Global Shipping Update
Typhoon In-Fa made landfall on China’s east coast province of Zhejiang on Sunday. The Ports of Shanghai and Ningbo are closed and currently working remotely. Airports cancelled many flights in Shanghai and Ningbo due to the high winds. The central rail hub in Zhengzhou city was closed due to inclement weather.
Due to an increase in positive COVID-19 cases, many areas of Vietnam are currently under “lockdown” orders. Workers are on shift schedules, drivers must follow COVID-19 health procedures, shipping line office staff are 50-80% working from home, and all ports and warehouses must strictly implement health and cleanliness rules on COVID-19 (penalties and punishment for any non-compliance).
There is a vaccine shortage nationwide. The current outbreak is affecting production levels, service levels, and transportation across Vietnam.
The West Coast MTO Agreement (WCMTOA) announced that on August 1, 2021, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will increase by 2.2 percent. The adjustment matches the combined 2.2 percent increase in longshore wage and assessment rates that took effect in early July.
Beginning August 1, 2021, the TMF will be $34.21 per TEU (twenty-foot equivalent unit) or $68.42 for all other sizes of container.
Union Pacific Railroad and CSX Transportation have warned that congestion at inland rail hubs and intermodal service delays will continue through the end of 2021. The railroads have attributed the bottlenecks to record import volumes into the U.S., labor and equipment shortages as contributing factors.
Shippers have been experiencing significant delays in Atlanta, Chicago, Cincinnati, Cleveland, Columbus, Detroit, Elizabeth-Newark, Jacksonville, Kansas City, Los Angeles- Long Beach, Oakland-Stockton, and Seattle-Tacoma.
Union Pacific CEO, Lance Fritz, explained the railroad has “taken numerous actions to mitigate the customer impact and are actively working with all parties in the supply chain. Even so, it’s likely these issues will persist through the end of the year.”
However, Fritz stated that even after a hard reset in Chicago (completely suspending intermodal service between the West Coast ports and UP’s Global IV terminal), the challenges in Chicago will be around for a while longer.
CSX railroad has been metering ocean container traffic between the Port of New York and New Jersey and Chicago, Cleveland, and Indianapolis. CSX CEO, Jim Foote, said he has “never seen any kin fog thing like this in the transportation environment in my entire career where everything seems to be going sideways at the same time.
Total intermodal volume into the Midwest in the second quarter rose 20 percent year over year and 7.4 percent compared with Q2 2019 for all container sizes, according to the Intermodal Association of North America (IANA). International containers drove the growth into the Midwest, surging 31 percent compared with a year ago, and 15 percent compared with the second quarter of 2019, according to IANA.
Click here for current border Wait Times