USA Congestion: Part 2

Posted 07/07/2021

As a follow up from our mailing earlier today, pls see below summary from one of the top steamship lines published today:

With the large number of congested ports and ships awaiting berths, please understand that the dates for arrivals / departures and cut-offs are constantly changing. 

Terminal Operations:

LAX/LGB Terminal Update:

There are currently 19 ships (+10) at anchor awaiting berths in LAX/LGB as of Friday, July 2nd. All terminals are extremely congested due to the spike in import volumes and basis current projections the congestion is expected to last until through the summer.  

Changes of destination (COD's) and container "dig outs" are restricted due to lack terminal space and customers are urged to continue to expedite the pickup of their import containers and inform any COD requests at least four working days before the start of vessel operations. The demand for available labor while improving, still affects all terminal operations, turnaround time for truckers, inter terminal transfers, the number of daily appointments available for gate transactions and delays in vessels operations.  

We are currently facing extreme limited single empty return options and restricted mainly to dual transactions. Local trucking delays have been considerably reduced and are expected to continue improving in the upcoming month.

The LAX/LGB rail operations from all terminals continue to deteriorate due lack of rail capacity and railcars from the UP rail. This is affecting all on/off dock intermodal moves. 

Oakland Terminal Update:

Currently there are 18 ships (-8) at anchor or drifting in the San Francisco Bay area as of July 2nd. The three new shore cranes and berth are now fully operational at OICT. Massive import volumes combined with labor shortages are the biggest drivers of continued congestion and vessel operations delays. The Port of Oakland has had three consecutive months of import gains, setting a new record in May surpassing over 100,000 TEUs.  

Export receiving windows are shrinking from 4 to 3 days in some cases to assist with volume on terminal. Alternative gate hours continue to have low trucker participation. Vessels will be delayed in order to decrease terminal dwell, make room for incoming imports and keep terminals fluid as possible. Yard rehandling and restows on vessels due to change of rotation and additional empty lift out of LAX/LGB is creating further delays. All berths remain occupied.

New York Terminal Update:

Berth utilization continues to be high through the first week of July,  Terminal yard utilization has stabilized but expected to increase this week with all NY terminals, except PNCT, closed on July 5th in observance of the July 4th holiday. Terminal gate turn times are at acceptable service levels, but expected to increase next week due to 4 day work week.  Select terminals are opening on Saturdays to facilitate increased import deliveries.

Savannah Terminal Update:

Currently 8 ships at anchor (+4) as of July 2nd. Continue to see delays at berth due to dredging. Dredging continues in berth 2, moving to berth 8 by the weekend. By mid-July all dredging at the berths should be complete. The main gates and rail operations are running fluid.  Stacks behind berths 7-8-9 for additional empties is still in progress and should be complete early October. GPA is investing in new RTG cranes to increase yard capacity in the same terminal footprint.  

 

Canadian Terminal and Rail Delays Update

Terminals: Vancouver, Prince Rupert:

High yard utilization at all terminals in Vancouver as a result of increased import volumes.  Expected to last well into Q3. Vessels calling Vancouver are experiencing delays, resulting in increased vessel dwell time. Prince Rupert berth and yard productivity are stable. No delays to vessel berthing.

Rail: Railcar availability is inconsistent due to vessel delays impacting export delivery and BC fires.  

Terminals: Montreal

All terminals are experiencing a shortage of labor, resulting in delays to ship schedules.  This is expect to continue throughout the summer months.

Intermodal Operations:

Capacity limitation in certain markets due to import volume spikes and severe drivers’ shortage.  

Chassis Pools:

With the recent unprecedented Import volumes, there is currently a historically high demand for chassis throughout the USA. This demand has shown to be persistent on 40ft chassis and intermittent on 20ft chassis.  In order to minimize any negative impact on supply chains, customers are asked to take immediate steps to reduce container and chassis off terminal dwell time. This includes all inland terminals as well as port terminals.  Without a significant reduction in the dwell times, truckers may face serious challenges and delays in securing good order chassis as long as this surge in imports continues.