General

Due to port congestion threatening its inland freight network, C.H. Robinson began to levy a surcharge of $175 per container at several ports in the United States and an inland market starting September 1. Starting on September 6, a congestion surcharge for the port of departure will be imposed on Shenzhen, China.

According to the latest data from the signal platform of the Port of Los Angeles on the 3rd, there are currently 19 container ships waiting for berths at the Southern California anchorage, 8 ships waiting outside the port, and 27 ships waiting. The average waiting time for berth is up from one week ago. Increased from 7.6 days to 8.1 days, the waiting time can reach up to 15 days. This "ship jam" phenomenon has led to shortages of goods in many places, delays in logistics, and rising prices.

According to data from the Port of Los Angeles, the volume of goods in the 36th and 36th weeks continued to increase substantially. The 36-week increase is expected to increase by 73.84% compared to the 35th week. The relief is still not optimistic!

At the same time, on the east coast of the United States, truck transportation was also delayed for about two weeks, resulting in extended container detention. Data show that the average detention time of US containers has increased by 35%, which is equivalent to a 35% reduction in available capacity. The long detention of containers has further exacerbated the increasingly serious shortage of chassis in the Midwest and Northeast of the United States. In addition, railway congestion has also caused delays in the delivery of imported goods from the United States, making it difficult for empty containers to quickly return to Asia.

C.H. Robinson’s move is the latest increase in cost barriers for importers who are already facing high demurrage and port charges, multimodal railway delays, railway metering of freight in the Midwest, and truck capacity restrictions. This is another sign that these conditions will continue at least until the end of the year.

Insiders pointed out that the increase in imports and the lack of labor and equipment are some of the reasons for the extended stay and congestion. The largest third-party logistics provider in the United States recently stated in a customer consultation report: "As you know, the past year has brought unprecedented challenges to the transportation industry. Recently, it has reached a critical point. "Therefore, the congestion/peak season surcharges have been implemented for the international short-distance transportation services that provide services at multiple ports in the United States. The short-term challenges that the industry hopes are now expected to continue until the first quarter of 2022."

CHRobinson said that from all port terminals in Charleston, Savannah, Houston, Los Angeles, and Long Beach, all rail hubs in New York and New Jersey, Seattle-Tacoma, and Atlanta, to intermodal connections to inland points on local ramps, there will be Affected by freight congestion surcharges. However, Norfolk, Virginia and Oakland, California, the two major ports will not charge this fee. At the same time, he added that the congestion surcharge imposed this time will continue until the end of the year, "we will reassess at that time."