Paul Brashier

“This index data confirms what we are seeing from our data and hearing from shippers,” said Paul Brashier, vice president of global supply chain for ITS Logistics. A lack of containers and limited vessel capacity overseas has forced shippers to move to the spot market to find equipment to load out at origin. “That is significantly driving rates to levels not seen since the post-Covid crisis two years ago,” he said. Freight is also bottlenecked at port terminals due to extended dwell times and… Show more

“This index data confirms what we are seeing from our data and hearing from shippers,” said Paul Brashier, vice president of global supply chain for ITS Logistics. A lack of containers and limited vessel capacity overseas has forced shippers to move to the spot market to find equipment to load out at origin. “That is significantly driving rates to levels not seen since the post-Covid crisis two years ago,” he said. Freight is also bottlenecked at port terminals due to extended dwell times and empty containers to load with goods are very scarce, Brashier added.

“There is evidence of smaller ocean carriers repositioning vessels and charters being booked to capture this higher revenue,” Brashier said. He said this could create two significant challenges which his company is keeping a close eye on. First, there will be significant amounts of containers entering North America across a greater number of ships and through ports that shippers are not accustomed to, and the higher total number of ships bringing in cargo through traditional gateways will overwhelm current supply chain operations.

Port delays create a “bunching” effect similar to vessel arrivals that led to port congestion during the pandemic. In a recent note to clients, DHL warned of the continued port congestion at key China and Southeast Asia ports. Singapore has been smacked with congestion for weeks, with vessels waiting on average seven days to get into port. DHL said waiting times have also risen across all main Chinese port regions, with Shanghai and Qingdao experiencing the longest delays.

According to container shipping market intelligence company Linerlytica, the worsening port congestion has immobilized approximately 2 million TEU of ships, nearly 7% of the fleet. Show less

Paul Brashier, VP drayage and intermodal at ITS Logistics, said so far there had not been any serious congestion, but added that dwell times for intermodal containers at ports in southern California and in Washington state had grown. A scramble for capacity out of Asia and concerns about further extension of dwell times at US gateways may prompt cargo owners to seek alternative routing options through untested alternatives, he added.

Paul Brashier, vice president of drayage and intermodal for ITS Logistics, said that as port traffic increases, there could be a strain on the roads as trucks pick up and drop off cargo. The Key Bridge was part of the Baltimore Beltway, and is not expected to be rebuilt for several years.

“If there’s no strategic planning on what roads can be used, that could challenge the throughput of containers,” he said.

He is also keeping watch on what he calls “some gray clouds” on the… Show more

Paul Brashier, vice president of drayage and intermodal for ITS Logistics, said that as port traffic increases, there could be a strain on the roads as trucks pick up and drop off cargo. The Key Bridge was part of the Baltimore Beltway, and is not expected to be rebuilt for several years.

“If there’s no strategic planning on what roads can be used, that could challenge the throughput of containers,” he said.

He is also keeping watch on what he calls “some gray clouds” on the horizon that could affect shipping everywhere, such as the continuing attacks in the Red Sea that have forced vessels to go around Africa to some “chaos” in China over vessel capacity and container shortages.

“It’s whack-a-mole,” Brashier said of the continual churn in shipping. “You knock something down and something else pops up somewhere else. Show less

Paul Brashier, vice president of drayage and intermodal with ITS Logistics, said Monday in an email to Supply Chain Dive that if a strike happens, shippers should consider booking freight to U.S. ports of entry. The only effective way to move any freight entering Canada would be to “dray off from ports, cross dock and one-way trucking,” he said.

ITS Logistics and other service providers have implemented contingency plans in anticipation of a strike by border agents. Brashier said his… Show more

Paul Brashier, vice president of drayage and intermodal with ITS Logistics, said Monday in an email to Supply Chain Dive that if a strike happens, shippers should consider booking freight to U.S. ports of entry. The only effective way to move any freight entering Canada would be to “dray off from ports, cross dock and one-way trucking,” he said.

ITS Logistics and other service providers have implemented contingency plans in anticipation of a strike by border agents. Brashier said his company set up drayage options from the ports of entry in Canada and one-way trucking options from Prince Rupert to Vancouver and Montreal “to avoid the IPI leg of the ocean container voyage.”

Brashier is confident logistics services providers can work through a strike-fueled transportation disruption. The industry managed through the COVID-19 pandemic and disruptions caused last summer during contract talks with Canadian port workers.

“One thing that was a positive coming out of Covid and the labor disruptions of last year is that there is infrastructure and capacity in place to handle situations like this,” he said. “Though there will be headwinds, it should be fairly navigable.” Show less

Shedding light on how firms and getting round ongoing and impending challenges, Paul Brashier, VP – Drayage and Intermodal at ITS Logistics, says rail and intermodal transportation is coming into play.

“With the recent headwinds facing ocean container shipping in the world – Red Sea diversions, closure of the Port of Baltimore and potential International Longshoremen's Association (ILA) strikes on the horizon – rail is very important to the movement of goods,” he adds.

“With… Show more

Shedding light on how firms and getting round ongoing and impending challenges, Paul Brashier, VP – Drayage and Intermodal at ITS Logistics, says rail and intermodal transportation is coming into play.

“With the recent headwinds facing ocean container shipping in the world – Red Sea diversions, closure of the Port of Baltimore and potential International Longshoremen's Association (ILA) strikes on the horizon – rail is very important to the movement of goods,” he adds.

“With those three challenges, shippers are moving significant volumes to ports on the US West Coast and then using interior point intermodal (IPI) to get those goods to the US east coast to be absorbed into those distribution centres and warehouses.” Show less

As a result of the West Coast push, Paul Brashier, vice president for enterprise accounts at ITS Logistics tells CNBC it is already starting to see congestion manifest at terminals at the Port of Los Angeles handling freight bound for the interior of the U.S. through the inland point intermodal rail.

“Between the survey and other data we follow closely, there will be a significant strain on rail infrastructure that is moving these diverted volumes to the U.S. East Coast,” Brashier said… Show more

As a result of the West Coast push, Paul Brashier, vice president for enterprise accounts at ITS Logistics tells CNBC it is already starting to see congestion manifest at terminals at the Port of Los Angeles handling freight bound for the interior of the U.S. through the inland point intermodal rail.

“Between the survey and other data we follow closely, there will be a significant strain on rail infrastructure that is moving these diverted volumes to the U.S. East Coast,” Brashier said. “It looks like for the first time in two years we may be looking at a traditional West Coast heavy volume retail peak season, though a little earlier in June and July.” Show less

Paul Brashier, vice president of drayage and intermodal at nationwide provider ITS Logistics, said two complaints shippers generally have about visibility data are a lack of accuracy and cost. ITS in late 2023 released a visibility product called ContainerAI that it bundles with freight services or offers as a standalone product to shippers.

“On the one side you have large, sophisticated shippers with resources allocated for this,” Brashier said. “They want data, and accurate data they… Show more

Paul Brashier, vice president of drayage and intermodal at nationwide provider ITS Logistics, said two complaints shippers generally have about visibility data are a lack of accuracy and cost. ITS in late 2023 released a visibility product called ContainerAI that it bundles with freight services or offers as a standalone product to shippers.

“On the one side you have large, sophisticated shippers with resources allocated for this,” Brashier said. “They want data, and accurate data they can hold people accountable for. And they want it for the least cost possible.”

On the other side are smaller shippers using 3PLs as a service provider and data platform.

“It’s not just about [container] volume, but ones that don’t have the proficiency in place because they’re used to ‘booking door,’” Brashier said, referring to when the carrier or 3PL manages the drayage move on behalf of the shipper. “You have a movement underway where they want to control that freight and want to hold folks accountable, so they don’t end up in the same place [they were during pandemic-induced congestion].”

Brashier said ContainerAI is an attempt to address those issues because it relies on data that’s used operationally by ITS.

“The standalone providers are not testing the data in the same way [as a 3PL] because they’re not operators,” he said. “If you don’t have operational experience, it’s going to be hard for you to say the data is right 98% of the time. We’re on the hook if 40 containers go into demurrage, so our data has to be on point. And so what we provide to the client has to have that level of redundancy and accuracy.”

On the cost issue, by embedding visibility into its freight services, ITS can provide a competitive price on visibility milestones.

“If I’m providing milestone data along with freight, I can give them milestones I already have to feed into their [business intelligence] tool for no extra charge,” Brashier said. Show less

Paul Brashier, vice president of drayage and intermodal for ITS Logistics, tells CNBC that into April and May, new ports (primarily NY/NJ & Norfolk) will become the North American entry point for Baltimore freight. It is tracking spikes in demand for services in Norfolk and New York/New Jersey as more shippers look for assistance in moving their containers because of the Baltimore accident.

“This will increase congestion and challenge operations at these locations, and this unplanned… Show more

Paul Brashier, vice president of drayage and intermodal for ITS Logistics, tells CNBC that into April and May, new ports (primarily NY/NJ & Norfolk) will become the North American entry point for Baltimore freight. It is tracking spikes in demand for services in Norfolk and New York/New Jersey as more shippers look for assistance in moving their containers because of the Baltimore accident.

“This will increase congestion and challenge operations at these locations, and this unplanned increase in demand will drive dray trucking rates upward. Long-term effects could be further migration of transpacific freight to West Coast North American ports from the U.S. East Coast,” he said.

For rail-bound containers, ITS Logistics’ US Port/ Railroad Freight Index is raising its warning in both drayage operations on the West Coast and rail ramps to “elevated” due to the increase in eastbound freight coming into the Ports of Los Angeles and Long Beach. The combination of the increase in containers versus the amount of rail chassis available to move the containers is off balance, creating a lag in the movement of containers. Show less

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said the greatest challenges may be experienced by smaller companies that coordinate the bookings themselves and may not have relationships at these diverted ports. “You want to get your diverted container out of the port as soon as possible so you don’t incur any detention and demurrage fees. For some of these shippers they are starting from scratch,” Brashier said.

Once a container arrives at a terminal, the… Show more

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said the greatest challenges may be experienced by smaller companies that coordinate the bookings themselves and may not have relationships at these diverted ports. “You want to get your diverted container out of the port as soon as possible so you don’t incur any detention and demurrage fees. For some of these shippers they are starting from scratch,” Brashier said.

Once a container arrives at a terminal, the clock begins ticking on the free time allocated to a container. Once that free time expires, detention and demurrage fees start unless ports agree to waive them.

“We are looking to see if terminals will either give an extension of free time or waive the fees,” Brashier told CNBC on Wednesday. “That’s the rub right now.” Show less

“Our largest concern once we saw that that bridge cut off the harbor for vessel traffic for containerized cargo, we started looking at possible diversion ports and what was going to happen to the freight and start working with clients,” said Brashier, a vice president at the Reno, Nevada-based ITS Logistics.

“That was the triage, and we’re going to be doing that here probably for the next five to seven days,” said Brashier, whose firm transports freight from ocean ports to distribution… Show more

“Our largest concern once we saw that that bridge cut off the harbor for vessel traffic for containerized cargo, we started looking at possible diversion ports and what was going to happen to the freight and start working with clients,” said Brashier, a vice president at the Reno, Nevada-based ITS Logistics.

“That was the triage, and we’re going to be doing that here probably for the next five to seven days,” said Brashier, whose firm transports freight from ocean ports to distribution centers or stores in 56 markets, including Baltimore, one of its largest. The company also handles domestic trucking and brings cargo to ports for export.

“It’s a great big focus right now as we’re waiting to see where all these containers that were going to go to Baltimore end up getting discharged on the East Coast,” he said.

“If you’re used to bringing in all your freight into Baltimore and that goes to a local facility, now you’ve got freight that’s going to be hundreds or thousands of miles away from that original entry point, which means you’re going to have additional transportation costs,” he said.

“You’re going to see inflationary pressure to the end user, the consumer, just like we did post-Covid, probably not that bad, but there will be additional transportation costs,” Brashier said. “We’re trying to insulate our clients as much as possible from additional charges and be a good steward. The hope is other folks, the ocean carriers and terminals, would do the same.” Show less

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, tells CNBC it is fielding calls from clients asking where their containers are going. “They are concerned they will be charged container late fees [detention and demurrage] if they don’t get their containers out of the terminals as soon as possible.”

The urgency of picking up diverted containers has increased as ocean carriers declare “force majeure” on Baltimore-bound containers once the boxes arrive at the… Show more

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, tells CNBC it is fielding calls from clients asking where their containers are going. “They are concerned they will be charged container late fees [detention and demurrage] if they don’t get their containers out of the terminals as soon as possible.”

The urgency of picking up diverted containers has increased as ocean carriers declare “force majeure” on Baltimore-bound containers once the boxes arrive at the diverted port, and companies who have imported their products need to to find transportation to move the cargo before container late fees are charged.

“The biggest thing we are seeing from our data integrations with the ocean carriers is we are not seeing the port of discharge updated yet,” Brashier said, citing the ITS Logistics’ ContainerAI platform. “So what we are doing now is we will have to manage logistics of containers through the data given to us by the terminals. But that means we are alerted when the container has already arrived, versus planning while the container is still en route to the port.”

Once a container arrives at a terminal, the clock begins ticking on the free time allocated to a container. Once that free time expires, the detention and demurrage fees start.

“We are looking to see if terminals will either give an extension of free time or waive the fees,” Brashier said. “That’s the rub right now.” Show less

The Mediterranean Shipping Co. and Zim Integrated Shipping Services Ltd. are two of the Port of Baltimore’s largest shipping lines. Neither company immediately responded to a request for comment from FreightWaves.

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said the priority right now is to ensure clients are making plans for containers that were originally routed to Baltimore.

“These shipments will be discharged to other ports on the Eastern… Show more

The Mediterranean Shipping Co. and Zim Integrated Shipping Services Ltd. are two of the Port of Baltimore’s largest shipping lines. Neither company immediately responded to a request for comment from FreightWaves.

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said the priority right now is to ensure clients are making plans for containers that were originally routed to Baltimore.

“These shipments will be discharged to other ports on the Eastern Seaboard,” Brashier said. “This also means that we must prepare trucking and transload capacity to be able to transport the impacted freight to the appropriate initial location.” Show less

Before the failure, the ship had been following standard practices for vessels leaving Baltimore’s harbor.

About an hour before the collision, according to vessel-tracking data from the maritime data platform Marine Traffic, tugboats began guiding the Dali from its berth and then helped it turn southward toward the bridge. As the ship began moving on its course, the tugboats departed, leaving the Dali to continue on its own, as is common practice in the port.

East Coast ports are… Show more

Before the failure, the ship had been following standard practices for vessels leaving Baltimore’s harbor.

About an hour before the collision, according to vessel-tracking data from the maritime data platform Marine Traffic, tugboats began guiding the Dali from its berth and then helped it turn southward toward the bridge. As the ship began moving on its course, the tugboats departed, leaving the Dali to continue on its own, as is common practice in the port.

East Coast ports are expected to handle the traffic diverted from Baltimore, but trucking companies that transport goods out of the ports could struggle with the extra loads, according to logistics experts. “It’s going to cause a lot of chaos,” said Paul Brashier, vice president for drayage and intermodal at ITS Logistics. Show less

As officials began to investigate why a nearly 1,000-foot cargo ship ran into the Francis Scott Key Bridge in the middle of the night, companies that transport goods to suppliers and stores scrambled to get trucks to the other East Coast ports receiving goods diverted from Baltimore. Ships sat idle elsewhere, unsure where and when to dock.

“It’s going to cause a lot of chaos,” said Paul Brashier, vice president for drayage and intermodal at ITS Logistics.

The closure of the Port… Show more

As officials began to investigate why a nearly 1,000-foot cargo ship ran into the Francis Scott Key Bridge in the middle of the night, companies that transport goods to suppliers and stores scrambled to get trucks to the other East Coast ports receiving goods diverted from Baltimore. Ships sat idle elsewhere, unsure where and when to dock.

“It’s going to cause a lot of chaos,” said Paul Brashier, vice president for drayage and intermodal at ITS Logistics.

The closure of the Port of Baltimore is the latest hit to global supply chains, which have been strained by monthslong crises at the Panama Canal, which has had to slash traffic because of low water levels; and the Suez Canal, which shipping companies are avoiding because of attacks by the Houthis on vessels in the Red Sea. Show less

“Our first priority is engaging clients to make plans for containers that were originally routed to Baltimore that will be discharged at other ports on the Eastern Seaboard,” explained Paul Brashier, vice president of drayage and intermodal for ITS Logistics.

“These diverted volumes will impact the ports of New York/New Jersey, Norfolk and the Southeast and we have to prepare trucking and transload capacity to get that freight to its intended network,” Brashier said.

The shift in the volume of freight being moved from the East Coast to the West Coast was first highlighted in February in the ITS Port Rail Ramp Freight Index.

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, told CNBC it has seen a significant increase in demand, and the company is bringing on capacity that was mothballed post-Covid to service it.

“We’re being asked to onboard even more of that capacity to service our clients for the third and fourth… Show more

The shift in the volume of freight being moved from the East Coast to the West Coast was first highlighted in February in the ITS Port Rail Ramp Freight Index.

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, told CNBC it has seen a significant increase in demand, and the company is bringing on capacity that was mothballed post-Covid to service it.

