t r a c t i v e r a i l r a t e s , the union demands, and  inland carriers  containers  reluctance  i n the manner of the  to commit themselves to steamship l i n e s .  CHAPTER  VI  1. T h i s d i s c u s s i o n i s b a s e d on a t e l e p h o n e conversation w i t h a Customs O f f i c e r , P o r t o f V a n c o u v e r Customs O f f i c e ; and D. M c G r e g o r , P e r s o n a l Interview. 2.  K.  Cox,  Personal  Interview.  3. " C e r t i f i c a t e C o u r s e " , T r a n s p o r t a t i o n , T o r o n t o . 1964. 4.  ibid.  5.  ibid.  6.  K.  Cox,  Personal  Canadian I n s t i t u t e - o f p. 19:1  Traffic  and  Interview.  7. J.R. Immer, C o n t a i n e r S e r v i c e s on t h e A t l a n t i c 1970. Work S a v i n g I n t e r n a t i o n a l , W a s h i n g t o n , D.C. 1970. p. 13» 8. " C a r g o Movements i n t h e 1970's", R e p o r t t o t h e N a t i o n a l P o r t s C o u n c i l o f G r e a t B r i t a i n by E - A S p a c e and A d v a n c e d M i l i t a r y S y s t e m s , L t d . , March 1968, C i t e d i n Immer, i b i d , p. 13.  9. "The S i t p r o R e p o r t 1970", R e p o r t by the U n i t e d Kingdom Committee f o r t h e S i m p l i f i c a t i o n o f I n t e r n a t i o n a l Trade P r o c e d u r e s o f t h e N a t i o n a l E c o n o m i c D e v e l o p m e n t C o u n c i l . London. Her M a j e s t y ' s S t a t i o n a r y O f f i c e . 1970. p. 1. 10. One example w h i c h o c c u r e d i n V a n c o u v e r was t h e l e a s i n g o f a number o f c o n t a i n e r s t o one s h i p p e r , and t h e l e a s i n g o f t h e same c o n t a i n e r s t o a n o t h e r s h i p p e r t h e f o l l o w i n g day, simply b e c a u s e t h e bookwork had b e e n a l l o w e d t o ' f a l l b e h i n d ' . G. Payne, Personal Interview. 11. A w e e k l y f e a t u r e i s p r e s e n t e d i n F a i r p l a y d e a l i n g v/ith I n s u r a n c e and t h e L e g a l L i a b i l i t i e s o f C a r r i e r s w h i c h documents and d e s c r i b e s r e c e n t M a r i t i m e c o u r t d e c i s i o n s i n d i f f e r e n t countries. A number o f t h e columns i n 1970 dealt specifically w i t h the c a r r i a g e o f c o n t a i n e r i z e d goods. These were s u m m a r i z e d i n F a i r p l a y , J a n . 7, 1971. pp. 87-93. 12.  G.  Payne, P e r s o n a l  Interview.  13* C u r r e n t l y S e a L a n d i s m o v i n g 2000 c o n t a i n e r l o a d s o f c a r g o p e r month i n t o t h e P o r t o f S e a t t l e w h i c h had f o r m e r l y a l l moved t h r o u g h the P o r t o f V a n c o u v e r . K. Cox, P e r s o n a l Interview.  CONCLUSIONS AND  This freight  study  has  attempted  movement f r o m  'OCP  of  Vancouver to Overland  of  OCP  traffic  has  commodities and It the  has  Atlantic  import  in  t o n n a g e s i n v o l v e d has  being Coast  imported  The  Port history  a n a l y s i s of  been  both  other Asian  a l s o been a r a p i d by b o t h  inland  the  move t o i n t e r m o d a l  OCP  traffic  carriers  has  the  undertaken.  tonnages of  British New  cargo,  Columbia  Zealand,  Canada's  i n the  few  past  a p p e a r t o have  and  Japan,  countries.  world-wide  shipping lines  years, shared  from  and  conversion ports,  i n W e s t e r n C a n a d a have n o t containerization.  continued  t o be  t o d e t e r m i n e why  the P o r t o f  As  the  Vancouver.  but  a result,  trades.  to  joined i n  moved i n b o x c a r s ,  c o n t a i n e r i z a t i o n of the P a c i f i c  attempted  inland  an  the  growth p r o p o r t i o n a l l y .  the  has  through  increased rapidly  containerization,  the  through  of  c o n t a i n e r i z a b l e , are  p o r t s from A u s t r a l i a ,  t r a d e has  development  Common P o i n t T e r r i t o r y .  the P o r t o f Vancouver does n o t this  nations  b e e n shown t h a t s i g n i f i c a n t  T h e r e has  of  origin'  b e e n documented and  Hong Kong, T a i w a n , and  but  t o document t h e  g r e a t m a j o r i t y of which are  currently  SUMMARY  inland  in  spite  This  study  c o n t a i n e r i s not  moving  The  theoretical  transportation Lading, and  ideal  o f cargo  regardless  OCP t r a f f i c  cargo u t i l i z e s  that  the  concept  that  exists than  25$  One o f t h e b i g g e s t  among b o t h  c a r r i e r s and  i s only a d i f f e r e n t  i n general,  "the container  situation  t h a n 10$ o f t h e OCP  t o be t h e f e e l i n g ,  ocean t r a n s p o r t a t i o n ; they,  on one B i l l o f  o f t r a n s p o r t modes  the concept.  the van container  door-to-door  o f B.C., b u t l e s s  shipments and l e s s  drawbacks a p p e a r s shippers,  container  The p o t e n t i a l f o r t h i s  through the ports  of a l l container containerized  i n a sealed  o f t h e number o r t y p e  nodes i n v o l v e d .  with  w o u l d be f o r c o m p l e t e  have f a i l e d  means o f to grasp  r e v o l u t i o n c a n be s e e n a s a  1.'.;.revolution this  from  The  c o n t a i n e r i z a t i o n , have f a i l e d  formal  inauguration  the Vancouver w a t e r f r o n t  marked i n c r e a s e originating  vessels  handling  i n J u n e o f 1970  principally  result  arriving  a t the Port  f o r forwarding.  majority  and  i t destroys  facilities  resulted i n a  to f u l l y  OCP This  containerized However 85$  o f Vancouver a r e b e i n g  l a b o r , and loaded This  from  Japan, Taiwan, and Korea.  o f the s h i f t  t h e CFS b y l o n g s h o r e  the  expected to  to m a t e r i a l i z e .  b y t h e members o f t h e J a p a n 6 L i n e ,  containers  trucks  of container  Because o f  i n t h e volume o f c o n t a i n e r i z e d cargo  regions,  was t h e d i r e c t  in  a s much a s i n t r a n s p o r t " .  a t t i t u d e , many o f t h e ' w o n d e r f u l s a v i n g s '  result  on  i n packing,  into railway  procedure e f f e c t i v e l y  of the  destuffed cars or  eliminates  o f the p o t e n t i a l b e n e f i t s from c o n t a i n e r i z a t i o n , the intermodal  concept o f cargo t r a n s f e r .  An a n a l y s i s o f the composition  o f OCP cargo i n d i c a t e s  t h a t the type o f goods b e i n g imported has not changed with the i n t r o d u c t i o n o f the van c o n t a i n e r .  T h i s trade i s s t i l l  composed o f g e n e r a l consumer goods, s p e c i a l t y food processed  foods, and s t e e l products  o p i n i o n i s t h a t 75$ ization. a  of t h i s t r a f f i c  items,  and the concensus o f i s s u i t a b l e to c o n t a i n e r -  I n f a c t much o f i t i s i d e a l l y s u i t e d t o t r a n s f e r i n  container. I f a c o n t i n u a t i o n o f the c u r r e n t volume o f OCP  traffic  through the P o r t o f Vancouver, and a growth i n the tonnage o f door-to-door c o n t a i n e r i z e d OCP t r a f f i c  i n p a r t i c u l a r , i s to  occur, the f o l l o w i n g minimum c o n d i t i o n s would appear (A t r a f f i c  i n c r e a s e would r e s u l t o n l y i f these  necessary,  conditions are  more than met)  OCEAN RATES  1.  The p r e s e n t  ocean r a t e s on cargo o f f - l o a d e d in.Vancouver p l u s  the i n l a n d movement charges must be c o m p e t i t i v e  with  the l a i d -  down p r i c e v i a the Panama Canal and the S t , John-Toronto  rail  movement. 2.  The Japanese L i n e s commence f u l l  c o n t a i n e r s h i p s e r v i c e to  the New York and H a l i f a x p o r t s i n 1972. p r i c e i n Toronto o r Montreal  I f the laid-down  i s l e s s than v i a Vancouver, the  i m p o r t i n g f i r m s w i l l v e r y q u i c k l y switch from the P o r t o f Vancouver.  1. The p r e s e n t a b s o r p t i o n p r a c t i c e s ( f o r wharfage, h a n d l i n g , and l o a d i n g charges) by the steamship  and r a i l r o a d  must be c o n t i n u e d , and should be extended  companies  to cover any  i n l a n d Canadian c a r r i e r ( i . e . the t r u c k e r s ) . 2. The t e r m i n a l a b s o r p t i o n p r a c t i c e s should be extended t o cover i n t a c t c o n t a i n e r s moving through 3.  the Vancouver CY,  T e r m i n a l charges and r u l e s s h o u l d become c o m p e t i t i v e with those l e v i e d by the P o r t o f S e a t t l e , both i n d o l l a r s p e r ton o f cargo, and i n s t r u c t u r e ( i . e , a s i n g l e f e e t o the account  all-inclusive  o f the c a r g o ) ,  INLAND CARRIER RATES  1. The p r e s e n t r a t e s t r u c t u r e f o r the movement o f i n t a c t c o n t a i n e r s must become more c o m p e t i t i v e , ( o n the b a s i s o f $/cwt o f cargo moved,) with the c o s t o f p o o l c a r  shipments.  2. A r e l a x a t i o n o f the r e g u l a t i o n s governing r e t u r n o f the empty c o n t a i n e r a t the consignee's  3.  expense, to a l l o w the  inland c a r r i e r to s o l i c i t  e i t h e r domestic  f r e i g h t f o r the back-haul  to Vancouver would be advantageous.  Competitive  or f o r e i g n  r a t e s f o r the volume movement o f i n t a c t  c o n t a i n e r s , n o t n e c e s s a r i l y i n a u n i t t r a i n , s h o u l d be e s t a b l i s h e d now i n an e f f o r t to develop  intact  rail  movement o f c o n t a i n e r s i n volume, r a t h e r than w a i t i n g u n t i l the t r a f f i c  " j u s t i f i e s ' a volume r a t e .  1. I t appears both p o s s i b l e , and necessary,  f o r the persons  s t u f f i n g the c o n t a i n e r s i n 'OCP o r i g i n ' c o u n t r i e s t o use a more r a t i o n a l s o r t a t i o n procedure.  T h i s might i n v o l v e  more p l a n n i n g by s u p e r v i s o r y s t a f f , b u t i t seems t o t a l l y i l l o g i c a l t o p l a c e bamboo f u r n i t u r e f o r C a l g a r y , instruments  musical  f o r Winnipeg, and footware f o r Toronto i n the  same c o n t a i n e r , p a r t i c u l a r l y i f the d e s t i n a t i o n s a r e known at  the time o f packing.  WATERFRONT LABOR  1. Future  Vancouver w a t e r f r o n t  i n t e r f e r e n c e with  c o n t r a c t s must not a l l o w  the f o r w a r d i n g  o f OCP cargo.  I f this  means moving the s e a l e d c o n t a i n e r out o f the CY to a Vancouver f r e i g h t c o n s o l i d a t o r ' s premises f o r d e s t u f f i n g and 2.  loading i n t o a truck or r a i l  Vancouver w a t e r f r o n t  c a r , then i t should be done.  management must ' u n i t e ' and a c t as one  body i n o r d e r to r e g a i n e f f e c t i v e c o n t r o l o f the w a t e r f r o n t from the Union.  ( T h i s i n v o l v e s a v i s i b l e , and e f f e c t i v e ,  N.H.B. a d m i n i s t r a t i o n . ) 3. A f r e e z e s h o u l d be p l a c e d on the ILWU membership r o l l , i n o r d e r t h a t present members can r e c e i v e a guarantee o f hours of work p e r year. recognize to  Simultaneously,  t h e Union  should  the b e n e f i t s o f d e c a s u a l i z a t i o n o f the w a t e r f r o n t  both t h e i r members and to the employers.  4. Management must be prepared to ( l i t e r a l l y )  share  the  b e n e f i t s o f c o n t a i n e r i z a t i o n with the Union members, but the membership must be e q u a l l y prepared to share  the  b e n e f i t s with management. 5.  Should the S e a t t l e dock workers g a i n a c o n t a i n e r i z a t i o n c l a u s e s i m i l a r to t h a t of the Vancouver agreement,some i n c r e a s e i n P o r t of Vancouver c o n t a i n e r d i s c h a r g e s  may  develop, which would l e s s e n union p r e s s u r e f o r the d e s t u f f i n g of OCP-bound cargo on the w a t e r f r o n t i n Vancouver.  The  density  combined w i t h prevent The  present  tariff  containers clause'  ILWU from  contract  i n t h e ILWU  i n Vancouver.  service.  This  contract,  eliminate  Unless ential  b u t even w i t h o u t  d e s t u f f i n g would  rates  another four  trucks  become more e x p e n s i v e  containerized  and  be t r a n s f e r r e d b y r o a d o r r a i l  f o r w a r d e r s and c o n s o l i d a t o r s  procedure  intermodal  and p l a c e d  sufficiently  time,  in railcars  Alternatively,  t o t h e CY i n S e a t t l e  to the premises o f f r e i g h t  i n Vancouver f o r d e s t u f f i n g .  be p l a c e d  i n trucks  o r boxcars f o r  destination. the advantages o f the  concept, but the p r i c e f a c t o r s  important  Vancouver w i l l  be d e l i v e r e d  does n o t u t i l i z e  container  the p r e f e r -  t o a r r i v e a t t h e CFS i n  be d e s t u f f e d ,  cargo w i l l  two t o  charges f o r  f o r f o r w a r d i n g t o OCP d e s t i n a t i o n s .  t o i t s OCP  this  container  than a t the present  probably continue  However i t w o u l d s t i l l  the f r e i g h t  of the i n t a c t  or labor  the  This  continue to  handlings.  on OCP-bound c a r g o ,  cargo w i l l  shipment  t h e '50-mile  t h e c a r g o w o u l d be h a n d l e d  t h e movement  Vancouver i n c o n t a i n e r s , or  t h e movement o f  t h e ocean and/or i n l a n d c a r r i e r s a l t e r  destuffing this  against  container.  c o m p a n i e s w o u l d be s u p p l y i n g  means t h a t  traffic  of the i n l a n d c a r r i e r s  The d i f f e r e n c e w o u l d be t h a t  fewer times, while  could  mitigates  the waterfront,  f o r w a r d e r s and t r u c k i n g  four  schedules  t h e e a s t w a r d movement o f t h e i n t a c t 'OCP'  current  occur  (weight/volume) c h a r a c t e r i s t i c s of t h i s  maintain  that  OCP  traffic  through  appear  the P o r t o f  i t s non-intermodal c h a r a c t e r i s t i c s .  CHAPTER V I I  1. S.G. S t u r m e y , "The I m p a c t o f W o r l d S e a b o r n e T r a d e on Changes i n S h i p p i n g C o s t s " , L e c t u r e d e l i v e r e d t o The I n t e r n a t i o n a l Symposium on M i d d l e t e r m a n d L o n g t e r m F o r e c a s t i n g f o r S h i p b u i l d i n g and S h i p p i n g , S t i c h t i n g M a r i t i e m e R e s e a r c h , The Hague, J u n e 16-18, pp.  1970.  35-55.  BOOKS  B e n n a t h a n , E s r a , and A.A. W a l t e r s . The E c o n o m i c s o f Ocean F r e i g h t Rates. F r e d e r i c k A. P r a e g e r , I n c . , New Y o r k . Containerisation International: M a g a z i n e Co. L t d . , London.  1970 Y e a r b o o k . 1969.  1969.  National  D a g g e t t , S., and J . P . C a r t e r . The S t r u c t u r e o f T r a n s c o n t i n e n t a l R a i l r o a d Rates. B u r e a u o f B u s i n e s s and E c o n o m i c R e s e a r c h , U n i v e r s i t y o f C a l i f o r n i a P r e s s , Los A n g e l e s , California. 1947. Fromm, G a r y . T r a n s p o r t I n v e s t m e n t and E c o n o m i c Development. The B r o o k i n g s I n s t i t u t i o n , T r a n s p o r t R e s e a r c h P r o g r a m , W a s h i n g t o n , D.C. 1965. Hedden, W a l t e r P. Mission: P o r t Development. The A m e r i c a n A s s o c i a t i o n o f P o r t A u t h o r i t i e s , W a s h i n g t o n , D.C. 19&7. Immer, J o h n . Savings O'Loughlin, Press,  C o n t a i n e r S e r v i c e s on t h e A t l a n t i c 1970« I n t e r n a t i o n a l , W a s h i n g t o n , D.C. 1970. Carleen. The E c o n o m i c s o f S e a Toronto, Ontario. 1970.  REPORTS AND  PUBLICATIONS OF  LEARNED S O C I E T I E S  AND  Transport.  Work Pergamon  GOVERNMENTS,  OTHER ORGANIZATIONS  "Between: Her M a j e s t y The Queen, and J.W. M i l l s & Son L i m i t e d , Kuehne & N a g e l ( C a n a d a ) L i m i t e d , O v e r l a n d I m p o r t A g e n c i e s L i m i t e d , Denning F r e i g h t Forwarders L i m i t e d , J o h n s t o n T e r m i n a l s L i m i t e d " , November 1967» V a n c o u v e r , B.C. 2 Ex. C R . 1968. ^ " C e r t i f i c a t e Course", Canadian I n s t i t u t e o f T r a f f i c Transportation, Toronto, Ontario. 1964.  and  C h u r c h , R.F. " B a c k g r o u n d Note on t h e D e v e l o p m e n t o f C o n t a i n e r i z e d I n t e r n a t i o n a l S h i p p i n g " , The T r a n s p o r t a t i o n Center, Northwestern U n i v e r s i t y , Evanston, I l l i n o i s . 1968.  " C o l l o q u i u m on I n v e s t m e n t P l a n n i n g f o r P o r t s and A i r p o r t s " , T.D. H e a v e r , ed. Monograph No. 4., F a c u l t y o f Commerce and B u s i n e s s A d m i n i s t r a t i o n , U n i v e r s i t y o f B r i t i s h C o l u m b i a , V a n c o u v e r , B.C. 1970. " C o n t a i n e r s , P a l l e t s , and O t h e r U n i t i z e d Methods f o r t h e I n t e r m o d a l Movement o f F r e i g h t : A p p l i c a t i o n to Developing C o u n t r i e s " , D e p a r t m e n t o f E c o n o m i c and S o c i a l A f f a i r s , P u b l i c a t i o n No. ST/ECA/120, S a l e s No. E 69 V I I I . 3 . U n i t e d Nations. 1970. " C o n t a i n e r a b l e Cargo Handled a t C a n a d i a n P o r t s i n I n t e r n a t i o n a l T r a d e D u r i n g t h e Y e a r 1965". C a n a d a D e p a r t m e n t o f T r a d e and Commerce, T r a n s p o r t a t i o n D i v i s i o n , Ottawa, O n t a r i o . M a r c h 1968. "Containerization: The Key t o Low-Cost T r a n s p o r t " , R e p o r t f o r B r i t i s h Docks A u t h o r i t y . P r e p a r e d by M c K i n s e y and Company, Inc., London. June 1967. " F o r e i g n T r a d e S t u d y Lower M a i n l a n d P o r t s o f B r i t i s h C o l u m b i a " , R e p o r t f o r the N a t i o n a l Harbour's Board. P r e p a r e d by B r i t i s h Columbia Research C o u n c i l , Vancouver, B.C. December 1967. Goss,  R.O. " T u r n a r o u n d o f C a r g o L i n e r s and I t s E f f e c t on C o s t s " , J . T r a n s p o r t E c o n o m i c s and P o l i c y , London S c h o o l o f E c o n o m i c s , London. V o l . 1 No. 1. J a n u a r y 1967.  Goss,  R.O. "Toward an E c o n o m i c A p p r a i s a l o f P o r t I n v e s t m e n t s " , J . T r a n s p o r t E c o n o m i c s and P o l i c y , London S c h o o l o f E c o n o m i c s , London. V o l . 1 No. 3. S e p t e m b e r 1967*  Goss,  R.O. " T u r n a r o u n d and C o s t s o f C o n v e n t i o n a l C a r g o L i n e r s ; U . K . - I n d i a R o u t e " , J . T r a n s p o r t E c o n o m i c s and P o l i c y , London S c h o o l o f E c o n o m i c s , London. V o l . 4 No. 1. J a n u a r y 1970.  G r y g i e l , J.A. "The Land B r i d g e and I t s Impact on U n i t e d S t a t e s Land T r a n s p o r t a t i o n " , P a p e r p r e s e n t e d t o 4 8 t h A n n u a l M e e t i n g o f t h e Committee on F r e i g h t T r a n s p o r t a t i o n E c o n o m i c s , The Highway R e s e a r c h R e c o r d , #281. "Use o f C o n t a i n e r i z a t i o n i n F r e i g h t T r a n s p o r t a t i o n " , Highway R e s e a r c h B o a r d / N a t i o n a l R e s e a r c h C o u n c i l , P u b l i c a t i o n No. 1658, W a s h i n g t o n , D.C. 1969. " I n l a n d and M a r i t i m e T r a n s p o r t o f U n i t i z e d C a r g o " , Academy o f S c i e n c e - N a t i o n a l R e s e a r c h C o u n c i l , No. 1135, W a s h i n g t o n , D.C. 1963. The  National Publication  I n t e r n a t i o n a l C o n t a i n e r Symposium. Proceedings. London Chamber o f Commerce, 69 Cannon S t r e e t , London. 1968.  "The  I n t e r n a t i o n a l Symposium on M i d d l e t e r m a n d L o n g t e r m F o r e c a s t i n g f o r S h i p b u i l d i n g and S h i p p i n g " , S t i c h t i n g M a r i t i e m e R e s e a r c h , The Hague. June 1 6 - 1 8 , 1 9 7 0 .  I n t e r s t a t e Commerce C o m m i s s i o n A c t i v i t i e s 1 9 3 7 - 1 9 6 2 . Supplement t o t h e 7 5 t h A n n u a l R e p o r t , U.S. Government P r i n t i n g O f f i c e , W a s h i n g t o n , D.C. 1 9 6 2 . " M a r i t i m e T r a n s p o r t o f U n i t i z e d C a r g o " , N a t i o n a l Academy o f S c i e n c e - N a t i o n a l R e s e a r c h C o u n c i l , P u b l i c a t i o n No. 7 4 5 , W a s h i n g t o n , D.C. 1 9 5 9 . P a r r o t , E. "Cargo H a n d l i n g " , Paper i n P o r t o f Vancouver, R.W. C o l l i e r , e d . U n i v e r s i t y o f B r i t i s h C o l u m b i a , V a n c o u v e r , B.C. 1966. "Portbury: Reasons f o r t h e M i n i s t e r ' s D e c i s i o n t h e C o n s t r u c t i o n o f a New Dock a t P o r t b u r y H.M.S.O. S e p t e m b e r 1 9 6 7 . "A  Not t o A u t h o r i z e Bristol",  R e s e a r c h Base f o r D e v e l o p m e n t o f a N a t i o n a l C o n t a i n e r i z a t i o n P o l i c y " , R e p o r t t o t h e Canadian T r a n s p o r t Commission, Phase I. P r e p a r e d by Matson R e s e a r c h C o r p o r a t i o n , San Franscisco, California. July 1970.  S h e r i f f , W.J. "The P o r t o f V a n c o u v e r G e n e r a l C a r g o R e q u i r e m e n t s " , Report f o r t h e N a t i o n a l Harbour's Board. P r e p a r e d by t h e B r i t i s h C o l u m b i a R e s e a r c h C o u n c i l , V a n c o u v e r , B.C. January 1 9 6 8 . "The  SITPRO R e p o r t 1 9 7 ° " » R e p o r t by t h e U n i t e d Kingdom Committee f o r t h e S i m p l i f i c a t i o n o f I n t e r n a t i o n a l Trade P r o c e d u r e s o f t h e N a t i o n a l E c o n o m i c D e v e l o p m e n t C o u n c i l , London. H.M.S.O. 1 9 7 0 .  