The Top 5 Stories in Freight
Here’s what’s happening this week:
- Agencies propose initiatives to improve the supply chain with the Emerging Project Agreement.
- Ports imposing fines of $100/day for sitting cargo.
- What can you change to improve efficiency and get your cargo?
- OTRI falls, but is it a good thing?
- Challenges continue in November for the supply chain.
The hottest stories in freight can be found here, in the Weekly Freight Report:
1. Agencies propose initiatives to improve the supply chain with the Emerging Project Agreement.
Federal and state transportation agencies as well as supply chain members are making adjustments to work together to alleviate bottleneck congestion at the ports. The goal of the agreement is to provide funding to kickstart projects so that imports and exports can move more efficiently and increase system resiliency. To see what problems the plan will combat, click here.
2. Ports imposing fines of $100/day for sitting cargo.
Harbor commissioners for the Port of LA/LB plan to fine ocean carriers a $100 surcharge, compounding daily, for containers that sit too long on the docks. The clock starts ticking on Monday, Nov. 15th. The port will monitor how quickly containers start moving and could reverse the decision to collect fees if cargo starts clearing out. Who will ultimately end up paying the fees for the sitting cargo and what is the port’s plan for the collected funds? Find out here.
3. What can you change to improve efficiency and get your cargo?
As the holidays approach the chasm between freight demand and transportation supply continues to widen. A pandemic. Limited chassis equipment. Parts shortages. Delayed shipping cycles. Limited cargo containers. Tight capacity. Full warehouses. What can you control? To learn more about the adjustments being made to improve efficiency, click here.
4. OTRI falls, but is it a good thing?
Even with trucking demand at an all-time high, the national Outbound Tender Rejection Index (OTRI) fell below 20% for the first time since July 31, 2020. Insane consumer demand, new truck orders not being filled, lack of drivers, and the inflated costs of used equipment all have had an impact on the current capacity debacle. To see how this is impacting contract rates, click here.
5. Challenges continue in November for the supply chain.
Will the shelves be full in time for the holidays? HIS Markit stated that imported consumer goods should arrive 6 weeks earlier than normal in order to make it on the shelves for the holiday rush… but…with continued port congestion, meeting this deadline could be a challenge. In an effort to get items on shelves faster, the Port of Oakland stated that their marine terminals are “congestion-free”. So what do consumers want this holiday season and what are the other logistics challenges in November? Find out here.
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