As you may be aware, the U.S. East Coast seaport terminals and the Detroit rail terminal have been experiencing tremendous delays due to terrible weather conditions; lack of sufficient equipment necessary to move containers, i.e. chassis,; and diminishing available drayage operators, especially the owner operators. The situation is especially concerning in the NJ/NY ocean terminals where normal turn times have migrated from 2-3 hours per turn to 6-8 hours and climbing. On average, if the drayage operators are permitted entry to the terminal, at best case scenario, they can only manage to claim one pull/one container per day.
As of this morning, the situation has yet to improve and all terminals are equally affected. The current conditions of the East Coast terminals are quite disquieting to all key cargo stakeholders, especially those stakeholders utilizing the Maher terminals, PNCT, APM and Global Marine Terminal. Drayage operators remain parked outside the gate, creating one of the longest lines in the history of the east coast terminal operations. In speaking with multiple terminal officials, they are projecting that it could take until early to mid-April until operations return to normal. Some terminals have closed the “in gate” aiming to control the congestion currently parked inside the terminal and not allowing other drayage operators to enter. In some cases, a drayage operator can wait the entire duration of his/her shift and return without any containers. This is creating a supreme challenge for owner operators on the east coast, costing local drivers considerable revenue.
If the condition continues, many owner operators can be forced out of business. Furthermore, it has been reported that various drayage companies have begun imposing “congestion surcharges” as a way to offset some of their losses. The range of surcharges can go anywhere from as low as $175 up to $400. Additionally, it has become a common occurrence that terminals report zero available equipment, zero chassis for the morning/ afternoon rotations.
In short, the east coast terminals in NJ/NY are in the worst condition ever. This situation has caused widespread panic among USA based consignees, shippers, asset owners and forwarders. UTi is attentive to the conditions at all terminals along the eastern shoreline and is diligently working toward minimizing the impact to our clientele.
NY/NJ:
**NOTE** Southeastern ports have also experienced delays due to inclement weather conditions; challenging stevedore rotations managing capacity overload; limited drayage operator availability; and equipment shortages. Other ports, such as LA/LGB are experiencing delays due to limited chassis rotations/ available equipment from the varying chassis pools, in addition to reported congestion problems. However, the most challenged port thoroughfare is NJ/NY.
- January experienced 2x closure of ports; 1x in February due to inclement weather
- IPI services delayed inside terminals ranging from 6-8 days from vessel discharge
- Incoming vessels berthing have seen delays from 5-6 days prior to unloading
- Limited and/or no available chassis
- Slow turn times for drayage operators inside the gate
LA/LGB:
- Rail car shortages due to severe weather conditions in the Mid-West and on the East Coast
- Chassis pool challenge; limited/decreased numbers of available chassis
- Slow turn times for drayage operators inside the gate
Vancouver continues reporting delays due to extreme weather conditions – expected to return to normalcy by Mid-March.
Due to such abysmal east coast conditions, many USA-based consignees and shippers have begun conducting supply chain war room sessions in attempt to develop contingency planning. However, there are extremely limited options available to circumvent the congestion; especially for cargo onboard vessels at sea. Yet, a contingency plan is possible for the short term if we evaluate how to circumvent the situation while cargo remains at origin.
UTi management and staff are committed to your business and are willing to consult with you regarding a potential contingency, thus lessening the impact that the above factors could have on your supply chain going forward. We encourage future dialogue with you regarding these matters.
Michael Goldsmith,Senior Director, Trade Lanes-the Americas, Ph: 310-590-8343, mgoldsmith1@go2uti.com
