Monday, October 27, 2014

West Coast Container Congestion Again in 2014

(10/27/2014) And this time the problem is not easy to solve. Unlike the past importing container congestion in the LA-LB ports were caused by labor strike, this year, the container congestion in the west coast is due to shortage in equipment (chassis) and carrier capacity. So, some of U.S. retailers that rely on holiday shopping to turn profit may get hurt this time. A freight consulting company, flegenheimer.com,  concludes several factors (and they look hard to solve):

  • Import surge explains terminal congestion, capacity shortages in both rail and drayage trucking sectors. 
  • Since most carriers no longer provide chassis, trucker has to make arrangements for their own chassis pick up and wait in line. 
  • Raildroad delays in providing railcars and equipment; thus, containers that cannot leave as scheduled create further congestion. 
  • ILWU goes on vacation and lesser experienced dock workers are assigned, it affects productivity. 
  • Some terminals require appointment of 24 hours prior to pick up.
The equipment shortage will take a long time to solve. 




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