“We’re being asked to onboard even more of that capacity to service our clients for the third and fourth quarter surge when it does come,” Brashier said. “We’re talking about a 75-80% increase in transloading demand.” Show less

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, which is a FLOW partner, and whose ContainerAI was folded into the platform tells CNBC, “For the first time we are seeing a strategic executive branch effort to accumulate data and milestones and use that to identify and get ahead of supply chain bottlenecks before they metastasize,” Brashier said.

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said it’s seeing a huge shift to Mexico as U.S. companies see the Mexican ports as a gateway for the future.

“There are some really good ongoing discussions with some very forward-thinking clients of ours that are using the ocean to bypass the Trump tariffs so I think the future is going to be exporting from East and West into Mexico,” said Brashier in an interview at TPM. “If you’re looking, at a Trump presidency,… Show more

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said it’s seeing a huge shift to Mexico as U.S. companies see the Mexican ports as a gateway for the future.

“There are some really good ongoing discussions with some very forward-thinking clients of ours that are using the ocean to bypass the Trump tariffs so I think the future is going to be exporting from East and West into Mexico,” said Brashier in an interview at TPM. “If you’re looking, at a Trump presidency, you can’t have both China and Mexico be your enemy. So I’ll be interested to see what side folks land on in that in that administration. I feel like Mexico is going to be the future. I just think that the relationship between the US and China is something that is going to be difficult to repair.” Show less

Preparing ahead of contract season takes time and boots on the ground. There is always a plan for the plan. As a result of Red Sea logistics planning, ITS Logistics is warning clients to get their container transportation plans in place now. Paul Brashier, vice president of drayage and intermodal at ITS Logistics, tells American Shipper he has been on the ground surveying Los Angeles and clients are asking for more onboard capacity on the West Coast.

“They are looking for additional… Show more

Preparing ahead of contract season takes time and boots on the ground. There is always a plan for the plan. As a result of Red Sea logistics planning, ITS Logistics is warning clients to get their container transportation plans in place now. Paul Brashier, vice president of drayage and intermodal at ITS Logistics, tells American Shipper he has been on the ground surveying Los Angeles and clients are asking for more onboard capacity on the West Coast.

“They are looking for additional capacity for ground storage and cross-docking,” said Brashier. “I am anticipating at least 25% more out of the ports of Los Angeles and Long Beach.”

Clients concerned about East Coast labor and Red Sea diversions are driving this demand.

“As we go into contract season, customers that are planning on the Non-Vessel-Operating Common Carrier (NVO) and carrier side are looking for additional space to store containers,” said Brashier.

While peak season will come on its traditional schedule, the fact Brashier is seeing more containers scheduled to come into the West Coast has him beefing up the land infrastructure to make the movement of those containers out of the port to its next destination go as smoothly as possible.

Brashier is not alone in his assessment of how his team is planning to serve and execute clients’ logistical strategy. Other logistics managers have told American Shipper of similar plans. Show less

"ContainerAI's imports appear to be rebalancing in favor of West Coast ports, how will this impact the drayage market?"

"This is going to be a huge impact. We are already in a peak. The 4 weeks leading up to Lunar New Year are a natural lift in Asia. There are so many shippers, over seas are closed during that time period. This is natural restock and it is coming on on the heels of low inventories. Where a lot of freight was not brought in the United States' shippers and ate their… Show more

"ContainerAI's imports appear to be rebalancing in favor of West Coast ports, how will this impact the drayage market?"

"This is going to be a huge impact. We are already in a peak. The 4 weeks leading up to Lunar New Year are a natural lift in Asia. There are so many shippers, over seas are closed during that time period. This is natural restock and it is coming on on the heels of low inventories. Where a lot of freight was not brought in the United States' shippers and ate their inventory through 2023. You have two things that are already pushing volumes up across the US but primarily in the West Coast being that Lunar New Year lift. Also more volume coming back. I think that is why you are seeing that 10% lift. Particular to LA/LB there is two large gorillas in the room that are going to impact that area..." says Brashier. Show less

Paul Brashier, vice president of drayage & intermodal at ITS Logistics, said he is concerned about the ripple effects the Red Sea diversions will have on West Coast ports after Lunar New Year, when many shippers are looking to shift back to the West Coast to avoid the lengthy Cape of Good Hope transit. “At the end of the day, the consumer will suffer the most as significant increases in ocean container rates are passed onto the consumer,” he said.

Resilinc, a supply chain mapping… Show more

Paul Brashier, vice president of drayage & intermodal at ITS Logistics, said he is concerned about the ripple effects the Red Sea diversions will have on West Coast ports after Lunar New Year, when many shippers are looking to shift back to the West Coast to avoid the lengthy Cape of Good Hope transit. “At the end of the day, the consumer will suffer the most as significant increases in ocean container rates are passed onto the consumer,” he said.

Resilinc, a supply chain mapping, disruption sensing, and analytics company, said the impact of the Red Sea crisis runs deep from a supply chain perspective. “Organizations with deeper pockets are going to weather this disruption with better outcomes,” said Bindiya Vakil, CEO and co-founder of Resilinc. “The effects of canceled or delayed orders and increased costs are going to be felt by smaller companies and suppliers in the lower tiers of the supply chain.” Show less

While the logistics industry is still in the early stages of adopting AI in its supply chain, many companies are investing in digital abilities to expand services to clients. In times of uncertainty, it’s the ability of a logistics company to offer real-time container analysis for clients and provide them with certainty that makes a difference.

The freight recession continues to weed out the diversified logistics companies versus the overhyped, flash-in-the-pan logistics companies that… Show more

While the logistics industry is still in the early stages of adopting AI in its supply chain, many companies are investing in digital abilities to expand services to clients. In times of uncertainty, it’s the ability of a logistics company to offer real-time container analysis for clients and provide them with certainty that makes a difference.

The freight recession continues to weed out the diversified logistics companies versus the overhyped, flash-in-the-pan logistics companies that masked themselves as “tech companies.” While valuations of these companies have made them Wall Street darlings, the CEOs who make grand promises can’t shield their companies from the reality that they are one-trick ponies.

The digital arena has been flooded with logistics visibility platforms the past several years. Charmed by the promises they offer, logistics companies pay to access these platforms and use several in order to achieve full visibility of their supply chain.

ITS Logistics is entering this digital arena with its container management and visibility platform ContainerAI. The platform, which is free for clients, offers a full tech stack of digital data that shows a client’s full supply chain from origin to destination. ContainerAI is also available as a stand-alone software-as-a-service offering for any containers that are not managed by ITS.

The 25-year-old logistics company is also a member of the U.S. Department of Transportation’s data-sharing initiative, Freight Logistics Optimization Works (FLOW), and ContainerAI has been integrated into it.

The platform, which took four years of testing, includes ocean voyages, port charges, container dwell time, rail transport and ground logistics. Show less

Vessels transiting the Red Sea have faced attacks over the past several weeks from Yemen-based Houthis, prompting shipping companies to change routes, leading to a spike in freight rates.

Embarking on longer detours around the Cape of Good Hope in South Africa have pushed ocean freight rates by up to $10,000 per 40-foot container, as container ships have diverted more than $200 billion of goods away from the Red Sea waterway to avoid strikes by Houthi militants.

U.S.-owned… Show more

Vessels transiting the Red Sea have faced attacks over the past several weeks from Yemen-based Houthis, prompting shipping companies to change routes, leading to a spike in freight rates.

Embarking on longer detours around the Cape of Good Hope in South Africa have pushed ocean freight rates by up to $10,000 per 40-foot container, as container ships have diverted more than $200 billion of goods away from the Red Sea waterway to avoid strikes by Houthi militants.

U.S.-owned commercial vessel, the Gibraltar Eagle, was struck by Houthi militants on Monday, the U.S. Central Command said.

Some market watchers expect the disruptions could bring about a reversal in fortunes of an industry that was mired in a recession last year.

“As to the higher rates in 2024, this could add multiple billions to the bottom line of the VOCC even if this lasts for just another two or three weeks,” Alan Baer, CEO of logistics company OL USA, told CNBC in an email. Show less

US west coast ports are bracing for a surge in imports, driven by the convergence of supply chain and geopolitical chaos – and there’s little sign of an imminent return to normal.

Factors include the resumption of inventory build-up, returning flows that had been diverted to other US gateways during last year’s labour contract negotiations, a knock-on effect from problems affecting transits through the Panama and Suez canals and concerns about potential disruption at east coast ports as… Show more

US west coast ports are bracing for a surge in imports, driven by the convergence of supply chain and geopolitical chaos – and there’s little sign of an imminent return to normal.

Factors include the resumption of inventory build-up, returning flows that had been diverted to other US gateways during last year’s labour contract negotiations, a knock-on effect from problems affecting transits through the Panama and Suez canals and concerns about potential disruption at east coast ports as port labour contract negotiations get under way.

“There’s a perfect storm coming for the west coast,” predicted Weston LaBar, SVP industry relations at Cargomatic.

The west coast ports have clocked up strong increases in throughput in recent months, reversing the loss of momentum to rivals on the US east and Gulf coasts, and this trend is expected to continue.

Mr LaBar pointed out that shipping rates from Asia to the west coast had outpaced rate increases to east coast ports.

One element still missing in the equation is solid shipper input. He said: “Most shippers have not given their forecasts yet,” adding that these should come in after the Chinese New Year holiday next month.

The multi-fuelled boost in volume is causing some concern about the ability of ports and inland carriers to manage without suffering congestion.

Still, he is not concerned. He does not anticipate an astronomical increase in volume. Moreover, port infrastructure is in better shape than at the early part of the pandemic, when volumes climbed through the roof.

“A lot of infrastructure projects at the ports have been completed,” he said. and he noted that ports and terminals were getting ready for a spike in volumes. For example, restricting the number of empty containers they are taking on, to leave ample space for imports.

“I feel the ports should be able to handle the increased volume,” agreed Paul Brashier, VP drayage and intermodal of ITS Logistics. Show less

Trade is under attack in the Red Sea--and for business owners, it's another lesson in the importance of understanding your supply chain inside and out.

Since the start of the Israel-Hamas war on October 7, Houthis--Iranian-backed rebels--have threatened to target ships traveling to or from Israel to show their support of Hamas. Through the ongoing conflict, the group has attacked ships with no apparent ties to Israel, too, culminating in at least 25 merchant vessel attacks in the Red… Show more

Trade is under attack in the Red Sea--and for business owners, it's another lesson in the importance of understanding your supply chain inside and out.

Since the start of the Israel-Hamas war on October 7, Houthis--Iranian-backed rebels--have threatened to target ships traveling to or from Israel to show their support of Hamas. Through the ongoing conflict, the group has attacked ships with no apparent ties to Israel, too, culminating in at least 25 merchant vessel attacks in the Red Sea since mid-November, according to the U.S. Department of Defense.

As a result, shipping giants like CMA CGM, Hapag-Lloyd, and Maersk have paused travel through the Red Sea, with Maersk citing the "highly volatile" situation in a statement. That volatility isn't easing up: The U.S. and other countries released a joint statement on January 3 citing "a significant escalation over the past week targeting commercial vessels, with missiles, small boats, and attempted hijackings." Show less

Disruptions at US-Mexico rail crossings have been a growing headache for cargo owners and their logistics providers in recent months and, increasingly, firms are looking for alternatives to avoid their freight getting stuck at the border.

Indeed, major logistics provider CH Robinson has re-routed some rail traffic via other border points, some has transferred to trucks and some has been flown to US destinations.

The latest disruption struck on 18 December, when the US Customs &… Show more

Disruptions at US-Mexico rail crossings have been a growing headache for cargo owners and their logistics providers in recent months and, increasingly, firms are looking for alternatives to avoid their freight getting stuck at the border.

Indeed, major logistics provider CH Robinson has re-routed some rail traffic via other border points, some has transferred to trucks and some has been flown to US destinations.

The latest disruption struck on 18 December, when the US Customs & Border Protection... Show less

Ocean carriers are also expanding land-freight services for those using West Coast ports intead of the East Coast. This is a similar strategy deployed by Hapag-Lloyd during Covid, when it offered clients service across land to the West Coast from the East Coast because it was faster.

These diversions in trade will create opportunities for West Coast railroad companies, Union Pacific
and BNSF, a subsidiary of Berkshire Hathaway
. The extra containers will also be a boost for… Show more

Ocean carriers are also expanding land-freight services for those using West Coast ports intead of the East Coast. This is a similar strategy deployed by Hapag-Lloyd during Covid, when it offered clients service across land to the West Coast from the East Coast because it was faster.

These diversions in trade will create opportunities for West Coast railroad companies, Union Pacific
and BNSF, a subsidiary of Berkshire Hathaway
. The extra containers will also be a boost for trucking companies that also service those ports.

“Coming out of the holiday break we are seeing significant volumes being routed from Asia to the U.S. West Coast and via the Panama Canal to the U.S. East Coast to avoid the Suez Canal,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “We are forecasting this activity to increase as we get closer to the Lunar New Year peak season.” Show less

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, joins ‘Power Lunch’ to discuss the Red Sea attacks’ impact on global trade.

While companies moving urgent or critical items might opt to use air freight, the expense means it is not a blanket solution, said Paul Brashier, vice president of Drayage and Intermodal for supply chain group ITS Logistics.

Moving goods by air costs roughly 5-15 time more than by sea, where container shipping rates are still low by historical standards, said Brian Bourke, global chief commercial officer at SEKO Logistics.

If the time it takes to get goods to shelves doubles, more… Show more

While companies moving urgent or critical items might opt to use air freight, the expense means it is not a blanket solution, said Paul Brashier, vice president of Drayage and Intermodal for supply chain group ITS Logistics.

Moving goods by air costs roughly 5-15 time more than by sea, where container shipping rates are still low by historical standards, said Brian Bourke, global chief commercial officer at SEKO Logistics.

If the time it takes to get goods to shelves doubles, more shippers will switch to air - especially for high value goods like designer clothing and high-end electronics, said Bourke, who has already received queries from customers. Show less

ITS Logistics, meanwhile, is telling U.S. clients that the situation in the Red Sea and the Suez Canal is developing quickly, and that it could take weeks, if not months, to be resolved, according to Paul Brashier, vice president of drayage and intermodal for the company.

“We are recommending that shippers shipping goods from Southeast Asia to the US that were using the Suez Canal to consider booking the Trans-Pacific route to the U.S. West Coast,” said Brashier.

Brashier said the… Show more

ITS Logistics, meanwhile, is telling U.S. clients that the situation in the Red Sea and the Suez Canal is developing quickly, and that it could take weeks, if not months, to be resolved, according to Paul Brashier, vice president of drayage and intermodal for the company.

“We are recommending that shippers shipping goods from Southeast Asia to the US that were using the Suez Canal to consider booking the Trans-Pacific route to the U.S. West Coast,” said Brashier.

Brashier said the lower rates and transit are ideal and any eastbound containers could be moved by rail or truck.

OL-USA, likewise, is advising clients to utilize a multi-pronged approach for their shipments.

“This will involve using all 3 coasts to capture as much vessel space as required, as well as using rail and truck capacity,” said Alan Baer, CEO of OL-USA. “Shippers should also be looking to book ocean freight space from now through early February to allow for possible extended transit times.”

Logistics executives are also worried about a rapid increase in freight rates.

In June 2022, Congress passed the Ocean Shipping Reform Act, giving the Federal Maritime Commission (FMC) the tools it needed to clamp down on ocean carriers’ shipping price hikes.

“The FMC will monitor the rates very closely and see if there are any violations of the Shipping Act which prevents unreasonable behavior by the ocean carriers,” FMC Chairman Dan Maffei told CNBC. Show less

“Things have kind of stayed the course. The way contracts are working, you are locking into a contract either January, March, or April for the year. A lot of folks stay away from the West Coast because they went through labor negotiations, booked annual contracts in the East Coast. When you get into January and March of 2024, they are going to start seeing more shippers migrate back to the West Coast. That is because the transpacific route is quicker, it is going to be a lot more cost… Show more

“Things have kind of stayed the course. The way contracts are working, you are locking into a contract either January, March, or April for the year. A lot of folks stay away from the West Coast because they went through labor negotiations, booked annual contracts in the East Coast. When you get into January and March of 2024, they are going to start seeing more shippers migrate back to the West Coast. That is because the transpacific route is quicker, it is going to be a lot more cost effective. You have some geopolitical issues with the red sea right now. You have the Panama Canal that is restricting some flow. There will be some natural migration back to the West Coast from transpacific freight and that will migrate off the Southeast and the Gulf Coast. There are lines of business that are going to stay there since infrastructure was put in place. There are new industries that are going in. I’m down here in Galveston Texas. I can see the ships lining up off the coast. They are steadily coming in. A lot of that freight, especially in the Gulf Coast in Huston Texas market is infrastructure related freight, project freight, energy, oil and gas etc. There are some natural industries that stay but you will see a migration as we get next year back into the West Coast. One thing we are going to be keeping an eye on if the West Coast can handle the new volumes and any increases—you know what is probably going to be the first time in a couple years.” Paul Brashier. Show less

The global shipping industry has been mired in a freight recession this year and the challenging economic conditions will continue into 2024, according to a new CNBC Supply Chain Survey. High inventories and a pullback in consumer spending are reasons behind the bearish outlook.

The CNBC Supply Chain Survey was conducted October 21-October 31 among logistics executives who manage freight manufacturing orders and transportation, including those at C.H. Robinson, SEKO Logistics, DHL Global… Show more

The global shipping industry has been mired in a freight recession this year and the challenging economic conditions will continue into 2024, according to a new CNBC Supply Chain Survey. High inventories and a pullback in consumer spending are reasons behind the bearish outlook.

