New York and New Jersey port officers inform CNBC they don’t seem to be going dwell with the container fee that they had deliberate for September 1. The Port of New Jersey has had a container imbalance of over 200,000 since January and the fee was to encourage the evacuation of each late full and empty containers.
The resolution was made after what port officers mentioned had been quite a few discussions with ocean carriers in August which turned up what port officers described as unexpected circumstances. Port officers say the ocean carriers have been “very engaged and responsive” within the final month.
Right now empty packing containers are sitting on the port for round 30 days. Delays in shifting out import containers into the U.S. and empties out to allow them to be reloaded with items delays the supply of items for the U.S. provide chain.
According to MarineTraffic, the Port of New York ranked second amongst U.S. ports with essentially the most containers ready offshore. Savannah had essentially the most, adopted by Houston.
Shipping containers are unloaded from a ship at a container terminal on the Port of Long Beach-Port of Los Angeles complicated, in Los Angeles, California, April 7, 2021.
Lucy Nicholson | Reuters
Several ocean carriers have made commitments and are actively engaged on plans to maneuver empties and serving to to revive fluidity to the port.
Once the modification is made, port officers inform CNBC the objective is to have the tariff in place for the fourth quarter of this yr with the primary invoices to be issued in January. The invoices can be based mostly on the service’s This fall stability of containers and their efforts to maneuver out empties.
West Coast woes
The logistical woes on the West Coast proceed. The Port of Oakland continues to maneuver out containers that piled up in the course of the five-day trucker strike back in July.
The rail delays are not improving on the West Coast. Logistics managers are measuring rail delays of 12 days at the Ports of Los Angeles and Long Beach. For containers that are moved by a combination of truck and rail, delays are at 30 days. The congestion on the rails is also impacting inland rails as well with delays between five to seven days.
New port strike in U.K. is possible
The diversion of trade away from Felixstowe to the already congested German ports and the strike itself at Felixstowe have created massive gridlock, according to the CNBC Europe Supply Chain Heat Map.
Unions for both Felixstowe and Liverpool dockworkers are in active discussions with their respective port companies on wages. The length of time of this possible strike has yet to be announced.
“The 8-day strike in Felixstowe has ended without any agreement between the unions and the port,” said Andreas Braun, Europe, Middle East, and Africa ocean product director of Crane Worldwide Logistics. “Talks are ongoing but time is running out. If both parties will not settle for an agreement shortly, we can expect new strike actions by the unions most probably joining the actions of the unions in Liverpool.”
Liverpool is traditionally a U.K. gateway to and from the U.S.
“Right now congestion is only limited to Felixstowe but if Liverpool dockworkers strike, it will create additional congestion and delay container exports to the U.S,” explained Braun.
Liverpool’s main trading partner is North America, but relationships are expanding with Asia. Looking at the bills of lading using ImportGenius products exported out of Liverpool to the U.S. include Bailey’s, Walker’s shortbread, auto parts for Ford and other companies, toner cartridges, and parts for Xerox, Guinness from Diaego, wood furniture and sections for Raymour & Flannigan, air filtration parts for Donaldson, and long bar steel for Caterpillar
If these dock workers do strike, this will further push back the arrival of holiday items into at least December.
The CNBC Supply Chain Heat Map data providers are artificial intelligence and predictive analytics company Everstream Analytics; global freight booking platform Freightos, creator of the Freightos Baltic Dry Index; logistics provider OL USA; supply chain intelligence platform FreightWaves; supply chain platform Blume Global; third-party logistics provider Orient Star Group; marine analytics firm MarineTraffic; maritime visibility data company Project44; maritime transport data company MDS Transmodal UK; ocean and air freight rate benchmarking and market analytics platform Xeneta; leading provider of research and analysis Sea-Intelligence ApS; Crane Worldwide Logistics; and air, DHL Global Forwarding; freight logistics provider Seko Logistics; and Planet, provider of global, daily satellite imagery and geospatial solutions.
