Transport & Port Updates – October 2022
We are seeing rates drop across the board, however, they are still elevated. Please note that the volatility of rates at the moment is very high. Port congestion on the West Coast has eased while congestion on the East Coast has increased substantially.
Inland destinations are particularly strained by some carriers omitting through service to inland points and as a result of the combined bottlenecks at ports/terminals and rails.
All industry projections suggest no change in demand, especially now heading into peak season.
U.S. East Coast – Import: Congestion at East Coast ports is still prominent as more cargo is being routed through this region to avoid West Coast ports. As an alternative, some importers are sending goods to the Gulf region.
U.S. East Coast – Export: All east coast ports have severe schedule disruptions due to a backlog of incoming freight. Expect delays and possible rolling of vessels.
U.S. & Canada West Coast – Import: Congestion has eased at West Coast ports, however, we still recommend booking at least 2 weeks in advance and being open to using various modes/routes of transportation.
U.S. West Coast – Export: We continue to see gate capacity restrictions and limited rail reservations available at inland points such as Chicago. Carriers are accepting bookings from inland ramps but not in the volume needed in the market.
The Congestion and subsequent vessels in the queue to unload are causing a continued backup of export cargo staged to go outbound. We are seeing more export bookings missing scheduled departures as the terminals can’t accept the loaded container with limited space and labor constraints. Not only is this causing a delay in freight loading and arriving at the destination, but the carriers are now charging significant demurrage and per diem, for the time their containers are held up which is being passed on to the cargo owners.
U.S. Midwest – Inbound & Outbound: Chicago rail delays are increasing and chassis shortages continue. We are seeing some containers going into stacks with trains stopping at checkpoints for several days.
We are working with our customers to trans-load cargo using less congested routes. We also offer air freight services, which in some cases may be more attractive than ground. For more information, please contact Ronald Vincent, our Director of Logistics.
We are continuing to monitor all lanes, ports, and services to provide you with the best possible service at the best possible price.
M.E. Dey and Co. monitors the market daily to find competitive rates that pair well with exceptional transportation services. We provide fixed-rate contracts in addition to standard market rates. Contact us to talk with a representative or request a quote to get started.