Smith, Arthur I. "Report o f I n q u i r y Into C e r t a i n C o n d i t i o n s , Conduct, and M a t t e r s G i v i n g R i s e t o Labour Unrest a t t h e Ports o f Montreal, T r o i s - R i v i e r e s , a n d Quebec, P.Q.", C a n a d a D e p a r t m e n t o f L a b o u r , Queens P r i n t e r , Ottawa. 1 9 6 9 . T a n n e r , M.F., a n d A.F. W i l l i a m s . " P o r t Development and N a t i o n a l S t r a t e g y " , J . T r a n s p o r t E c o n o m i c s a n d P o l i c y , London S c h o o l o f E c o n o m i c s , London. V o l . 1 No. 3 . S e p t e m b e r 1 9 6 7 . "Transhipment i n the S e v e n t i e s : A Study o f Container Transport", R e p o r t t o N a t i o n a l P o r t s C o u n c i l (U.K.). P r e p a r e d by A r t h u r D. L i t t l e , L t d . , London. 1 9 7 0 . "The  T u r n a r o u n d Time o f S h i p s i n P o r t " , P u b l i c a t i o n No. S T / E C A / 9 7 , S a l e s No.: 6 7 . V I I I . 5 . U n i t e d N a t i o n s , New Y o r k . 1 9 6 7 .  B r i t i s h Columbia Business J o u r n a l . ( C a n a d a ) L t d . , P o r t a g e Avenue, B u s i n e s s Week. N.Y.  Cambridge P u b l i s h e r s Winnipeg, Manitoba.  M c G r a w - H i l l , I n c . , West 42nd  Canadian Business. C B Media L i m i t e d , Montreal, Quebec.  Street,  Beaver H a l l  C a n a d i a n S h i p p i n g and M a r i n e E n g i n e e r i n g . L i m i t e d , U n i v e r s i t y Avenue, T o r o n t o ,  New  York,  Hill,  Maclean-Hunter Ontario.  C a n a d i a n T r a n s p o r t a t i o n and D i s t r i b u t i o n Management. Southam B u s i n e s s P u b l i c a t i o n s L i m i t e d , 1450 Don M i l l s Road, Don Mills, Ontario. D i s t r i b u t i o n Worldwide. C h i l t o n Company, One B a l a - C y n w y d , Pa...U.S.A. Far  Decker Square.  E a s t T r a d e and D e v e l o p m e n t . Laurence French P u b l i c a t i o n s L t d . , 3 B e l s i z e C r e s . , London, NW3 5QZ, U.K.  The E c o n o m i s t . The E c o n o m i s t Newspaper L t d . , The E c o n o m i s t B u i l d i n g , 25 S t . James's S t r e e t , London, SW1, U.K. Fairplay International Shipping Journal. Fairplay Publications Limited, 1, P u d d i n g Lane, London, U.K. H a r b o u r and S h i p p i n g . V a n c o u v e r , B.C.  , Progress  P u b l i s h i n g Co.,  (1958) L t d . ,  Marine Engineering/Log. Simmons Boardman P u b l i s h i n g 508 B i r c h S t . , B r i s t o l , Conn. New Port  Scientist. New S c i e n c e P u b l i c a t i o n s , 128 London, WC2E 9QH London, U.K. o f Sydney. The M a r i t i m e S e r v i c e s G.P.O., S y d n e y , A u s t r a l i a .  P u r c h a s i n g i n W e s t e r n Canada. V a n c o u v e r , B.C.  Gordon  Long  Corporation,  Acre,  B o a r d o f N.S.W., Box Black  32,  Publications Ltd.,  S h i p p i n g W o r l d and S h i p b u i l d e r . A Berm Group J o u r n a l , Lyon Tower, 125 H i g h S t r e e t , C o l l i e r s Wood, London, SW19 U.K. T r a f f i c Management and P h y s i c a l D i s t r i b u t i o n . C o n o v e r - M a s t P u b l i c a t i o n s , D i v i s i o n o f C a h n e r s P u b l i s h i n g Co., I n c . , 205 E 42nd S t . , New Y o r k , N.Y.  Service D.C. The  C o r p o r a t i o n , 815 W a s h i n g t o n  Building,  Westsider. West S i d e A s s o c . o f Commerce 330 W 42nd S t . , New Y o r k , N.Y.  Washington,  Inc.,  NEWSPAPERS  J o u r n a l o f Commerce. (New Y o r k ) Twin C o a s t 99 W a l l S t . , New Y o r k , N.Y.  Newspapers,  Inc.,  The  Province. (Vancouver) P a c i f i c P r e s s L i m i t e d , 2250 G r a n v i l l e S t . , V a n c o u v e r , B.C.  The  Star-Bulletin. (Honolulu) Honolulu S t a r - B u l l e t i n , Inc., News B l d g . , 605 K a p i o l a n i B l v d . , H o n o l u l u , H a w a i i , U.S.A.  The  Toronto Globe and M a i l . The G l o b e a n d M a i l L i m i t e d , 140 K i n g S t . W., T o r o n t o , O n t a r i o .  Todds S h i p y a r d News. New Y o r k , N.Y. The  (New Y o r k )  Todds S h i p y a r d s C o r p o r a t i o n ,  Wall Street Journal. Dow J o n e s & Company, 30 B r o a d S t r e e t , New Y o r k , N.Y.  Inc. ,  Western B u s i n e s s and I n d u s t r y ; J o u r n a l o f Commerce. (Vancouver) J o u r n a l o f Commerce L i m i t e d , West 12th Avenue, V a n c o u v e r , B.C.  UNPUBLISHED MATERIALS  Bridges, Harry. Speech M a r c h 1956.  t o t h e ILWU C a u c u s ,  Caucus  Proceedings,  " C o n t a i n e r i z a t i o n i n the S e v e n t i e s " , Proceedings o f the C a n a d i a n T r a n s p o r t a t i o n R e s e a r c h Forum, P a n e l D i s c u s s i o n , V a n c o u v e r , B.C. March 20, 1970. Dame, R.L. " T e c h n i c a l A s p e c t s o f C o n t a i n e r i z a t i o n " , P a p e r p r e s e n t e d t o K a w a s a k i K i s e n K a i s h a , L t d . , ("K" L i n e ) , by R o b e r t L. Dame a n d A s s o c i a t e s , Group C o n s u l t a n t , S e a t t l e , W a s h i n g t o n . 1970. McDonald, H a m i l t o n . "Labor and C o n t a i n e r i z a t i o n " , Unpublished M.B.A. G r a d u a t i n g E s s a y , U n i v e r s i t y o f B r i t i s h Columbia, V a n c o u v e r , B.C. May 1971.  P a y n e , G. "The C o n t a i n e r Way", S p e e c h t o t h e I n s t i t u t e o f N a v a l A r c h i t e c t s a n d M a r i n e E n g i n e e r s , V a n c o u v e r , B.C. A p r i l 23, 1971. Rees,  G o r d o n S. " A n a l y s i s o f P o t e n t i a l C o n t a i n e r T r a f f i c i n the P o r t o f V a n c o u v e r " , U n p u b l i s h e d M.B.A. T h e s i s , U n i v e r s i t y o f B r i t i s h C o l u m b i a , V a n c o u v e r , B.C. 1§69.  Robinson, Ross. " S p a t i a l S t r u c t u r i n g o f P o r t Linked Flows, P o r t o f V a n c o u v e r 1965", U n p u b l i s h e d Ph.D. ( G e o g r a p h y ) T h e s i s , U n i v e r s i t y o f B r i t i s h C o l u m b i a , V a n c o u v e r , B.C.  1968.  Studer, Keith. University  " S h i p S i z e " , U n p u b l i s h e d M.B.A. T h e s i s , o f B r i t i s h C o l u m b i a , V a n c o u v e r , B.C. 1969.  "Study o f the P o r t o f Vancouver", V a n c o u v e r , B.C. 1967.  ADVERTIZING  K a t e s , P e a t , M a r w i c k & Co.,  LITERATURE  "The  C o n t a i n e r Way", A d v e r t i z i n g L i t e r a t u r e o f t h e E m p i r e S t e v e d o r i n g Co. L t d . , V a n c o u v e r , B.C. n . d .  "Full  Container Service", Advertizing Literature o f the Y a m a s h i t a - S h i n n i h o n S t e a m s h i p Co. L t d . , Tokyo, J a p a n , n . d .  "A  New White P a s s C o n t a i n e r Route S e r v e s t h e Yukon a n d N o r t h e r n B r i t i s h Columbia", A d v e r t i z i n g L i t e r a t u r e o f t h e White P a s s a n d Yukon R a i l w a y Co., V a n c o u v e r , B.C. n . d .  Cameron, Gordon. Shipping Agent for Yamashita Shinnihon, L t d . , North Pacific Shipping Co., Vancouver, B.C. March 10, 1971. Carlyle, Len. Port Engineer, National Harbour's Board, Vancouver, B.C. August 14, 1970. Cox, Ken. Western Assembly L t d . , Vancouver, B.C. April 20, 1971. Crook, Charles F. Manager Container Sales, Foreign Freight Sales, Canadian National Railways, Vancouver, B.C. February 24, 1971. Edgeworth, Dave. Freight Sales, Burlington Northern Railroad Co., Vancouver, B.C. April 21, 1971. Frontain, G.J. Manager Container Development, Canadian National Railways, Vancouver B.C. August 19, 1970. Garrod, Stan H. Foreign Freight Sales, Canadian Pacific Railway Co., Vancouver, B.C. August 6, 1970. Harrison, Mr. and Others. Checker, fork l i f t driver and members of the ILWU on Centennial Pier, Vancouver, B.C. May 6, 1971. King, Gordon. Shipping Agent for American Mail Lines, TransPacific Steamship Co., Vancouver, B.C. May 6, 1971. Lindsay, Barry. Executive Assistant, Johnston Terminals L t d . , Vancouver,. B.C. February 1971. McGregor, Don. Customs Inspector, LaPointe Pier, Vancouver, B.C. September 1970. McGerrigle, Marjorie. S t a t i s t i c a l Clerk, National Harbour's Board, Vancouver, B.C. Various dates, including August 14, 1970; December 8, 1970; May 7, 1971. Payne, Gordon. Manager, Container Terminal, Empire Stevedoring Co. L t d . , Centennial Pier, Vancouver, B.C. Various dates, including April 15, 1971; May 7, 1971. Shaneman, John. Clerk, Empire Stevedoring Co. Ltd. , Centennial Pier, Vancouver, B.C. April 15, 1971. Shaw, John.. Vice President Traffic, G i l l International Transport, Vancouver. B.C. March 5, 1971. Senior, Peter. Assistant Manager,, Container Terminal, Empire Stevedoring Co. L t d . , Centennial Pier, Vancouver, B.C. Various dates, including August 31, 1971; December 8, 1971; May 7, 1971.  Staton, Eric. Foreign Freight Sales Representative, Canadian National Railways, Vancouver, B.C. October 19, 1971. Thomson, Albert G. Assistant Foreign Freight Sales Manager, Pacific Coast Ports, Canadian National Railways, Vancouver, B.C. Various dates, including October 19, 1970; February 24, 1971; May 31, 1971.  TARIFFS Canadian Freight Association Eastbound Import Tariff No. 254-B (with supplements). Issued by G.H. Mitchell, Agent, Room 403, 272 Main Street, Winnipeg 1, Manitoba. Canadian Freight Association Import and Export Freight Tariff No. 263 (with supplements). Issued by G.H. Mitchell, Agent, Room 403, 272 Main Street, Winnipeg 1, Manitoba. Canadian Freight Association Container Tariff No. 589-A (with supplements). Issued by P.J. LaVallee, Agent, 1162 St. Antoine Street, Montreal 102, P.Q. Empire Stevedoring Company Limited and Terminal Dock Limited Wharf Tariff No. 4 (with revisions). Issued by Empire Stevedoring Co. Ltd., 395 Railway Street, Vancouver, B.C. Japan-West Canada Freight Conference Tariff No. 2 (with revisions). Issued by Japan-West Canada Freight Conference, Sumitomo Seimei.YAESU Building, 3, 4-chome-Yaesu, Chuo-ku, Tokyo 104, Japan. Seattle Terminals Tariff No. 2-F (with revisions). Issued by Hollis Farwell, Agent, Port of Seattle, P.O. Box 1209, Seattle, Wash. U.S.A.  ISO ISO of  TERMINOLOGY  r e c o m m e n d a t i o n 830 ISO  has  b e e n a d o p t e d by  the  majority  members.  