Freight moving through the supply chain into the U.S. and Canada is being delayed by the combined impact of the following events:
- A sharp increase in demand for freight between the U.S. and China, as shippers attempt to get their goods moved before the already hot trade war between the U.S. and China gets even hotter (U.S. is threatening a second round of tariffs with a total value of $200 billion, and China has promised to retaliate in kind).
- Draft issues, feeder misconnection and port congestion at ports in Asia have caused a cascading roll over, growing from one week to the other. Coupled with this is a massive backlog at many of these ports due to the disruptive impact of five typhoons in six weeks. These issues at point of loading disrupt vessel schedules leading to multiple vessels arriving at destination ports simultaneously, resulting in extended birthing times, increased congestion and dwell time.
- Disruptions at Canada’s major West Coast ports, where operations have been slowed by terminal congestion, labour shortages, and a shortage of rail cars. Some terminals, including Centerm, have suspended ERS (Expedited Rail Service) because of congestion. The resulting backlog could extend to the first week of October.
- Limits placed on rail car velocity due to excessive heat throughout Canada this past summer, resulting in increased transit times for rail moves across the entire network.
We will continue to monitor this situation and advise as new updates are provided.
For more information, please call David Lychek, Manager – Ocean & Air Services at (905) 882-4880, ext. 207.