Sea Point

Import Advantage

Economic and Viable Container Transportation Alternative

Sea Point seeks to offer an economic and viable container transportation alternative to the annual incremental container cargo that would be coming to the U.S. with a final destination of mid-America's 55 million consumers in major metropolitan centers such as Chicago, Memphis, Dallas, and Atlanta. The remaining intermodal destination cities are relatively small except for Houston.

Although Sea Point's transit time is 9 days longer compared to LA/LB's transportation time, including the Panama Canal transit, the ocean transit is the least costly leg of the trip to mid-America. The most expensive leg is the railroad leg. Sea Point's ability to deliver barges with containers sorted by railroad companies or regional truck deliveries and load them directly to rail makes Sea Point very efficient and economical in getting the containers to their destination. Accounting for an average of 4 to 7 days delay in LA from dock to railhead, the extra ship transit time coupled with the shorter rail transit time makes Sea Point's delivery dates within 1 to 3 days of when the container would have reached LA/LB.

Public Tariff Rate Comparison Between Los Angeles / Long Beach and Sea Point

The chart below illustrates the difference in rail costs taken in March 2007. These are public tariffs, and not the contract (lower costs) tariffs railroads typically charge high volume customers. Sea Point has confidentially supplied contract tariffs and uses them in presentations, but for this purpose, public tariffs are used. No Fuel Adjustment.

Destination City LA/ LB Size Rail Cost Sea Point Rail Cost Savings
Chicago 20 / 40 1569 / 1707 630 / 700 939 / 1007
Dallas 20 / 40 1329 / 1137 300 / 340 1029 / 797
Houston 20 / 40 1339 / 1456 375 / 410 964 / 1046
New York City 20 / 40 1590 / 1730 1164 / 1371 426 / 359
Atlanta 20 / 40 1590 / 1730 412 / 585 1178 / 1145
Memphis 20 / 40 1554 / 1689 386 / 429 1168 / 1260
Kansas City 20 / 40 1394 / 1516 400 / 460 994 / 1056
Charlotte 20 / 40 1314 / 1429 689 / 857 625 / 572
St. Louis 20 / 40 1420 / 1542 574 / 600 846 / 942
Nashville 20 / 40 1554 / 1689 506 / 635 1048 / 1054
New Orleans 20 / 40 1167 / 1270 0 / 0 1167 / 1270

Distribution Data and Costs

Using actual distribution data supplied by carriers and taking into consideration incremental and differential costs, including the extra sea transit cost for a carrier delivering 1500 containers per week from Asia to mid-America, Sea Point could potentially save carriers approximately $14 million per year on imports alone.