The CNBC Supply Chain Survey was conducted October 21-October 31 among logistics executives who manage freight manufacturing orders and transportation, including those at C.H. Robinson, SEKO Logistics, DHL Global Forwarding Americas, Kuehne + Nagel, OL USA and ITS Logistics. These companies have insight into the orders shippers place into manufacturing companies around the world because they pick up the product from the ports as well as distribute products from warehouses to retailers.

This part of the trade pipe gives investors a three-to-four-month advance insight into retail consumer expectations based on the number of orders placed and the amount of product they have truckers move from the warehouses to the stores. It also provides a read on freight rates and what kind of freight volumes will be moved by truck and by rail — two key revenue drivers for companies in the shipping sector. Show less

As holiday shopping season begins, lack of big orders from retailers is the rule amid fears that consumer spending will be weak, according to a new CNBC Supply Chain Survey.

At C.H. Robinson, which serves 7,500 retailers, customers are generally being cautious, said Noah Hoffman, vice president for North American Surface Transportation, with inflation still an issue and ongoing uncertainty about the U.S. economy and risk of recession.

“The largest retailers are past working… Show more

As holiday shopping season begins, lack of big orders from retailers is the rule amid fears that consumer spending will be weak, according to a new CNBC Supply Chain Survey.

At C.H. Robinson, which serves 7,500 retailers, customers are generally being cautious, said Noah Hoffman, vice president for North American Surface Transportation, with inflation still an issue and ongoing uncertainty about the U.S. economy and risk of recession.

“The largest retailers are past working through their excess inventories, but careful not to over-order,” Hoffman said, while some of the small- to medium-sized retailers are still destocking.

The national inventory-to-sales ratio, which on the surface appears to have returned to a pre-pandemic level, is skewed by the largest retailers, he said, adding that, “further upstream in the retail supply chain, many wholesalers are also still carrying excess inventory.”

C.H. Robinson’s economics team believes that the economy is approaching an inflection point in consumer spending as Americans deplete savings they built up from pandemic stimulus.

“We’re already seeing this emerge in some leading indicators like loan and credit-card delinquencies,” Hoffman said.

During earnings, major U.S. banks have presented a picture of the consumer that is more resilient. “Where am I seeing softness in [consumer] credit?” said JPMorgan chief financial officer Jeremy Barnum, repeating an analyst’s question on the bank’s earnings call. “I think the answer to that is actually nowhere.”

But the recent message from retailers and shippers has been more pessimistic. At the CNBC Evolve Global Summit last Thursday, Target
CEO Brian Cornell said the company is doubling down on its cautious outlook for the holiday season. At the same event, FedEx CEO Raj Subramaniam said that while the destocking period has ended for retailers, restocking has not been widespread. Show less

Starting Friday, the Panama Canal Authority is implementing additional vessel reductions in an effort to conserve water as a drought exacerbated by a severe El Nino weather system continues to plague water levels in the locks of the key global trade conduit.

According to Panama Canal authorities, the drought requires them to reduce the number of daily transits from 29 to 25 ships and in the proceeding weeks, they will reduce vessels transits even more until it declines to 18 ships a day… Show more

Starting Friday, the Panama Canal Authority is implementing additional vessel reductions in an effort to conserve water as a drought exacerbated by a severe El Nino weather system continues to plague water levels in the locks of the key global trade conduit.

According to Panama Canal authorities, the drought requires them to reduce the number of daily transits from 29 to 25 ships and in the proceeding weeks, they will reduce vessels transits even more until it declines to 18 ships a day in February. That represents between 40%-50% of full capacity. Under normal conditions, between 34-36 vessels traversed the canal daily. The drought and vessel reductions are having a major impact on the flow of trade, according to data from CNBC Supply Chain providers.

According to Project44, shipping containers going through the Panama Canal to the U.S. East Coast are being delayed in select ports, with the Port of Charleston seeing the longest in delays. Show less

The October edition of the ITS Logistics US Port/Rail Ramp Freight Index, which was recently issued by Reno, Nev.-based ITS Logistics, a 3PL focused on drayage and intermodal services, pointed to ports running smoothly and not seeing any major interruptions, coupled with an observation that the trucking market is seeing more capacity leaving the market than entering it.

The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific… Show more

The October edition of the ITS Logistics US Port/Rail Ramp Freight Index, which was recently issued by Reno, Nev.-based ITS Logistics, a 3PL focused on drayage and intermodal services, pointed to ports running smoothly and not seeing any major interruptions, coupled with an observation that the trucking market is seeing more capacity leaving the market than entering it.

The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic, and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions.

This report highlights up-to-date port conditions, potential headwinds, and insights that can help industry stakeholders make informed drayage and intermodal decisions in the coming months. The full report is comprised of updated marine terminal conditions across the Pacific, Atlantic, and Gulf regions and the West and East inland regions of the United States, looking at factors such as vessel congestion, terminal operations, chassis availability, container storage, transload availability, outbound capacity, ramp congestion, and ramp operations, according to ITS Logistics.

“Terminal operations on the U.S. West Coast are the best they’ve been in years, and terminal operations throughout the U.S. are in great shape,” said Paul Brashier, Vice President of Drayage and Intermodal for ITS Logistics, in a statement. “I don’t foresee shippers experiencing demurrage or ramp storage issues as there is enough trucking capacity to pull containers effectively. There has been increased reports of capacity and drivers exiting the market, and that is one focal point that shippers should be mindful of as they move forward in the month.”

Brashier added that as trucking rates continue to plummet, many trucking providers are operating at a loss to maintain revenue streams. Show less

The collapse of Yellow Freight, the third-largest operator on the US less-than-truckload scene, hit headlines beyond the industry, but meanwhile devastation generally is playing out across the truckload sector – with the worst yet to come.

Since last year, a rising number of truckers have gone out of business as demand shrank, costs surged and worsening overcapacity pushed rates down.

Although some observers and players have predicted the imminent bottoming-out of the market, in… Show more

The collapse of Yellow Freight, the third-largest operator on the US less-than-truckload scene, hit headlines beyond the industry, but meanwhile devastation generally is playing out across the truckload sector – with the worst yet to come.

Since last year, a rising number of truckers have gone out of business as demand shrank, costs surged and worsening overcapacity pushed rates down.

Although some observers and players have predicted the imminent bottoming-out of the market, in recent weeks the downward trend has continued. According to a study by the US Federal Reserve, freight activity and demand declined between late August and early October, which the authors attribute to excess capacity, weak exports and fewer energy product shipments.

And the combination of surging fuel costs and weak demand in August resulted in what has been described as the toughest market conditions since the early days of the pandemic.

The FTR Trucking Conditions Index slumped from a negative reading of -5.34 in July, to -12.54 in August, and the index noted that surges in diesel costs had hit small operators disproportionately, “as they are less likely to benefit from fuel surcharges”.

The road of pain has lengthened month by month; last year trucker revenues rose 7%, whereas costs climbed 22%, according to Freight 360. Moreover, many who struck out on their own during the pandemic bought trucks at inflated prices, and now find the interest payments tougher to sustain.

“As trucking raters continue to plummet, many trucking providers are operating at a loss to maintain revenue streams,” said Paul Brashier, VP drayage and intermodal at ITS Logistics. “While diesel prices continue to increase, more freight carriers are expected to exit the market.” Show less

“Terminal operations on the U.S. West Coast are the best they’ve been in years, and terminal operations throughout the U.S. are in great shape,” said ITS Logistics Vice President of Drayage and Intermodal Paul Brashier. “I don’t foresee shippers experiencing demurrage or ramp storage issues as there is enough trucking capacity to pull containers effectively. There has been increased reports of capacity and drivers exiting the market, and that is one focal point that shippers should be mindful… Show more

“Terminal operations on the U.S. West Coast are the best they’ve been in years, and terminal operations throughout the U.S. are in great shape,” said ITS Logistics Vice President of Drayage and Intermodal Paul Brashier. “I don’t foresee shippers experiencing demurrage or ramp storage issues as there is enough trucking capacity to pull containers effectively. There has been increased reports of capacity and drivers exiting the market, and that is one focal point that shippers should be mindful of as they move forward in the month.”

According to a recent FreightWaves study, ITS Logistics reports that “it is suggested that the trucking market has 78 weeks to go before capacity is back in balance with historical trends.” As of September 2022, the market has churned an average of 435 fleets per week. The Bureau of Transportation Statistics, ITS Logistics reports, confirmed that of the approximately 531,000 carriers, 99% operate 100 or fewer trucks. In addition, almost 97% of carriers have fewer than 10 trucks. While diesel prices continue to increase, ITS Logistics says, “more freight carriers are expected to exit the market, numbers rose in September and remained close to near-record highs that were seen in the second quarter.” AAA confirmed that the national average for diesel prices on Monday lingered at $4.456 but is still down from $5.271 just one year ago.

“As trucking rates continue to plummet, many trucking providers are operating at a loss to maintain revenue streams,” continued Brashier. “As fuel, insurance, and liability costs continue to rise in this low-rate environment, trucking capacity will exit at a rate higher than new capacity entering the market. Prior to exiting the market, financially struggling trucking capacity will sacrifice staff, safety, security of freight, and operational excellence. Obtaining cheap rates in this environment will be easy; the concern needs to be focused on how long those rates will be sustainable.” Show less

“Port terminal operations continue to run without any major congestion or equipment shortages,” said Paul Brashier, Vice President of Drayage and Intermodal for ITS Logistics.

The Atlantic and Gulf hurricane season is being forecasted by the NOAA to be above normal due to elevated water temperatures. However, the direct landfall of these storms around ocean terminals and ramps is not a major concern. The Panama Canal has been experiencing low water levels and restrictions on vessels;… Show more

“Port terminal operations continue to run without any major congestion or equipment shortages,” said Paul Brashier, Vice President of Drayage and Intermodal for ITS Logistics.

The Atlantic and Gulf hurricane season is being forecasted by the NOAA to be above normal due to elevated water temperatures. However, the direct landfall of these storms around ocean terminals and ramps is not a major concern. The Panama Canal has been experiencing low water levels and restrictions on vessels; however, containerized cargo is not being affected.

“It should also be noted that both Seattle and Tacoma are receiving additional volumes that were originally destined for British Columbia while shippers continue to avoid any disruptions due to the aftermath of the West Coast Canada labor activity experienced this summer,” continued Brashier.

While Seattle and Tacoma port terminals have plenty of capacity to effectively manage and process any received volume, there is a concern that limited rail provider equipment and capacity may cause delays in transit for IPI freight.

Chicago area ramps are also still struggling to process freight that was delayed due to the events that occurred during the West Coast Canada strike.

“Both congestion and equipment challenges are reducing driver productivity and the number of containers a driver can pull in a day. This has resulted in an increased cost to truckers,” states Brashier. Show less

Cargo owners have also looked in inland ports to avoid seeing their cargo stuck at ocean gateways. Two years ago, retail chain Canadian Tire acquired a 25 per cent stake in Ashcroft Terminal, in inland port about 300km from Vancouver , served by both Canadian Class 1 railways.

In recent years, inland ports have come to be viewed as relief valves for container ports to free-up space on their congested docks, but this does not necessarily result in shorter delivery windows to… Show more

Cargo owners have also looked in inland ports to avoid seeing their cargo stuck at ocean gateways. Two years ago, retail chain Canadian Tire acquired a 25 per cent stake in Ashcroft Terminal, in inland port about 300km from Vancouver , served by both Canadian Class 1 railways.

In recent years, inland ports have come to be viewed as relief valves for container ports to free-up space on their congested docks, but this does not necessarily result in shorter delivery windows to consignees.

“During the pandemic some clients pulled freight from the gateways rather than inland ports to get their cargo earlier” noted Paul Brashier, vice president of drayage and intermodal at ITS Logistics.

Both he (Bob Imbriani) and Brashier have noticed an increase in the use of inland ports as congestion eased and consignees found themselves inundated with inventory. Show less

IANA’s geofencing library can be paired with other technological uses such as BNSF Railway’s drones and cameras mounted to yard hostlers or Hapag-Lloyd’s project to equip its boxes with tracking sensors. If others were to follow BNSF and Hapag-Lloyd into using smart containers or smart terminals, truckers and cargo owners could use IANA’s library to catch erroneous detention or demurrage fees.

“The invoicing process takes a while and sometimes the drivers don’t retain tickets from the… Show more

IANA’s geofencing library can be paired with other technological uses such as BNSF Railway’s drones and cameras mounted to yard hostlers or Hapag-Lloyd’s project to equip its boxes with tracking sensors. If others were to follow BNSF and Hapag-Lloyd into using smart containers or smart terminals, truckers and cargo owners could use IANA’s library to catch erroneous detention or demurrage fees.

“The invoicing process takes a while and sometimes the drivers don’t retain tickets from the terminal showing their transaction, or retain the paperwork, making it harder to challenge the fees,” said Paul Brashier, vice president of drayage and intermodal for ITS Logistics. “If you have like geofencing and a scanning mechanism set up, you can show the ocean carrier an electronic record of what happened and when. It’s written. It’s hard evidence.” Show less

Paul Brashier, vice president of ITS Logistics, tells American Shipper, “Right now, we are shifting resources to create contingency plans for trans-Pacific freight that is planning to be routed to the U.S. West Coast as opposed to U.S. Gulf and East Coast to avoid current weeks-long delays at the Panama Canal.”

This weather event will have a long-term impact on the canal, in which less revenue will be collected. Revenues, of course, are used in maintenance, repair and construction of the… Show more

Paul Brashier, vice president of ITS Logistics, tells American Shipper, “Right now, we are shifting resources to create contingency plans for trans-Pacific freight that is planning to be routed to the U.S. West Coast as opposed to U.S. Gulf and East Coast to avoid current weeks-long delays at the Panama Canal.”

This weather event will have a long-term impact on the canal, in which less revenue will be collected. Revenues, of course, are used in maintenance, repair and construction of the canal.

The canal, flanked by two oceans, has water everywhere, yet not enough to provide normal transit. It’s like being stranded on an island with no ability to extract salt from the ocean water to drink. Mother Nature is the ultimate arbiter in this situation. Until it rains, the ACP has to rely on its communication and management to keep the flow of trade moving as safely as possible.

In times of crisis, it is how leaders deploy strategies that will determine their success or failure. Trade always finds a way to flow. It has to. The challenge presented at one trade route offers opportunity for another. Right now, we are at a point where leaders will need to make actionable decisions. Time is money and the value of that dollar is diminishing with each passing day because of inflation.

“I think there will be some realignment of supply chains and requests to switch the routing,” Baer said. “Some will choose U.S. West Coast gateways. Heavy cargo will for sure want Suez routings, and other companies may push some to the Suez and some to the Panama [Canal] to hedge their bets.” Show less

Based on current port data compiled by American Shipper, the East and Gulf Coast ports are strongly favored over West Coast ports. The Port of Los Angeles earlier this week announced a 26% drop in twenty-foot equivalent units processed year over year in July. Compared to June, there was a drop of 148,744 TEUs processed in July. The ports of Savannah, Georgia, and Houston both recorded increases over the same time frame. Port Houston was up 5% year over year with its July container… Show more

Based on current port data compiled by American Shipper, the East and Gulf Coast ports are strongly favored over West Coast ports. The Port of Los Angeles earlier this week announced a 26% drop in twenty-foot equivalent units processed year over year in July. Compared to June, there was a drop of 148,744 TEUs processed in July. The ports of Savannah, Georgia, and Houston both recorded increases over the same time frame. Port Houston was up 5% year over year with its July container processing.

Paul Brashier, vice president of drayage for ITS Logistics, told American Shipper that in recent years, 5%-10% of trans-Pacific freight volumes moved from the U.S. West Coast to the Gulf and East coasts and the situation in the Panama Canal could be problematic for holiday shipment volumes in 2023.

“To avert the situation, some shippers are rebooking to the U.S. West Coast and this activity will continue to increase as we go through the next couple of months,” Brashier said.

Ashiq warned diversions to other ports can also lead to possible port congestion.

But delays are mounting, which has resulted in clean tankers that carry refined petroleum products avoiding the canal, shifting their preference to book routes to the Atlantic Basin, according to S&P Global. Data from its Commodities at Sea unit shows that in the combined June to July period, U.S. Gulf Coast clean petroleum product exports using the canal and traveling to the west coast of South America slowed by 82% year over year. Exports in July, specifically, were down 12% year over year.

Cheniere Energy announced in July that it would avoid the Panama Canal to ship LNG because of the wait times. The canal is the quickest route for the LNG market to reach Asia. Coal traffic is also being impacted and making adjustments. India is a big importer of U.S. coal and vessels carrying the commodity also use the Panama Canal.

Other commodities such as coal are also being diverted, according to the ACP. Show less

As peak season US containerised imports arrive at ports, with goods for the prime shopping season, the latest monthly US Port/Rail Ramp Freight Index, from ITS Logistics, shows uncongested flows through the ports and rail system.

The exception is at railheads in the midwest and east, where ITS warns clients of “elevated to severe disruption” in the coming weeks.

