US west coast congestion to worsen over Thanksgiving holiday weekendUS WEST coast port congestion is bound to worsen over the Thanksgiving holiday weekend, which Americans take almost as seriously as Christmas, as longshoremen and employers take time off to celebrate.
Separately, landside problems are developing as truckers, as far away as Chicago, busy themselves with Asian cargo through Canadian ports while fearing they will be unable to cope with the main Christmas rush from the US west coast when it eventually comes through.
More immediately, Thanksgiving is a no-work holiday for the International Longshore and Warehouse Union, noted Newark's Journal of Commerce. "That means terminals will be closed for the day and no cargo-handling will take place," it said.
While Friday is a working day, in past years longshoremen took the day off so part-time longshoremen, known as casuals, can work.
Adding to shipper worries is that port congestion surcharges are back full bore on Wednesday. While some of the 13 carriers charge differently, they average US$800 per TEU and $1,000 per FEU.
The 13 carriers are Mediterranean Shipping Co (MSC), CMA CGM, Hanjin, Maersk, NYK, Zim, Hyundai, Evergreen, OOCL, APL, Yang Ming, China Shipping and MOL.
These carriers first announced the surcharges on November 14, in a Transpacific Stablisation Agreement notice to trade, then rammed home the message with individual announcements of their own.
But they soon backtracked, withdrawing the surcharges, some with cringing statements of regret, after a vociferous outcry from shippers and renewed scrutiny and statements of disapproval from the US Federal Maritime Commission.
Maersk's new surcharge won't apply to cargo discharged in Oakland or Seattle.
Landside, the BNSF Railway implemented gate restrictions at Logistics Park Chicago on empties bound for Seattle and Tacoma. Similar gate restrictions have also been implemented in Cicero, Illinois, St Paul, Denver and Omaha on empties destined for the Pacific Northwest ports.
“The reduction in labour productivity at the Pacific Northwest marine terminals continues to impact BNSF’s normal service to and from the ports in Seattle and Tacoma, said BNSF spokeswoman Amy Casas.
Inland truckers are unsure if they can deliver the cargo on time when it finally comes through from the west coast.
The surge from southern California to Chicago ahead of Christmas could be too much for local truckers, and shippers could be stuck with demurrage charges between $100 and $175 per unit, box or chassis.
Local truckers don’t know when they can expect an increase in freight from southern California, but it hasn’t come through yet.
Meanwhile truckers are busy with freight from the Canadian National and Canadian Pacific railways, which bypassed US ports, but they have seen little volume from the Union Pacific and BNSF that service American ports.“We are lucky demand from CN and CP keeps ramping up,?said trucker Joe Tovo, president of DNJ Intermodal Services.
BNSF said it’s hauling “a good amount?despite port congestion, but UP said that intermodal shipments moving from on-dock rail in Los Angeles could be delayed 24 to 48 hours.
Separately, landside problems are developing as truckers, as far away as Chicago, busy themselves with Asian cargo through Canadian ports while fearing they will be unable to cope with the main Christmas rush from the US west coast when it eventually comes through.
More immediately, Thanksgiving is a no-work holiday for the International Longshore and Warehouse Union, noted Newark's Journal of Commerce. "That means terminals will be closed for the day and no cargo-handling will take place," it said.
While Friday is a working day, in past years longshoremen took the day off so part-time longshoremen, known as casuals, can work.
Adding to shipper worries is that port congestion surcharges are back full bore on Wednesday. While some of the 13 carriers charge differently, they average US$800 per TEU and $1,000 per FEU.
The 13 carriers are Mediterranean Shipping Co (MSC), CMA CGM, Hanjin, Maersk, NYK, Zim, Hyundai, Evergreen, OOCL, APL, Yang Ming, China Shipping and MOL.
These carriers first announced the surcharges on November 14, in a Transpacific Stablisation Agreement notice to trade, then rammed home the message with individual announcements of their own.
But they soon backtracked, withdrawing the surcharges, some with cringing statements of regret, after a vociferous outcry from shippers and renewed scrutiny and statements of disapproval from the US Federal Maritime Commission.
Maersk's new surcharge won't apply to cargo discharged in Oakland or Seattle.
Landside, the BNSF Railway implemented gate restrictions at Logistics Park Chicago on empties bound for Seattle and Tacoma. Similar gate restrictions have also been implemented in Cicero, Illinois, St Paul, Denver and Omaha on empties destined for the Pacific Northwest ports.
“The reduction in labour productivity at the Pacific Northwest marine terminals continues to impact BNSF’s normal service to and from the ports in Seattle and Tacoma, said BNSF spokeswoman Amy Casas.
Inland truckers are unsure if they can deliver the cargo on time when it finally comes through from the west coast.
The surge from southern California to Chicago ahead of Christmas could be too much for local truckers, and shippers could be stuck with demurrage charges between $100 and $175 per unit, box or chassis.
Local truckers don’t know when they can expect an increase in freight from southern California, but it hasn’t come through yet.
Meanwhile truckers are busy with freight from the Canadian National and Canadian Pacific railways, which bypassed US ports, but they have seen little volume from the Union Pacific and BNSF that service American ports.“We are lucky demand from CN and CP keeps ramping up,?said trucker Joe Tovo, president of DNJ Intermodal Services.
BNSF said it’s hauling “a good amount?despite port congestion, but UP said that intermodal shipments moving from on-dock rail in Los Angeles could be delayed 24 to 48 hours.