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A scarcity of workers at warehouses and transloading operations, coupled with a surge in imports tied to e-commerce, is causing containers to pile up near some US ports and putting pressure on marine terminals due to unreturned chassis.
The worker scarcity is most sharply felt by facilities that deconsolidate ocean containers before smaller shipments are trucked out. Such operations are more labour-intensive and are experiencing sharper volume surges than traditional warehouses due to serving the e-commerce sector.
Warehouse space was tight even before the pandemic, with a national 6 percent vacancy rate at US warehouses and distribution hubs.
Marine Terminal Impact
Longer chassis dwell times at warehouses and delays at marine terminals in Southern California are slowing the return of equipment, as truckers are struggling to secure appointment slots to return empty containers to marine terminals. For example, 80 percent of truck turns completed by Golden State are performed with its own chassis, so any delays at terminals eat into its drayage capacity, said Fred Johring, president of the drayage operator. Similar to other truckers in Southern California, they are also struggling to secure appointment slots to return empty containers to marine terminals.
“Dual transactions are virtually impossible. It’s getting worse,” Johring said. Securing more chassis is also difficult. He said an intermodal equipment provider told him the IEP is willing to move chassis to Southern California from Houston, but he would have to pay the IEP to reposition the chassis from Houston.
The Harbor Trucking Association stated that it is becoming increasingly difficult in Southern California to secure domestic containers and trailers, which is reducing the equipment necessary to handle outbound domestic and intermodal moves from the transloading warehouses in the region.
BRi USA has warehouse and distribution capabilities at strategic locations across the U.S.A so please feel free to reply to this email if you need assistance at this time
Port of NY/NJ Terminal Operations
Reports circulated this week that congestion problems and chassis shortages currently experienced at the Ports of LA/LB, and Oakland had possibly spread to the NY/NJ Port Complex as managed by the NY/NJ Port Authority. During discussions this week with Senior Management of PANYNJ we were advised that except for some minor problems incurred last week in association with the effects of Tropical Storm Isais, the Port of New York is operating with full functionality and fluidity.
Parked Planes Keep Squeeze on Air Cargo Capacity
Air cargo capacity on international trade lanes remains heavily constrained, with the latest data showing that 43 percent of widebody passenger planes, which provide more than half the global freight capacity in their bellies, are currently parked.
Data from aviation analyst Cirium shows 3,762 widebody aircraft are inactive, with travel restrictions and quarantine measures around the world to combat the coronavirus disease 2019 (COVID-19) severely limiting travel.
The lack of capacity is keeping freight rates elevated, with trans-Pacific pricing up 74 percent from last year, China-Europe rates are up 69 percent, and Europe-North America spot rates are 83 percent higher than at the same point in 2019.
The International Air Transport Association (IATA) is not expecting passenger demand to return to pre-COVID-19 levels anytime soon with high levels of infection persisting around the world keeping travel restrictions in place. As the pandemic continues to greatly impact the air cargo industry, and this is most clearly evident in the sustained restrictions on passenger movements and, for cargo specifically, on the impact on the global economy.
Propeller Club Asks Congress for $3.5 Billion in COVID-19 Relief for U.S. Maritime Industry
The International Propeller Club of the United States has requested that Congress appropriate $3.5 billion for the relief and support of the U.S. maritime industry during the COVID-19 pandemic, due to the impact that the coronavirus has had on the maritime community.
The Club states that its workers have risked their health and lives to keep commerce moving during the pandemic, including shipping medical supplies, food, and other vital commodities that consumers and manufacturers require. Meanwhile, costs have increased for employers for additional cleaning and protective health equipment.
The International Propeller Club supports providing a minimum of $1.5 billion to U.S. port authorities with $2 billion provided to the rest of the U.S. maritime industry in order to help the industry survive the pandemic with the capacity to meet the United States' future needs and stimulate economic growth.
Prevention and Control of Solid Waste Imports into China
The government of the People's Republic of China has recently adopted a new legislation concerning the Prevention and Control of Solid Waste Pollution in China, whereby all solid waste including waste paper, waste plastics, waste metals, waste chemicals, amongst others are prohibited from importation into China in order to achieve zero import of solid waste by the end of 2020.
A minimum penalty of $70,000 or more shall be imposed for violations and strict requirement for import solid waste to be returned to its place of origin at the expense of cargo, including cost of disposal if any.
To ensure full compliance with the regulation, customers are strongly recommended to check with related authorities on official information to see if the new import regulations apply to your cargo, and if so, you must obtain valid license(s) or permit(s) and provide accurate cargo names as well as all necessary information at the time of booking for verification.
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As a valued customer, we hope that you will continue to trust us to source the best options for your supply chain needs now and into the future. Please feel free to contact your Customer Solutions Representative, should you have any questions regarding USA News.
Keeping you updated,
BRi Customer Solutinos Team.Back to News Page