I know I’m not the only one here on WB’s to be pending shipments from Europe. Mine is a LTL
Less than container load. The cause is Port congestion, exacerbated by increased imports to China, lack of available empty containers, and etc.
Here is a letter I received this morning from my customs broker. It is next to impossible to plan costs when you can’t rely on shipping charges…
Dear Valued Customer,
In January 2021, Sea Intelligence reported global vessel schedule reliability dropped to 34.9%, which is down from roughly 70% the year prior. For the sixth consecutive month, this figure is at it’s lowest since inception in 2011.
On average, global vessel arrivals were delayed 6.42 days in the same month. Looking specifically at the US West Coast, ETAs are being extended even longer due to regular vessel turn-around times up to 11 days. US Importers may be thinking 11 days added to your original ETA isn’t that bad. Although, we need to also take into account consistent vessel departure delays at origin and increased dwell times if moving inland on the rail. These are described in more detail below.
Given the now regular cumulative delays seen within every link of the supply chain, actual arrival times can be multiple weeks, if not, more than a month after the original ETA. Looking ahead, US import volumes remaining strong in the near term. Thus we anticipate these ‘sliding ETAs’ to continue at least for the next 3-4 months.
Vessel on Blue Ocean
We would like to provide you with an updated supply chain overview and offer solutions below.
U.S. West Coast Ports
ONE Lines reports 28 ships currently anchored in Los Angeles/Long Beach Harbor awaiting berthing. Port congestion and extended berthing times (between 7-14 days per vessel) expected to continue into the second quarter.
All West Coast ports are still congested, short labor, lacking equipment and reaching full capacity.
Seattle/Tacoma & Oakland have more fluidity compared to Los Angeles/Long Beach and Vancouver, but volume has increased to these ports as importers utilize re-routing strategies
Ocean carriers continue to pickup empty containers from the U.S. and move back to China/Asia without loading US Export cargo.
U.S. Inland RailCarriers are exhaustively urging expedient return of empty containers and chassis with the goal of decreased dwell times. This will significantly alleviate delays and increase fluidity as import cargo flows continue.
Chicago, IL and St. Paul, MN have taken the brunt of it, with severe chassis shortages in both locations.
Demurrage charges becoming unavoidable for importers and exporters with containers getting stuck at rail terminals and ports.
Container stacking, vessel delays, chassis shortages are all contributing factors to increased container dwell times. And to no one’s fault, resulting in additional costs.
The number of rail cars to transport containers from the ports to inland points still insufficient due to demand versus supply gap.
With the lack of equipment and labor shortages, FCL drayman are requesting appointments 14 days in advance.
Global UpdatesAtypical volumes seen throughout Chinese New Year. Factories remained open due to continued demand and import volumes to the US persist.
Ocean vessel delays seen across the board. ETAs into U.S. ports are typically delayed between 2 to 14 days.
Severe container shortages continue to plague shippers, namely in China and Far East regions.
Premium fees assessed by the ocean carriers to secure containers/bookings has become standard, regardless of service contracts. Secured bookings that do not materialize result in premium fees kept by the ocean carriers.
In certain lanes, namely China and Far East origins, bookings going to the highest bidder. Our China offices have reported rates that are two to three thousand dollars per container above normal levels.
Solutions and Contingencies Looking ForwardAdd Flexibility - We will increase our chance for success if we remain flexible to various options such as alternate routings/port pairs, modes of transport, service levels, diversions, etc.
Advanced Booking - Request bookings at origin at least 4 weeks earlier.
Additional Lead-Time - Build in additional lead-time and adjust inventory/production schedules accordingly.
Willing/Openness to Premium Fees - Importers are incurring these premium surcharges in order to have the best chance of obtaining a booking. We are still seeing some bookings rejected and rolled regardless of premium fees.
Communicate - Increased communication from our end and between all parties to the end customer. Focus on most critical purchase orders and hyper-communicate. We can put together recommendations and decide on best plan of action.
We will continue to communicate closely with you and all our partners to navigate these on-going conditions and offer smart solutions. We ask again that you build in significant additional lead-time, plan for delays and account for additional costs that may arise during this high volume period. As always, we will continue to monitor the situation and provide updates. Meanwhile, do not hesitate to contact our customer service team if you have questions regarding the status of your shipments.With regards,
Vantec Hitachi Transport System (USA), Inc
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