DEFINITIONS Freight Container A f r e i g h t c o n t a i n e r i s d e f i n e d as an a r t i c l e o f t r a n s p o r t equipments ( a ) o f a p e r m a n e n t c h a r a c t e r and a c c o r d i n g l y s t r o n g enough t o be s u i t a b l e f o r r e p e a t e d u s e : ( b ) s p e c i a l l y d e s i g n e d t o f a c i l i t a t e t h e c a r r i a g e o f goods by one o r more modes o f t r a n s p o r t s w i t h o u t intermediate reloading; (c) f i t t e d with devices p e r m i t t i n g i t s ready handling, p a r t i c u l a r l y i t s t r a n s f e r f r o m one mode o f t r a n s p o r t to a n o t h e r ; ( d ) so d e s i g n e d t o be e a s y t o f i l l and empty; ( e ) h a v i n g an i n t e r n a l v o l u m e o f 3 5 - 3 f t (1 m3) o r more. The t e r m f r e i g h t c o n t a i n e r does n o t i n c l u d e v e h i c l e s o r conventional packing. 3  General-purpose F r e i g h t Container T h i s i s a f r e i g h t c o n t a i n e r o f r e c t a n g u l a r shape, weatherp r o o f , f o r t r a n s p o r t i n g and s t o r i n g a number o f u n i t l o a d s , p a c k a g e s o r b u l k m a t e r i a l ; t h a t c o n f i n e s and p r o t e c t s t h e c o n t e n t s f r o m l o s s o r damage; t h a t c a n be s e p a r a t e d f r o m t h e means o f t r a n s p o r t , h a n d l e d as a u n i t l o a d a n d transhipped w i t h o u t r e h a n d l i n g the contents. CHARACTERISTICS OF  FREIGHT CONTAINERS  Non-collapsible Freight Container F r e i g h t container of r i g i d construction, which are permanently assembled.  the  components  of  Collapsible Freight Container F r e i g h t c o n t a i n e r o f r i g i d c o n s t r u c t i o n , t h e m a j o r components o f w h i c h c a n be e a s i l y f o l d e d o r d i s a s s e m b l e d and t h e n reassembled. FREIGHT CONTAINER WEIGHTS Maximum G r o s s  Weights  Maximum a l l o w a b l e pay l o a d .  total  weight of f r e i g h t container  and  its  Weight Maximum  o f empty f r e i g h t Payload  Maximum a l l o w a b l e tare weight). Actual  Gross  weight of payload  ( g r o s s w e i g h t minus  Weight  T o t a l weight of f r e i g h t Actual  container.  c o n t a i n e r and i t s payload.  Payload  D i f f e r e n c e between a c t u a l g r o s s of the container. S T A T I C AND DYNAMIC LOADS  w e i g h t and t h e t a r e  weight  F l o o r Load S t a t i c a n d d y n a m i c l o a d s i m p o s e d on t h e f l o o r b y t h e p a y l o a d a n d t h e w h e e l s o f h a n d l i n g e q u i p m e n t when u s e d . End L o a d S t a t i c a n d d y n a m i c l o a d s i m p o s e d b y t h e p a y l o a d on t h e f r e i g h t c o n t a i n e r w a l l s and doors which a r e p e r p e n d i c u l a r to the l o n g i t u d i n a l a x i s o f the f r e i g h t c o n t a i n e r . Side Load S t a t i c a n d d y n a m i c l o a d s i m p o s e d b y t h e p a y l o a d on t h e f r e i g h t c o n t a i n e r w a l l s and doors which a r e p a r a l l e l t o the l o n g i t u d i n a l axis of the f r e i g h t container. Roof Load E x t e r n a l s t a t i c and dynamic freight container.  loads  imposed  Superimposed Load E x t e r n a l s t a t i c a n d dynamic l o a d s imposed downwards on t h e s t r u c t u r e o f t h e f r e i g h t DIMENSIONS AND  on t h e r o o f  of a  vertically container,  VOLUME  Dimensions H e i g h t , w i d t h and l e n g t h o f a c o n t a i n e r , measured to each o f i t s a x i s and expressed i n t h i s o r d e r .  parallel  O v e r a l l E x t e r n a l Dimensions Maximum e x t e r n a l o v e r a l l d i m e n s i o n s o f a c o n t a i n e r , any permanent a t t a c h m e n t .  including  Displacement Volume o f a f r e i g h t c o n t a i n e r a s d e t e r m i n e d b y t h e m u l t i p l i c a t i o n of i t s " o v e r a l l external dimensions.  D i m e n s i o n s d e t e r m i n e d on t h e g r e a t e s t u n o b s t r u c t e d r e c t a n g u l a r a r e a t h a t c a n be i n s c r i b e d i n t h e c o n t a i n e r , discounting corner f i t t i n g s . Unobstructed Capacity Volume d e t e r m i n e d b y t h e m u l t i p l i c a t i o n o f t h e i n t e r n a l unobstructed dimensions. Capacity Total  i n t e r n a l volume.  CONTAINER COMPONENTS Corner Structures V e r t i c a l f r a m e component l o c a t e d a t t h e c o r n e r s o f t h e f r e i g h t c o n t a i n e r , i n t e g r a l w i t h the c o r n e r f i t t i n g s and c o n n e c t i n g t h e r o o f and f l o o r s t r u c t u r e s . Corner F i t t i n g s F i t t i n g s l o c a t e d a t the corners of the f r e i g h t container w h i c h n o r m a l l y p r o v i d e means f o r h a n d l i n g , s t a c k i n g a n d securing the container. End Frame Each o f the s t r u c t u r e s o f the c o n t a i n e r p e r p e n d i c u l a r t o i t s l o n g i t u d i n a l a x i s c o n s i s t i n g o f the corner s t r u c t u r e s and t h e e n d members o f t h e b a s e a n d o f t h e r o o f . End W a l l A s s e m b l y s u r r o u n d e d by t h e end frame which e n c l o s e s end o f t h e c o n t a i n e r .  either  S i d e Frame Each o f the s t r u c t u r e s p a r a l l e l t o the l o n g i t u d i n a l a x i s of the c o n t a i n e r c o n s i s t i n g o f the corner s t r u c t u r e s and o f the bottom s i d e r a i l s and r o o f r a i l s . Side Wall Assembly s u r r o u n d e d by the s i d e container.  frame e i t h e r s i d e  of the  Roof R a i l s L o n g i t u d i n a l s t r u c t u r a l members s i t u a t e d a t t h e t o p edge on e i t h e r s i d e o f t h e f r e i g h t c o n t a i n e r . Bottom S i d e R a i l s S t r u c t u r a l members s i t u a t e d on t h e l o n g i t u d i n a l s i d e s o f the base. End D o o r Door l o c a t e d  i n an end w a l l .  Roof Assembly f o r m i n g the top c l o s u r e o f the c o n t a i n e r b y t h e end f r a m e s a n d t h e r o o f r a i l s .  limited  Base A s s e m b l y o f w h i c h t h e p r i n c i p a l components a r e : (a) the two b o t t o m l o n g i t u d i n a l members, ( b ) t h e two b o t t o m e n d members, ( c ) t h e f l o o r , a n d ( d ) p o s s i b l y t h e c r o s s - m e m b e r s . Cross-Members T r a v e r s e components a t t a c h e d s u p p o r t i n g the f l o o r .  to the bottom  side r a i l s  and  Floor Component s u p p o r t i n g  the payload.  Skids Beams on w h i c h c e r t a i n f r e i g h t c o n t a i n e r s a r e mounted t o f a c i l i t a t e handling. Fork Pockets Openings a r r a n g e d f o r the e n t r y o f the f o r k s of h a n d l i n g devices.  Source:  C o n t a i n e r i s a t i o n I n t e r n a t i o n a l Y e a r Book N a t i o n a l M a g a z i n e Co. L t d . L o n d o n . I969. 80-82..  1970* pp.  ISO ISO  Recommendation  CONTAINER  No.  804  DEFINITION  defines  a  container  as  an  article  of  transport  equipment:  A.  of a permanent c h a r a c t e r be s u i t a b l e f o r r e p e a t e d  B.  s p e c i a l l y d e s i g n e d t o f a c i l i t a t e t h e c a r r i a g e o f g o o d s , by one o r more modes o f t r a n s p o r t , w i t h o u t i n t e r m e d i a t e reloading;  C.  f i t t e d with devices p e r m i t t i n g i t s ready handling, p a r t i c u l a r l y i t s t r a n s f e r f r o m one mode o f t r a n s p o r t t o a n o t h e r ;  D.  so  d e s i g n e d as  t o be  and a c c o r d i n g l y use?  easy to  fill  and  3 E.  having  an  internal  volume o f  lm  strong  enough  to  empty;  3 (35*3  f t ) or  more.  The t e r m ' f r e i g h t c o n t a i n e r * i n c l u d e s n e i t h e r v e h i c l e s conventional packing.  nor  ' R a t i n g ' means t h e maximum g r o s s w e i g h t and i s t h e maximum p e r m i s s i b l e c o m b i n e d w e i g h t o f t h e f r e i g h t c o n t a i n e r and o f its contents. Two s e r i e s o f f r e i g h t c o n t a i n e r s were a p p r o v e d : series 1 h a v i n g a u n i f o r m c r o s s - s e c t i o n o f 2,438 mm x 2,438 mm (8 f t . x 8 f t . ) , and s e r i e s 2 having a uniform h e i g h t of 2,100 mm (6 f t . 10^ i n . ) . See s e r i e s 1 and 2 c o n t a i n e r s on t h e f o l l o w i n g p a g e . Source: 1970.  , C o n t a i n e r i s a t i o n I n t e r n a t i o n a l Year N a t i o n a l M a g a z i n e Co. L t d . London.  PP. 74-75.  Book 1969.  SERIES  1 Height  Width  G r o s s weight  Length  Designation Ft  Metres  F  '  Metres  1A  8  2.438  8  2.433  1B  8  1  C  8  1D  8  1E  8  1F  8  SERIES 2  Ft in.  40  Metres  12.192  Pound Tons 67,200 30  2.438  8  2.438  29-11i  9.125  56.000 25 44.800  2.438  2.438  8  8  2.438  2.438  19-104  9-9}  6.055  8  2.438  6-5 j  8  2.438  4-9)  Metres  Ft in.  Metres  Ft in.  Metres  10;  2.100  7 GJ  2.300  9-7  2.920  2.100  7-101  2.300  4-9  2A  6  2 B  6  -10!  2.100  B 10;  2C  e 10;  2.100  7 n;  15,680 7 15,680 2.400 7 15.680 1.450 7  62  1624  46  1077  30. F  530  25  318*  9*  10.1605 7,056 7.1123 5,040  1.460 5  Ft in.  20,160  10,080  7  2189  25.4012  22.400  11,200 2.438  25.200  2.990  1.969  C u . metres  30.4814  20.3209  15.680 2.438  C u . ft  30,480  20  10 •  Kilos Metric tons  Approximate interior cubic capacity  5.2080  •  •  APPENDIX I I I CONTAINER TYPES  There are many variations to basic container types. Here are a few of the more usual designs.  COVERED TOP  TANK  BULK  LOADED  T Y P E 6.7 JOINED UNITS  COLLAPSIBLE  FLAT BED  0  X  M  END  LOADING  CAGE - F R A M E  SIDE  LOADING  O P E N T O P AND O P E N SIDES  REFRIGERATED (REEFER)  VENTILATED  HALF  HEIGHT-BULK  SPECIAL- EXPERIMENTAL \\  . . . /!.T\\. . / - ^ ,>'3  TOP  LOADING  AUTOMOBILE  CONTAINER  LIVESTOCK  CONTAINER  PARTIAL L I S T OF SHIPPING  COMPANIES  CALLING AT PORT OF VANCOUVER December 30,  1970  Anglo-Candaian Shipping (Westship) L t d . Bakke S t e a m s h i p C o r p o r a t i o n B a l f o u r G u t h r i e (Canada) L t d . C a n a d i a n T r a n s p o r t Company L t d . C a n w o r l d S h i p p i n g Co. D i n g w a l l C o t t s & Company L t d . D o d w e l l & Company L t d . E m p i r e S h i p p i n g Company L t d . F u r n e s s W i t h y & Company L t d . Greer Shipping L t d . G r e e r , B.W. & Co. L t d . J o h n s o n , C. G a r d n e r L t d . Johnson Walton Steamships L t d . K e r r S t e a m s h i p Co. L t d . K i n g s l e y N a v i g a t i o n Company L t d . Mann S h i p p i n g L t d . .North P a c i f i c S h i p p i n g Co. L t d . Ocean L o g T r a n s p o r t Co. L t d . Overseas Marine S e r v i c e s L t d . P a c i f i c Export Line L t d . Pacific International Freightliners Ltd. Sagus Canada L t d . S e a b o a r d S h i p p i n g Company L t d . S t a r B u l k S h i p p i n g Co. ( C a n a d a ) L t d . T r a n s - O c e a n i c S h i p p i n g Co. L t d . Trans P a c i f i c Steamship Agencies L t d . T r a n s p a c i f i c T r a n s p o r t a t i o n Co. L t d . Vanport S h i p p i n g Agency L t d . Western Overseas S h i p p i n g L t d . Westward S h i p p i n g L t d . W o r l d Wide S h i p p i n g L t d .  