· US ports including Los Angeles and Long Beach are warning of high volume during the August – October peak season. At LA and Long Beach over 30 vessels are anchored waiting for berthing, and the current average anchor time for incoming vessels has increased to an average of almost 7 days waiting. With increasing capacity expectations this situation will likely compound the growing gridlock at these and possibly other US port locations.
· Rails are also facing ongoing congestion issues prior to this peak season spike and are bracing for the surge expected ahead. The bottlenecks recently incurred at US Rail locations have caused some to question whether additional regulation is needed and even the top US rail regulator has suggested re-regulating is an option that is still a possibility under review.
· The trucking industry is also affected by the influx of cargo. Typically, trucking rates are at the highest during July and August, however the calculations are currently anticipating an increased rate at least through November across almost all US locations. The trucking industry has also seen a drop in the number of loads per truck ratio from 6.0 to 5.6 on average, triggered at least in part due to long wait times to get cargo out gated from ports and rail locations.
Thursday August 19, 2021
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