Asia-U.S. container lines, still heavily reliant on intermodal service, have now been forced to respond with intermodal door delivery charges to recover those costs.
Congested U.S. port terminals, harbor and over-the-road truck and driver shortages, slower trains and longer rail terminal dwell times due to increased domestic rates have not only disrupted service but also driven intermodal rates and cargo handling costs up sharply.
The Port of Los Angeles in September saw its busiest month in eight years, as larger cargo ships called at the port and retailers rushed in goods for the holiday season. The port said cargo volume — including imports, exports and empty containers — rose 9% from a year earlier. The 775,133 container units that passed through the port last month were the most since August 2006. Imports increased 11%, while exports rose just 0.2%, the port said this week.
“The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, rose 0.6 percent in August from July, rising for the second consecutive month, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics’ (BTS). The August 2014 index level (120.9) was 27.8 percent above the April 2009 low during the most recent recession. The level of freight shipments in August measured by the Freight TSI (120.9) reached its all-time high (Table 2A). BTS’ TSI records begin in 2000.”
“Import cargo volume at the nation’s major retail container ports is expected to see a final surge and set a new monthly record in October as the holiday season approaches, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.”
“Increasing congestion at the nation’s ports as well as the ongoing West Coast labor negotiations are ongoing concerns and retailers are making one last push to make sure they’re stocked up for the holidays,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Retailers are working hard to make sure customers can find what they’re looking for regardless of what happens at the ports.”
“The Ports of Long Beach and Los Angeles continue to cope with Peak Season congestion, but operations are still sluggish. “While we were not blind-sided by the volumes coming in now, terminal operators may not have expected such a dramatic ebb and flow,” said POLA Director of Media Relations Phillip Sanfield in an interview. It’s a difficult balancing act, with the rate of cargo discharge being the main problem.”
“The freight logistics sector was relatively flat in September, with a drop in North American shipment volume and a slight increase in total freight expenditures, or payments. Other freight indicators have shown that shipment weights have been rising steadily, so a decrease in the actual number of shipments does not necessarily indicate a drop in freight activity. In a typical summer trend, the economy as a whole cooled in August and September.”
“The second, third and fourth weeks of September were the three highest intermodal rail volume weeks on record for U.S. railroads, the Association of American Railroads reported. In the second week of September, volume increased 5% to 279,052, in the third week it increased 6.4% to 279,777, and it climbed 2% last week to 275,071, according to figures from the rail trade group.”
“Total nonfarm payroll employment increased by 248,000 in September, and the unemployment rate declined to 5.9 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in professional and business services, retail trade, and health care.”
“The September PMI® registered 56.6 percent, a decrease of 2.4 percentage points from August’s reading of 59 percent, indicating continued expansion in manufacturing. The New Orders Index registered 60 percent, a decrease of 6.7 percentage points from the 66.7 percent reading in August, indicating growth in new orders for the 16th consecutive month. The Production Index registered 64.6 percent, 0.1 percentage point above the August reading of 64.5 percent.”
