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Global Ports Brace for Massive Post-Suez Cargo Logjams; Egyptian Court Authorizes Ever Given Seizure
As much as 1.9 million TEU of cargo is expected to be caught up in the Suez Canal-driven supply chain congestion that will engulf many of the world’s largest container ports.
According to newly released data, the canal blockage has led to a cumulative delay of 1,072 days, and the largest ports are expected to bear the brunt of a short-term surge in ship calls as carriers try to get services back on schedule.
For example, over 370,000 TEU of capacity is currently en route to the world’s largest transhipment hub of Singapore, adding to the 83 vessels – collectively equating to 299,310 TEU – already at the port, or anchored and waiting to unload, as of yesterday. The picture is similar at Rotterdam, where 15 ships will arrive over the next week, creating a lengthy queue behind the 85 vessels already at port or waiting to enter. Meanwhile, New York is facing a backlog of 76,500 TEU, either having arrived or still inbound from the Suez Canal, Malaysia’s Port Klang has a build-up of 103,900 TEU, and Dubai is facing 75,879 TEU.
As ports around the world attempt to clear this mounting backlog, there will also be an impact on liner schedule reliability; port delays measured in days are also on the rise.
With this potentially unprecedented build-up of cargo at box terminals around the world, the supply chain is also seeing reduced productivity and imbalances on key inland components including ports, chassis, and rail transport.
Egypt Authorizes Suez Canal Authority to Seize Ever Given Pending Compensation
While global freight movement continues, the investigation of the accident is still ongoing and negotiations are taking place between the ship's Japanese owner Shoei Kisen Kaisha, its insurers, and the Suez Canal Authority (SCA) for the USD $900 million in compensation for damages due to the near week-long blockage of the canal.
An Egyptian court issued a seizure order for the ship that blocked the Suez Canal last month after a request from the waterway’s operator. The SCA has said compensation is needed to cover losses linked to transit fees, damage to the waterway during the dredging and salvage efforts, and the cost of equipment and labour. It has calculated that losses of revenue amounted to about USD 15 million a day
BRI USA is monitoring the circumstances regarding increased booking and sailing times during this unprecedented time of global demand. We are working with customers to ensure communication regarding potential delays that may occur. For more information, please reach out to your BRI representative
Major US Ports Status Update
Below is a general overview of the operations BRi USA has been able to gather for most major ports. This list will be updated as information is made available.
Port of Seattle and Tacoma – The Northwest ports of Vancouver, British Columbia, Tacoma, Seattle, and the combined container operations of The Northwest Seaport Alliance, are jointly committing to a new vision to phase out emissions from seaport-related activities by 2050. In a collaboration among the four ports, the Northwest Ports Clean Air Strategy seeks to meet this target through changes in equipment, fuels, and infrastructure; supporting cleaner air for local communities; and fulfilling the ports’ shared responsibility to help limit global temperature rise to 1.5 degrees Celsius. The vessel wait time in Seattle is currently two days. All terminals are open for normal operations this week.
Ports of Los Angeles/Long Beach – A total of 25 container ships were anchored awaiting entry into the neighbouring ports of Los Angeles and Long Beach, as of Sunday, compared with 28 a week earlier - though still below a peak of 40 in early February, according to officials who monitor marine traffic in San Pedro Bay. Another 10 are scheduled to arrive over the next three days, with seven of those expected to drop anchor and join the queue. Long Beach’s port last week said it handled the equivalent of 840,387 20-foot containers in March, topping the volume logged in December to become its busiest month on record. Delays for port cargo or for cargo to be moved inland by rail have been excessive - railcar turn times average 10 days currently. Currently the Port of Los Angeles is experiencing Yard Utilization at 99%, Vessel Wait Times of 8 days, and trucking and chassis availability is tight. Meanwhile, the Port of Long Beach is seeing Yard Utilization at 67% and Vessel Wait Times of 7 - 9 days. All terminals are open for normal operations this week.
Port of Oakland – Later this month, Zim Integrated Shipping Services will launch its third expedited trans-Pacific service in a year in response to still-growing e-commerce demand, and give Oakland its second first-in-country US call on an Asian service. The Port reported all-time high container volume for import and export cargo in the month of March, as imports were up 45 percent from the same month a year ago and exports gained 12 percent year-over-year. Vessel wait times are 8 - 12 days. All terminals are open for normal operations this week.
