Outbound Shipping and Logistics
The Domestic Transportation and Warehousing Logistics of Delivering Products to North American Customers
Getting products to customers across North America now takes twice as long and is much more expensive.
RECORD PORT VOLUME The Port of Los Angeles processed 10 million containers in a 12-month period for the first time in May and diversion of ships to other West Coast ports, Oakland, Seattle/Tacoma and Vancouver has spiked volume and slowed normal processing times. (Maritime Advisor)
Percent Increases in Truckload Freight Prices
RAIL TIMES ARE LONGER, SERVICE IS INTERRUPTED
Train service from ocean ports to inland hubs have reeled from surging container volume. AmerCareRoyal logistics managers report a doubling since Q1 of average transit times from Los Angeles / Long Beach to Dallas, a shipping leg normally 12 days long to over 24 days in June. Union Pacific suspended rail shipments to its intermodal hub in Chicago for a week in July to enable ocean carriers time to untangle container logjams. System-wide, rail line and rail car capacity shortages have become problematic and in Canada, wildfires shut down CN and Canadian Pacific rail service to and from Port of Vancouver, further stressing the dispersion of cargo to the interior. (Freightwaves, Hapag-Lloyd, American Shipper)
DRIVER SHORTAGE & HIGHER LABOR COST
63,000 long-haul truck driver positions are unfilled, limiting available over-the-road shipping capacity, leading to record-high shipping contract rates.. (Coyote)
FUEL PRICES ARE UP Price of diesel fuel rose 38.5%, November-to-July, crude oil prices currently at highest level since Q3 2018. (Barron’s, US Energy Information Administration) SHIPPING SUPPLIES COST MORE Springtime shortages of lumber limited availability, drove up cost for pallets, and cost for shrink film and corner board, essential shipping and warehousing supplies, have shot up due to resin and paper pulp raw material cost inflation. (Transportationinsight.com)
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