It advises them to expect problems with ramp congestion, ramp operations and chassis availability, which has caused… Show more

As peak season US containerised imports arrive at ports, with goods for the prime shopping season, the latest monthly US Port/Rail Ramp Freight Index, from ITS Logistics, shows uncongested flows through the ports and rail system.

The exception is at railheads in the midwest and east, where ITS warns clients of “elevated to severe disruption” in the coming weeks.

It advises them to expect problems with ramp congestion, ramp operations and chassis availability, which has caused serious delays for importers in the past.

But overall, the situation is in contrast with usual peak season patterns, with no significant issues in terminal and rail fluidity.

The report says: “There were some elevated volumes for peak, but with inventory levels still high in most segments of the economy, demand is at some of the lowest levels in years.”

However, a combination of elevated volumes and lack of available container chassis is causing problems at rail ramps in the midwest and east.

“Chicago is problematic,” reported Paul Brashier, VP drayage and intermodal at ITS Logistics, and said rail ramps in the Omaha and Dallas regions were also experiencing problems.

The ITS Index shows elevated or severe congestion at Chicago, Memphis, Nashville, Charlotte, Columbus and Atlanta, and the report warns: “Lack of ocean chassis equipment and increased volumes will cause significant operational issues and additional costs.”

A factor that has increased the otherwise only modestly higher volumes is the end of the strike at western Canadian ports, which has released containers stuck in ports, notably at Vancouver, during the stand-off between the union and marine employers.

There are not enough chassis available at the rail ramps, Mr Brashier noted. “There are plenty of chassis; they’re just in the wrong place. There’s tons of chassis on the eastern seaboard.” Show less

Third-party logistics provider ITS Logistics in its August report is warning clients of capacity issues both on the road and rails.

“We have been calling the lack of ocean chassis availability for months,” Brashier said. “This problem has metastasized due to the volumes of containers being finally moved out of British Columbia to the ramps in Chicago and the Midwest. The pain is real for our clients. The effects of this will be significant increases in ramp storage and transportation… Show more

Third-party logistics provider ITS Logistics in its August report is warning clients of capacity issues both on the road and rails.

“We have been calling the lack of ocean chassis availability for months,” Brashier said. “This problem has metastasized due to the volumes of containers being finally moved out of British Columbia to the ramps in Chicago and the Midwest. The pain is real for our clients. The effects of this will be significant increases in ramp storage and transportation costs and potential line down situations.”

Breaking out the rails, ITS has put the East Coast ramps in the “severe category,” citing congestion at the ramps both in operations and chassis availability.

Paul Brashier, vice president of drayage at ITS Logistics, says the lack of ocean chassis equipment and increased volumes will cause significant operational issues and create additional costs.

As a result of the congestion, ITS says it will be imperative for companies to consider avoiding booking low-inventory or high-demand SKUs to the ramps of the Midwest. It is also urging clients to instead move some volumes to be transloaded and moved inland via truckload or intermodal.

This is why visibility technology is so important, Brashier added. “It enables you to have time to make decisions. The deeper you can get a line of sight into future client demand and the current state of equipment supply and operations, helps you be nimble in terms of how to pivot.” Show less

Members of the International Longshore and Warehouse Union (ILWU) of Canada voted to ratify the second tentative agreement with West Coast port ownership, meaning an end to the uncertainty and trade congestion that has gripped the supply chain for weeks since dock workers first decided to strike.

Rob Ashton, president of the ILWU, said 74.66% of members voted in favor of accepting the terms of the tentative agreement.

The union argued that worker salaries were unsustainable… Show more

Members of the International Longshore and Warehouse Union (ILWU) of Canada voted to ratify the second tentative agreement with West Coast port ownership, meaning an end to the uncertainty and trade congestion that has gripped the supply chain for weeks since dock workers first decided to strike.

Rob Ashton, president of the ILWU, said 74.66% of members voted in favor of accepting the terms of the tentative agreement.

The union argued that worker salaries were unsustainable against rising inflation, but the BCMEA countered that over the past 13 years, longshore wages have risen by 40%, ahead of inflation at 30%. The union said that the use of contract labor for maintenance work was another sticking point in the deal.

The BCMEA said the ratification would provide “certainty and stability for the future of Canada’s West Coast ports.”

“The BCMEA recognizes and regrets the profound repercussions this labor disruption has had on the national economy, workers, businesses and ultimately, all Canadians that depend on an efficient and reliable supply chain. All supply chain stakeholders must collaborate now to ensure we do not see disruptions like this ever again.”

But, after a week of traveling and meeting shipping clients, Paul Brashier, vice president of drayage at ITS Logistics, told CNBC the reliability and reputation of the Canadian ports have created lasting damage.

“We are happy that the ILWU has finally come to terms and agreed to a new contract,” said Brashier. “Unfortunately, this lack of government intervention and direction has forced cargo owners and shippers in our network to make the decision and permanently move their imports back to the U.S. port of entry on the West Coast.” Show less

The International Longshore and Warehouse Union of Canada (ILWU) and the British Columbia Maritime Employers Association (BCMEA) late Sunday announced a tentative labor agreement.

The two sides reached the deal with the assistance of the Canada Industrial Relations Board, according to a joint statement. “The parties are recommending ratification of the collective agreement to the union’s membership and member employers respectively.”

No specific details on the new deal were… Show more

The International Longshore and Warehouse Union of Canada (ILWU) and the British Columbia Maritime Employers Association (BCMEA) late Sunday announced a tentative labor agreement.

The two sides reached the deal with the assistance of the Canada Industrial Relations Board, according to a joint statement. “The parties are recommending ratification of the collective agreement to the union’s membership and member employers respectively.”

No specific details on the new deal were given.

“The critical issue is the practice of contracting out maintenance work that poses a significant threat to job security and the integrity of the LWU workforce,” Rob Ashton, president of ILWU Canada, said in a separate statement. “We are deeply concerned if left uncheck, this practice will lead to an eroision of our workforce and expertise, ultimately jeopardizing the stability and efficiency of Canada’s maritime industry.”

Ashton also said the union members view their work stoppages as a last resort.

Canadian Labor Minister Seamus O’Regan commented Monday morning on the announcement of another tentative deal. Show less

The timing of this strike adds unnecessary hurdles to peak season when holiday items are arriving for retailers. At the height of the strike, $12 billion in freight was stranded on the water. Some of that trade was diverted on vessels that called on ports on the U.S. West Coast.

“Our clients are facing about a two-month delay in the delivery of their product,” said Paul Brashier, vice president of drayage at ITS Logistics. “The vessel was delayed by several weeks and now the rail-bound… Show more

The timing of this strike adds unnecessary hurdles to peak season when holiday items are arriving for retailers. At the height of the strike, $12 billion in freight was stranded on the water. Some of that trade was diverted on vessels that called on ports on the U.S. West Coast.

“Our clients are facing about a two-month delay in the delivery of their product,” said Paul Brashier, vice president of drayage at ITS Logistics. “The vessel was delayed by several weeks and now the rail-bound containers sit at the Ports of Vancouver and Prince Rupert.”

Steve Lamar, CEO of the American Apparel and Footwear Association, said his group estimated that the first strike would cause an average of 6 to 8 weeks of supply chain disruption before conditions return to normal. AAFA had called on the Canadian government to step in during the first strike.

For the third week in a row, rail traffic from Canada into the U.S. is down following the on-again, off-again western Canadian ports strike. The first two weeks of the labor strike prevented over 80% of rail trade from entering the United States. The U.S. saw another 12% decrease in trade this week. Show less

The strike has left logistics managers and the world of trade in turmoil as they attempt to assess the situation and make decisions about changing ports.

Paul Brashier, vice president of drayage for ITS Logistics, said his client’s containers were finally unloaded a month late.

“We tracked the vessel which was at anchor at the start of the strike to leave to go to Seattle and drop off U.S. bound containers,” Brashier said. “Finally the vessel went back only to wait again with the… Show more

The strike has left logistics managers and the world of trade in turmoil as they attempt to assess the situation and make decisions about changing ports.

Paul Brashier, vice president of drayage for ITS Logistics, said his client’s containers were finally unloaded a month late.

“We tracked the vessel which was at anchor at the start of the strike to leave to go to Seattle and drop off U.S. bound containers,” Brashier said. “Finally the vessel went back only to wait again with the on-again, off-again strike. Now my client sits and waits.”

According to eeSea, there were three new vessel port diversions and one new port change, bringing the total to seventeen port swaps and thirteen diversions since the start of the strike on July 1. As a result, $12 bilion in freight was stranded on the water.

ILWU West Coast Canadian Chapter members are expected to vote on a tentative agreement on Thursday and Friday. There is no timeline on the announcement of the vote results, according to the union.

The terms of the deal include a four-year package with a compounded 19.2% wage increase over the four years, which would result in the median ILWU income moving from $136,000 to $162,000, not including benefits and pension, according to the British Columbia Maritime Employers Association, which represents port ownership. It disclosed that the proposed deal also provides an 18.5% increase in retirement lump sum payment in addition to pensions, increased tool allowances, benefits, and pension contributions. Show less

August is “peak season” when shippers start to bring in their holiday goods, and container space is also limited by ocean carriers, leading to higher prices. According to space availability monitored by logistics coordinators, the U.S. West Coast route is getting tight as the overall capacity is reduced by ocean carriers, while the U.S. East Coast is still open, but is getting tight with additional canceled sailings in July.

Captain Adil Ashiq, head of North America for MarineTraffic… Show more

August is “peak season” when shippers start to bring in their holiday goods, and container space is also limited by ocean carriers, leading to higher prices. According to space availability monitored by logistics coordinators, the U.S. West Coast route is getting tight as the overall capacity is reduced by ocean carriers, while the U.S. East Coast is still open, but is getting tight with additional canceled sailings in July.

Captain Adil Ashiq, head of North America for MarineTraffic, said the strike will further delay the waiting cargo and further choke the supply chain.

“Vessels who had gone back East to Asia and now returning are once again faced with deja vu on what to do next,” Ashiq said. For companies expecting inbound cargo, he said it is critical for freight forwarders to ensure they have a handle on the current situation and contingency plans are in place for ocean carriers to seek alternative ports to unload cargo.

“Even with trade volumes down this will have a negative impact on the supply chain,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “Product will be delayed. Between the jockeying for vessel space and the associated late container fees that will be tacked onto the containers, the consumer in the end will pay for this,” he said.

In addition to wage increases, the tentative labor deal addressed the union’s concern regarding “contracting out” work and measures to improve training, recruitment, and retention of jobs. The BCMEA also agreed to provide benefit coverage for all casual trades workers, a tool allowance, and a commitment to increase apprentices in the industry by 15%.

In a statement, the BCMEA said, “Clearly this fair and equitable package wasn’t enough for the ILWU internal leadership, and they chose to instead remain entrenched in their position with little regard to the lives and jobs they are impacting.” Show less

With the tentative agreement, hopefully the mess will be untangled soon. Paul Brashier, vice president of drayage and intermodal at ITS Logistics, explains how long he thinks it will take:

“My rule of thumb when we deal with stuff like this is for every week that a port is shut down, it's about three to four weeks to untangle it. So I'd say it’ll take six to eight weeks to get back to normal.”

Kaylee Nix and Anthony Smith host the show as the strike is over in Canada with a labor deal reached yesterday with guest Paul Brashier, VP of drayage and intermodal at ITS Logistics.

What are some of the big impacts we are going to see immediately after this?

“We have two weeks of freight sitting in Vancouver and Prince Rupert that need to get out. The biggest concern in the near term is going to be getting drivers into the ports and getting that freight out of the terminals. We… Show more

Kaylee Nix and Anthony Smith host the show as the strike is over in Canada with a labor deal reached yesterday with guest Paul Brashier, VP of drayage and intermodal at ITS Logistics.

What are some of the big impacts we are going to see immediately after this?

“We have two weeks of freight sitting in Vancouver and Prince Rupert that need to get out. The biggest concern in the near term is going to be getting drivers into the ports and getting that freight out of the terminals. We did increase the amount of drivers and increased the amount of containers that need to get out. We are going to be looking to get as much of that freight out as possible and then our hope is that because the trucking community and the shipping community were the cause of this, we will get some alleviation of demurrage and free time to get those out. Then the next thing we will be looking at is all the IPI that is coming into those ports that are going to the Detroit and Chicago and the Midwest. They are all going to start arriving at the same time and there is already some capacity issues for chassis and some congestion that we are seeing in Chicago. There is also going to be a concern that a lot of these containers will show up and they will sit. You have 24-48 hour that you usually get from the ramps to get that freight out. If you don’t get that freight out then there is the storage charges that could accumulate there. We are hoping that the rail providers to the ramp operators will also extend some free time to get that freight out, to make sure that trucking community and BCOs are not footing the bill for this impasse that could not get resolved last two weeks.” said Paul Brashier VP of drayage and intermodal at ITS Logistics. Show less

The strike at the Canada’s West Coast ports is over, after both the labor union and port ownership accepted a deal presented by federal mediators. ILWU Canada union workers were expected to be back on the job for the 4:30 p.m. Pacific time shift on Thursday, but undoing the damage to the supply chain from close to two weeks of strike will take weeks.

In a statement posted to Twitter announcing that a deal had been reached, Canadian Labor Minister Seamus O’Regan and Transport Minister… Show more

The strike at the Canada’s West Coast ports is over, after both the labor union and port ownership accepted a deal presented by federal mediators. ILWU Canada union workers were expected to be back on the job for the 4:30 p.m. Pacific time shift on Thursday, but undoing the damage to the supply chain from close to two weeks of strike will take weeks.

In a statement posted to Twitter announcing that a deal had been reached, Canadian Labor Minister Seamus O’Regan and Transport Minister Omar Alghabra said, “The scale of this disruption has been significant.”

While the production ramp down at the ports was seen immediately, the congestion as a result of the 13-day strike will have a lasting effect on ports. The ramping back up takes weeks before efficiencies will be regained. By combing the wait time of vessels getting into port and unloaded, and containers loaded onto the rails, combined delays can extend from a month to at least two months for a U.S. arrival.

The International Longshoremen and Warehouse Union of Canada begin its strike on July 1. Negotiations between the ILWU Canada and the British Columbia Maritime Employers Association were tense, but O’Regan saw differences as bridgeable, leading him to push federal mediators on Tuesday to come up with a proposal both sides could agree to. Show less

Paul Brashier, VP of drayage and intermodal ITS Logistics joins Mike Smyth to talk about the Vancouver port strike.

“ITS Logistics has clients throughout all of North America and the biggest thing we are seeing as far as effect on US supply chains, is a lot of that freight coming into Prince Rupert and Vancouver transitions over to rail which gets pulled off the ramps for auto manufacturers, distributors, retailers in the mid-west. Primarily Chicago but also in Indy over in Columbus… Show more

Paul Brashier, VP of drayage and intermodal ITS Logistics joins Mike Smyth to talk about the Vancouver port strike.

“ITS Logistics has clients throughout all of North America and the biggest thing we are seeing as far as effect on US supply chains, is a lot of that freight coming into Prince Rupert and Vancouver transitions over to rail which gets pulled off the ramps for auto manufacturers, distributors, retailers in the mid-west. Primarily Chicago but also in Indy over in Columbus. That freight we call just in time supply chains which means they don’t have a lot of slack before they start missing that freight which in turn could shut down operations at a lot of facilities in the United States. ” said Paul Brashier.

This is how much is on the line here on both sides of the boarder. When you take a look at that shipping network that you are describing, are we in peak shipping season right now? There is a lot of stuff being shipped through the ports right now.

“It is Mike. When you go to the store in November or October to buy Christmas gifts or even back to school supplies. A lot of those goods are coming into North America right now and during the last ILWU headwinds that we had in the states and further back into the Covid times, this area in British Columbia and Prince Rupert and in Vancouver were set up to be stop gaps or release valves to continue to get freight into United States and in the central and eastern Canada. What you will probably start seeing is considerably more congestion and more problems–kind of metastasized down in the western part of the United States and the mid-west because of the strike activity.” said Brashier.

When we have all these ports shut down in British Columbia, what do the shipping companies do? Is there any type of work around for them? Can they divert their ships, their container ships to American ports? Show less

Vessel diversions plus containers on other vessels being reassigned as U.S. cargo will add volume to the US. rail system, according to Paul Brashier, vice president of drayage and intermodal at ITS Logistics. It will also add time and charges such as additional rail fees, customs fees, and port handling fees.

The drop in trade is a reflection of the vessels that have left Vancouver and Prince Rupert to divert their cargo to the United States. The volume of trade being disrupted has… Show more

Vessel diversions plus containers on other vessels being reassigned as U.S. cargo will add volume to the US. rail system, according to Paul Brashier, vice president of drayage and intermodal at ITS Logistics. It will also add time and charges such as additional rail fees, customs fees, and port handling fees.

The drop in trade is a reflection of the vessels that have left Vancouver and Prince Rupert to divert their cargo to the United States. The volume of trade being disrupted has sparked supply chain concerns in the U.S.

ITS has switched both the U.S. West Coast and East Coast rail ramps to red in its freight index, signaling future congestion as a result of the strike.

“As container wait times in Western Canada increase due to the duration of the strike, that freight will overwhelm rail lines and ramps when it finally starts to transfer from the ocean terminals to the interior point rail ramps,” Brashier said.

VesselsValue data shows 14 container vessels currently anchored offshore at Vancouver and Prince Rupert, containing $7.6 billion in trade.

