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Week 52 Freight Updates

December 29th, 2021

The ocean freight industry is stuck at a rate of only one-third of ships making their berthing windows on time (a six-year low.) An analysis of some of the busiest trade routes in November saw ships on the eastbound trans-Pacific to the U.S. West Coast trades with an average delay of more than 13 days. East Coast trade lanes from Asia saw delays of eight to nine days. That equates to 10.4% and 18.7% on-time performance, respectively.

Unfortunately, there’s little positive news in terms of vessel backlogs, either. The Port of New York and New Jersey is seeing an increased number of larger container ships, which is forcing more vessels to sit at anchor, waiting for available berth space. Currently, the wait at anchor time is double the year-to-date average.

More ships aren’t the only factor. Bad weather, delays at other ports, and staffing shortages—partially because of COVID outbreaks—further exacerbate the problem. But the Fed is spending $230 million to help speed things along with Port Infrastructure Development grants, helping to expand ports and increase cargo throughput across 19 states.

We could see further improvement thanks to ocean carrier CMA CGM instituting 24/7 operations at its terminal gates. They’re also offering incentives to Intermodal truckers and importers to get their containers removed from the dock within eight days. According to comments Biden made to the Supply Chain Disruptions Task Force, the number of containers sitting on the docks for eight-plus days is close to half of what it was previously. This is despite more containers than ever are moving through the ports. Thanks to the $17 billion that’s been put aside to modernize ports in the new Infrastructure Investment and Jobs Act, we should see continued improvement in the future.

Finally, diversification in sourcing has helped companies navigate through multiple supply chain issues in 2021. Restructuring has included investments in new reshoring and nearshoring efforts instead of significant reliance on Chinese trade. For example, Tempur Sealy increased its U.S. manufacturing capacity, and in a bid to avoid bottlenecks during the holiday season, toymaker Mattel nearshored its manufacturing.

For more on these top stories, check out the article highlights below.

On-time ship arrivals remain at six-year low: Sea-Intelligence

On-time ship arrivals remain at six-year low: Sea-Intelligence

Most ocean carriers did not see any worsening in vessel arrivals and delays in November, but global reliability remained at a six-year low, with only one-third of ships making their expected berth window, according to Sea-Intelligence Maritime Analysis’ latest liner performance report.

NY-NJ vessel backlog creeps back up amid bigger ship calls

NY-NJ vessel backlog creeps back up amid bigger ship calls

An increasing number of larger container ships calling on the Port of New York and New Jersey as the year ends is forcing more vessels to sit at anchor as berth space is tied up to unload the bigger ships. The backlog of vessels calling at the largest US East Coast port by volume is the result of a 20 percent rise in imports through October and efforts to find ports that are not experiencing the same congestion seen at other gateways.

Feds to provide $230 million to speed cargo through ports

Feds to provide $230 million to speed cargo through ports

Shelves stocked, packages on porches, Porcari tells supply chain task force meeting.

Biden touts supply-chain progress at L.A., Long Beach ports

Biden touts supply-chain progress at L.A., Long Beach ports

President Joe Biden yesterday touted the progress made by ports in Los Angeles and Long Beach, California, in helping to unclog the nation’s backed-up supply chain.

Diversifying production, suppliers helped companies stock shelves in 2021

Diversifying production, suppliers helped companies stock shelves in 2021

As facility shutdowns and other disruptions caused shortages, many found new manufacturing and sourcing partners.

2021-12-28T19:01:17+00:00December 29th, 2021|Shipping News|
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