Congestion Surcharge Postponed and Other Updates
To circumvent previous posts about the West Coast Situation,
the majority of the shipping lines are now
postponing the Port Congestion Surcharge
on all cargo entering the United States via the U.S. West Coast.
As mentioned before, Scarbrough International continually works with carriers to waive or mitigate these charges.
We thank you for your understanding and patience during this challenging and ever-changing situation, and assure you that we are doing everything in our power to continue to keep your supply chain moving as quickly and efficiently as is possible under the circumstances.
Scarbrough continues to monitor the situation as it continues to unfold. Please keep connected via our website blog for the most up-to-date information. Stay tuned.
Other Industry Updates.
West Coast Congestion
Check out the 12 Reasons for the Long Beach – LA Port Congestion by Journal of Commerce.
1. Big Ships
2. Bigger Cargo Volumes
3. Carrier Alliances
4. Chassis Shortages
5. Gate Hours
6. Labor Staffing
7. Safety Checks
8. Hard-Timing TraPac
9. Truck Capacity
10. Vessel Bunching
11. Demurrage and Per Diem
12. Port Non-Productivity
Watch a quick video narrated by Bill Mongelluzo on updates in regards to the LA/Long Beach Gridlock. Click here.
Air Freight Prices
Air freight prices have surged in the past 2 months. Capacity is low due to Port Congestion, Black Friday sales, and higher supply for commodities such as Apple products.
“Congestion on the U.S. West Coast ports is a costly reminder to shippers of the need for risk planning, particularly in peak seasons. The issue will help to inflate air rates and demand temporarily, but it will not reverse the longer-term trend towards ocean,” Dreary’s weekly report noted. [Journal of Commerce]
The Chassis Shortage
A shortage of available chassis in New York and New Jersey, as well as some other ports, has significantly contributed to congestion at marine terminals for the better part of a year. Demand for the frames has increased along with spikes in cargo volumes associated with big vessels, but they are often stored in locations far from terminals where they are needed, or they are out of service. Chassis providers have decided to work on a collaborative plan optimizing the utilization of wheeled trailers used to move containers in the region. [American Shipper]
There is still no conclusion and negotiators are not expected to meet again until December 2. 2014. [American Shipper]
Participation from The White House
The White House expresses confidence the ILWU and PMA will reach an agreement before the end of the year [American Shipper.]
Just last year, there was a long negotiation at the East and Gulf Coast ports,” White House spokesman Frank Benenati told Bloomberg in an e-mail. “And just as the two sides in that case were able to resolve their differences through the time-tested process of collective bargaining, we’re confident that management and labor at the West Coast ports can do the same.” [Journal of Commerce]