“A decent amount of product flows through Vancouver from Asia and is railed down to points like Chicago,” said Eric Byer, CEO of the National Association of Chemical Distributors. He said some members are now seeing three to four week delays because of the strike, but added that there is excess capacity in the marketplace so the current situation is not on the level of a crisis that would have emerged if U.S. West Coast ports had not recently reached a deal. “But [this is] still disconcerting. The strike can’t last for weeks or the strain on the supply chain will become challenging again,” Byer said.

Products that go into paints, coatings as well as acids from Asia, are most impacted, according to the National Association of Chemical Distributors. Show less

Paul Brashier, vice president of drayage and intermodal of ITS Logistics, said the strike at the ports of Vancouver and Prince Rupert will have a severe negative impact on the U.S. supply chain as well as Canada.

“Most of the [interior point intermodal (IPI)] freight that enters through these ports are destined to major U.S. rail hubs, including Chicago and Memphis,” he explained. “There is a high probability that a large portion of this freight will be reconsigned to U.S. West Coast… Show more

Paul Brashier, vice president of drayage and intermodal of ITS Logistics, said the strike at the ports of Vancouver and Prince Rupert will have a severe negative impact on the U.S. supply chain as well as Canada.

“Most of the [interior point intermodal (IPI)] freight that enters through these ports are destined to major U.S. rail hubs, including Chicago and Memphis,” he explained. “There is a high probability that a large portion of this freight will be reconsigned to U.S. West Coast ports if the vessels call on those ports prior to or after calling Vancouver or Prince Rupert.”

Brashier has been advising clients that they should immediately put contingency plans in place, not only to reroute freight into the U.S. but to also alter the mode of freight to domestic truckload in anticipation of rail congestion that will occur once the strike is resolved.

“Depending on the duration of the strike, it could take one to three months for rail operations to return to normal,” he said.

Brashier is not the only one with this dire warning. Show less

The ILWU U.S. West Coast chapter told CNBC last week that its members would not work any of the diverted vessels.

"The ILWU will not be unloading Canadian bound cargo in solidarity with our Brothers and Sisters in ILWU Canada," said ILWU U.S. West Coast chapter President Willie Adams in a statement.

However, it would be very hard for the ILWU to identify containers that had their final destinations changed because the union workers do not have access to container information for… Show more

The ILWU U.S. West Coast chapter told CNBC last week that its members would not work any of the diverted vessels.

"The ILWU will not be unloading Canadian bound cargo in solidarity with our Brothers and Sisters in ILWU Canada," said ILWU U.S. West Coast chapter President Willie Adams in a statement.

However, it would be very hard for the ILWU to identify containers that had their final destinations changed because the union workers do not have access to container information for security reasons.

CNBC has reached out to the ILWU West Coast chapter in the U.S. for a comment on the diversions of the MSC Sara Elena and Ever Safety.

The diversions are the first of what could be widespread rerouting of ships, delaying planned arrivals and straining supply chains right at the beginning of peak season when holiday and back-to-school items are coming in.

The rerouting of containers also adds days to the delivery of products. For the auto industry, which runs on lean just-in-time schedules, these delays can affect production.

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, told CNBC the company is already seeing widespread rebooking of containers from western Canada to U.S. West Coast ports in Seattle, Oakland, Los Angeles and Long Beach.

"These options are getting freight back into the supply chain, but these solutions are adding additional touches and modes of transport, which is pushing costs up as much as 50% to 60%," Brashier said. "Even unaffected containers will be affected as the newly rerouted freight will congest markets with additional volumes that were not planned for."

Higher costs include fees to change the container destination, extra rail and trucking fees, extra customs fees, extra port fees and container later fees as a result of congestion at the ports and rails once the higher influx of containers is processed. Show less

ITS Logistics told CNBC it has containers on the OOCL San Francisco. They were scheduled to arrive at the Port of Vancouver on July 3 and were then destined by rail for Memphis. Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said clients are now looking for alternate American ports.

“Right now we are advising all clients with freight that was booked to Vancouver or Prince Rupert to work with their booking agents to track the US ports of call of the vessels that… Show more

ITS Logistics told CNBC it has containers on the OOCL San Francisco. They were scheduled to arrive at the Port of Vancouver on July 3 and were then destined by rail for Memphis. Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said clients are now looking for alternate American ports.

“Right now we are advising all clients with freight that was booked to Vancouver or Prince Rupert to work with their booking agents to track the US ports of call of the vessels that their containers are on and see if the ocean liners will allow reconsignment (switching container final destination) to a US port,” Brashier said.

Many ITS clients have requested a change in container destination and are waiting to see if the ocean carriers will accept that change. The ocean carriers are the final arbiter in any container destination change. Usually, you can change a container’s destination five days prior to a vessel docking. Show less

Two containerships that were diverted were identified as the MSC Sara Elena and the OOCL San Francisco. VesselsValue has also identified the MSC Matilde V which was anchored outside of Vancouver pulling up anchor and leaving with the Vancouver-bound cargo and heading back to Qingdao, China.

The strike could lead to congestion in the Canadian ports with longshoremen unable to unload vessels. Congestion can turn into backlogs and lead to delayed pickups from terminals, which can then lead… Show more

Two containerships that were diverted were identified as the MSC Sara Elena and the OOCL San Francisco. VesselsValue has also identified the MSC Matilde V which was anchored outside of Vancouver pulling up anchor and leaving with the Vancouver-bound cargo and heading back to Qingdao, China.

The strike could lead to congestion in the Canadian ports with longshoremen unable to unload vessels. Congestion can turn into backlogs and lead to delayed pickups from terminals, which can then lead to late fees that are often passed on to consumers — similar to what occurred during the pandemic.

The Canadian National Railway Company, which services the ports, told CNBC it will take weeks to months to clear out the congestion.

The Port of Vancouver and Port of Prince Rupert are popular destinations for U.S. trade because these ports are among the major ports of call for goods arriving from Asia. Some logistics managers have told CNBC that rail service out of those ports is a lot faster than going through the port of Seattle or Tacoma.

The distance between the Port of Vancouver and the Port of Seattle is a little over a half-day’s trip traveling at typical speeds.

ITS Logistics told CNBC it has containers on the OOCL San Francisco. They were scheduled to arrive at the Port of Vancouver on July 3 and were then destined by rail for Memphis. Paul Brashier, vice president of drayage and intermodal at ITS Logistics, said clients are now looking for alternate American ports.

“Right now we are advising all clients with freight that was booked to Vancouver or Prince Rupert to work with their booking agents to track the US ports of call of the vessels that their containers are on and see if the ocean liners will allow reconsigment (switching container final destination) to a US port,” Brashier said. Show less

“ITS Logistics has significantly increased trucking capacity at all Chicago Area rail ramps to to move out as many containers as we can ahead of the container congestion we expect as a result of the strike,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “The strike is creating an artificial backup of containers which will create congestion once the containers are processed through the ports.”

The International Longshoremen’s Association said it won’t take diverted cargo from ports with striking workers, while the head of the International Longshore and Warehouse Union, which represents West Coast port workers in the U.S., made a statement of solidarity with the Canadian union but did not mention any specific action.

The strike could lead to congestion in these ports with longshoremen unable to unload vessels. Congestion can turn into backlogs and lead to delayed pickups from… Show more

The International Longshoremen’s Association said it won’t take diverted cargo from ports with striking workers, while the head of the International Longshore and Warehouse Union, which represents West Coast port workers in the U.S., made a statement of solidarity with the Canadian union but did not mention any specific action.

The strike could lead to congestion in these ports with longshoremen unable to unload vessels. Congestion can turn into backlogs and lead to delayed pickups from terminals, which can then lead to late fees that are often passed on to consumers — a situation similar to what occurred during the pandemic.

“With the Canadian holiday and July Fourth holidays, the volume of containers moving are lighter than normal but now vessels are not being worked because of the strike,” said Paul Brashire, vice president of drayage and intermodal at ITS Logistics. “If this strike continues into the middle of next week, it will impact congestion in the coming weeks at Chicago and Detroit rail terminals because of the amount of containers that would have built up and eventually moved to those rail terminals.”

The Canadian ports handle nearly $225 billion in cargo each year, according to estimates, with items spanning industries such as home goods, electronics and apparel transported by rail. Approximately 15% of consumer trade going through the Port of Vancouver is headed to or coming from the U.S., according to port authority data. Around two-thirds of containerized import volume going to the Port of Prince Rupert are headed to the U.S., port data shows. Show less

The global supply chain has faced several new risks as peak shipping season that encompasses both back-to-school and holiday orders begins. The Panama Canal has been dealing with severe drought conditions, while the U.S. West Coast ports reached a tentative labor deal after weeks of tension between the U.S. ILWU and port management, but that deal will take months to ratify by rank and file union members.

Overall, data shows that supply chain costs have come down significantly since the… Show more

The global supply chain has faced several new risks as peak shipping season that encompasses both back-to-school and holiday orders begins. The Panama Canal has been dealing with severe drought conditions, while the U.S. West Coast ports reached a tentative labor deal after weeks of tension between the U.S. ILWU and port management, but that deal will take months to ratify by rank and file union members.

Overall, data shows that supply chain costs have come down significantly since the pandemic inflation shocks, and companies say that the supply chain has been returning closer to normal operating conditions despite the recent congestion on the West Coast due to ILWU and port management actions before the tentative deal was struck. During a CNBC interview on Wednesday, General Mills CEO Jeff Harmening described the supply chain as “getting healthier over the last three months” and he said the number of disruptions are similar to pre-pandemic levels.

But logistics managers tell CNBC that news of the Canadian port worker strike is a blow to operations. “We will pre-pull as many containers as possible before the weekend,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “We will then take those containers that were bound for rail and transload the products onto dry vans.”

Brashier said these Canadian ports are vital to Midwest manufacturers and the auto industry, as most transpacific freight enters at these points prior to interlining to rail and going to inland rail ramps in Chicago and other major markets. Show less

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, told American Shipper that his team has been keeping track of the ever-changing ETAs of the vessels carrying their clients’ products.

“The last two weeks have been a very busy one for the staff,” he said. “Clients saw the uncertainty and we started receiving calls for their future freight to be moved to the East Coast ports.”

ITS Logistics Wednesday released its June forecast for the ITS Logistics US Port/Rail Ramp Freight Index, revealing "severe" conditions in the Pacific Port and both West and East Inland Rail Ramp regions due to the continued tensions from International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) negotiations. The two sides reportedly reached a tentative deal Wednesday night after more than a year of talks.

In addition, ITS forecasts that the labor strife… Show more

ITS Logistics Wednesday released its June forecast for the ITS Logistics US Port/Rail Ramp Freight Index, revealing "severe" conditions in the Pacific Port and both West and East Inland Rail Ramp regions due to the continued tensions from International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) negotiations. The two sides reportedly reached a tentative deal Wednesday night after more than a year of talks.

In addition, ITS forecasts that the labor strife will impact IPI freight interlining and urges shippers to hire additional trucking providers.

“The previous months of increased volumes at the ports has provided ILWU leverage to affect operations at the terminals in order to forward their demands in talks with the PMA,” said Paul Brashier, vice president of drayage and intermodal for ITS Logistics. “The Pacific Ocean Region and West and East Rail Regions have been moved to severe due to the breakdown of the current negotiations. This is also due to the subsequent shutdowns at a myriad of terminals up and down the western seaboard.” Show less

In a landslide vote, over 99% of ILWU Canada union workers critical for West Coast port operations, including in Vancouver and Prince Rupert, voted in favor of supporting a strike. If a strike occurs, a 72-hour strike notice would be filed before June 21. The earliest possible strike date would be June 24.

The vote, which took place on June 9-June 10, occurred during a 21-day cooling-off period between the British Maritime Employers Association and ILWU Canada. Negotiations with the… Show more

In a landslide vote, over 99% of ILWU Canada union workers critical for West Coast port operations, including in Vancouver and Prince Rupert, voted in favor of supporting a strike. If a strike occurs, a 72-hour strike notice would be filed before June 21. The earliest possible strike date would be June 24.

The vote, which took place on June 9-June 10, occurred during a 21-day cooling-off period between the British Maritime Employers Association and ILWU Canada. Negotiations with the Federal Maritime Conciliation Service started on March 28. Two mediators appointed by the Canadian government were overseeing the discussions that ran through the end of May.

The biggest port to be affected is the Port of Vancouver, the largest port in Canada. About 90% of the cargo that moves through the Port of Vancouver is Canadian trade, according to a statement from a spokeswoman for the Vancouver Fraser Port Authority. But there are potential impacts for U.S. trade. Approximately 15% of container trade moving through the Port of Vancouver is destined to or from the U.S., and approximately 2% of U.S. international laden imports arriving at West Coast ports each year move through the Port of Vancouver, according to the port authority.

Approximately two-thirds of containerized import volumes coming into the Port of Prince Rupert are destined for the U.S. market by rail, according to Prince Rupert Port Authority’s vice president of trade development & real estate Brian Friesen.

It is estimated that Canadian West Coast ports handle almost $225 billion worth of cargo a year, with items transported by rail including many consumer products, from apparel to electronics and home goods.

Three Class 1 railways operate at these ports, CN, Canadian Pacific, and BNSF, a subsidiary of Berkshire Hathaway . The rails could not be immediately reached for comment. Show less

ILWU union labor slowdowns on the West Coast continue to push up the wait times to pick up coveted containers. Even as ports remain open and port officials cite “close to normal” operations, vessels are still stuck at the docks of the ports of Los Angeles, Long Beach, and Oakland as a result of labor shortages.

In addition to six vessels previously reported as delayed across these three California ports, an additional five ships had been delayed, bringing it up to 11 on Tuesday evening… Show more

ILWU union labor slowdowns on the West Coast continue to push up the wait times to pick up coveted containers. Even as ports remain open and port officials cite “close to normal” operations, vessels are still stuck at the docks of the ports of Los Angeles, Long Beach, and Oakland as a result of labor shortages.

In addition to six vessels previously reported as delayed across these three California ports, an additional five ships had been delayed, bringing it up to 11 on Tuesday evening, according to an email statement from Captain J. Kipling (Kip) Louttit, executive director of Marine Exchange of Southern California. “Per the agents [the] delays [are] due to labor shortages. We’ll keep you advised as we get more,” he wrote.

CNBC has since reviewed the status of the vessels listed, and two vessels were able to leave, one from the Port of Los Angeles and the other from the Port of Long Beach, bringing the number of vessels stuck at port to nine at press time.

Logistics intelligence firm Project44 says data shows the lack of port productivity impacting the movement of vessels in and out of dock.

“In addition to waiting times of containers still at the West Coast ports, we are starting to see an upward trend in the length of time vessels are at the dock as well,” said Jessica Slagle, senior data analyst at marketing for Project44, referring to how long it takes for a vessel to be unloaded and loaded.

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“It is taking our truckers three hours to get in and out of the port,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “The terminal congestion is not improving.” Show less

Even small shutdowns tend to have big ripple effects. "The U.S. supply chain — it's like a guitar string; so much tension." Paul Brashier, vice president at ITS Logistics, tells Axios.

More than 7,000 unionized dockworkers may soon hit the picket lines in Canada and it could cause a ripple effect in the U.S. and perhaps consumers’ wallets.

The contract dispute could bring a return to the supply chain slowdown the U.S. saw during the pandemic.

The International Longshore and Warehouse Union Canada said Monday that 99% of its members voted in favor of authorizing a strike. The decision comes after months-long deliberation, which started in July 2022, between port… Show more

More than 7,000 unionized dockworkers may soon hit the picket lines in Canada and it could cause a ripple effect in the U.S. and perhaps consumers’ wallets.

The contract dispute could bring a return to the supply chain slowdown the U.S. saw during the pandemic.

The International Longshore and Warehouse Union Canada said Monday that 99% of its members voted in favor of authorizing a strike. The decision comes after months-long deliberation, which started in July 2022, between port workers and the British Columbia Maritime Employers Association mediated by the Canadian government. It means the union’s 7,200 dockworkers could walk out as soon as June 24, the Washington Post reported.

While it’s not nearly the coronavirus pandemic backup the U.S. saw two years ago, the new buildup is underway amid ongoing labor negotiations. It also adds to increasing labor tensions affecting ports along the West Coast, the Washington Post reported.

During the pandemic-induced peak of the backup, more than 100 ships were anchored off the Southern California coast, and many loitered for months before being able to dock and unload.

Now, a labor situation could lead to a new disruption. Negotiations have been underway for weeks between the ports, the U.S. arm of the International Longshore and Warehouse Union, and the Pacific Maritime Association, but for now, there are no indications of closing a deal.

The unions deny engaging in any slowdowns or unofficial job actions, but a key terminal operator claims there’s an ongoing ripple effect now from an alleged five-day slowdown earlier this month.

“Just the perceived potential headwinds are going to cause this to happen anyway and there’s a considerable amount of leverage that comes with having this kind of activity at a time when the volumes are as high as they’ve been in six, seven, eight months going into this season,” said Paul Brashier, VP of Dray and Intermodal Services/ITS Logistics. Show less

The International Longshore and Warehouse Union (ILWU) of Canada announced June 12 that its members voted in favor of supporting a strike against member companies of the BC Maritime Employers Association (BCMEA). Over 99% of ILWU Canada's members voted in favor of strike actions June 9 and 10.

