![]() By leaving cargo on the vessel, the costs associated with rail or road transit and fuel are reduced by virtue of lower shipboard operating costs and shorter rail transits to inland or coastwise destinations. The intermodal costs to move this cargo from the West to East coasts add significant landed costs. Global ocean carriers are moving to larger and larger vessels because of the economies of scale that reduce per container costs through savings on fuel, port handling fees and other operating costs.Ī report prepared by the Weldon Cooper Center for Public Service in January, 2013, highlights the fact that at present, seventy percent of cargo from Asia discharges on the West Coast and half of that moves to the Midwest and East Coast.
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