Customer Advisory: Week 28 2021
WEEK 28 – 2021
Normally, this time of the year activity increases as we enter the peak shipping season. But this has not been a normal year, much less a normal shipping season. With increased demand, increased volume, increased delays, increased congestion, and increased cost, infrastructure everywhere is gridlocked with a backlog of containers at every port. The China booking process appears to be a free-for-all, and companies are spending a premium to secure space. And so, if we haven’t had a lull, can we expect a peak?
The intent of this advisory is to inform you of the supply chain disruptions that might impact your business.
Outbound Asia/Trans-Pacific Eastbound
- Port congestion has taken 10% capacity out of the market.
- The reopening of Yantian will increase congestion and delays on the West Coast with the influx of full vessels.
- Expect LA/Long Beach to double the current number of 10-15 vessels waiting for berth.
- The eastbound trans-Pacific will experience an additional surge from the traditional peak shipping season that runs from August through October.
- Dwell time for rail at west coast terminals is somewhere between weeks and months, depending on the terminal and carrier.
- IPI shipments are few and far between.
- For rail terminals, the extreme chassis shortages are causing delays in pickups and delivery of containers.
- The UP halted all Intermodal traffic from west coast ports for the week of 14 July destined to their Global 4 Intermodal Terminal in Chicago.
- The BNSF is reducing import traffic from LA/Long Beach effective 18 July.
- The port congestion has directly impacted road operations, and trucking costs continue to soar.
What can we expect going forward?
- No letup in demand through 2021.
- Limited supply as container demand outpaces container supply.
- Continued container rate increases.
- Continued chassis shortages.
- More transloads to inland ports.
- Ocean freight transitioning to air.
Finding predictability in uncertain times
The Dunavant Team values the opportunity to provide the solutions and services you need and expect from us. Throughout these challenging times we will continue to be transparent and open in helping you make decisions to best support your business. Should the current outlook change, we will inform you accordingly. In the meantime, we will continue to work diligently to identify opportunities to secure available space. In addition to space, we are also positioned to offer port transload services as needed while we work through the lack of service to inland ports. Where it works, you may need to consider an airfreight option. Please do not hesitate to reach out to your Dunavant contact should you have any questions.
Your Dunavant Team