12 Mar Multiple Challenges fronting USA cargo movements
USA port congestion shows no sign of easing
Changed buying patterns brought about by the pandemic have brought extreme consumer demand into North America, import volumes are at record levels. This combined with Covid outbreaks at local ports and a shortage of container equipment have created what many liner executives have described as the perfect storm in recent weeks particularly for key west coast ports.
On the east coast congestion is overall far less but there are still pockets of heavy traffic, notably at the port of Savannah, Georgia.
There is little sign that the congestion is easing, with Gene Seroka, the head of the port of Los Angeles, saying recently that it would take a month just to clear all the ships at anchor at his port, let alone all those still inbound from Asia.
The problem the ports face is there is no let-up in inbound vessels for Los Angeles and Long Beach in the coming 28 days.
Indications from shipping line executives is that the congestion will continue until at least the 3rd quarter 2021.
For Australian importers of cargo ex the USA we are seeing extended lead times as a result of vessels docking late into port which in turn causes the intended ETD not to be met. We continue to our advise that extended lead times need to be considered for cargo ex the USA at the moment.
USA Trucking Capacity Update
Adding to the shipping delays in the USA is the lack of dry van capacity for the entire east coast, South Texas, Southern California and parts of the Pacific Northwest is extremely tight.
Freight coming out of these areas will be particularly difficult for carriers to cover and delays will be experienced for the inland movement of goods.
Expect delays in pickups, deliveries and fluctuations in volume and full truckload pricing.
It is not all dark for cargo movement ex the USA, air freight capacity continues to be solid and importantly air freight rates have been very consistent and reasonable compared to other overseas markets during the pandemic. We have capacity ex all major USA gateways to Australia and can provide instant quotes for you.
If you require further information or assistance with your cargo, please contact your friendly Lynair team member at email@example.com