Supply chain inefficiencies: the causes and costs of dry bulk ships anchored in Vancouver

Abstract

The paper describes the contracting and logistics conditions contributing to the level of anchorage in the grain, coal and fertiliser export trades of Vancouver. Increases in the level of anchorage in these trades have created economic, environmental and governance issues. Comparison of the logistics structures and practices in these commodity trades gives insights into the reasons for different levels of anchorage. Conditions in and data from the port of Vancouver are used to simulate conditions in the grain trade and to demonstrate the critical importance of the variability of ship loading times to levels of anchorage. The incidence of the costs of anchorage is examined. The terms in voyage charterparties used in the grain trade are found to inhibit efficient use of vessel time.