Weekly Hot Spot Update

Will it get worse before it gets better? The overall feeling in the industry is that indeed, we are going to have a rough November and December with no end in sight for the congestion and disruption in the global supply chain. Below is our quick around the world summary of the hot topics.

Italy: Italy continues to be plagued by localized strikes and service disruptions due to labor action. Next week, there is a port strike planned in Genoa that will cut work hours each day for the entire week. This could be resolved via ongoing negotiation; but, if not, it will create further delays. Italy is also experiencing severe equipment shortages, partly due to bad weather creating “cut and run” vessel operations, with vessels departing before offloading all containers.

Australia: “Industrial action” continues to affect services in Australia, with sporadic strikes delaying cargo movement. We have reports of cargo being delayed into the new year, so please plan accordingly if you have cargo departing from this region.  

UK: England continues to be a tough spot to get trucks for either inter-european moves or export, and issues with BREXIT are plaguing border crossings. Scotland and Ireland are the sweet spots in terms of equipment and smooth sailing for deep sea exports.  

LA/LB “Dwell” Fee: To supplement our Monday message on the new fee to be charged in the ports of Los Angeles and Long Beach, we can report that most ocean carriers have announced that they will pass on the charges to the importer. The new fee is in effect as of November 1st. Any containers intended to move via rail that are left on the terminal for 6 days or more will be hit with $100 on the first day, increasing in increments of $100 each day thereafter. The same stipulations apply for containers scheduled to move via truck if they are left for 9 days or more. There has been a great deal of public outcry and controversy over this fee, along with a wide range of predictions as to the outcome and potential unintended consequences. The hope is that the fee will incentivize everyone to get their containers off the terminals and ease the congestion. On this, we will keep you updated.

Seattle, Miami and Savannah ports:  Key carriers have announced that will be omitting these three ports in November and possibly longer due to the congestion in the ports or in effort to counter schedule disruption. Carriers continuing to call Savannah have announced surcharges. Please reach out to us if you want any specifics on these changes to port rotations.

Please see the attached update from Maersk on the USA summary of congestion issues. We will continue to keep you informed of the logistical hot spots around the world, and, as always, please feel free to contact us with any questions or concerns.