Source:  L i s t o f Members o f V a n c o u v e r M e r c h a n t s E x c h a n g e , 355 B u r r a r d S t . , V a n c o u v e r , B.C.  NATIONAL  HARBOURS  BOARD  Centennial 6" 4 0 ton Container Crane-Physical Properties NN  • • • • o • •  Gauge-43' Total Spreader Beam Travel- 193-6" Maximum Outreach from Dockside Rail-113-6" Clearance Under G a n t r y - 3 9 - 6 " Hoist Speed- 100 f.p.m.-30 ton load, 250 f.p.m.empty Trolley Travel Speed-400 f.p.m. Crane Travel- 150 f.p.m.  APPENDIX  Orig./Rev. Original  VI  • JAPAN-WEST CANADA FREIGHT CONFERENCE TARIFF NO. 2  Cancels  Ports in Japan, Korea and Okinawa (See RuleNos. 34, 36 and 37) *  Page  . Effective Date  V  From:  Page ~49  T o : Pacific Coast Ports of Canada (See Title Page)  October 1, 1970 Correction  RULES FOR CONTAINERIZED CARGO 100.  Definitions of Technical Terms Container  The term " container " means a single rigid, non-disposable; dry cargo, ventilated, insulated, reefer, flat rack, vehicle rack, portable liquid tank or open top containers without wheels or bogies attached having, not less than 135 cubic feet capacity, having a closure or permanently-hinged door, that allows ready access to the cargo.  All types of containers  will have construction, fittings, and fastenings able to withstand, without permanent" distortion, all the stresses that may be applied in normal service use of continuous transportation.  .  Container Freight  The term "container freight station" (CFS) means the location designated by carrier  Station (CFS)  for the receiving and delivery by carrier or his authorized agent of goods to be or which have been moved in containers; provided, however, such container freight station'must be adjacent to carrier's container yard as defined hereunder. At base ports in Japan, no Member shall use or designate more than three CFS's per port, and location of CFS must be on file with the Conference Chairman.  Container Yard (CY)  The term " container yard" (CY) means the location designated by carrier in the port area where (1) the carrier assembles, holds, or stores containers; and (2) where containers loaded with goods are received or delivered.  Container Services  The term " container services " means the services performed at loading port in receiving and loading cargo into containers at CFS and transporting such containers from CFS to  CY. Place of Rest  •;.  .,y;  . -  :  .••'-•;..'>•..  .  •••  The term "place of rest" as used in the Containerized Cargb Rules means that location on the floor, dock, platform, or doorway at CFS to which cargo is first delivered by shipper or agent thereof, or from which cargo is first ready to be delivered to consignee or agent thereof.  •  J A P A N - W E S T C A N A D A F R E I G H T C O N F E R E N C E T A R I F F NO.  2  Orig./Rev. | Page 2nd Revised j 50 Cancels  j Pago  1st Revised i 50 Effective Date From : Ports in Japan, Korea and Okinawa (See Rule Nos. 34, 36 and 37)  To:  Pacific Coast Ports of Canada (See Title Page)  January 28, 1971 Correction  R U L E S FOR 101.  Application of Rates  J 164  CONTAINERIZED CARGO  (A) Local Rates (1) The local ratC3 named in this tariff apply from CY at loading port to CY at destination port. Cargo may be delivered to carrier at CY and/or received by consignee at CY only in containers and only as set forth in Rule Nos. 107, 108 and  -  -•' HI. .  (2) Local cargo delivered to consignee at CFS or CY shall be assessed Pacific Coast Handling Charge as set forth in Rule No. 23. (3) Local cargo received by carrier at CFS, except in shipper loaded container when requested by carrier under Rule No. 115(B)(2), shall be assessed a container service charge as set forth in Rule No. 102. •< (4) Local rates do not include wharfage.  (B) OCP Rates The OCP rates named in this tariff will apply to cargo which moves via CFS or CY at ports of discharge on the Pacific Coast from: (a) CY at loading port, or • (b) CFS at loading port, subject to additional container service charge named in Rule No. 102, except in shipper loaded container when requested by carrier under Rule No. 115(B)(2). . OCP rates are subject to the provisions of Sections (d) through (k) of Rule No. 3. 102.  Container Service Charge •  On cargo delivered to CFS at loading port, the applicable container service charge assessed against the cargo shall be 82.00 per revenue ton, except at Korean ports which (R) shall be $ 1.00 per revenue ton, subject to a minimum charge of $2.00 per Bill of Lading. The Container Service Charge shall be paid prior to issuance of Bills of Lading. A t Korean ports, the Container Service Charge may be prepaid in Korean Won (see Rule • ' •'' ' No.'5). . .• • Commodities which carry rate bases other than 40 eft., 2,000 lbs., or 2,240 lbs. (i.e., per unit, ad valorem, etc.) will be assessed the Container Service Charge on a " revenue ton " • of 2,000 lbs. or 40 eft. whichever produces the greater revenue. The total amount of container service charges assessed against shipments shall be : stated on the Bills of Lading for such shipments, preceded by the following words: " "Container Service Charge @82.00 per revenue ton."  »"-•'••  103.  Household Goods, Secondhand Furniture and Personal Effects  Unless the entire container of Household Goods, Secondhand Furniture and Personal Effects are packed in boxes, cases or footlockers, 100% of the container's inside cubic mensurement shall be used as the basis for ocean freight and other charges. ..  104.  Unitized Cargo  (A) Reduced rates or allowances provided for in individual Tariff Items subject to Rule No. 40 (Unitized Cargo) are applicable to unitized cargo in a carrier packed container but are not applicable to unitized cargo shipped in a shipper packed container. (B) The weight or measurement of the. pallet of unitized cargo shall be excluded in calculating freight charges, whether shipped in a shipper or carrier packed container, subject to the provisions set forth under Rule Nos. 40(E) and 41(A)(4). (C) The weight or measurement of the pallet shall be included in the calculation of the minimum utilization of the container pursuant to Rule No. 115(A) with respect to a shipper packed container.  ....  JAPAN-WEST CANADA FREIGHT CONFERENCE TARIFF NO. 2  Orig./Rev. Original Cancels  Page 53 | Page 1  V  From : Ports in Japan, Korea and Okinawa (See Rule Nos. 34, 36 and 37)  T o : Pacific Coast Ports of Canada (See Title Page)  Effective Date October 1, 1970 Correction  |  RULES FOR CONTAINERIZED CARGO  108.  Use of Carrier's Container by Shipper or Consignee  (A) The use of carrier's container by shipper, consignee, or agent thereof, is limited to the following: -  _„ i_. • -  Removal by shipper or his agent of carrier's co'ntainer when available, with or without Skeletal' Semi-Trailers, from CY for loading and return to the CY ' designated by carrier. Cargo so loaded is subject to Rule No. 111.  .2.  Removal by conuignee or hi3 agent of loaded carrier's container, with or without . Skeletal Semi-Trailers, from destination CY for unloading and return to CY '.: designated by carrier. •  3.  Unless otherwise specifically designated by carrier, containers and/or Skeletal Semi-Trailers, shall be returned to the CY from which removed.  ,4.  Shippers, consignees and/or their authorized representatives must assume full responsibility for the safety of the container and/or Skeletal Semi-Trailer9, ir-:. while in their possession and the safe return thereof to the carrier.  (B) The use • No; 107.  of carrier's  containers is also governed by the provisions of Rule • _  (C) All expenses in connection with pick-up/delivery of empty/loaded containers and . - packing/unpacking shall be for account of the cargo. Exception: Cost of lifting containers to or from chassis, truck or rail cars.when , ; such service is performed at container yard is to be borne by the carrier.  109.  Use of Carrier Owned/ Controlled Skeletal Semi-Trailers  Carriers are permitted to provide Skeletal Semi-Trailers at discharge ports at a rental charge of 85.00 for each 24 hours or fraction thereof except when moving under an Interchange Agreement with Inland Carriers.  jOrin./Rey. | Page 2nd Revised \ 55  J A P A N - W E S T C A N A D A F R E I G H T C O N F E R E N C E T A R I F F NO. 2  Cancels Page 1st Revised I 55 Effective Date  To:  From: Ports in Japan, Korea and Okinawa (See Rule Nos.~ 34, 36 and 37) :  Pacific Coast Ports of Canada (Sec Title Page)  April 24, 1971 Correction  367  R U L E S FOR CONTAINERIZED CARGO Cargo in containers'may be stowed under deck or on deck at the carrier's option. Bills of Lading specifically claused to provide under deck stowage will not be issued for container cargo.. •. • :.-•'' • '••-,.''.  112. Clausing of . . Bills,of Lading  113.,  114.  Stowing Two or More Shipments in One Container ..... I. .  ;Carrier -reserves' the right to stow two or more shipments or parts thereof in one carrier's container^ except containers freighted under Rule No. 115 (A); V • .•' . -]... • • '-..•-.„• :  :  ;  Heavy Lifts ; "'  Heavy lift charges'shall apply to any single piece or package within the container in • accordance with the heavy lift scale in Rule No. 29, except as hereunder provided.  CY to C Y Cargo.  Heavy lift charges shall not apply to pieces or packages which are, pocked in containers by the shipper outside CFS and unpacked by the consignee outside CFS, at the expense of the shipper/consignee. •••'.'  CFS-to C Y or C Y to CFS Cargo  If either shipper or consignee uses its gear exclusively in packing or unpacking cargo outside CFS at the expense "of the shipper/consignee, 5 0 % of the heavy lift charge shall be assessed. , • i.-'', •"''. -., • . . • ••• <••• • '.• .... . Heavy lift charges', shall, not apply to. returned empty containers. *•'"-.  • •": General  Returned Empty - Containers (C)115. < Exclusive Use'  "(A) When a container is loaded for the exclusive use by the shipper or his authorized i . - representative and delivered to the CY, freight charges shall be calculated at the !..-. , ' 'applicable .rate of the contents subject to the minimums as set forth below. When •' a .shipper, loads or partly loads only one container the minimum.rule as set forth below ' will apply.;.. • -. . . . . . . . .... j - . , ^ ^ case.of container loaded with a single commodity rated on a measurement .'