Aftermath of the Suez Canal & the Container Imbalance
Now that it is months after the dreaded vessel that clogged the Suez Canal the impact on the global supply chain is becoming much more clear. Records are being broken regards the number of containers being processed in any U.S. port, the highest numbers EVER on record arriving in the U.S.
Blank sailings have been occurring off the West Coast since May, which means cargo ships are being loaded with empty containers and being sent back to China. These empty containers are being used to facilitate the demand that U.S. importers have placed on the numerous shippers in China. It is estimated that these blank sailings will continue possibly thru July 2021 – and peak has already begun.
Here is the new reality for U.S. Importers: 1) it will cost A LOT more to obtain a container out of China as well as to get it loaded on a vessel, and 2) IPI service is being terminated to all U.S. inland container yards/rail ramps, unless you have rates thru to ORD/CHI. Due to the sheer volume arriving in Chicago/Joliet CY, China is allowing those loads to remain intact and is providing the IPI service to those container yards.
Importers need to get creative and develop a strategy asap.
Due to the issues raised above, everyone will pay more per container. Additionally, trying to get your container out of ORD/CHI will be tougher than ever due to the sheer volume coming into that CY, and there is also a shortage of chassis and tri-axle equipment. If your loads are overweight, we are seeing delays from 14-28 days for door delivery.
AW2 Logistics is positioned to assist with any customers looking to devan on the West Coast as well as in the Midwest & East Coast. We are also aligned with a partner that is well established with CP Rail, allowing you the flexibility of transloading onto a CP container or devan in a Canadian port city with transportation to your door. Full trackability is available once loaded on a CP rail container.
To discuss further or to troubleshoot, please feel free to reach me, Kim McCloud, at 414.870.2727 or fill out the form below.
Kim McCloud
Director of Business Development-Healthcare
& Warehouse Solutions