Therehavebeennumerousarticlespublishedonthistopicinvarioustradejournalsshowinghowalmosteveryoneinthesupplychainisbeingimpactedbythiscongestion.TheFederalMaritimeCommissionhostedafewopenforumstodiscussthissituation.C.H.RobinsonandotherBeneficialCargoOwners(BCOs)participatedtoensurethatcustomers’voicesareheard.

Webelieveitisimportantforeveryonetotrulyunderstandthecauseoftheproblem;whatthesituationlookslikeinthecurrentstate;whatisbeingdonetoaddressthesituation;andwhatwecanexpectinthenearfuture.

CAUSE

LargerVessels.Currently,morethan10,TEUvesselsarecascadingdowntothetranspacifictradefromtheAsia-Europetrade.Whilethisreducescostsduetoscale,theterminalshavenotevolvedtomanagetheoperationsofthesevessels.

IncrementalVolumes.DuetoapossiblestrikeovertheUSWC,mostretailerstookprecautionsandhavebeenmovingahighlevelofinventoryreplenishmentinpreparationforarobustyear-endshoppingseason.

LaborDiscussion.Nodealhasbeeninkeddespitepublicationsoveranagreementonthehealthcareissue.WhiletheILWUlaborcontinuestowork,thelackofcontractlimitsarbitration.Therehavebeenperceivedslowdownsthroughincreasedinspectionthatcontinuetoexacerbatethesituation.

ChassisShortages.Carriershavecontinuedtodivesttheseassetswhichhavecauseddislocationofchassisandimbalancebetweenthechassisproviderswiththeterminals.

CarrierAlliances.ThecontinuedevolutionofVesselSharingAgreementsisputtingadditionalpressureonterminalsastheymakechangestoac







































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