Weekly Logistics Hot Spot Update

Germany: The German railroads are on strike again and will be inactive until Tuesday, September 7th. The issue with inland transportation and pick ups is impacted and straining the resources of trucking companies. Empty containers are in short supply outside of the major ports and our team in Germany is working to pull empty equipment from ports to arrange loading. The issues in Germany are also complicated by new regulations on delivery windows at the terminals.

New Zealand: Parts of New Zealand remain in Level 4 lockdown, allowing only essential businesses to operate. Fortunately, both logistics and beverage alcohol remain on the essential list, and we are able to continue to operate. But, with remote working conditions and limitations on warehouse staff, we are experiencing delays in loading containers. Furthemore, NZ was hit by internet outages over the last few days, causing disruption in all areas of the economy, including container bookings. 

Chile: Ships have been running more smoothly in the last two weeks and the weather in the mountains has not been as severe, but there is still a backlog of cargo slowly getting cleared out. San Antonio was hardest hit, and we have been adjusting cargo to depart from Valparaiso as needed.

UK: The UK suppliers are experiencing shortages of dry goods including cardboard and glass. We are seeing orders pushed back due to these shortages. This trend in material shortages is global but has hit the UK hard in recent weeks.

Continental Europe: Truck power, rail issues, and lack of equipment continue to plague continental Europe, and truck prices continue to rise (including in the UK and Ireland). Vessels continue to run at full capacity or overbooked, feeder vessels continue to struggle with schedule integrity, and we continue to see sporadic port omissions. The carriers are planning for another rate increase in October, and published announcements are calling for increases in the Q4 figures.

USA: The USA continues to see record volumes of imports, with all major ports struggling with the volumes. Truck power continues to be a problem, especially for temperature controlled containers requiring gensets, and we are seeing substantial delays on removal of reefer containers, resulting in significant demurrage figures. For USA exports, carriers continue to cancel loads at the last minute, causing severe disruption and delays. The FMC is looking into these practices and reviewing cancellation on exports as well as unreasonable demurrage and detention charges.

Should anyone have any questions on the above, please let us know. Wishing everyone a safe and fun-filled Labor Day weekend!