News

ESC opens debate on the "grey box" concept

Monday, 22 November 2010

ESC members have agreed to form a working group which is open to shippers and others in the maritime supply chain, to reconsider the "grey box" concept as a contribution to reducing container equipment shortages, C02 emissions and improving container fleet productivity.

During the first half of 2010 especially, members of the ESC Maritime Transport Council reported on shippers concerns and difficulties being encountered in their supply chains as a direct consequence of equipment shortages.

Container shortages affected the continuity of trade flows in various locations around the world. Slow-steaming, notably on the Transpacific and Asia-Europe trade-lanes, was one of the suggested causes for container shortages being more pronounced this year than in the past. Other key contributory factors cited included trade imbalances and the lack of investment in container fleet renewal during the period 2008-2009.

Carriers undertook some actions to resolve the situation by investing in extra equipment and introducing ships to move empties to where they were most needed. Nevertheless, such solutions come at a price, and generally these are passed on to shippers; additionally they may not resolve the problem nor prevent the same thing happening again.

ESC wants to help seek possible long-lived and sustainable solutions to the problem. In particular, ESC members believe there is merit in re-examining the use of the 'grey box' in international container transport. This concept has been pushed forward several times in the past and in spite of the dedication of its proponents, it has never really taken off in practice. The reason for the lack-lustre support among shipping lines was mainly because, at the time, carriers were not ready to abandon branding of their boxes, and the re-organisation it entailed was considered too overwhelming.

In the new environment where cutting CO2 emissions is an objective shared by all sectors of industry, the ESC believes it is time once more to re-examine the merits of putting the "grey-box" concept into practice, and challenge the previously held views on the barriers to the grey box.

"Realistically, the "grey box" concept may not solve structural imbalances, but the potential to improve turn-around of equipment and thereby increase efficiency and making more boxes available in the hinterland is worth further investigation", according to Jean-Louis Cambon Chairman of the Maritime Transport Council of the ESC.

"The "grey box" concept does raise some big questions largely surrounding ownership/leasing of the equipment, interchange procedures, and the impacts of abandoning corporate or product branding on boxes. This is what the proposed working group should explore as a priority."

By opening up the 'grey box' concept once more, ESC hopes to find workable solutions to this important and potentially costly issue to shippers. ESC would be pleased to hear from any parties interested in this matter.