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Sea3 Container Feeder Service Barging Forward | ||
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Shippers interested in a waterborne competitor for truck and rail movement of
their containerized goods between Hamilton and Montreal have had their wish
granted. The Port of Hamilton launched Sea3 on July 3, and the container on
barge service has been running weekly between Canada’s busiest Great Lakes port
and the country’s second largest container port, Montreal. The barge service accommodates 260 TEUs, the 20 foot steel boxes that are always in demand in the “Golden Horseshoe” region of western Lake Ontario. The larger 40 foot containers used primarily in the international trade sector that move on this new start up service are mainly stuffed with consumer products and machinery. “This service is exceptional for providing shippers and ultimately the public a cost-effective means of reliable container movement in the most environmentally friendly fashion possible,” said Bruce Wood, President and CEO of Hamilton Port Authority. “We are excited about the potential for this service and believe that it will signal an increase in waterborne box movement in Great Lakes ports as shippers seek competitive transport options in a difficult economic climate.” Hamilton Port Authority developed the initiative and it is operated by its wholly owned subsidiary, Sea3 Inc. The container barge service offers three fundamental advantages, according to company officials. They note that it cuts overall transportation costs for selected cargoes, it posts a better environmental performance (i.e., reducing the carbon footprint) than rail and truck modal competitors, and it offers social benefits such as less road and rail congestion. A barge leaves Montreal on Monday, works its way upbound through the Seaway’s Montreal to Lake Ontario locks to arrive in Hamilton typically within 48 hours. A full day in port is planned, which permits 24 extra hours to ensure that any bad weather does not put the schedule in jeopardy. The next barge leaves Hamilton on Friday for Montreal arriving typically on Sunday. The feeder service schedule calls for it to run from beginning to end of the Seaway navigation season that has averaged 40 weeks over the last two decades. The 315-nautical mile lake route is ideal for servicing Ontario’s diverse manufacturing operations. Hamilton has long been the steel center of the province, and its close proximity to Toronto’s millions-strong customer base make a waterlink with Montreal a sound financial transport route.
The manufacturing sector’s slowdown, especially the automobile industry, has many shippers looking for ways to retain reliable container deliveries without paying just-in-time freight rates. Government data in the U.S. and Canada suggest customers are not purchasing at the same rates as they did before the 2008-2009 global recession, so supply chain cost cutting efforts are likely to continue at least until a robust rebound occurs. |
Getting the maximum tonnage into each container at the best price with reliable service is a strong incentive for shippers to switch at least their heavy containers to the water. The Sea3 barge service specifically targeted heavy commodities like iron and steel components and ceramic tiles. Heavy cargoes such as auto parts, screws, nuts, bolts, and the like are most often stuffed in the smaller 20 foot containers which can transport as much as 28 tons. Safety regulations preclude such full loading on trucks and rail which means less tonnage per box, resulting in more boxes and higher transport costs. Another key component that Sea3 is
focusing on is the development of an empty container pool in Hamilton and the
Hamilton Port Authority is working steadily towards establishing an inland depot
for empty containers. Ian Hamilton, the Vice President for Marketing, Hamilton
Port Authority, explains why that’s so important. “Giving our customers the
opportunity to pick up containers here will be extremely convenient, cut down on
drayage costs that siphon away profits, and provide built in long-term business
opportunities for the port and community,” said Hamilton.
The steel sector has been the first to commit volume to the service, given the huge benefits for heavy weight commodities. The big surprise has been the attraction of over dimensional/out of gauge pieces on flat racks and in open tops where users are enjoying substantial savings. Mr. Wood noted that as with any new product or service which is introduced into the marketplace, effecting a mindset change to consider these alternatives is often met with resistance. “Generating sufficient volume to create a sustainable business model is critical, and we are very encouraged by the new customers coming onboard every week,” he said. “Over the last three months Sea3 has shown that moving containers on the Highway H2O is a viable green, socially responsible alternative to land transport, and I would encourage both U.S. and Canadian governments to tangibly support innovations like this.” The 2010 season may well be the one that proves whether Sea3 and feeder container-on-barge movements are a growth industry or a short-term solution to tough economic times. For now at least, the Sea3 stakeholders and Highway H2O community are crossing fingers that this business is here for the long haul. | |
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