Port of Houston – Vessel wait time is 12 - 48 hours. Truck capacity and chassis availability have improved this week. All terminals are open for normal operations this week.
Port of New York/New Jersey – All terminals are open for normal operations this week.
Port of Virginia - All terminals are open for normal operations this week.
North Carolina Ports - All terminals are open for normal operations this week.
South Carolina Ports - The arrival of the first imports at the Port of Charleston’s new Hugh K. Leatherman terminal on Friday marked the addition of 700,000 TEU of capacity to a US port system and inland supply chain that has been under intense pressure from near-record import volumes since last summer. The 286-acre facility, which will increase overall annual handling capacity at Charleston by nearly 30 percent, is the first new container terminal to open in the US since Jacksonville’s TraPac terminal in January 2009. Charleston is currently seeing vessel wait times of 0 - 12 hours. All terminals are open for normal operations this week.
GA Ports - The Georgia Ports Authority (GPA) has ordered 20 eco-efficient Konecranes Rubber Tired Gantry (RTG) cranes and 8 Konecranes Ship-to-Shore (STS) cranes for the Port of Savannah in the US. Six of the STS cranes will be the largest ever made by Konecranes. The RTG order was booked in Q1 2021, and the STS order was booked in Q4 2020. At this time, the Port of Savannah is experiencing delays of 3-5 days. Truck capacity remains tight. All terminals are open for normal operations this week.
Port NOLA - The Port of New Orleans (Port NOLA) will help fund the expansion of an adjacent cold storage facility in a bid to boost ag export capacity for the state’s poultry farmers. Port NOLA is investing $2 million in the project and the state of Louisiana is providing $10 million toward it. All terminals are open for normal operations this week.
Shippers Plead for Federal Intervention in Escalating Montreal Port Dispute
This week, Canadian manufacturers joined an agricultural group in urging the Trudeau government to intervene and prevent the escalating dispute between Montreal port employers and longshore workers from further hurting cargo owners.
The ongoing dispute, which resulted in 19 days of strikes last summer and forced shippers to divert cargo through Halifax and other ports, sharply escalated over the weekend.
In calling for the Canadian government to intervene in an escalating dispute between Montreal port employers and longshore workers, Canadian manufacturers and farmers warned of rising economic damage, as the diversion of cargo through Halifax is incurring millions in additional costs every week for its members. Read the full report at JOC.
DOT Allots $1 billion in Latest Round of Infrastructure Grants
The U.S. Department of Transportation (DOT) is laying out $1 billion in the latest round of a competitive grant program that began in 2009 for freight projects.
DOT published on Tuesday a Notice of Funding Opportunity to apply for money through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grants, a renaming of what had been called “BUILD” grants under the Trump administration and “TIGER” grants under the Obama administration.
“In communities across the country, there is tremendous need for transportation projects that create high-quality jobs, improve safety, protect our environment and generate equitable economic opportunity for all Americans,” said U.S. Secretary of Transportation Pete Buttigieg. “With RAISE grants, we are making those needed investments in our communities’ future.”
US Providers Face Higher Costs After Duty Ruling on Chinese-made Chassis
The US International Trade Commission (ITC) ruled unanimously Tuesday that the Chinese government’s subsidizing of China International Marine Chassis (CIMC) materially harms US manufacturers, a decision that clears the way for an almost 40 percent duty to be officially slapped on the chassis beginning May 6. It also raises the likelihood US chassis providers – customers of CIMC, the largest producer of chassis in the world – will be forced to pay much more for the company’s equipment.
The 5-0 vote is an indication the ITC will also likely find in favour of North American chassis manufacturers in a separate antidumping case that could see a vote in June, according to an attorney familiar with the case. The vote is the final step to enact a 39.14 percent countervailing duty, which North American producers such as Stoughton Trailers argue will make their chassis more competitive in the market.
Tuesday’s decision will have widespread ramifications on customers of CIMC, including importers, exporters, truckers, and chassis providers such as DCLI, Flexi-Van Leasing, Milestone Equipment Holdings, and TRAC Intermodal.
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Keeping you updated,
BRi Customer Solutions TeamBack to News Page