Logistically Speaking - HOT SHEET - Week 15
Chinese COVID-19 Lockdowns’ Impact on the World’s Global Supply Chain:
The Port of Shanghai, which handled over 20% of Chinese freight traffic in 2021, is at a virtual standstill because of roadblocks and stringent COVID-19 test requirements.
- As a result, incoming cargo is now stuck at Shanghai marine terminals for an average of eight days before it’s transported elsewhere, a 75% increase since the recent round of lockdowns began.
- Meanwhile, cargo airlines have canceled all flights in and out of the city, and more than 90% of trucks supporting import and export deliveries are currently out of action.
- On Friday, China’s Ministry of Industry and Information Technology said it sent a task force to Shanghai to work on a plan to resume production at 666 critical manufacturers in the locked-down city.
- Solutions: While the Port of Shanghai is in lockdown we are looking at alternative ports of lading to get our customers freight moving.
Norfolk Southern Alters Free Time and Storage Policies to Speed Cargo Flow
NS is designating Sunday as a business day, effective April 25th, in order to charge rail storage fees on domestic and international intermodal loads.
- NS also announced Thursday that it is converting Detroit, Cleveland, Columbus, and Jacksonville into Tier 1 terminals effective June 1st for international containers, which cuts the free time for containers from 48 hours to 24 hours.
- Solutions: The uniqueness of your own supply chain to receive the freight is key when weighing the capacity and costs. Contact your rep and discuss this financial impact of your last mile delivery.
US – Mexico Cross Border
Texas Governor Greg Abbott announced Friday an immediate halt to the state’s enhanced inspections of Mexican trucks that had been delaying U.S. imports.
- According to the Bureau of Transportation Statistics, $39.7 Billion in freight moved by truck across the U.S.-Mexico border in January, up from $34.5 billion in January 2021.
- The Texas governor said he had put the inspections in place on April 6th to address Mexican cartels’ smuggling of drugs and people, which led to Mexican truckers blocking traffic on the Mexican side of the border at one of the busiest crossings.
On Sunday, the Ever Forward was freed by two barges, five tugs, and a big tide.
- The ship had run aground 36 days ago in the Chesapeake Bay.
- The salvage crew used two cranes to pull 500 of the 5,000 containers off the ship and take them back to the Port of Baltimore.
- The vessel will head there to reload those 500 containers and continue its journey to Norfolk.
Weekly Change Dwell Times
Expect LA / Long Beach dwell times to jump going into the summer months as vessels from China try to catch up after the shutdowns in key port cities. *Infographic courtesy of SONAR provided by FreightWaves