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Week 51 Freight Updates

December 22nd, 2021

Unfortunately, it’s more of the same at the Ports of LA/ Long Beach with the picture looking all too familiar with regards to congestion. Here is a view from this morning from www.marinetraffic.com. At least the deadline for when Late Dwell Charges will be implemented has been pushed out again – until December 27th for now.

On a related note, detention and demurrage costs are holding the attention of the U.S. Congress, as the government body continues to solicit input from shippers to create a plan to act on the problem. From JOC.com, “The Ocean Shipping Reform Act (OSRA) 2021 will mandate that regulators institute a requirement that ocean carriers and marine terminals certify that any detention or demurrage bill comply with US shipping law — in other words, that it serves the purpose of incentivizing fluid cargo movement. Bottom line: If a shipper is unable to pick up or return a container due to factors outside of its control, the fee would not be deemed as incentivizing cargo fluidity and thus would be considered illegal.”

Also in Washington, in an effort to treat everyone fairly—at least in terms of getting space on a container—the Biden administration is calling on carriers to move more freight from U.S. agriculture companies. Carriers are returning empty containers to Asia so they can take advantage of higher-yield imports, leaving U.S. food and feed shippers stranded. The administration has asked carriers to treat imports and exports equally and make use of less congested ports.

The importance of intermodal and its role in the global supply chain has been in the spotlight this year. In 2022, it will be important for that vital link to step up and meet the growing demand being put on it.

Lastly, the Port of Long Beach is hoping to up its game by creating software that will help shippers “track their cargo through the complete supply chain.” The port is calling the software the Supply Chain Information Highway, and it will provide the data needed to improve in-transit visibility. A prototype should be available in February 2022.

To read more about these stories, check out the article highlights below.

Port of LA threatens penalties for empty boxes left at clogged-up terminals

Port of LA threatens penalties for empty boxes left at clogged-up terminals

To nobody’s surprise, the spectre of late dwell charges on containers at the prime US port complex receded yet another week yesterday, as the port authorities of Los Angeles and Long Beach deferred a decision until 27 December.

Detention and demurrage reform gains pace in Congress

Detention and demurrage reform gains pace in Congress

For years shippers have complained about being billed for demurrage when they’re physically unable to retrieve a container from the terminal within free time, or detention when they’re unable to return it.

White House to ocean carriers: Take more ag exports … or else

White House to ocean carriers: Take more ag exports … or else

Transportation, Agriculture departments pressure container lines to stop refusing exports, use underutilized ports

Railroads faced service disruptions, congestion as intermodal demand grew

Railroads faced service disruptions, congestion as intermodal demand grew

Demand for rail freight came roaring back in 2021 after a pandemic-induced decline. But at times, there seemed to be more business than railroads could handle.

Port of Long Beach plans 'Supply Chain Information Highway' for cargo tracking, visibility

Port of Long Beach plans 'Supply Chain Information Highway' for cargo tracking, visibility

Lack of visibility and data transparency is one of the most common problems the Port of Long Beach hears from its stakeholders, according to port representatives.

2021-12-22T18:34:27+00:00December 22nd, 2021|Shipping News|
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