24 Dec Update on Transpacific Peak Season
As the performance of the North American import market continues at unprecedented levels, Prime Freight will provide updates on rapidly changing trends in the North American import supply chain market on a more frequent basis. Our goal is to inform you of as much relevant information as possible so as to assist you in making improved supply chain decisions. We are happy to announce our latest update below.
Equipment shortages remain a major concern for many companies, and a factor that results in slow shipments from Asia. The initial shortage was in 40′ containers, but now shortages of other container sizes have occurred as well.
as substitute. Supply is limited on 20s and 45s, although 40s and NORs are available.
Equipment Returns and Import dwell time of containers: As we head into the holiday weeks import dwell continues to increase and with volumes not expected to subside until after Chinese New Year – we are raising concerns that the cascading effect on container terminal operations could deteriorate at an accelerated pace in the coming weeks. Across North America, we have seen an increase in dwell time over the last six months.
Blank sails. We expect longer port-delay induced ocean journeys due to the lack of available ocean vessels and facilities. This will be further compounded by the upcoming winter season, which reduces the reliability of our schedule.
Demand Start. We are seeing large volumes for these months and throughout these quarters. Based on current market trends, we expect these current industry challenges to extend beyond the holiday season. Though production has declined slightly, sources claim that factories in Asia are not closing at the same rate as normal years.
Ports are being affected by congestion at both coastlines.
Port labour will observe holiday closures which will add to the current levels of distraction.
In Savannah, we’ve seen a slight decrease in the number of import containers, but we’ve also seen our average dwell stay fairly consistent at 9 days. With vessel waiting times currently between 48-96 hrs and delays due to off schedule vessels aggravated by local nautical restrictions have raised our concerns that it could take 6-8 weeks after holiday closures before improvement is seen.
In Long Beach and Los Angeles, a lot of good work has been done to maintain fluidity in the ports, but as volumes remain strong and import dwells keep growing we will continue to see increased vessel waiting times. The waiting time will be anywhere from 7-14 days for the foreseeable future.
Improvement in the coal market will be realised once volumes become consistent and labor-ganging restrictions are reduced. A decrease in rail car availability was also highlighted this week because of unbalanced rail car supply.
Forecasts are crucial to our business.
Please continue to share your thoughts and expectations for the upcoming months to allow for our ability to plan for March 2021.
As we move into the last months of the year, Prime Freight wishes you all the best this holiday season.
We thank you for your upcoming business and confidence in us. We have been working hard to keep our ocean and logistics business model open and functioning for you during this pandemic to ensure your company’s success.
We wish you and your team a successful and healthy supply chain in 2021. Count on Prime Freight as the global integrator of transportation services to help accomplish your business and financial goals for the year 2021 and beyond.