.-"Ci. basis,'' th'e- minimum' shall be calculated at (a) 8 5 % or (b) 7 5 % of the total inside cubic'capacity of the container except where the weight capacity of the container . », , . h a s been fully utilized. ..-.''? '.. 2. In. the'case of container loaded with a single commodity rated on a weight basi3, the minimum shall be calculated at 9 5 % of the total'weight capacity'of the container except where the cubic capacity of the container has been fully : utilized.. -'•!;,••.'. . ', •"' • ' i . . 3. When the contents of a container consist of more than one commodity, freight •. charges, shall be calculated at the rate applicable on each commodity therein and provided that the total aggregate equals on a measurement basis at least: '...•'•;'".'•' (a) 8 5 % or (b) 7 5 % of the inside cubic capacity of.the container or on a weight basis at least 9 5 % of the weight capacity of the container regardless of -whether - the commodities are rated on a weight or measurement . basis;'however, if the total measurement and weight is less than the abovestated minimums, freight shall be assessed on the lower deficiency at the rate applicable, to the highest-rated commodity. ; • (a) Applicable only to containers with external length of 19 feet or greater. ''" ' (b) Applicable only to containers with external length less than 19 feet. 4. This rule applies only when exclusive use is requested by the shipper and notation is made on the Bill of Lading that " shipper has requested exclusive use ". >t  :  ;  :  (I)  A P P E N D I X  V I I  Orig.^Ruv. 2nd R e v i sod  JAPAN-WEST CANADA FREIGHT CONFLUENCE TAHIFF NO. 2  Cancels 1st  Prom:  P o r t s i n J a p a n , K o r e a and Okinawa (Soe R u l e Nos. JU, 36 and 37)  T o : P a c i f i c Const P o r t s " o f (See T i t l e P a g e )  Canada  Pap.e 237  Revised Effective  Date  A p r i l 1, 1971 Correction  E x c e p t as o t h e r w i e e p r o v i d e d h e r e i n , r a t e s a p p l y p e r ton o f 2,000 l b s . o r UO e f t . , w h i c h e v e r producer, t h e g r e a t e r r e v e n u e , Commodity Code  Page  "237"  Base Port3 Rate Basis  Commodity d e s c r i p t i o n and P a c k i n g  380  Pacific Local  O.C.P.  Item No.  MACHINERY AND TRANSPORT EQUIPMENT ( C o n t ' d ) M a c h i n e r y and' Part3  T y p e w r i t e r s and  (Cont'd)  Parts  (5180-00)  V a l u e n o t e x c e e d i n g U,300.00 per  revenue  39.CXV  t o n F.O.B.  V a l u e e x c e e d i n g $1,300.00 p e r r e v e n u e t o n F.O.B. Note:  55.00j/  51.00s/  5180-05  5180-10  On u n i t i z e d s h i p m e n t s u n d e r T a r i f f R u l e No. U0, t h e p r o t e c t i v o m a t e r i a l t o b e c o n s i d e r e d a s p a r t o f the p a l l e t .  Water Turbines Special  5210-00  32.50  Rate  Machinery, not elsewhere covered i n t h i s  tariff  U.25  UO.  50  5220-00  U.25  AO. 50  52AO-00  includes: • A g r i c u l t u r a l and Garden C o n s t r u c t i o n and M i n i n g Cooling G e n e r a t o r s ( n o t o t h e r w i s e named in this division) M a n u f a c t u r i n g and P r o c e s s i n g  Machinery Parts, N o n - e l e c t r i c a l , not otherwise named i n t h i s D i v i s i o n  (I) M a c h i n e r y  Parts  fro:'i Kobe t o V i c t o r i a , B.C,  00 The minimum q u a n t i t y r e q u i r e m e n t o f 500 revenuo t o n s on G e n e r a l C a r g o f o r d i r e c t dir.ch.irgo a t V i c t o r i a , B.C. i s reduced t o 270 r e v e n u e t o n s c o v e r i n g a s i n g l e shipment o f M a c h i n e r y P a r t s , e f f e c t i v e A p r i l 1, 1971, e x p i r i n g A p r i l 30, 1971. Note 1 Note 2 Note 3  Where no r a t e s a r e shown u n d e r "O.C.P." t h e P a c i f i c l o c a l K a t e s w i l l a p p l y . For e x p l a n a t i o n o f a b b r e v i a t i o n s and r e f e r e n c e m a r k s , see T a r i f f Page No. 8. For c o m m o d i t i e s a n n o t a t e d by "ft", $3.00 r e d u c t i o n ia a u t h o r i z e d f o r u n i t i z e d s h i p m e n t s , s u b j e c t t o T a r i f f R u l e No. 1,0.  APPENDIX  VIII  S o u r c e : S h i p p i n g Report, I n t e r n a t i o n a l Seaborne S h i p p i n g , P a r t IV, DBS # 54-206, Queens P r i n t e r , Ottawa. 1967. Deep S e a E x p o r t s , F i l e s o f N a t i o n a l H a r b o u r ' s B o a r d , V a n c o u v e r . 1968. 1969.  Aust  India Ceylon C h i n a F i j i Hong Ccmia Kong  Fie a t ' 95 1485 Fish D a i r y Prod Fruit Vegetables 35 P r e p . Food 155 Fodder Beverages 25 Hides,Skins C r d AnVegFd 15 Textiles Iron scrap Other scrap 45 15820 Asbestos 14230 Lumber 5 Plywood 510 Woodpulp 5645 2260 Newsprint Paper 395 Tallows,Fats ChemSjPlasik: 4745 Fert,Explos 6145 Steel 75 5 A2,Ci}ZnNiPb 225 Machinery 700 1745 Autos,Parts 150 Tools,Equip 10 105 P e r s o n a l Gd 235 60 935 KisqGeneral 29650 Wheat f l o u r  52990  32515  55 25 5 30 10  35 445  25  65 20 5  575  370  605 10  125 1925 760  10 140  55 5 5 25  50 1055 170  145  25 565 70  20 1115 60 45  530 10 790 16255 T50 22f545 2265  Japan  Pakis K o r e a New Zeald  1  0  20  830  5 110 170 65925 20 5 200 110 3095 105 510 1485 20 10200 6030 6100 1935 46700 4500 2415 175 128650 150 1020 445 80 270 20215 10 885 2255 365 94725 409460 45955 88780 5 31580 40 190 565 18275 385 85 1500 315 35 185 45 5 20 90 610 240 40 0 . 25 34570 48 5 751620 97710 137830 4839o  P h i l Snspare Taiwan T h i l d MaTysia  45 190 10 65  5 35  25  55  10 1540 180  1715  400  330 2645 1400 605 1775 5 20890 50 100 2380 990 55 165 10 55 95 20 75 1140  1505  345 35 15 10 790  A%  15  10800 2700  25  15  30  350 35  355 55  65 16410 1515 915 260 25 755  30 170 3755  20385 26585  5680  A u s t Ceylcn  Meat Fish Dairy Prod Fruit Vegetables P r e p . Food Fodder Beverages Hides£kins C r d An,VegPd Iron scrap Asbestos Lumber Plywood Pulpwood Newsprint Paper Tallow Rits Chemicals Fertilizer Steel AlCuNiZnPb Machinery AutosParts Tools.Equip P e r s o n a l Gd Misc Wheat f l o u r  C h i n a F i j i Hong India • Ocenia Kong  70  55  240  30  22500 9440  6  1315  185 150  38O  45 25  2890 1215 125  110  3990  655 715 155 195 120 525 19790 Ani-<  45 350 103980 215  80  25  8360 3240 915 2650 7085 336O  1720 75  460 40  90  30  95 65  1 9 5 0 0  4340  155 125  35 99105 1545  10 65 170 ,n  30  8  4  5  15 235 8095  20 100 10  P a k i s PhilSrgpore Taiwan TrrLld l'.'ialysJa  10 120  690 50 30 5 10 105  50 005  460 5550 9305 38505 230 46765 1555 2720 29475 30460 665 32345 2895 675  215 55 95  75 50 590 755  101110' 18230 284905 o  K o r e a New Zeald  540  600  15 955  Japan  340  25 25  5 1990 625 380  40 20 2830  1515 20  1365  320 1250 2305  695  390  1685 850 5950 220 30  20  10  015  235  425 335 4240  130 15  80 170 35 125  10 1590 50  3365  4910  180  20  220  55  585 10 35 55 70 225 75 50 15 2015 7430 18305  330 565  2695 2880  30  15 25 3860  6320 7595  COMMODITY ITEM  Aust  Meat 5 Fish 955 D a i r y Prod Fruit 40 Vegetables 10 40 Frep.Food Fodder Beverages 30 Hides Skins 5 C r d AnVegpd 85 Textiles 105 Iron Scrap Asbestos 23975 Lumber 2610 Plywood 9940 Woodpulp Newsprint 3365 Paper 695 TallowFat 1910 Chems 5365 F e r t i l i z e r s 18860 Steel 245 740 AlCuNiZnPb Machinery 575 Autos P a r t s 190 T o o I s , E q u i p • 455 P e r s o n a l Gds 170 Misc 375 Wheat f l o u r  Ceylcn  China  FIJI  Oosrua  Hong India Kong  60  380 40 125 115  1205 1845 105  5  30  10 117780 170 8855 195 5 220 3830 7245 11210 28065 460 83850 1595  30  40  65 3230  860  860 35  610  45 25  110  5  365 60 4550 1550 150  2790 5 10  10  J a p a n K o r e a New Zeald  5  80  105 10 . 30 120 5940  15 375  60  140  25 141555  315 35 1395 195  2695 370  29815 8100 5  2755 45  4420  5 35 30 15  145  515 110 260  740  P a k i s P h i l S n g x x e T a i w a n Ohild MaT,\sia  10 1530 15 75 20 10  10  30  5 10 60  15 40  20 4320 950 295  35 95  1870 15  5 385  250  115 170 35 75  25 20  20 15  235  6745 880 1605 15 50  420 845  10 100  25 215 5 2495  585  675 3145 115  2235 595  1265 185 335  55 65 1845 350  45  45  1295  2815  25 30  5 10  10 15 3140  420  10 10  25 210 80  APPENDIX IX  Source: S h i p p i n g Report, I n t e r n a t i o n a l Seaborne S h i p p i n g , P a r t IV, DBS # 54-206, Queens P r i n t e r , Ottawa. 1967. Deep Sea Imports, F i l e s o f N a t i o n a l Harbour's Board, Vancouver. 1 9 6 8 . 1969.  1970.  COMMODITY ITEM  Aust Ceylm  China F i j i Hong India Oaaaia Kong  10 Fish 65 Nuts 8560 80 110 Macaroni Meat 9000 SausageCase 210 60 D a i r y Prod 140 Vegetables 20 20 8500 Fruit 265 410 C o f f e e Tea 25 255 4320 Misc Food 2950 1800 Wine Liquor 35 Unmilled C e r e a l 2130 480 Wool,Hair 520 2910 Textiles Jute-woven Misc F a b r i c Fertilizer SteelProds 11690 255 Mach & Equip 1190 550 Autos ChemsPlastic 60 285 220 Lumber 310 Plywood 50 PaperBldg Bd 20 B r i c k T i l e G l a s 270 Cement 3050 Mine Prods 1350 11420 160 HouseHold Gd 230 5 1090 2680 M i s c , G e n e r a l 270 4 0 7 6 0 1 2 7 2 5 22485 415 1645  55  30 410 90  740 4150  Japan Korea New P a k i s P h i l 3ngx>re Taiwan TrUd Zeald Malysia 1300 55  40 21000 1710 2960 330 8200  3960 1720 135: 188970 93000 5300 3760 4900 7830 500 3730 4550 1495 590 19820 2265 1 8 2 1 0 394470 8465  10 1350  235  700  440  40  150  45 1015 565 430  725 390 20 1500  400  180  590  1370 60 1230 710 880 500 15 130 20  160  1270  1770 370 40  85 100 80  140 870 435 80  680  2065  40 10 5105  i i  195 3115  1815 70  545 260 280 7840  300 190 60 3770 15600 120 I63O 150 4230 190 29505  50 250  1570  COMMODITY ITEM  A u s t . Ceylon  Fish 70 Nuts Meat 6055 D a i r y Prod 350 Vegetables H83O Fruit C o f f e e Tea 100 Misc Food 1700 WineLiquor C e r e a l .mil Wool, H a i r 3^55 Textiles 70 Jute-woven Rubber Toys&Games 15 SteelProds 11435 Mach&Equip 815 720 Autos ChemFertiz Lumber 85 Plywood PaperBldgPrd Glas&Prods 645 Cement 250 Mine P r o d s H o u s e H o l d Gd 185 650 Misc,General  140  China  8090  India F i . i i Hong Gosnia Kong  320 -5 8  45 265  170 1260  80 500  120  10 3385  J a p a n K o r e a New Zeald  3870  155  9630  615 6545  4945 565 1880  65 145 95 1-75  24100  1455  1280  120 10  170  .  38430  50 1850 5  85 765  105 50  3465  155  1400  2060  25230  400  55 146600 37830 21515 5090 4425 9035 390 5600  • .15  14240  23950 7900  30  5  60 830  625  1695 2660  Malysia  2780 1475  10  790 35  P a k i s P h i l Sngxre  3025 10 45 65  1115 25  8660  10065 313845  Trald  15 35  2300 215 20  2420  390 20 1155  150  1845 105 350  235 1135 65 2375 100  45 5 2030  1940  1290  8015 330 310  440  515  7100  19865  220  3735  4000  6005 1500  'Taiwan  60 5300  55 85 7795  280 3?  