Congestion, Delays & High Rates Continue

In our ongoing series on the current global logistics crisis, we work to keep our readers updated as to the latest news and the updates on the hot-spots for problems. As we go into a USA holiday weekend, all reports indicate that there is no end in sight for the record pace of import cargo, the congestion at global ports and terminals, shortage of warehouse space and labor, continued schedule disruption, and constant increases in freight rates.

Below is a quick run-down of current hot-topics:

Italy: While vessel capacity has improved a bit in recent weeks, the intermodal/rail system in Italy is completely congested, and it is nearly impossible to move containers via the rail system. Thus, expect your local pick up costs to increase as we are forced to use trucking to get containers to the ports to meet vessel cut offs as there is little possibility to move cargo via rail. Equipment remains scarce, and we are following availability on a daily basis. Again, there is potential for added cost as equipment may need to be picked up at a location further away from your loading site than usual. 

France: The port of Le Havre has been incredibly congested, and we have reports of truckers getting turned away when trying to enter the terminals. While this has been more prevalent on Asia-bound cargo, please be aware that this port is suffering with enormous congestion, and you may see problems in making vessel cut offs if truckers cannot get the containers into the terminal.

New Zealand: As we have reported for months, New Zealand remains an incredibly challenging area for exports. Due to the continued disruption in the main port of Auckland, carriers are cancelling vessel calls or facing limited time slots at the port, thus not able to load all the containers booked. The rail system is also clogged as more exporters try to move cargo to Tauranga from Auckland. Trucking can be an option, but due to demand, capacity is tight and prices are going up every day. For the South Island, the port of Nelson remains backlogged, and the feeder vessels moving cargo from Nelson to the main loading ports are cancelling services or completely overbooked. We are looking at all alternatives, including trucking to main ports as needed.

South American West Coast and Panama transshipment ports: Virtually all cargo departing South America transships in Panama, and the delays have been mounting, especially for cargo moving to the US West Coast due to the massive volume of cargo shipping from Asia to Los Angeles. The traditional peak season for Asia to USA cargo starts in July. This year volumes are predicted to rise by approximately 14% and continue to grow as we move into back to school and holiday shopping periods.

USA ports: While the last couple of weeks were not as bad in the major ports of LA and NY, the situation varies week by week in all ports, and truck power remains challenging. Moving tanks and hazardous cargo is especially challenging. The holiday weekend always causes a backlog so again, plan accordingly. 

Summer heat: The heat waves have been incredible in many areas in the USA. Remember to protect your cargo, using temperature controlled containers or insulation products, and speak to WSSA about the options for protection via cargo insurance coverage for heat damage.  

While this is just a snapshot of some of the key issues, please contact us if you have any specific trade lane concerns or problem areas. For those of you in the USA,  have a wonderful Independence Day holiday weekend.