Hello Customers, Colleagues, and Friends…
As many of you know, things are as bad as they have ever been in our industry… Continued congestion at nearly all US ports, Russia-Ukraine conflict creating additional challenges, and skyrocketing fuel rates are major issues in the international supply chain.
Over the past weeks, we have seen West Coast port congestion begin to fall as the number of ships berthed outside of Long Beach has fallen 39% since its historic high of 109 ships. Unfortunately, port congestion still remains a significant problem and “indicators point to ongoing challenges for West Coast ports and a potential resurgence in queue numbers in March, April and May” according to Greg Miler of American Shipper. In similarly troubling news, US East Coast and gulf ports have seen steady increases in volume. Check out Supply chain whack-a-mole: West Coast eases, East Coast worsens for more information on these issues.
As Russia’s invasion of Ukraine continues to escalate, the ramifications on the already volatile world supply chain remain mostly unknown. With many international air and sea carriers diverting service from the affected areas, vessel and aircraft schedules continue to change. The implications of the war and sanctions on Russia are not yet clear but many industries, including international transportation, are bracing for an already bad situation to get worse.
Soaring U.S. energy prices are hitting all modes of transport. “Importers that are already squeezed by sky-high trans-oceanic shipping rates could get hit especially hard by the energy-price spike,” said Lars Jensen, chief executive officer of Copenhagen-based Vespucci Maritime, a shipping market-analysis firm. We will continue to keep you updated regarding fuel costs but expect surcharges to continue to grow with fuel costs.
Please continue to plan accordingly for your import, export, and domestic transportation needs.
We hope you all are doing well and are staying healthy during these unprecedented times.
Sincerely, Your friends at Krenz and Hannan International
SOURCES
Supply chain whack-a-mole: West Coast eases, East Coast worsens (freightwaves.com)
https://www.nytimes.com/2022/03/01/business/economy/ukraine-russia-supply-chains.html
https://ajot.com/news/fuel-price-hikes-to-hit-shippers-truckers-across-u.s-economy