More Headaches!

The backup at Los Angeles has grown to 20 container ships at anchor awaiting a berth.

The strong trans-Pacific eastbound trade (TPEB) has terminals, truckers and all logistics providers working overtime. There was no Thanksgiving Holiday at the piers.

Meanwhile rates continue to climb. The Freightos Baltic Daily Index shows the spot rate from China to the US west coast to be $3870 per forty-foot equivalent (FEU) on Monday. That's almost three times higher than a year ago.

Because the TPEB market is so strong many carriers are declining west-bound cargo (moving at much lower rates) and opting instead to rush their empty equipment back to Asia to meet the surging demand.

The combination of strong imports and high demand for prompt turns on equipment has strained the logistics system nationwide. While the tension is highest at the ports, the inland ramps and depots are also feeling the squeeze.

It is not just in North America. European ports are jammed as well. Many vessels are now bypassing the UK due to congestion. British importers are scrambling to collect their containers from ports on the continent - but all cross-channel connections are over-booked.

The major transshipment hubs are feeling increased stress due to higher volumes and delayed and erratic vessel schedules.

Then there is COVID. Enhanced inspections and other precautions have further complicated the transport of certain commodities.

If this update sounds much like the last several we have sent out, that's because the overall situation is the same - only more so.

And our counsel remains the same:

Book early

Plan on delays

Expect rates to increase

Be flexible

We keep a close watch on all these factors affecting the transport of goods.

That's our main mission: logistics.

You have different main missions.

If we can help you with the logistics component of your main mission, give us a call.