General update

25/5/2015

Congestion persists at New York – New Jersey Ports

Heavy volume from larger ships and carrier alliances is straining capacity at New York-New Jersey container terminals as shippers and consignees continue to seek alternatives to the still-congested West Coast ports. For the last several weeks, port truckers have endured hours-long turn times at one or two of the port’s five major terminals each day. The delays usually follow arrivals of large ships that discharge up to several thousand import containers that must be funneled through truck gates during weekday hours.

East Coast ports have been deluged with Asia-origin shipments routed to avoid disruptions during recent West Coast longshore contract negotiations. Though West Coast traffic flows are improving, New York-New Jersey is still receiving higher-than-normal volumes, even though the West Coast contract has now been ratified by the Union (ILWU) membership.Other U.S. East Coast ports are impacted such as the Port of Virginia which is also struggling with congestion.

Much of the challenge in New York-New Jersey is blamed by many on container-line alliances, particularly the new 2M alliance of Maersk Line and Mediterranean Shipping Co.

GCT Bayonne, formerly known as Global Terminal, recently handled an extra loader that was the first 10,000-TEU vessel to call on the East Coast. The GTC terminal in Bayonne, NJ is the only major one in New York-New Jersey able to handle the first 10,000 TEU vessel to call on the East Coast.

High on that list is a plan to improve the intermodal chassis availability & creating a joint pool at a certain depot location to pick up or deliver any chassis. It is expected that the so-called gray pool of intermodal chassis that could be interchanged between leasing companies and now operate separately is expected to provide some relief but, the benefit is not expected to be felt for several more months. Unfortunately, East and West Coast ports’ struggle with congestion, though improving, are estimated to take another 4 to 6 weeks or more to return to normal activities.

Please refer to your assigned CS Representative if you have any questions about these.

This entry was posted in Private Client News, Public News on by Aaron Poole.

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