RTW

Week 26 Market Update

SC PORTS IMPLEMENTS FLUIDITY MEASURES AHEAD OF PEAK SEASON

The South Carolina Ports Authority will extend Sunday hours for truckers through September, one of several initiatives’ officials believe will help the port navigate the upcoming peak season. The South Carolina Ports Authority said it has learned some important lessons about how to avoid a repeat of the crippling congestion it experienced in February and March. The port believes extending Sunday gate hours, leasing out new chassis to cargo owners, organizing container stacks, and working to ensure a smooth flow of cargo with rail partners CSX Transportation and Norfolk Southern Railway will help it navigate the peak season without major disruptions.

SEVERE CONGESTION CONTINUES AT NORFOLK

Norfolk terminal continues experiencing heavy congestion at their facility. This is causing severe delay on the recovery of containers by truckers. In addition to this, we continue to see a lack of driver capacity to this market as well.

TERMINAL DWELL TIME

New York Terminal:

There were 18 container vessels reported at anchorage awaiting a berth at the start of week 25. All terminals report high berth utilization, and, in some cases, discharge is metered to maintain yard fluidity. Empty stock surpluses continue to be extremely high and sporadic shutout of empty returns continue at terminals and depots. Maher, APM, and PNCT have planned a Saturday gate on 6/25 to facilitate increased import deliveries.

Savannah Terminal:

36 ships at Anchor from June 25. Ships returning to SAV along with ad-hoc calls vessels are bunching and create longer wait times for berthing, currently waiting time is 7 to 10 days. There will be 5 more RTG’s coming online Monday in CB3 so this berth will be non-productive during this time. The terminal capacity currently at 89% utilization. With empties growing there are more fail to deck so Gate.

HOW AIRLINE’S CARGO MISTAKE LED TO $1.7M DISPUTE BETWEEN KUEHNE + NAGEL

A federal judge has ruled a $1.7 million shipping dispute between Kuehne + Nagel, the world’s largest air freight logistics provider, and oil field services giant Baker Hughes must be arbitrated, saying that the contract’s arbitration clause is enforceable under New York law.

Houston-based Baker Hughes sued for compensation after one of its shipments was seized by Brazilian customs authorities because the airline providing the physical transportation failed to provide proof of a pre departure security check.

The case highlights the complicated nature of international goods movement, which involves multiple parties that must closely coordinate cargo handoffs and information sharing. Having many parties — truckers, freight forwarders and customs brokers at origin and destination — adds an element of risk compared to having a single entity control the entire journey within its own network, as FedEx and UPS do.

BIDEN CALLS ON CONGRESS TO ENACT 3-MONTH GAS TAX HOLIDAY

President Biden on Wednesday will urge Congress to suspend federal gas and diesel taxes for three months, a move experts say does not guarantee meaningful benefit for consumers or the trucking sector.

“But in this unique moment, with gas prices near $5 a gallon on average across the country, President Biden is calling on

Congress to suspend the gas tax for three months — until the end of September — to give Americans a little extra

breathing room as they deal with the effects of Putin’s war in Ukraine,” the White House noted.

In remarks planned for later in the day, Biden is also expected to encourage states to take similar action by either suspending their own gas taxes or putting in place other short-term inflation-relief measures.

U.S. Port Backups Are Extending into Freight Rail Supply Chains

Containers in Line_RTW

About 29,000 boxes were being held in container yards at the Port of Los Angeles this month awaiting pickup by rail, more than triple the usual number. Port bottlenecks that have tied up U.S. supply chains are spreading from the docks to the country’s freight rail networks, raising costs and adding new shipping complications for importers trying to manage the flow of goods.

Some retailers are waiting weeks to move cargo by train out of Southern California’s ports of Los Angeles and Long Beach, while others are giving up on the railroads and shifting shipments of furniture, apparel and other consumer goods to trucks for long inland journeys on highways. The two railroads that serve the ports, Union Pacific Corp. and BNSF, say the delays in picking up boxes are being caused by congestion at freight-switching yards thousands of miles inland in logistics hubs like Chicago.

Hundreds Injured, 12 Killed when Chlorine tank is dropped in AQUBA

Container at port_RTW

A toxic cloud of chlorine gas was released in a loading accident Monday afternoon in the Jordanian port of Aqaba on the Red Sea. State media is reporting that 12 people died and at least 260 others were injured when the gas cylinder ruptured releasing the toxic chemical onto the ship and surrounding dock area. Initial reports indicate that the crane lifting the tank malfunctioned. Some reports suggest that one of the main wires on the crane broke causing the release of the tank. The tank reportedly held 25 to 30 tons of chlorine.

 

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