If a strike does end up taking place, a 72-hour strike notice would need to be filed before June 21, meaning the earliest possible start date for a strike would be June 24, 2023, according to… Show more

The International Longshore and Warehouse Union (ILWU) of Canada announced June 12 that its members voted in favor of supporting a strike against member companies of the BC Maritime Employers Association (BCMEA). Over 99% of ILWU Canada's members voted in favor of strike actions June 9 and 10.

If a strike does end up taking place, a 72-hour strike notice would need to be filed before June 21, meaning the earliest possible start date for a strike would be June 24, 2023, according to CNBC.

The biggest port that would reportedly be affected by a strike would be the Port of Vancouver, Canada’s largest port. According to a statement from a spokesperson for the Vancouver Fraser Port Authority, 90% of the products that move through the Port of Vancouver come from Canadian trade.

The potential strike could also hurt the United States because roughly 15% of container trade moving through the Port of Vancouver is destined to go to or from the U.S., the Vancouver Fraser Port Authority said. Additionally, 2% of U.S. international-laden imports arriving on the West Coast move through the Port of Vancouver each year.

The Port of Prince Rupert will also be negatively impacted by a strike, which harms the U.S. because roughly 66% of containerized import volumes coming into the Port of Prince Rupert will be introduced to the U.S. market by rail, according to Brian Friesen, the Prince Rupert Port Authority’s vice president of trade development & real estate.

“This is a significant blow to operations on the West Coast,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “These ports are vital to Midwest manufacturers and the auto industry, as most transpacific freight enters at these points prior to interlining to rail and going to inland rail ramps in Chicago and other major markets. More significant is that these ports were used as relief valves to avoid ILWU activity.” Show less

Some US shippers consider them “safety valves” for west coast freight in case of disruptions, according to third-party logistics provider ITS Logistics vice-president of drayage and intermodal Paul Brashier, and they are vital for US manufacturers bringing products in by rail.

“Parts that come in for manufacturers in the auto industry through Vancouver and Prince Rupert are interlined on rail and pulled off the ramp in Chicago, ”he told Lloyd’s List, adding that Chicago-bound cargo… Show more

Some US shippers consider them “safety valves” for west coast freight in case of disruptions, according to third-party logistics provider ITS Logistics vice-president of drayage and intermodal Paul Brashier, and they are vital for US manufacturers bringing products in by rail.

“Parts that come in for manufacturers in the auto industry through Vancouver and Prince Rupert are interlined on rail and pulled off the ramp in Chicago, ”he told Lloyd’s List, adding that Chicago-bound cargo diverted from Canada’s west coast will likely go to the port of Houston.

Brashier said that some ITS customers began changing their bookings from the west coast to east and US Gulf coast ports last week, with diverted cargo expected to arrive around mid-July.

Shippers seeking to divert cargo through the Panama Canal, however, will have to face increasing draught restrictions that could cut box ship capacity loads by 40%, leading to more inefficiencies and potential delays.

Brashier said that damage from the current wave of actions has been somewhat limited so far because volumes are still relatively low, but warned that time is running out to avert a meltdown. Show less

“We are not getting the effective turns of our drivers,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “Even if a terminal is saying they are operating and it’s so slow, we can be charged with demurrage charges.”

“We are afraid of the stacking up of vessels and ocean carriers skipping ports,” Brashier said. “We have clients asking to book to the East Coast and Gulf instead of the West Coast. The next four to six weeks you’ll see a ton of freight stacking… Show more

“We are not getting the effective turns of our drivers,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “Even if a terminal is saying they are operating and it’s so slow, we can be charged with demurrage charges.”

“We are afraid of the stacking up of vessels and ocean carriers skipping ports,” Brashier said. “We have clients asking to book to the East Coast and Gulf instead of the West Coast. The next four to six weeks you’ll see a ton of freight stacking up at the Panama Canal.” Show less

“This is a significant blow to operations on the West Coast,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “These ports are vital to Midwest manufacturers and the auto industry, as most transpacific freight enters at these points prior to interlining to rail and going to inland rail ramps in Chicago and other major markets. More significant is that these ports were used as relief valves to avoid ILWU activity.”

“Vessel diversions are some of the most difficult activities that shippers and our clients deal with during a crisis,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. During the pandemic and its aftermath, containers destined for Los Angeles or Long Beach would show up unannounced in Houston or Savannah with little to no notice, he said. “We have visibility applications that alert us prior to the container arriving so we can reassign trucking capacity at the new… Show more

“Vessel diversions are some of the most difficult activities that shippers and our clients deal with during a crisis,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. During the pandemic and its aftermath, containers destined for Los Angeles or Long Beach would show up unannounced in Houston or Savannah with little to no notice, he said. “We have visibility applications that alert us prior to the container arriving so we can reassign trucking capacity at the new port. But if you don’t have this visibility, if you are not able to track the containers like that in real time, you could face thousands of dollars more in shipping and D&D costs per container to accommodate those changes. That inflationary pressure adversely not only affects the shipper but the consumer of those goods,” he added. Show less

The slowdown in International Longshore and Warehouse Union work at West Coast ports has created a congestion contagion that is spreading to the freight railroads, with uncertain consequences for the supply chain.

ITS Logistics responded to the spotty rail service by raising the Pacific Ocean region of its U.S. Port/Rail Ramp Freight Index to “Red” as a result of the issues between the ILWU and ports management, which have been locked in a battle over a new port worker contract. The West… Show more

The slowdown in International Longshore and Warehouse Union work at West Coast ports has created a congestion contagion that is spreading to the freight railroads, with uncertain consequences for the supply chain.

ITS Logistics responded to the spotty rail service by raising the Pacific Ocean region of its U.S. Port/Rail Ramp Freight Index to “Red” as a result of the issues between the ILWU and ports management, which have been locked in a battle over a new port worker contract. The West Coast ports, including Los Angeles and Long Beach, had seen an uptick in recent activity as labor talks progressed, taking back some volume from East Coast ports which had gained amid the labor tensions over the past year. But ITS now sees that shift as giving labor more leverage.

“The last two months of increased volumes have provided the ILWU leverage to affect operations at the terminals to forward their demands in talks with the [Pacific Maritime Association],” said Paul Brashier, vice president of drayage and intermodal for ITS Logistics. The PMA represents the ports in the contract negotiations. “We have moved the Pacific Ocean region to severe from elevated due to the breakdown of those talks and the subsequent shutdowns at a myriad of terminals up and down the western seaboard,” he said.

The Association of American Railroads released its latest U.S. rail traffic for the week ending last Saturday, June 3, as well as volumes for May 2023, which show normal freight patterns. The latest labor issues began last Friday at The Port of Oakland, which was entirely shut down. That port processes less railroad freight compared to the ports of Los Angeles and Long Beach, which have been open with only certain terminals targeted for shutdowns.

Brashier said there is concern that inland port intermodal (IPI) freight will be hit next. Show less

Union Pacific
has temporarily shut down all of its inland ramps at the Port of Los Angeles and the Port of Long Beach, a proactive move that reflects the supply chain issues that have arisen due to ongoing West Coast port labor issues.

By pausing rail shipments, shippers can find other ports to send goods rather than have them sit for extended periods of time in containers before reaching their intended destinations. That is critical for food and agriculture shipments, where products… Show more

Union Pacific
has temporarily shut down all of its inland ramps at the Port of Los Angeles and the Port of Long Beach, a proactive move that reflects the supply chain issues that have arisen due to ongoing West Coast port labor issues.

By pausing rail shipments, shippers can find other ports to send goods rather than have them sit for extended periods of time in containers before reaching their intended destinations. That is critical for food and agriculture shipments, where products can spoil — the U.S. agriculture industry uses the West Coast predominantly for its goods.

The railroad had previously stopped accepting exports or empty containers at its Denver rail terminal destined for the Port of Los Angeles. The proactive measures aim to avoid the rail and shipping congestion issues that plagued ports for much of 2022, with the goal of having the pause helping to alleviate the congestion, sources told CNBC.

The Port of Los Angeles is the nation’s busiest port, processing $440 billion in cargo value per year. That market share has declined with more trade moving to the East Coast over the past year, at least partially due to labor issues on the West Coast that had supply chain managers worried about reliability of service.

These latest issues have arisen as the specialized workers who work on the rail shipments are not reporting at the union halls, according to CNBC sources.

Ocean carrier CMA sent an email today to clients that CNBC obtained notifying them of Union Pacific’s decision.

Berkshire Hathaway subsidiary BNSF and Union Pacific are the railroads servicing the West Coast ports. BNSF has not responded to a request for comment.

“This is the ripple effect we are concerned about,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “U.S. exports of protein and other products will start to back up in the inland ports. This will deteriorate rail productivity as a result of the growing container congestion.” Show less

Just hours after the reopening of the West Coast ports on Monday after multiple closures that began at the Port of Oakland last Friday when some union workers refused to report for assignments, issues remain at select terminals within ports from Los Angeles to Seattle, with labor slowdowns and shift closures.

ITS Logistics tells CNBC its truckers were turned away by the terminal operator Fenix Marine Services, which is owned by ocean carrier CMA-CGM, at the Port of Los Angeles during the… Show more

Just hours after the reopening of the West Coast ports on Monday after multiple closures that began at the Port of Oakland last Friday when some union workers refused to report for assignments, issues remain at select terminals within ports from Los Angeles to Seattle, with labor slowdowns and shift closures.

ITS Logistics tells CNBC its truckers were turned away by the terminal operator Fenix Marine Services, which is owned by ocean carrier CMA-CGM, at the Port of Los Angeles during the first shift Monday. They were picking containers from a variety of ocean carriers. Containers processed through the terminal include those owned by Maersk, OOCL, COSCO Shipping, Sealand (a Maersk company), and Evergreen.

"Navigating the ports on the entire West Coast over the last four days has been extremely frustrating for us and our clients," said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. "If it were not for updates from our drivers and our visibility software applications, we would not have even known about terminal closures Friday, throughout the weekend, and into today. Terminal announcements were severely lagging at best if they were issued at all, and announcements from the ILWU were misleading," he said in a reference to the International Longshore and Warehouse Union, which has been engaged in a protracted battle over a new contract with port management.

Terminal alerts to trucking companies obtained by CNBC starting at 9:39am PT show some import appointments being canceled at Fenix Marine. Later in the morning, the dayside shift was cancelled, though Brashier learned of the cancellations earlier from his truckers who were turned away from picking up their containers.

Another Los Angeles Port terminal, Pacific Container Terminal (owned by SSA) announced Monday morning to truckers they would be closing the dayside shift on Tuesday. The terminal was already closed Monday for a scheduled closure which was announced approximately a week ago. Show less

West Coast ports this weekend have seen both longshoremen fail to show up to work, as well as "dailies," those members who fill in the schedule to complete the workforce.

"The ripple effect of these moderate stoppages will push us further and further back in picking up containers where we will need two to three more truckers to clear out" the congestion, warned Paul Brashier, vice president of drayage and intermodal at ITS Logistics. "This will be really bad for our clients, which are… Show more

West Coast ports this weekend have seen both longshoremen fail to show up to work, as well as "dailies," those members who fill in the schedule to complete the workforce.

"The ripple effect of these moderate stoppages will push us further and further back in picking up containers where we will need two to three more truckers to clear out" the congestion, warned Paul Brashier, vice president of drayage and intermodal at ITS Logistics. "This will be really bad for our clients, which are the shippers and the truckers, because the extra labor costs will be tacked onto their bill as well as any extra detention penalties. Those extra costs will then be passed on to the consumer."

No longshoremen have reported to work at the Port of Oakland since Thursday. Show less

Labor issues at several West Coast ports led to limited terminal operations on Friday, creating uncertainty over whether disruptions would continue in the coming days.

Port officials and at least two trucking executives told Supply Chain Dive the issues were related to unfilled jobs at terminals. The issue caused varying degrees of disruption at maritime gateways in the morning, during longshore workers’ first shift.

The most significant disruption took place at the Port of… Show more

Labor issues at several West Coast ports led to limited terminal operations on Friday, creating uncertainty over whether disruptions would continue in the coming days.

Port officials and at least two trucking executives told Supply Chain Dive the issues were related to unfilled jobs at terminals. The issue caused varying degrees of disruption at maritime gateways in the morning, during longshore workers’ first shift.

The most significant disruption took place at the Port of Oakland, where international terminals were closed during the day.

The type of disruptions varied by port, Paul Brashier, vice president of drayage and intermodal at ITS Logistics, told Supply Chain Dive.

In some cases, terminal operations were completely down. In others, gates were open but internal operations were closed, which led to congestion and canceled truck appointments. In most cases, the root of the problem appeared to be a lack of workers, Brashier said.

The Pacific Maritime Association blamed the International Longshore and Warehouse Union for the day’s events. But the ILWU did not take credit for a work action, with ILWU Local 13 President Gary Herrera telling Supply Chain Dive in a text message the events were not a work stoppage. Show less

Terminals at key west coast ports, including Los Angeles and Oakland, suffered shutdowns and slowdowns Friday as dockworkers escalated their bid to extract higher wages from ocean carriers and terminal operators.

Friday’s shutdown marks an escalatory step in the prolonged contract negotiations by the dockworkers union, who are demanding an economic package that ‘recognises the heroic efforts and personal sacrifices of the ILWU workforce that lifted the shipping industry to record profit’.

Paul Brashier, vice president of drayage and intermodal for ITS Logistics, told American Shipper that year over year, the company is still seeing softness in all aspects of retail.

“We are seeing considerable softness in all segments of back-to-school goods year over year from both retailers and those that are supplying those retailers,” he said. “Volumes are down 30%-35% compared to last year due to significant inventories still sitting in shipper [distribution centers]. Those SKU… Show more

Paul Brashier, vice president of drayage and intermodal for ITS Logistics, told American Shipper that year over year, the company is still seeing softness in all aspects of retail.

“We are seeing considerable softness in all segments of back-to-school goods year over year from both retailers and those that are supplying those retailers,” he said. “Volumes are down 30%-35% compared to last year due to significant inventories still sitting in shipper [distribution centers]. Those SKU segments include office supplies, clothing and electronics.

“Though volumes are down considerably, higher-end goods are outperforming discount goods for import volume. This is attributed to the fact that discount retailers are sourcing inventory from the overstock in U.S. [distribution centers] and not overseas, as has been the case in the past.” Show less

Another facility is on the horizon. The GPA has acquired a 200-acre parcel of land in proximity to a rail artery and two major interstate highways for a planned inland port in west central Georgia. There is no timeline for its development at this point.

Paul Brashier, VP drayage and intermodal of ITS Logistics, applauds the GPA’s initiative, pointing to several benefits of inland ports.

“They alleviate congestion and reduce dray costs,” he remarked.

For a company that makes… Show more

Another facility is on the horizon. The GPA has acquired a 200-acre parcel of land in proximity to a rail artery and two major interstate highways for a planned inland port in west central Georgia. There is no timeline for its development at this point.

Paul Brashier, VP drayage and intermodal of ITS Logistics, applauds the GPA’s initiative, pointing to several benefits of inland ports.

“They alleviate congestion and reduce dray costs,” he remarked.

For a company that makes money from drayage, this may seem counterproductive, but Mr Brashier said that ITS has the scale and flexibility to take advantage of emerging possibilities associated with inland ports. For one thing, the shorter distances allow more turns, he noted.

“It’s good for the ecosystem as a whole. It will help keep rates low and service high,” he added.

Mr Lynch stressed the environmental benefits. At an annual volume of 60,000 boxes and a round-trip truck route of 602 miles, the new facility at Gainesville should bring a reduction of around 36m truck miles in a year, as truck use should drop from seven hours to under 30 minutes. By 2054, this should cut 1.6bn tons of CO2 emissions, he said.

Mr Brashier remarked that ports on the east and Gulf coasts are more prone to storms than their west coast rivals, so pushing volume further inland should be another plus.

He would like to see more drive for inland ports in the northeastern US, pointing to Pennsylvania as a suitable location. For the Gulf coast, the Dallas/Fort Worth area would be a strong contender, he finds.

BNSF recently announced a decision to establish a regular intermodal service from Houston to Dallas/Fort Worth and Denver. Show less

The five largest ports in California have teamed up to open data silos to enable better flow of data between industry stakeholders.

With support from the state government, Los Angeles, Long Beach, Oakland, San Diego and Port Hueneme have signed an MoU for a California Port Data Partnership to “facilitate the sharing of data for the purpose of enhancing supply chain visibility and to facilitate the flow of goods”.

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However, Paul Brashier, VP of drayage and intermodal at… Show more

The five largest ports in California have teamed up to open data silos to enable better flow of data between industry stakeholders.

With support from the state government, Los Angeles, Long Beach, Oakland, San Diego and Port Hueneme have signed an MoU for a California Port Data Partnership to “facilitate the sharing of data for the purpose of enhancing supply chain visibility and to facilitate the flow of goods”.

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However, Paul Brashier, VP of drayage and intermodal at ITS Logistics, said it was a good start, but there was a long way to go. At a lot of terminals, data are not readily available, he noted.

The initiative aims to overcome a fundamental problem that has stymied efforts at data sharing so far. As ports and terminal operators invested in their own customer-facing platforms, they were unwilling to embrace a rival portal and write off their own investments. The new drive aims to connect the various platforms and systems in play, rather than favour one. Show less

California’s state government is making a determined push to accelerate the move to clean trucks, but a dismayed industry is warning that the fundamentals for a shift are not in place.