775  10 60  4680  385 65 55  7220  35 620 44-535  5 2220  A u s t Ceylon  Fish 50 Nuts 10700 Meat D a i r y Prod 25 Vegetables Fruit 8750 C o f f e e Tea M i s c Food 75 Wine L i q u o r I870 CerealMilld Wool,Hair 995 60 Textiles Jute Rubber 30 Toys&Games SteelProds 25975 Mach&Equip 565 Autos 65 245 ChemFertiz 40 Lumber Plywood Paper BldgPd 35 AsbstGlasPds 715 Cement Mine P r o d s 480 HouseHoldGd 170 Misc,General _921  51770  10  1110  China F i j i  9145 180 330 120 1470 835 2990  50  India  420  5  670  35 110  50  5 3740 10  465 60  11320  555 5130  5665 520 2750 5 5 115 30  210  15  30  5  140  630 16325  180  125  70 220 105  1120  Hong Kong  15 260  905  m°  30045  260 25 95 5  120 35 150 7085  Japan Korea  2995 20  1205 9140 196940 38355 31680 7680 6270 10935 570 6315 3615 8320 1115 1Q225 378805  P a k i s P h i l S n g x r e Taiwan Malysia  50  50  840  8160 5 470 795  18060 10 1125 185 24020  New Zeald  65  495 80  15  20  1880  2500 950 20  35  250 20  5 20 3035  100  760 185 1475 5  5 115  36O 1070 30 2595 30 5 15 25 1390  315 2390  145  2840  280  Tmld  640  7805  20  560 530 810 5 4035 21200  210  2820  95 20 75 6620  105  40  45 9675  255 15 45 60 75 10 2895 1830 10225  5 70 970 42300  15 885  COMMODITY ITEM Fish Nuts Meat D a i r y Prod Vegetables Fruit C o f f e e Tea M i s c Food Wine L i q u o r Feed, Mill C e r  CrdAn-VegPd  Wool Textiles Jute Rubber Toys Games S t e e l Prod Mach&Equip Autos ChemsFertz Lumber Plywood Paper&Prod AsbestGlas Cement MineFd(proc) ApparlPootwre HouseHoldGd M i s c , Generl  Aust  Ceylon  C h i n a F i j i Hong India Kong (tenia  405  55  3895  12065 35 5155  1200  115 2110  335 660 80 600  50  135  100  610  140  455 85 250 1055 28880  130  5905 325 2320 445  50 15 9070  1230  1200  4050  910  475  -  405 9145  5 185  115  20 100 550  25 6285 655 95 50 20 80  85  240  480  15 230  3375 27655  610 85  440  4885  J a p a n K o r e a New Zeald 4400  70  1270 200 775 195  510 7590  30 231245 30 49055 31560 8530 1850 10910 1225 8160 4415  6735  9925 295 11170 436955  120 1060  540 95 1780 80  50 70 65  20  25  3065 1465 20 370 2470  190 30 3050 20  100  35 55  1215 290 205  135  280  90 2375 10  1305  70  1035 1010 1090  1360 2150 2020 1320 175  16135  65  1445  4685  175^0  130 55 270  60  9730 15 1430 110  22090  11140  105  P a k i s P h i l Shgoore Taiwan T n i l d I'/iaTysia  2490 65 130 135 12005 5210  125 550 85 180  75 25 10 120 4445 5190 7945  9715 5 1045 42415  10  APPENDIX  X  S o u r c e : S h i p p i n g Report, I n t e r n a t i o n a l Seaborne S h i p p i n g , P a r t I , DBS # 54-202, Queens P r i n t e r , O t t a w a . 1967. 1968.  COMMODITY ITEM  A u s t Ceylon  16200 Meat 10 Fish NutsOilsed 600 D a i r y Prod Wheat&Prod 10 Vegetables 19300 Fruit C o f f e e Tea 4280 M i s c Food Beverages 750 60 AnimVegOil Wool,HairHds 2760 Feeds Textiles Jute Rubber&Pds 420 Chem&Prods 20 Wood&Prods 36280 MineProds 2100 SteelPrds 220 GlasBrick 2 0 4 80 Mies,Hshld  CONTAINERIZABLE PRODUCTS India J a p a n K o r e a New C h i n a F i j i Hong Zeald Gosnia Kong  P a k i s PhilSngnre Malysia  Taiwan Thild  368O 10 11210  2370  1240 2560  980 1770 10  110 6230  7900  160 1 0 0 2 0  15 225 10  450  480  50  30 5630 910 70  560  1060  630  10 250  20  1270 80  30  80  15820  1840 1240  3610  180 2860  30 60  100  30 1190  510  103490  21390  120 14180 36060 870  130 130  9670 26550  20 120 7130 71230  50 4930 295 3220 638O 4570 29780 5990 64900 122430  9380 5400  50  40 30 230  40 3690 30  40 320 1700  1260 13000  520 15860  40  160  60  33480  10 10 16170  4o  30 6700  4480  50  20  480 5980  7080  6950 23480  72120  90 230 200  2390  COMMODITY ITEM  Aust  26990 Meat 10 Fish NutsOilsed 120 DairyProd Wheat&Prod 30 110 Vegetables 32820 Fruit C o f f e e Tea 4370 M i s c Food 1240 Beverages Molasses 30 AnimVegOil Wool,HairHds : 3460 Feeds Textiles Jute Rubber&Prds 370 Chems&Prods 420 Wood&Prods 30390 Mine P r o d s 1260 SteelProds 1720 GlasBrick 4 320 Misc, Hshld  Ceylon  China  F i j i Hong India Kong  40 2890  2380  1670  J a p a n K o r e a New Zeald 10 1800 858O  -  Pakis P h i l  Srgpie Taiwan Malysia  470  1390  Ohild  12240  1550  40 170 10 250 116,0 10  8490  10190 120  20 220  40  420  800  830  150 2520  2180  -  10 220 4620 800 120  1030 50 60 ll60" -  3800  1140  130 540 2530 610 9610 17540  120  107660  —  17570  90 8990  19940 250 740  1870 50 270 60  3270  17400  20 10  740  1360  130  40 15430  1320  680 110  120 910 350  9510  3630  240 8000  60  400  20  7670 11580 10890 52610 11780 26480  60  240  240  140  140 3 4 1 7 0  10 50 27270  210  310  50 16890 2300  320  280  180  270  8550  5930 37370  30  10  20  410  390 20880  143440 52630  3660 1910  500  470  2400 21470  85670  230 280  80 i860  PORT OF VANCOUVER  ILWU-CMEA LONGSHORE AGREEMENT  February  1,1970 - J u l y 31, 1972  26.05 CONTAINERS: Any c o n t a i n e r w h i c h i s d e s t i n e d f o r , o r comes f r o m , any p e r s o n who i s n o t t h e owner o f t h e c a r g o i n , o r t o be p l a c e d i n s u c h c o n t a i n e r , who c o n s o l i d a t e s o r r e c e i v e s c o n s o l i d a t e d c a r g o w h i c h comes f r o m o r i s d e s t i n e d t o a n y p o i n t w i t h i n the Vancouver L o c a l Area, o r the P r i n c e Rupert P o r t a r e a s h a l l be p a c k e d o r u n p a c k e d , a s t h e c a s e may be, on t h e d o c k b y p e r s o n s e m p l o y e d u n d e r t h e t e r m s a n d c o n d i t i o n s of t h i s C o l l e c t i v e Agreement. A l l c o n t a i n e r s o t h e r t h a n t h e a b o v e s h a l l move f r e e l y to t h e dock a r e a and thence t o the s h i p from p l a c e o f o r i g i n or from t h e s h i p t o dock a r e a and thence t o d e s t i n a t i o n , as the c a s e may b e , w i t h o u t p a c k i n g o r u n p a c k i n g b y p e r s o n s c o v e r e d by t h i s C o l l e c t i v e Agreement. The a b o v e p r o v i s i o n s i n t h i s s e c t i o n s h a l l a p p l y i n r e s p e c t t o d e e p s e a v e s s e l c o n t a i n e r movement o n l y , a n d t h e p r e s e n t C o a s t w i s e p r a c t i c e now i n e f f e c t c o n c e r n i n g c o n t a i n e r s , c r i b s and boxes s h a l l c o n t i n u e f o r p r e s e n t Coastwise o p e r a t i o n s . Definition: The t e r m " V a n c o u v e r L o c a l A r e a " s h a l l rcxsan t h e a r e a between and i n c l u d i n g the o f f i c i a l Vancouver P o r t A r e a , E a s t t o Hope and S o u t h t o t h e U . S . / C a n a d i a n B o r d e r , p l u s the w h o l e o f V a n c o u v e r I s l a n d . S c h e d u l e 1 - S c h e d u l e o f Wage R a t e s The c u r r e n t b a s i c s t r a i g h t t i m e r a t e o f p a y a s s e t f o r t h i n A r t i c l e 16 h e r e o f s h a l l be u s e d when c a l c u l a t i n g the f o l l o w i n g h o u r l y p a y r a t e s : (1) G r a v e y a r d S h i f t • »1 a.m. t o 8 a.m. Mon. t o S u n . i n c l .  & Hoi.  2 x Straight  (2) Day S h i f t 8 a.m. t o 5 p«ro, Mon. t o F r i . i n c l . Saturdays Sun. & H o i .  1 x S t r a i g h t Time l i x S t r a i g h t Time 2 x S t r a i g h t Time  (3) N i g h t S h i f t 5 p.m. t o 1 a.m. Mon. t o F r i . i n c l . Sat., Sun., & H o i .  li? x S t r a i g h t Time 2 x S t r a i g h t Time  (4) S p e c i a l  Coastwise  1 p.m. t o 10p.m.  Shift  Time  (5) M e a l P e r i o d s Worked Noon - Mon. t o F r i . i n c l . Saturdays Sun & H o i . *0ther, D a i l y (6)  (7)  1? x S t r a i g h t Time 2\ x S t r a i g h t Time 3 x S t r a i g h t Time l | x S h i f t Rate  Day S h i f t E x t e n s i o n 5 p.m. t o 6 p.m. Mon. t o F r i . i n c l . Saturdays Sun. & H o i .  li? x S t r a i g h t Time 2 x S t r a i g h t Time 3 x S t r a i g h t Time  Checkers & Coastwise 7 a.m. t o 8 a.m. Mon. t o F r i . i n c l . Saturdays Sun. & H o i ,  l i x S t r a i g h t Time 2\ x S t r a i g h t Time 3 x S t r a i g h t Time  Note: The r a t e ( s ) o f p a y a p p l i c a b l e u n d e r o t h e r s p e c i f i c circumstances are contained i n the appropriate provision(s) of t h i s Agreement. "-•Not a p p l i c a b l e Schedule  f o r 5 p.m.  2 - Table  1 x S t r a i g h t Time l i x S t r a i g h t Time 2 x S t r a i g h t Time 2 i x S t r a i g h t Time 3 x S t r a i g h t Time Schedule  t o 6 p.m.  Day S h i f t  Extension.  o f H o u r l y Wage R&tes Effective Feb. 1/70  Effective F e b . 1/71  Effective Feb. l / ? 2  $4.33 6.50 8.66 9.74 12.99  $4.78 7.17 9.56 10.76 14.34  $5.03 7.55 10.06 11.32 15.09  3 - Definitions  (1)  Apron: Open a r e a s on d o c k . e l e v a t o r aprons.)  (2)  Car:  (3)  Cargo: Goods o t h e r t h a n m a i l , baggage ( i n c l u d i n g p a s s e n g e r s ' a u t o m o b i l e s ) o r e x p r e s s , f o r t r a n s p o r t by v e s s e l ( e x p r e s s l o a d e d o r d i s c h a r g e d when l o n g s h o r e m e n a r e w o r k i n g t h e v e s s e l w i l l be c n n s i d e r e d cargo).  (4)  Dock: A wharf, a p i e r , a f l o a t , a v e s s e l u n l o a d i n g t e r m i n a l , an anchorage.  Railway f r e i g h t cars  ( N o t t o be c o n f u s e d  with  o f a n y tjrpe.  loading  or  (6)  Lift-Truck Driver:  The o p e r a t o r o f a  lift-truck.  (?) Mechanized: The a p p l i c a t i o n o f a n y s t a t i o n a r y o r m o b i l e m a c h i n e t o a c a r g o movement. (8)  Pallets A p a l l e t board o f any type f o r use w i t h s p r e a d e r b a r s , s p r e a d e r hooks o r s l i n g s , l i f t - t r u c k s , t r a c t o r s o r pump j a c k s , a n d t o i n c l u d e c y l i n d e r p i p e s , t i l e p i p e r a c k s , f o o d b o x e s , w h e e l e d meat r a c k s ^ o l l i e s , or any other s a f e c o n t r i v a n c e f o r s u p p o r t i n g o r c o n t a i n i n g cargo.  (9)  Pile: An a c c u m u l a t i o n , o r a c c u m u l a t i o n s , o f cargo o f any d e s c r i p t i o n o n o r o f f p a l l e t s i n t h e s h e d o f on t h e a p r o n o r dock. Inward P i l e : The p i l e t o w h i c h i n w a r d c a r g o i s t a k e n f r o m t h e stow. Outward P i l e : The p i l e , r e a d y f o r l o a d i n g on t o a vessel.  Source:  ILWU - CMEA Longshore Agreement. F e b r u a r y 1, 1970 - J u l y 31, 1972. P o r t o f V a n c o u v e r , B.C.  