Toronto, August 16, 2022
Toronto Intermodal Terminal Update – August 16, 2022
The intermodal container terminals and cargo handling situation in Toronto remains extremely precarious as a recent surge of import containers has further contributed to the overcapacity at ports and inland terminals. The result is severe congestion, delays and additional costs to importers. Container hauliers are waiting upwards of 4 to 6 hours to collect loads from Toronto rail terminals. Empty returns are often not able to obtain reservations, as the return terminals are also at capacity. As such importers are faced with extra fees such as prep-pull, waiting time, chassis detention and steamship line detention.
How long this will last is somewhat unpredictable. Some indications suggest cargo volumes have peaked and will reduce in the following months, which should ease the pressure. However, given the supply chain is so severely compromised, improvements in overall service could take quite awhile.
Currently, many truck carriers are now refusing to take on new business as they do not have the capacity. As of this week, several carriers are stating their equipment is booked until September, which would mean containers could sit at terminal collecting storage and demurrage. At the same time many intermodal truck carriers are advising their yards are full, which means they are unable to pre-pull containers from terminals in order to avoid incurring storage fees which are charged daily after free time expires.
We are monitoring the situation very closely and will advise as new developments unfold.
For more information, please call David Lychek, Director – Ocean & Air Services at (905) 882-4880, ext. 1207.