West Coast Port Congestion Update
The West Coast Port Congestion situation in the United States is only getting worse and continues to have a trickle effect on supply chains across the globe including driving up air cargo prices. Although there still hasn’t been a complete lockout or shutdown as anticipated, there are talks that a shutdown is still likely to occur before Thanksgiving.
Announcements have been made that the truck drivers’ union, the Teamsters, have set up picket lines at about 50% of the ocean terminals in the Port of Long Beach, Los Angeles and San Pedro. According to The L.A. Times, “it was unclear whether dockworkers would honor picket lines at port terminals.” “During the drivers’ July strike, longshoremen honored the picket lines, briefly closing four terminals at the L.A. and Long Beach ports. An arbitrator, however, ruled that the dockworkers’ contract didn’t allow them to leave the job in sympathy with the striking drivers, and the terminals reopened.”
With no contract in place now, the arbitrator is NOT an option if it were to occur again.
In addition to the unfortunate port news, carriers announced yesterday that all cargo discharging in the US West Coast ports on or after November 17, 2014 will incur a Port Congestion Surcharge.
The surcharge fee will be:
$800 / $1000 / $1266
This surcharge will remain into effect until advised otherwise. In addition, carriers are implementing a surcharge for cargo moving on a carrier-to-door delivery basis for $100 per FEU.
If that wasn’t enough, carriers have also announce a GRI for December 15, 2014. This will pertain to any cargo that departs from Asia to the United States.
The GRI rates will be:
$900 / $1000 / $1125
per 20’/ 40’/40’HQ.
Scarbrough International continually works with carriers to waive or mitigate these charges.
We thank you for your understanding and patience during this challenging 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.
We appreciate the opportunity to be your global logistics service provider. Please contact your Direct Relations Manager or in-house Customer Service Representative with any questions.
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.