Freight volumes are continuing to impact the economics of logistics, with two closely-watched indices showing contraction in the market as demand for goods remain challenged ahead of Q4 restocking. Average daily spot rates from China/East Asia to the West Coast were $1,324 per 40-foot container on June 7, down from $14,000 a year ago, while the Logistics Managers Index is in contraction territory.
Import volume, measured in container TEUs, was up 6.9% from February to March, according to data from Descartes. Last month’s volume was down 27.5% from the prior year but ahead of pre-pandemic 2019 by 4.2%, an encouraging sign even as the 2023 outlook is cloudy due to labor and economic issues.
With Chinese New Year starting Sunday, and manufacturing and logistics operations virtually shut down there for two weeks, experts say retail inventory levels are in a good place given recent gluts and proactive restocks, but the weeks following will bear watching and might bring issues.
The Ocean Shipping Reform Act of 2022 is intended to promote U.S. exports and make ocean transport more competitive, efficient and economical. But a requirement that invoices list the date of container accessibility is proving to be a fly in the ointment. Bryn Heimbeck of Trade Tech Inc. explains efforts to address the inequity.
While trucker protests are no longer blocking the flow of goods at the busy Port of Oakland, port officials are still hoping a California district court judge will take action to prevent future efforts to create a logjam there as retailers gear up for the 2022 peak holiday season.
Peel-off stacks, dedicated piles of 50 containers or more, are a great port congestion solution if you’re a mega shipper like Walmart, but less so if you’re an SMB. But now smaller players can have freight consolidated to create peel-off stacks. Bryn Heimbeck of Trade Tech talks about a pilot project at the port of Los Angeles/Long Beach.
Freight forwarders who excelled as partners during crisis points will be well positioned to turn recent first dates with shippers into long, beautiful relationships. They have been using tech to create efficiencies that allow them to devote time and attention to stellar customer service over the past two years when business was tough.
As container ships piled up at the blocked Suez Canal for six days, an already serious issue of port congestion has grown worse, rippling down to longer delays on consumer orders as inventories deplete with goods hung up in transit. Some chokepoints have seen easing but shippers continue to scramble and costs rise.
As supply chains are often global in scope and impact fiscal health, supply chain risk is a major issue. Here are some steps to take to mitigate that risk.