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The Port of New York and New Jersey is king of the North Atlantic ports.
In 1985 -- a banner year -- some 51.3 million long tons of general cargo alone crossed the port's docks. Imports of general cargo were up 6.1% to slightly more than 11 million long tons, a step up from the average gain of 5.9% for competing North Atlantic ports.
High living can have its costs, though, and a lengthy stint as king of the hill often leaves even the most dedicated warrior weary -- and thus vulnerable. Although the port's colossal operation reigns supreme among and is unchallenged by its North Atlantic counterparts, innovative steamship lines working with rail partners have begun to use a truly backdoor approach to steadily skim increasing amounts of freight from New York.
Consider a few facts. The partial deregulation of trucking, railroads, freight forwarders and steamship lines in the last five years continues to fuel rapid growth of container shipping, eased entry requirements and new rate freedom. All this has led to greatly expanded shipping capacity. And the natural inclination for competitors armed with a little rate freedom in a buyer's market is to go to the mat in a rate war.
'85 price wars
The truckers did it, the airlines did it and, much to the delight of shippers, steamship line sales representatives spent a large part of 1985 slicing each other to ribbons to capture new freight or protect market share.
Shippers gleefully made the most of this, taking advantage of what the Shipping Act of 1984 terms "independent rate action," which permits carriers to discount the officially sanctioned international rates. Many ocean carriers were hemorrhaging...