US CONTAINER CONGESTION IS STILL DETERIORATING

Tuesday, January 22, 2019 0 Comment 188 Views 0
US container congestion continues to deteriorate, spreading from coastal ports to inland areas.

In December last year, the surge in imports from the Port of Los Angeles and Long Beach caused congestion and now it is spreading to the interior of the United States.

Due to the backlog International Containers of two terminals, Marion and Global IV in one of the largest rail networks in the United States, Union Pacific Railroad-UP, cargo owners are facing weeks of delays and demurrage bills about thousand dollars.

The surge in imports into Los Angeles and Long Beach in December last year led to traffic congestion and it is spreading to inland areas now, although no one has complained about BNSF rail freight. The surge in cargo has also brought about two long-standing problems: the shortage of forklifts and truck drivers.
 According to MIQ Logistics, shipping companies and terminal operators said that the shortage could last to the middle and late February.

UP said in the report,  "Because of the large number of imported products on the West Coast of the United States that continue to flow into inland terminals a few years ago, trucks in several major markets are seriously strained.Imports of West Coast ports are still very large, so we expect that a large number of inland terminals will continue to be shipped in a few weeks.



This stalemate is an inland transport congestion caused by a mixture of factors. Since November 2018, there have been 34 loading vessels in Los Angeles and Long Beach, and imports increased by more than 20% in December. Before the tariff was raised to 25% on January 1, 2019,  BCO cargo owners were already transporting seasonal goods, but the Trump administration delayed the upgrade of tariffs and the containers were already in transit.

With the surge in inland freight, the yards and international containers will not be enough. At the same time, UP will charge a demurrage of $100 per day during the resolution of the problem, but it will not increase the cost until further notice.
 
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