DETAILED RULES ON IN  THE NEW  INTERNATIONAL  RULES  ON  CONTAINERS  YORK SHIPPERS ASSOCIATION  LONGSHOREMEN'S UNION AGREEMENT OF  I969  CONTAINERS  The f o l l o w i n g p r o v i s i o n s a r e i n t e n d e d t o p r o t e c t a n d p r e s e r v e t h e work j u r i s d i c t i o n o f l o n g s h o r e m e n a n d a l l o t h e r I L A c r a f t s at deep-sea p i e r s or t e r m i n a l s . To a s s u r e c o m p l i a n c e v/ith the c o l l e c t i v e b a r g a i n i n g p r o v i s i o n s the f o l l o w i n g r u l e s and r e g u l a t i o n s s h a l l be a p p l i e d : Rule  1:  D e f i n i t i o n s and Rule as t o C o n t a i n e r s  Covered  S t u f f i n g - means t h e a c t o f p l a c i n g c a r g o i n t o a c o n t a i n e r . S t r i p p i n g - means t h e a c t o f r e m o v i n g c a r g o f r o m a c o n t a i n e r . L o a d i n g - means t h e a c t o f p l a c i n g c o n t a i n e r s a b o a r d a v e s s e l . D i s c h a r g i n g - means t h e a c t o f r e m o v i n g c o n t a i n e r s f r o m a vessel. These p r o v i s i o n s r e l a t e s o l e l y t o c o n t a i n e r s and a l l o f t h e f o l l o w i n g c r i t e r i a :  meeting  each  ( a ) C o n t a i n e r s owned o r l e a s e d by employer-members ( i n c l u d i n g c o n t a i n e r s on w h e e l s ) which c o n t a i n L T L l o a d s o r c o n s o l i d a t e d f u l l container loads. ( b ) S u c h c o n t a i n e r s w h i c h come f r o m o r go t o a n y p e r s o n ( i n c l u d i n g a e o n s o l i d a t o r who s t u f f s c o n t a i n e r s o f o u t b o u n d c a r g o o r a d i s t r i b u t o r who s t r i p s c o n t a i n e r s o f i n b o u n d c a r g o a n d i n c l u d i n g a f o r w a r d e r , who i s e i t h e r a e o n s o l i d a t o r o f o u t b o u n d c a r g o o r a d i s t r i b u t o r o f i n b o u n d c a r g o ) who i s n o t t h e b e n e f i c i a l owner o f t h e c a r g o . ( c ) S u c h c o n t a i n e r s w h i c h come f r o m o r go t o a n y p o i n t w i t h i n a g e o g r a p h i c a l a r e a o f any p o r t i n the North A t l a n t i c D i s t r i c t d e s c r i b e d b y a 50 m i l e c i r c l e w i t h i t s r a d i u s e x t e n d i n g o u t from t h e c e n t e r o f each p o r t . Rule  2i  Rule  o f S t r i p p i n g and S t u f f i n g A p p l i e d  t o Such  Containers  A c o n t a i n e r w h i c h comes w i t h i n e a c h a n d a l l o f t h e c r i t e r i a s e t f o r t h i n R u l e 1 a b o v e s h a l l be s t u f f e d a n d s t r i p p e d by ILA l o n g s h o r e l a b o r . S u c h I L A l a b o r s h a l l be p a i d a n d employed a t l o n g s h o r e r a t e s under the terms and c o n d i t i o n s of the G e n e r a l Cargo Agreement. Such s t u f f i n g and s t r i p p i n g  s h a l l he p e r f o r m e d on a w a t e r f r o n t f a c i l i t y , p i e r o r d o c k . No c o n t a i n e r o f c a r g o s h a l l >^e s t u f f e d o r s t r i p p e d by ILA l o n g s h o r e l a b o r more t h a n o n c e . N o t w i t h s t a n d i n g the above p r o v i s i o n s , LTL l o a d s or c o n s o l i d a t e d c o n t a i n e r l o a d s of m a i l , o f h o u s h o l d goods w i t h no o t h e r t y p e o f c a r g o i n t h e c o n t a i n e r , and o f p e r s o n a l e f f e c t s o f m i l i t a r y p e r s o n n e l s h a l l be exempt f r o m t h e r u l e o f s t r i p p i n g and s t u f f i n g . Rule  3»  Rules  on  No  Avoidance  or  Evasion  The a b o v e r u l e s a r e i n t e n d e d t o be f a i r l y and reasonably a p p l i e d by the p a r t i e s . To o b t a i n n o n - d i s c r i m i n a t o r y and f a i r implementation of the above, the f o l l o w i n g p r i n c i p l e s s h a l l apply$ (a) Agreement i n the P o r t as t o the g e o g r a p h i c a r e a as p r o v i d e d i n R u l e 1 ( c ) i s b a s e d on p r e s e n t L T L movement p a t t e r n s i n the p o r t . S h o u l d any p e r s o n , f i r m o r c o r p o r a t i o n , f o r the p u r p o s e o f e v a d i n g the p r o v i s i o n s o f R u l e 2 h e r e o f , s e e k t o change s u c h p a t t e r n b y s h i f t i n g i t s o p e r a t i o n s t o , o r commencing new o p e r a t i o n s a t , a p o i n t o u t s i d e s a i d a g r e e d upon g e o g r a p h i c a r e a , then e i t h e r p a r t y may r a i s e t h e q u e s t i o n w h e t h e r s a i d p o i n t s h o u l d be i n c l u d e d w i t h i n t h e s a i d g e o g r a p h i c a r e a , and upon a g r e e m e n t t h a t t h e p u r p o s e o f t h e s h i f t i n i t s o p e r a t i o n s was t o evade t h e p r o v i s i o n s o f R u l e 2, t h e n s a i d p o i n t s h a l l be deemed t o be w i t h i n the s a i d g e o g r a p h i c a r e a f o r the purpose o f these rules. ( b ) C o n t a i n e r s owned o r l e a s e d b y c o m p a n i e s w h i c h a r e a f f i l i a t e d e i t h e r d i r e c t l y o r t h r o u g h a h o l d i n g company w i t h a n employer-member s h a l l be seemed t o be c o n t a i n e r s owned o r l e a s e d by employer-members. Affiliation shall i n c l u d e s u b s i d i a r i e s and/or a f f i l i a t e s which are e f f e c t i v e l y c o n t r o l l e d by t h e employer-member, i t s p a r e n t , o r s t o c k h o l d e r s o f e i t h e r o f them. ( c ) I t s h a l l be t h e o b l i g a t i o n o f employer-members t o c l e a r l y mark e a c h c o n t a i n e r ' s documentation a s t o w h e t h e r orjnot i t i s a R u l e 1 c o n t a i n e r w h i c h i s t o be s t u f f e d and s t r i p p e d a t the w a t e r f r o n t f a c i l i t y ( p i e r or dock). ( d ) E a c h employer-member s h a l l keep r e c o r d s o f e a c h c o n t a i n e r s u p p l i e d t o a c o n s o l i d a t o r o r o t h e r non-owner o f c a r g o , l o c a t e d v / i t h i n t h e a g r e e d g e o g r a p h i c a r e a , and s u c h r e c o r d s h a l l be a v a i l a b l e t o t h e Committee p r o v i d e d i n ( g ) b e l o w , . V/ith r e s p e c t t o a l l c o n t a i n e r s r e c e i v e d a t o r d e l i v e r e d f r o m the w a t e r f r o n t f a c i l i t y ( p i e r or dock), a r e c o r d of the same w h a l l be made b y ILA C h e c k e r s o r C l e r k s . (e) F a i l u r e to s t u f f or s t r i p a c o n t a i n e r as r e q u i r e d under t h e s e r u l e s w i l l be c o n s d i e r e d a v i o l a t i o n o f t h e c o n t r a c t between the p a r t i e s . Use o f i m p r o p e r , f i c t i t i o u s o r i n c o r r e c t d o c u m e n t a t i o n to evade the p r o v i s i o n s o f Rule 2 s h a l l a l s o  be c o n s i d e r e d a v i o l a t i o n o f t h e c o n t r a c t . I f f o r any r e a s o n a c o n t a i n e r i s no l o n g e r a t t h e w a t e r f r o n t facility a t w h i c h i t s h o u l d have b e e n s t u f f e d o r s t r i p p e d u n d e r t h e r u l e s , t h e n t h e s t e a m s h i p c a r r i e r s h a l l pay t o t h e j o i n t W e l f a r e F u n d l i q u i d a t e d damages o f $250 p e r c o n t a i n e r w h i c h s h o u l d have b e e n s t u f f e d o r s t r i p p e d . ( f ) I f any s h i p p e r s o r t h e i r a g e n t s who have a t any t i m e u s e d , a r e now u s i n g , o r i n t h e f u t u r e use c o n t a i n e r s owned o r l e a s e d by employer-members, f o r t h e p u r p o s e o f e v a d i n g t h e p r o v i s i o n s o f R u l e 2 h e r e o f , t h e n the c o n t a i n e r s so u s e d s h a l l be c o n s i d e r e d t o be w i t h i n R u l e 1 and R u l e 2. (g) A c o m m e i t t e e r e p r e s e n t e d e q u a l l y by management and u n i o n s h a l l be f o r m e d and s h a l l have t h e r e s p o n s i b i l i t y and power t o h e a r and p a s s judgment on any v i o l a t i o n s o f these r u l e s . Any i n a b i l i t y t o a g r e e s h a l l be processed a s a g r i e v a n c e u n d e r t h e a p p l i c a b l e c o n t r a c t e x c e p t as l i m i t e d by 3 (h) h e r e o f . (h) I f t h e p u r p o s e of p r o t e c t i n g and p r e s e r v i n g t h e p r e s e n t work j u r i s d i c t i o n o f l o n g s h o r e m e n and a l l o t h e r d e e p - s e a I L A c r a f t s o v e r any c o n t a i n e r s l o a d e d w i t h L T L c a r g o , o r c o n s o l i d a t e d f u l l c o n t a i n e r l o a d s as d e f i n e d h e r e i n i s n o t a c c o m p l i s h e d by t h e p r o v i s i o n s o f t h e s e r u l e s on c o n t a i n e r s , t h e n e i t h e r p a r t y s h a l l have t h e r i g h t t o r e - n e g o t i a t e t h e s e p r o v i s i o n s o r any p a r t t h e r e o f by g i v i n g n o t i c e t o t h e o t h e r party. T h i s p r o v i s i o n s h a l l n o t be s u b j e c t t o a r b i t r a t i o n . P e n d i n g r e - n e g o t i a t i o n and s e t t l e m e n t o f t h e g i v e n d i s p u t e , t h e e m p l o y e e s may d e c l i n e t o work any c o n t a i n e r s i n v o l v e d i n t h e d i s p u t e and s u c h r e f u s a l t o work s h a l l n o t be s u b j e c t t o arbitration. The r e - n e g o t i a t i o n r e f e r r e d t o a b o v e w i l l n o t be s u b j e c t t o a r b i t a x a t i o n . I n t e r p r e t a t i o n o f t h i s p r o v i s i o n s h a l l n o t be d e t e r m i n e d by a n a r b i t r a t o r but. by a c o u r t of competent j u r i s d i c t i o n .  CONTAINER ROYALTY The  rate  of  Source:  c o n t r i b u t i o n s now  in effect  shall  continue.  C o n t a i n e r i s a t i o n I n t e r n a t i o n a l Y e a r Book N a t i o n a l M a g a z i n e Co. L t d . London, 19^9  pp. 36-38.  1970  

Cite

Citation Scheme:

        

Citations by CSL (citeproc-js)

Usage Statistics

Share

Embed

Customize your widget with the following options, then copy and paste the code below into the HTML of your page to embed this item in your website.
                        
                            <div id="ubcOpenCollectionsWidgetDisplay">
                            <script id="ubcOpenCollectionsWidget"
                            src="{[{embed.src}]}"
                            data-item="{[{embed.item}]}"
                            data-collection="{[{embed.collection}]}"
                            data-metadata="{[{embed.showMetadata}]}"
                            data-width="{[{embed.width}]}"
                            async >
                            </script>
                            </div>
                        
                    
IIIF logo Our image viewer uses the IIIF 2.0 standard. To load this item in other compatible viewers, use this url:
http://iiif.library.ubc.ca/presentation/dsp.831.1-0101776/manifest

Comment

Related Items