Business, Freight News, Sea

NWSA Launches Incentives for Rail, Service

[ May 9, 2024   //   Gary G Burrows ]

The Northwest Seaport Alliance is implementing a comprehensive cargo and service incentive program aimed at bolstering international container rail cargo volumes and improving service delivery in the Seattle and Tacoma harbors.
NWSA’s managing members are committing US$11 million in incentives, designed in response to market demand and allocated to cover specific points in the supply chain. The alliance’s aim is to increase intermodal cargo volumes, promote vessel schedule reliability, and expand marine terminal operations.

Incentives

Beginning May 1, the incentives will include the Voyage Consistency and On-Time Arrival Award Program, the International Container Rail Cargo Incentive, and a Gate Operations Incentive:

• Voyage Consistency and On-Time Arrival Award Program: NWSA will reward ocean carriers for maintaining reliable voyage schedules to promote consistency and on-time performance, with downstream benefits to cargo fluidity and capacity. From a total reward pool of US$1 million, the top three ocean carriers achieving the consistency standards of the program will be publicly recognized and may qualify for cash rewards ranging from US$200,000 to US$500,000.
• International Container Rail Cargo Incentive: NWSA aims to stimulate intermodal rail cargo traveling to/from inland U.S. markets with an incentive of US$100 per lift for incremental year-over-year rail volumes in NWSA’s gateway, from a total allocation of US$8 million. Intermodal cargo utilizing both BNSF and Union Pacific is eligible, including cargo moving via inland rail hubs connected to the NWSA gateway.
• Gate Operation Incentive: NWSA will allocate US$2 million to streamline terminal operations with five-day weekly gates and extended gate hours. Gate operations ensure smooth cargo flow, enhanced trucker experience, and reduced impact to near-port communities. Marine terminals adhering to consistent gate hours and offering extended gate services will be eligible for funding.
  This program builds upon the 2023 Rail Incentive Program, which generated more than 54,000 lifts and represented 15 percent of international intermodal rail volume in 2023. When implementing the incentive program, the NWSA will closely monitor the program’s performance and review its potential continuation in 2025.
  “By incentivizing increased rail cargo, on-time vessel performance, and marine terminal gate consistency, we can better serve our import and export customers and the local trucking community that utilizes our gateway,” said Kristin Ang, Port of Tacoma Commission president and NWSA co-chair.
  Hamdi Mohamed, Port of Seattle Commission president and NWSA co-chair, said: “By targeting the incentives toward three key parts of the supply chain, we can drive increased cargo volumes, schedule reliability, and operational efficiency.

Q1 Box Volumes

Continued voyage consistency and increased vessel calls in March contributed to a strong first quarter finish of NWSA’s container business. Full international exports continue a seven-month growth streak, increasing 15.6 percent over March 2023. Full international imports increased 17.1 percent, with total international volumes increasing 9.5 percent. March container volumes reached 261,495 20-foot equivalent units, or TEUs, growing 8.5 percent over March 2023.
Year-to-date volume increased 2.9 percent to 699,382 TEUs, with full imports increasing 5.6 percent and full exports growing 14.8 percent.
Domestic container volume increased 1.8 percent through March compared to the same period in 2023. Alaska volumes increased 4.9 percent, and Hawaii volumes decreased 11.3 percent.
Breakbulk volume increased 20.8 percent for 120,282 tonnes and auto volumes were 89,703 units, up 9.5 percent. Consumer demand for automobiles continues to contribute to strong volumes.

Tags: Northwest Seaport Alliance