The California Air Resources Board (CARB) has banned the sale of diesel-powered trucks by 2036, after which all sales in the state must be for zero-emission vehicles.

Large companies and government fleets will begin purchasing zero-emission trucks next year, with a goal for all fleets operating in… Show more

California’s state government is making a determined push to accelerate the move to clean trucks, but a dismayed industry is warning that the fundamentals for a shift are not in place.

The California Air Resources Board (CARB) has banned the sale of diesel-powered trucks by 2036, after which all sales in the state must be for zero-emission vehicles.

Large companies and government fleets will begin purchasing zero-emission trucks next year, with a goal for all fleets operating in California to be 100%-electric by 2035, 2040 or 2045, depending on size and type of vehicle.

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Meanwhile, Paul Brashier, VP of drayage and intermodal at ITS Logistics, noted that the necessary infrastructure is not in place.

“We are huge proponents of less emissions and a cleaner environment, but if you look at where we are right now on the grid in California and the infrastructure to support this, we’re not ready,” he said. “We’re looking to electrify about 170,000 trucks. There’s not enough power in the grid to support that.”

Ports and terminals have yet to install charging infrastructure for electric trucks, he pointed out and said it was questionable whether enough trucks would be available in the coming years to meet “CARB’s lofty goals”.

Drayage operators will be first in line to feel the impact of the new rules, when for them, from next January, only electric trucks will be eligible for new registration. Trucks with internal combustion engines in their fleets will be able to operate “through their useful’ life” – either until they hit 800,000 miles or become 18 years old.

The schedule for implementation hinges on the classification of the truck: for fleets with sleeper cab tractors, only 10% have to be electric by 2030.

The shift to electric trucks will raise costs for operators. In addition to purchase prices, they have to invest in charging capacity and operating costs are also heading up, owing to lower range and an increase in the tractor’s weight. Show less

The impact of the movement of trade to the East Coast and Gulf ports can no longer be denied in the railroad data. Anyone following the flow of trade through ocean freight orders would not be surprised. There is always a delay in forward-looking information like ocean freight orders, and this delay took longer to work through because of the historic volumes being processed at the ports.

While, yes, volumes are still up compared to 2019, the messaging comb over West Coast railroads have… Show more

The impact of the movement of trade to the East Coast and Gulf ports can no longer be denied in the railroad data. Anyone following the flow of trade through ocean freight orders would not be surprised. There is always a delay in forward-looking information like ocean freight orders, and this delay took longer to work through because of the historic volumes being processed at the ports.

While, yes, volumes are still up compared to 2019, the messaging comb over West Coast railroads have been using to cover their receding revenue line is now useless. There are no historic volumes to talk about anymore. The toxic triple economic threat of weak consumer spending, inflation and bloated inventories was addressed on Union Pacific’s (NYSE: UNP) earnings call last week, where it was labeled a “near-term challenge.”

This is in sharp contrast to the railroads servicing the East Coast, CSX (NASDAQ: CSX) and Norfolk Southern (NYSE: NSC), which both reported increased freight volume of merchandise and coal. So what is a good way to track this data? Rail ramp trucking demand.

Data from ITS Logistics shows this frightening freight reality.

The tapering down in freight volumes has impacted not only the railroads but trucking, as well. This has created a truck driver dislocation for some. In response to the decrease in West Coast freight, ITS told American Shipper the company is “rebalancing” its workforce — moving away from California and moving to areas where there is growth.

“We are actively hiring in Texas and the Midwest to respond to the increasing need to move containers coming into Houston, Southeast and Midwest,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “Trucking is needed for both container pickup at the ocean terminals and rail ramps. We’ve also seen an increase in containers traveling inland into Chicago, Dallas and Atlanta.” Show less

A common talking point from executives on logistics company earnings calls this quarter when discussing weak performance — a slowdown in freight volumes — is backed up by key economic data underlying the outlook for the trucking and rail sectors.

Trade trend analysis from CNBC Supply Chain Heat Map data providers has been signaling weakness in inbound freight for the last several months. The decrease negatively impacts earnings for both trucking and rail where revenue is generated by… Show more

A common talking point from executives on logistics company earnings calls this quarter when discussing weak performance — a slowdown in freight volumes — is backed up by key economic data underlying the outlook for the trucking and rail sectors.

Trade trend analysis from CNBC Supply Chain Heat Map data providers has been signaling weakness in inbound freight for the last several months. The decrease negatively impacts earnings for both trucking and rail where revenue is generated by moving freight.

UPS CEO Carol Tome cited a deceleration in U.S. retail sales as a factor in lower than anticipated volume, and ongoing demand weakness in Asia. “Given current macro conditions, we expect volume to remain under pressure,” she said.

The decline in ocean bookings and longer-term shift away from California ports compounds the problems for the trucking industry.

Paul Brashier, vice president of drayage & intermodal at ITS Logistics, said one of the biggest challenges facing the industry right now is the location of trucking labor. Despite a long-term shortage of drivers for the trucking industry, labor is currently being reduced on the West Coast.

“We’re re-balancing our driver workforce away from California because of the drop in freight volumes,” Brashier said. “At the same time, we are actively hiring in Texas and the Midwest to respond to the increasing need to move containers coming into Houston, Southeast and Midwest. Trucking is needed for both container pick up at the ocean terminals and rail ramps. We’ve also seen an increase in containers traveling inland into Chicago, Dallas and Atlanta.” Show less

Uncertainty. It’s a word logistics managers have said so many times that if they had a dollar for every time they said it or wrote it in a sentence, they would have more money in their bank accounts than the ocean carriers. Ironically, this once nemesis for shippers has become its savior and an enemy of the carriers.

The murkiness of consumer spending along with bloated warehouses continue to impact ocean orders, which, of course, have slammed ocean freight rates. The cut in vessel… Show more

Uncertainty. It’s a word logistics managers have said so many times that if they had a dollar for every time they said it or wrote it in a sentence, they would have more money in their bank accounts than the ocean carriers. Ironically, this once nemesis for shippers has become its savior and an enemy of the carriers.

The murkiness of consumer spending along with bloated warehouses continue to impact ocean orders, which, of course, have slammed ocean freight rates. The cut in vessel capacity by the ocean carriers has not put a floor in freight rates, so the urgency to lock in a contract has not been as dire for shippers.

With no drastic changes in inventories or consumer spending on the horizon this contract season, the mix of contracts and spot rates is different. We all know beneficial cargo owners (BCOs) normally diversify with a mix of contracts and spot rates, but this contract season, the low rates have BCOs turning more to non-vessel operating common carriers (NVOCCs) to help them maximize the use of spot rates.

Paul Brashier, vice president of ITS Logistics, told American Shipper that low spot rates are just one piece to this unconventional ocean contract period.

“While the volume of containers being booked in the spot market is clearly a reflection of the rock-bottom rates being obtained by shippers in the spot market right now, there are two recent behaviors by BCOs influencing this market,” Brashier explained. “Many shippers took drayage services to request for proposal (RFP) as early as November of 2022. This signaled that a significant number of BCOs were not planning to contract with ocean liners per usual in March-April of this year and then hold their drayage RFPs in April-May.” Show less

ITS Logistics is warning of exploding per diem charges in the second and third quarters. It is seeing more items being held in ocean containers on chassis. While some say only truckers pay per diem, that is not entirely true. Shippers can pay per diem.

“On the surface, in a lot of cases, it is dependent on the contract the BCO/shipper has with the NVO/ocean carrier,” explained Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “If that contract bills these charges… Show more

ITS Logistics is warning of exploding per diem charges in the second and third quarters. It is seeing more items being held in ocean containers on chassis. While some say only truckers pay per diem, that is not entirely true. Shippers can pay per diem.

“On the surface, in a lot of cases, it is dependent on the contract the BCO/shipper has with the NVO/ocean carrier,” explained Paul Brashier, vice president of drayage and intermodal at ITS Logistics. “If that contract bills these charges to the trucker, the trucker outlays and then bills back to the BCO/shipper. If the contract bills these charges to the shipper/BCO, the trucker does not have to outlay and those charges go directly to the shipper/BCO.”

Brashier continued, “Regardless, shippers pay these fees. In some cases, if the MSA between the shipper/BCO and the trucker has a clause for negligence, the trucker could be on the hook if they did not pull a container from the terminal in time or terminate an empty quickly. If the trucker’s operations are on point, this is very rare and usually happens less than 1% of the time.”

Simply put, per diem rates are passed onto the consumer, which stokes inflation. It’s another cost that the Fed has no control over. Show less

In this week’s podcast, Paul Brashier, the VP of Drayage and Intermodal at ITS Logistics, discusses the conditions at the West Coast container ports, including the ongoing labor strikes. Additionally, the chemical industry is still facing supply chain issues, and Amazon is combating fraudulent products.

“The largest challenge is the unknown and with supply chain, and even businesses not knowing exactly what’s going to happen, the largest headwind not just our selves as transportation… Show more

In this week’s podcast, Paul Brashier, the VP of Drayage and Intermodal at ITS Logistics, discusses the conditions at the West Coast container ports, including the ongoing labor strikes. Additionally, the chemical industry is still facing supply chain issues, and Amazon is combating fraudulent products.

“The largest challenge is the unknown and with supply chain, and even businesses not knowing exactly what’s going to happen, the largest headwind not just our selves as transportation providers but the BCOs face as well. Many supply chains are put into motion months if not years in advance. If there is not enough of a clear directive in fluidity, these problems metastasize, magnify, and cause even greater issues. If you think about what happened in 2020 during Covid when terminals shut down due to restrictions on labor, there were still 4 weeks of freight on the water trans-Pacific coming in the United States and that backs up. Where we are right now not only has immediate impact, but if it gets really really problematic it could be something that lingers on for weeks, months–multiple months ending in even 2024. That is something we have to be always vigilant on.” says Paul Brashier, the VP of Drayage and Intermodal. Show less

A dockworker walkout that shut down the ports of Los Angeles and Long Beach yesterday is expected to continue through the Easter weekend as contract renewal talks deteriorate, but its trade impact could be muted by a recent slump in West Coast container volumes.

Fearful of a repeat of the dock closures that rocked supply chains in 2015, many companies have already begun routing their shipments away from the vulnerable West Coast ports. According to Noatum, volumes at the Southern… Show more

A dockworker walkout that shut down the ports of Los Angeles and Long Beach yesterday is expected to continue through the Easter weekend as contract renewal talks deteriorate, but its trade impact could be muted by a recent slump in West Coast container volumes.

Fearful of a repeat of the dock closures that rocked supply chains in 2015, many companies have already begun routing their shipments away from the vulnerable West Coast ports. According to Noatum, volumes at the Southern California ports have already dropped sharply as retailers and manufactures are diverting goods to the East and Gulf Coasts due to the threat of union unrest.

In a statement today, the Pacific Maritime Association said that negotiations for a new coastwise contract still continue, but warned that the shutdown is already crimping regional trade. “The action by the Union has effectively shut down the Ports of Los Angeles and Long Beach – the largest gateway for maritime trade in the United States,” the PMA statement said. “These actions undermine confidence in West Coast ports, and threaten to further accelerate the diversion of discretionary cargo to Atlantic and Gulf Coast ports. The health of the Southern California and state economy depend on the ability of the Ports of Los Angeles and Long Beach to stem this market share erosion."

“The ILWU has lost leverage because of the low volumes on the West Coast, which further solidifies the stance that PMA is taking in negotiations in the near term,” Paul Brashier, vice president of Drayage and Intermodal for the Nevada-based third party logistics provider (3PL) ITS Logistics, said in the firm’s US Port/Rail Ramp Freight Index. “With volumes where they are now on the West Coast and the diversions to the East, the ILWU is not in a strong negotiation position. I also do not believe the Biden Administration will tolerate more than work slowdowns with inflation currently being of significant importance.” Show less

ITS Logistics told CNBC that many clients across industries have been using ocean containers, rail containers and 53-foot trailers for storage because distribution centers were full.

“These charges will start materializing in Q2 or Q3 financial results,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics.

The survey found 50% of respondents saying the average length of time they are using ocean containers for storage is over four months.

“We are… Show more

ITS Logistics told CNBC that many clients across industries have been using ocean containers, rail containers and 53-foot trailers for storage because distribution centers were full.

“These charges will start materializing in Q2 or Q3 financial results,” said Paul Brashier, vice president of drayage and intermodal at ITS Logistics.

The survey found 50% of respondents saying the average length of time they are using ocean containers for storage is over four months.

“We are seeing similar trends in our data and ecosystem,” Brashier said. Show less

The business of road freight is in upheaval. Ports on the U.S. West Coast could permanently lose as much as 10% of the seaborne cargo that has been diverted to the Atlantic Coast, according to Bloomberg news service. Added to other disruptive pressures on trade and freight patterns over the past three years, that translates into a massive shift in inland road freight arrangements.

Some industry executives say that this, in turn, presents an opportunity for shippers to re-vamp their… Show more

The business of road freight is in upheaval. Ports on the U.S. West Coast could permanently lose as much as 10% of the seaborne cargo that has been diverted to the Atlantic Coast, according to Bloomberg news service. Added to other disruptive pressures on trade and freight patterns over the past three years, that translates into a massive shift in inland road freight arrangements.

Some industry executives say that this, in turn, presents an opportunity for shippers to re-vamp their strategies and relationships with road carriers — not least making more of smaller, regional carriers. They may also re-think business arrangements as fundamental as requests for proposals (RFPs).

There’s a chance to reconfigure shipper-carrier relationships in a profound way that may well have been a long time coming, says Heather Mueller, chief marketing and product officer at Breakthrough, a transportation management and technology provider in Green Bay, Wisconsin. “It’s an exciting time to be able to consider changes in the supply chain, and in transportation relationships overall,” Mueller says. “There’s more appetite for change because of what we’ve lived through in the last few years. We were talking about this before the pandemic, but then changes in shipping patterns and much more showed us clearly that we had some broken systems.” Mueller says the result is a new “openness” on the part of both shippers and carriers to try things differently.

Paul Brashier, vice president drayage and intermodal at ITS Logistics, sees changes afoot, but credits it more to capacity changes putting shippers once again in a position of power. “Shippers are in the driver's seat, and they have made it a point to change language in the contracts to minimize the exposure they have to demurrage and per diem as well as taking over their own trucking,” he says. Show less

The latest Port Rail Ramp Freight Index, produced by ITS Logistics, shows flows through US ports have returned to normal, but chassis availability at inland rail ramps is low, giving cause for concern that a rise in traffic will revive the problem.

Moreover, the stalemate in contract negotiations between port labour and terminal operators on the west coast may drag on until volumes pick up again, which is a major cause for concern, ITS warns.

While the index rates the situation at… Show more

The latest Port Rail Ramp Freight Index, produced by ITS Logistics, shows flows through US ports have returned to normal, but chassis availability at inland rail ramps is low, giving cause for concern that a rise in traffic will revive the problem.

Moreover, the stalemate in contract negotiations between port labour and terminal operators on the west coast may drag on until volumes pick up again, which is a major cause for concern, ITS warns.

While the index rates the situation at the ocean terminals as normal, inland rail ramps both in the eastern and western US are classified as “moderate”, largely due to the availability of chassis. Domestic 53ft units are readily available, but chassis for ocean containers are in tight supply at inland points, which is a big concern, noted Paul Brashier, VP of drayage and intermodal.

“We are already seeing evidence that there are not enough chassis inland,” he said. Show less

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, discusses the impact of Lunar New Year on the supply chain, port visibility in the last two years, and what lies ahead for the supply chain industry.

Lunar New Year is generally a major time of the year for imports and the transportation associated with it, but this year it was muted, Brashier says. For on thing, there’s too much inventory sitting idle in DCs and warehouses throughout North America — not just… Show more

Paul Brashier, vice president of drayage and intermodal at ITS Logistics, discusses the impact of Lunar New Year on the supply chain, port visibility in the last two years, and what lies ahead for the supply chain industry.

Lunar New Year is generally a major time of the year for imports and the transportation associated with it, but this year it was muted, Brashier says. For on thing, there’s too much inventory sitting idle in DCs and warehouses throughout North America — not just retail, but commodity-based as well. “Right now, we’re seeing that we’re not going to have much of a lift,” he says. “We’re keeping the same cadence of low volumes that we saw in December and probably are not going to see any lift until we get into Q3 or Q4 of this year.”

At the same time, so much capacity and infrastructure was put in place over the last 18 months that any lift that comes from Asia is likely to be absorbed fairly easy. “We’re not going to see any major disruptions throughout the supply chain when it comes to ports or terminal activity,” Brashier says. Show less

As well as a roundtable on the state of rail - is it disorganized, disheveled, or just in need of an overhaul?

Number of anchored vessels off key US ports is far below its highs, but congestion lingers at other end of the supply chain.

A drop in demand has helped ease oceanside congestion, but has also left inventories stacked and warehouses full. In addition, other imbalances such as labour shortages and equipment availability pose a threat to supply chains’ recovery.

OCEANSIDE congestion at major US ports has fallen substantially since backlogs peaked last January on the west coast and… Show more

Number of anchored vessels off key US ports is far below its highs, but congestion lingers at other end of the supply chain.

A drop in demand has helped ease oceanside congestion, but has also left inventories stacked and warehouses full. In addition, other imbalances such as labour shortages and equipment availability pose a threat to supply chains’ recovery.

