Week 13 Freight Updates

As we enter week 13, it seems like the new norm in shipping is finding ways to mitigate whatever chaos the market throws at us each week from threats of ocean carrier price gouging, to the Suez Canal crisis, to the current railcar scarcity at LA-LB ports.

The six-day Suez Canal blockage that held up more than $83B of retail goods and produced a backlog of an estimated 350 vessels is only going to further strain ports in North Europe already struggling with severe congestion and extreme delays. While the Ever Given was officially freed on Monday from where it ran aground last week, the long-term consequences of the waterway’s “longest closure in almost half a century” remain unclear.

What we do know is that shippers better brace themselves for carriers trying to take advantage of the situation, rising insurance costs, and twice the congestion over the next couple of weeks. Another important issue logistics professionals need to keep an eye on is the railcar shortage that’s causing dwell times to reach around 10 days at the ports of Los Angeles and Long Beach. According to JOC.com, the intermodal railcar crunch is “the biggest driver of terminal congestion for SSA Marine, which operates three terminals in Long Beach.”

To learn more about the state of the Port of Long Beach (POLB), as well as how to augment export growth, modal cooperation, and ocean cargo policy, listen to SupplyChain247.com’s recent podcast interviewing Mario Cordero, the POLB’s executive director. Also, for more information on the rest of this week’s crucial updates, check out the following article highlights:

Warning to ocean carriers: don't use canal crisis to 'price-gouge customers'

Ocean carriers have been warned not to take advantage of the capacity crunch resulting from the Suez blockage to “price-gouge” their customers. Following reports that shipping lines are predicting increases in spot rates and new surcharges due to the disruption …

The Suez Crisis Is Over. Now Time to Add Up the Damages

The Suez Canal may be open again, but the battle over damages from the waterway’s longest closure in almost half a century is just beginning. With cargoes delayed for weeks if not months, the blockage could unleash a flood of claims by everyone affected, from shipping lines to manufacturers and oil producers.

Railcar scarcity now driving LA-LB port congestion: terminal operators (sub. required)

Terminal operators say a shortage of intermodal railcars has become the top driver of congestion at the ports of Los Angeles and Long Beach, although western railroads say they are working to push more railcars to Southern California.

Port of Long Beach Director Provides Update on the State of the Port and Ocean Cargo Sector

During this podcast, Cordero provided a detailed overview of how POLB has navigated the ongoing COVID-19 pandemic, as well as the strong state of volumes at the port and the recently completed Peak Season.

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