Nationwide, importers are struggling to get cargo containers picked up from U.S. ports as congestion and chassis shortages compound delays from winter storms and peaking consumer demand.
When ocean carriers took themselves out of the chassis business, the industry stumbled to adjust; now, as we enter the dawn of mega-vessels, it seems port infrastructure is straining against the weight of a system not inherently designed to handle such volumes.
As highlighted in Green’s 2018 Freight Outlook, the shipping industry is going through a period of growth and change. Alliances, weather, and consumer demand has shifted volumes at U.S. ports, spreading local chassis pools thin as truckers endure longer wait-times and less runs. Chassis are rented daily and picked up outside of the terminals, adding transit-time and cost.
As of January 2018, Atlanta and Houston have remained the top two hubs for van spot truck rates, with Charleston replacing Chicago at number three. While it’s no surprise the weather played a role in shifting more freight outside these major hubs, the Midwest had to cover what was being put on hold. According to the transportation information service, DAT, the national average for spot and contract truck freight rose from $2.11 to $2.30, with Atlanta at the country’s highest, $2.52. From the outside, increased prices hint at a growing economy, behind the numbers, a straining industry is on the hunt for more drivers, more capacity, and more stability.
In December 2017, domestic carriers took another hit as the electronic logging device (ELD) rule went into effect, putting hard limits on driver hours of operation. Those who fail to implement the industry-rattling device by April 1st will face hefty fines, that some suspect, will put even more truckers out of service. Coupled with an already shrinking talent pool, it’s no surprise that U.S. trucking is struggling to service in the existing system.
Experiencing container delivery issues?
Talk to your freight people at Green Worldwide Shipping about alternative port pairs and creative routings. Contact us, today!
