Shipping problems have steadily been getting worse since the onset of COVID.
Though periods of improvement have been recorded, the overall outlook for shipping continues to be bleak. Southern California has been adding to the queue of long dwelling vessels offshore. Trucking in SoCal is so backed up that most companies are booked solid for 6 to 8 weeks. Savannah and Charleston are competing for second place with truckers booked more than 1 month in advance. New York/New Jersey ports were slightly less impacted by the onslaught of import congestion, though in recent weeks truckers are advising that they are now approximately 3 to 4 weeks booked out in advance. The entire U.S. is reporting massive trucking shortages. It has become a national crisis as conditions worsen at the ports and rails. The U.S. continues to demonstrate how ripples in the logistics process have outstanding long term impacts. On the global stage, the Ukraine and Russian war has already made waves in shipping, with future outcomes yet to be known.
East Coast Ports & Trucking Update
Charleston and Savannah historically were ports that could handle high volume. However, the infrastructure proved to be weak and in need of improvement to efficiently handle the increase in demand. Savannah has been under major renovations and construction to become a mega-port capable of handling nearly double the volume it previously could. However, the projects underway have significantly impacted the port’s efficiency, and dwell time can now be close to a month. Charleston, being the next best alternative port, has been a congested mess and has a severe lack of equipment. Trucks are booked 4 to 5 weeks in advance in Charleston, and nearly 6 weeks in Savannah.
NY & NJ Conditions
New York / New Jersey ports are now added to the list of extreme trucker shortages, whereas earlier this year, NY/NJ was less likely to claim weeks of backlog. Truck rates are creeping up, as available slots are dwindling. Equipment shortages, such as lack of available chassis, are slowing the progress as well. The queue for an available trucker is approximately 3 weeks out. The economic impact of the Russian / Ukraine war will continue to impact fuel costs which will only worsen the situation in NY/NJ, as well as everywhere in the U.S. and around the world.
Global Shipping & Ukraine
Globally, the cost of fuel is fluctuating daily. Just this week, the U.S. has seen the cost per gallon of fuel increase by fifty cents overnight. This is mainly due to the halt in import / export of Russian cargo. Russia was a big exporter of crude oil. This oil, though only accounting for a small portion of oil used to make fuel in the U.S., is necessary due to its qualities that is not found elsewhere. With the lack of resources, supply is dropping and so driving costs up, directly impacting shipping and trucking. Another threat to shipping is the dangerous conditions in the Black Sea, where we have already seen attacks of steamships. Odessa Port is one of the largest hubs for international shipping. With the potential for danger, most lines are avoiding the area, impacting logistics negatively. In addition to the halt in Russian exports, ships across the map are facing berthing delays and port infrastructure issues which has heavily impacted global shipping, and in turn the process of sending and receiving oil, which is driving fuel costs up.
The global shipping crisis continues to unravel and reveal new challenges each day. As the world watches the events unfolding in Ukraine, our team at Rose stands in solidarity and is optimistic for a smooth resolution. Though the global shipping crisis is vastly out of our control, trust our team to provide top notch service and be proactive at keeping up with current shipping conditions. With our 28 years of service, Rose has made lifelong partners and connections to be fully equipped to handle all logistic needs
Updates & Info
Please see below the most up-to-date information on delays, congestion, and logistic update.
West Coast: BNSF & UP/LAX/LGB: Import rails units are facing extreme congestions with limited gate capacity, shortages, and restrictions.
LA / LB Ports: Over 80 vessels are waiting to berth, congestion, delays, and limited capacity are prevalent. Delays can be as much as 6 weeks.
Seattle Port: 15 – day vessel wait time is to be expected due to congestion, labor shortages, and lack of trucking.
Oakland: 1 week vessel wait time is to be expected due to congestion, labor shortages, and lack of trucking.
NY/NJ Ports: Vessel dwell time is under normal conditions.
Savannah: Vessel wait time is up to 9 days.
Charleston: Vessel wait time is up to 12 days due to off proforma vessels and infrastructure repair.
Port Everglades and Miami: Vessel wait time is up to 3 days due to high import volume and CFS backlog, equipment shortages, and labor shortages. Allocation and blank sailings are in effect in Miami.
Chassis issues are prevalent throughout the U.S. due to the division of the intermodal system, Covid-19 related issues, and the lack of additional capacity at different levels of the supply chain.
Rail/ Ramp Terminals & Trucking Nationwide:
BNSF & UP/LAX/LGB: Import rails units are facing extreme congestion with limited gate capacity, shortages, and restrictions.
Chicago Rail Ramp: Experiencing severe congestion due to dwelling containers and chassis shortages. Only 10 spots open daily. Chicago’s issues are affecting most other major rails, as equipment is imbalanced and scarce.
NY/NJ: Chassis shortage causing delays. Truckers are booked nearly 3 weeks in advance.
Philadelphia: Severe chassis shortages, extended delays in pick-ups, deliveries, and drayage.
Charleston: Severe chassis shortages, extended delays in pick-ups, deliveries, and drayage. Truckers are booked nearly 4 weeks in advance.
Savannah: Severe chassis shortages, extended delays in pick-ups, deliveries, and drayage. Truckers are booked 2 to 3 weeks in advance.
Jacksonville and Miami: The rail congestion in Chicago is affecting services out of Miami. The shortage of equipment in Florida can create delays up to 2 weeks.
Seattle: Up to 10 days delay for cargo going to Chicago. Limited trucker capacity, most truckers are booked 2 weeks or more in advance. Long waiting line for export/import.
Houston/Dallas: There is a severe chassis shortage and ongoing congestion. Truckers are booked up to 3 weeks in advance.
Los Angeles / Long Beach: Trucking continues to be backlogged, with some reports of up to 6 weeks of truckers being booked in advance.
Source/Article Written By: www.shiprose.com |Rose Container line Inc |