OCEANSIDE congestion at major US ports has fallen substantially since backlogs peaked last January on the west coast and during the summer at east and US Gulf coast ports. The vessel logjam in San Pedro Bay peaked in January last year with 109 box ships waiting to unload and was officially declared over by November, with no backlogs reported since then.

Meanwhile, Lloyd’s List Intelligence data shows about 15 box ships anchored outside the east and US Gulf coast ports of New York and New Jersey, Savannah, Houston, Virginia and Charleston, having hovered near 100 ships in September. Show less

In order to stay ahead of the warehouse and inventory issues, 3PL providers may need to anticipate longer lead times, increased transportation costs, and supply shortages.

ITS Logistics warns that shippers with inventory imbalances could cost tens of millions of dollars per quarter, tearing through earnings. The company advises its clients to try out short-term, pop-up storage offered by 3PL providers to reduce the reliance on traditional storage methods and move freight from ocean… Show more

In order to stay ahead of the warehouse and inventory issues, 3PL providers may need to anticipate longer lead times, increased transportation costs, and supply shortages.

ITS Logistics warns that shippers with inventory imbalances could cost tens of millions of dollars per quarter, tearing through earnings. The company advises its clients to try out short-term, pop-up storage offered by 3PL providers to reduce the reliance on traditional storage methods and move freight from ocean containers.

So although the Fed expects goods inflation to continue a downward trend, logistics issues suggest that there will be some elements of sticky inflation on the goods side of the equation that will slow disinflation. Show less

Bill Priestley and Paul Brashier, Vice President of Drayage and Intermodal for ITS Logistics, cover various labor situations and negotiations going on in the freight industry.

Economists are expecting January’s consumer price index to rise 0.4% on a monthly basis — that’s a jump from December’s -0.1% figure, which means that prices actually fell. So far, market chatter is that service inflation — the price of travel, dining out and hospitality, for example — has proven more persistent than goods inflation, largely because of an extremely tight labor market.

But logistic managers are warning that the supply chain is clogging up again, which could contribute to… Show more

Economists are expecting January’s consumer price index to rise 0.4% on a monthly basis — that’s a jump from December’s -0.1% figure, which means that prices actually fell. So far, market chatter is that service inflation — the price of travel, dining out and hospitality, for example — has proven more persistent than goods inflation, largely because of an extremely tight labor market.

But logistic managers are warning that the supply chain is clogging up again, which could contribute to higher prices for goods. “Late fees and warehouse fees are passed onto the consumer, which is why we are not seeing products fall as much as they should,” said Paul Brashier, vice president of drayage and intermodal for ITS Logistics. Show less

Paul Brashier, VP drayage and intermodal at ITS Logistics, agreed that some traffic would not return to the west coast for this this very reason. He said: “A lot of BCOs and shippers have set up 3PL and DC infrastructure over the past two years to service their supply chain.”

He does not expect a wholesale shift from the west coast, though.

“A good amount of volume will return after the ILWU comes to terms with the PMA. Ocean carrier rates, vessel availability and transit are far… Show more

Paul Brashier, VP drayage and intermodal at ITS Logistics, agreed that some traffic would not return to the west coast for this this very reason. He said: “A lot of BCOs and shippers have set up 3PL and DC infrastructure over the past two years to service their supply chain.”

He does not expect a wholesale shift from the west coast, though.

“A good amount of volume will return after the ILWU comes to terms with the PMA. Ocean carrier rates, vessel availability and transit are far too superior to going to the east coast for those that are shipping from east Asia, especially for shippers with significant 3PL and DC infrastructure and those that book a significant amount of IPI (inland point intermodal) to inland rail ramps,” he explained. Show less

Drayage doesn’t have to suck. The importance of technology in providing visibility to supply chains cannot be overstated.

“I would say the biggest thing that technology provides is visibility. That is what I’m pretty sure everybody out here, every BCO needs and over the past 18 months if you’re not providing visibility to someone’s supply chain weather on your own assets or you’re aggregating capacity you’re putting stuff in yards and managing container pools and eliminating demurrage… Show more

Drayage doesn’t have to suck. The importance of technology in providing visibility to supply chains cannot be overstated.

“I would say the biggest thing that technology provides is visibility. That is what I’m pretty sure everybody out here, every BCO needs and over the past 18 months if you’re not providing visibility to someone’s supply chain weather on your own assets or you’re aggregating capacity you’re putting stuff in yards and managing container pools and eliminating demurrage per diem. That visibility platformed from dray provider is key and you have to be able to deliver that to your clients because that is by far the only thing folks are concerned about right now and that’s what we have learned over the last 18 months. Where is my freight? Is it cleared through the terminal. Can I trust the data I am getting from the terminal side or the port or my trucking provider so I would say summation for our end providing visibility to our clients is key and you got to be able to do that every market through out the united States because everybody shipping in to East coast ports there are not used to West coast ports so there not used to and playing ping pong to avoid the next upcoming catastrophe.” said Paul Brashier, Vice President of Drayage, and Intermodal for ITS Logistics. Show less

Containers left on chassis create two costly problems, said Paul Brashier, vice president of drayage and intermodal for ITS Logistics. It prevents those chassis from being used to move newly arriving containers, putting additional stress on chassis pools throughout the U.S., especially inland rail ramp pools. Shippers will also be charged fees for the dwelling chassis — separate from the per diem charge shippers pay per day once the container is out of use beyond its free time. “This can lead… Show more

Containers left on chassis create two costly problems, said Paul Brashier, vice president of drayage and intermodal for ITS Logistics. It prevents those chassis from being used to move newly arriving containers, putting additional stress on chassis pools throughout the U.S., especially inland rail ramp pools. Shippers will also be charged fees for the dwelling chassis — separate from the per diem charge shippers pay per day once the container is out of use beyond its free time. “This can lead to tens of millions of dollars in penalties,” Brashier said.

He predicts that per diem charges are going to surge in the second and third quarters of this year.

“These are on top of charges for warehousing, which are still at historic highs,” Brashier said. “Late fees and warehouse fees are passed onto the consumer, which is why we are not seeing products fall as much as they should.” Show less

Reno, Nev.-based ITS Logistics issues the January forecast for its U.S. Port/Rail Ramp Freight Index. Also, the South Carolina Ports Authority approves $100 million-plus in contracts for its new intermodal facility in North Charleston.

The January forecast for the ITS Logistics U.S. Port/Rail Ramp Freight Index reflects “a muted increase in inbound volumes due to the Lunar New Year, with a slight increase in container volumes,” according to the third-party logistics (3PL) firm, which… Show more

Reno, Nev.-based ITS Logistics issues the January forecast for its U.S. Port/Rail Ramp Freight Index. Also, the South Carolina Ports Authority approves $100 million-plus in contracts for its new intermodal facility in North Charleston.

The January forecast for the ITS Logistics U.S. Port/Rail Ramp Freight Index reflects “a muted increase in inbound volumes due to the Lunar New Year, with a slight increase in container volumes,” according to the third-party logistics (3PL) firm, which provides port and rail drayage services in 22 coastal ports and 30 rail ramps throughout North America. “There is also cause for concern with inland ocean chassis at the rail ramps, as rail operations could be impacted by a lack of ocean chassis availability.”

The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions. Show less

Shipper criticism of ocean and rail carriers’ unreliable service reached a fever pitch during the height of the pandemic amid skyrocketing rates. 2022 saw the signing of the Ocean Shipping Reform Act (OSRA), a major overhaul to the regulations governing container shipping, and probes into rail service by the Surface Transportation Board.

Time will tell whether government intervention spells relief in the long-term, but one constant in any forecast for logistics: change is all but… Show more

Shipper criticism of ocean and rail carriers’ unreliable service reached a fever pitch during the height of the pandemic amid skyrocketing rates. 2022 saw the signing of the Ocean Shipping Reform Act (OSRA), a major overhaul to the regulations governing container shipping, and probes into rail service by the Surface Transportation Board.

Time will tell whether government intervention spells relief in the long-term, but one constant in any forecast for logistics: change is all but certain.

“Great providers and transportation providers that have a national footprint are going to be more of the norm and something the BCOs [beneficial cargo owners] want to make sure that they have in their transportation provider portfolio because we could sit here and talk about what we’re forecasting into 2023 and 2024 and the next year, but there’s always something that could happen,” said Paul Brashier, vice president of drayage and intermodal at third-party logistics company ITS Logistics. “So, my hope coming out of this year and going into next is that BCOs and shippers really start gravitating towards more service providers that have a nationwide footprint. It gives them that flexibility and malleability to help them navigate anything.” Show less

Nearly a third of logistics managers at major companies and trade groups say they do not know how much trade they would return to the West Coast once an International Longshore and Warehouse Union, or ILWU, labor deal is reached, according to CNBC’s supply chain survey.

The unresolved fears have migrated trade away from the West Coast to East Coast and Gulf ports. That has benefited East Coast warehouses as well as the two large railroads that service the ports seeing the boom in… Show more

Nearly a third of logistics managers at major companies and trade groups say they do not know how much trade they would return to the West Coast once an International Longshore and Warehouse Union, or ILWU, labor deal is reached, according to CNBC’s supply chain survey.

The unresolved fears have migrated trade away from the West Coast to East Coast and Gulf ports. That has benefited East Coast warehouses as well as the two large railroads that service the ports seeing the boom in containers, CSX and Norfolk Southern. According to ITS Logistics, which monitors rail cargo trends, the volume of freight moving out of the East Coast doubles that of the West Coast. Show less

What a difference a year makes.

The scales tipped in new directions across the supply chain in 2022 as market dynamics shifted in response to the pullback in consumer spending on goods, inflation and, now, concerns of a recession .

“We broke the system this year and there was a significant amount of investment done by all groups to weather that,” said Paul Brashier, vice president of drayage and intermodal at third-party logistics provider ITS Logistics. “And from that chaos… Show more

What a difference a year makes.

The scales tipped in new directions across the supply chain in 2022 as market dynamics shifted in response to the pullback in consumer spending on goods, inflation and, now, concerns of a recession .

“We broke the system this year and there was a significant amount of investment done by all groups to weather that,” said Paul Brashier, vice president of drayage and intermodal at third-party logistics provider ITS Logistics. “And from that chaos, hopefully we’ll rise like a phoenix here and be in a better position to not just avoid situations like this in the future, but also be able to handle more volume and volatility as it becomes part of our supply chain .”

The tumult of the past two years may have forced the start of a paradigm shift within logistics , but only time will tell if those lessons will bear out in staying power.

“I think we learned about the resilience of people in the industry, about the ability to adapt and also how quickly we had to adapt to not only working from home, but because the industry, as a whole, is a necessary business, many people still had to come into the warehouse and the office to move freight,” said Vaughn Moore, executive chair and CEO of freight forwarder AIT Worldwide Logistics. “It gets forgotten sometimes how important logistics is to the economy.” Show less

Port of NY/NJ tells CNBC it has moved the most containers among U.S. ports for the fourth straight month. California ports concede they will need to work harder to gain back trade after labor disputes led shippers and carriers to migrate cargo throughout 2022 to ports including New York, Virginia, Maryland and the Gulf Coast. Rail freight on the East Coast has doubled that of West Coast to the benefit of CSX and Norfolk Southern.

“The Atlantic Ocean region volumes are high once again, as… Show more

Port of NY/NJ tells CNBC it has moved the most containers among U.S. ports for the fourth straight month. California ports concede they will need to work harder to gain back trade after labor disputes led shippers and carriers to migrate cargo throughout 2022 to ports including New York, Virginia, Maryland and the Gulf Coast. Rail freight on the East Coast has doubled that of West Coast to the benefit of CSX and Norfolk Southern.

“The Atlantic Ocean region volumes are high once again, as shippers continue to avoid the West Coast due to the uncertainty of the IWLU contract negotiations,” said Paul Brashier, vice president, drayage and intermodal at ITS Logistics. Show less

The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic and Gulf regions, according to the 3PL firm, which provides port and rail drayage services in 22 coastal ports and 30 rail ramps throughout North America. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions.

“Chassis at the rail ramp has been one of the biggest challenges that the supply… Show more

The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic and Gulf regions, according to the 3PL firm, which provides port and rail drayage services in 22 coastal ports and 30 rail ramps throughout North America. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions.

“Chassis at the rail ramp has been one of the biggest challenges that the supply chain industry is facing,” ITS Logistics Vice President, Drayage and Intermodal Paul Brashier said. “Ocean chassis in particular have become the issue. More and more freight is moving interior point intermodal (IPI) now, and we are concerned about those chassis that are available in the pool. This is especially the case if the drive chassis (DC) stay full.” Show less

Ramp Freight Index indicated a normalization for supply chains as ocean and trucking rates drop. coupled with newfound efficiencies gained during the height of the pandemic. ITS vice president of Drayage and Intermodal Paul Brashier called it a silver lining, but said his company and other have already been preparing their customers for a potential disruption at West Coast ports and for rail if contract negotiations go awry.

The Port of New York and New Jersey took the top spot in the country for trade in the month of October, the third-consecutive month it has topped California’s big ports as more cargo volume shifts to the East Coast in what seems with every month to look more like a permanent shift.

An increase in blanked, or canceled sailings, from Asia bound for the U.S. is hitting some of the biggest domestic ports hard, including the Port of Long Beach and Port of Savannah, reducing their ability to ship exports. The decline in vessels coming from Asia on the Transpacific route is creating an increase in the wait time, or dwell time, of export containers at the Port of Long Beach.

CONGESTION along the US east coast and the Gulf coast is finally easing as demand weakens during what is traditionally peak season.

Ports saw the west coast’s backlogs earlier this year gradually shift to their waters as shippers sought to avoid the San Pedro Bay bottlenecks and amid increasing concerns over the now expired labour contract.

In the Port of New York and New Jersey, 70% of this year’s volume growth has come from cargo diverted from the west coast, port director… Show more

CONGESTION along the US east coast and the Gulf coast is finally easing as demand weakens during what is traditionally peak season.

Ports saw the west coast’s backlogs earlier this year gradually shift to their waters as shippers sought to avoid the San Pedro Bay bottlenecks and amid increasing concerns over the now expired labour contract.

In the Port of New York and New Jersey, 70% of this year’s volume growth has come from cargo diverted from the west coast, port director Bethann Rooney said in September. Show less

To avoid the congestion at major west coast gateways, US importers have now clogged up ports elsewhere and, instead of Los Angeles and Long Beach, it’s Houston that now has the biggest problem, according to ITS Logistics.

ITS' current US Port/Rail Ramp Freight Index rates operational issues at the US Gulf region’s port as ’high’, whereas operations on the west coast are normal. Other regions are rated as having ’moderate’ issues.

- Mississippi River water levels are so low it is impacting commodities transport.

- Retailers are using portable containers to store unsorted returns, furniture, and tires as warehouse inventory overstock piles up.

- East Coast port congestion led by Savannah results in up to 70% of vessels arriving late on the Transpacific trade route, and a rail strike would further complicate this supply chain stress.

Having grappled with congestion at the port complex of Los Angeles and Long Beach, the problems at New York and New Jersey present a sense of déjà vu, to Paul Brashier, VP of drayage and intermodal, at ITS Logistics.

Port congestion has shifted from the west coast to the east – last week, there were 130 containerships waiting for berth space at US ports, but only a quarter of those were queueing on the west coast.

The nation’s largest ports handled more volume this year than through the same time period last year, a sign the supply chain challenges that wreaked havoc on consumers and retailers during the pandemic still haven’t let up. But there are signs port congestion is shifting from west to east and could even ease overall thanks to consumers slowing their shopping habits.

Contract talks on Monday failed to reach a resolution on wages for nearly 2,000dockworkers at the Port of Felixstowe as shippers and carriers brace for an eight-day strike later this month. Companies now face yet another wrinkle in global supply chains with the strike, the first at Felixstowe since1989, scheduled for Aug. 21-29 at Britain’s largest container port.

ITS Logistics, one of the fastest growing logistics companies in the United States, has been recognized by Transport Topics as the #11 Intermodal/Drayage carrier in North America in the Transport Topics 2022 Top 100 For-Hire Carrier rankings. ITS Logistics provides port and rail drayage services, door-to-door intermodal solutions, and cross dock/transload services throughout North America.

A law designed to force gig-economy companies like Uber, Lyft and DoorDash to accept workers as employees is also having a profound impact on the trucking industry. AB5 was intended to give transport workers more workplace protections, but for truckers who own and operate their own rigs, they said it may be the end of the road.

Caroline Hyde, Romaine Bostick & Taylor Riggs bring you the latest news and analysis leading up to the final minutes and seconds before the closing bell on Wall Street and tackles the ECB decision, supply chain challenges and expanding LGBTQ initiatives Guests Today: Meb Faber of Cambria Investment Management, Sebastian Galy of Nordea Bank, Paul Brashier of ITS Logistics, Deborah Cunningham of Federated Hermes, Liz Ann Sonders of Charles Schwab, Todd Sears of OUT Leadership.

The Biden administration pressed ports in Southern California to open 24 hours a day to help ease supply-chain bottlenecks. The move has barely made a ripple.

When Flexport Inc. learned in the past month that an ocean carrier planned to shift cargo from the congested operations at the Port of Los Angeles to little Port Hueneme some 80 miles up the California coast, the freight forwarder found that trucking companies weren’t ready to go along with the changing direction of the imports.