Worldwide Major Port Update, November 25, 2021

• Worldwide Major Port Update, November 25, 2021

  Major ports update (Vessel waiting time indicator)

  Area	Less than 1 day	1-3 days	More than 3 days
  Asia-Pacific	Qingdao, Xiamen, Nansha	Busan, Ningbo, Shekou, Singapore, Tanjung Pelepas, Port Klang, Lyttelton, Tauranga	Hong Kong, Yantian, Shanghai, Sydney, Melbourne
  Rest of World	Port Elizabeth	Antwerp, Bremerhaven, Rotterdam, Newark, Charleston, Tema, Cape Town	Felixstowe, Colombo, Long Beach, Los Angeles, Oakland, Vancouver, Seattle, Prince Rupert , Savannah, Houston, Apapa, Tin Can, Cotonou, Onne, Durban, Dar Es Salaam, Sudan

  • Ports in China: Dalian suspended all cold chain facilities from November 8 that impact all reefer shipments except chilled fruit. We suggest customers change final destination to other non-congested ports in East and South China. Hong Kong barge operation will be suspended from the end of December to Lunar New Year in early February 1. We expect limited ocean capacity for transhipment within South China and suggest customers replan schedules to avoid cargo delays.Three Gorges Dam maintenance between February 21-March 23rd will result in longer transit times and reduced barge capacity into/out of Chongqing & Yibin. Intermodal/ICR available as alternative solution for customers.
  • Ports in South East Asia: Tanjung Pelepas congestion remains critical, impacting cargo acceptance to some South East Asia destinations.
  • Port of Busan has seen an improvement in congestion levels with vessel waiting times forecast to be around three days.
  • Port of Los Angeles and Port of Long Beach continue to be severely congested with around 80 container ships waiting at anchor in mid-November. Waiting times are up to 25 days as all large vessels are limited to four gangs in LA.
  • North Europe faces congestion with high yard density and multiple day delays into virtually all main ports. Felixstowe is most critical, and we continue to divert to Wilhelmshaven on the AE7 service. Operational capacity in Hamburg has improved significantly, allowing us to reinstate the AE7 call earlier than expected. The first vessel calling Hamburg is 137W Matz Maersk. Our contingency plan on AE6, omitting Le Havre (served via AE55 instead) and AE55 omitting Antwerp (served via AE6 instead) will be maintained until at least end of Q4.
  • Mediterranean: We have four confirmed slidings all impacting WMED. Barcelona and Valencia will suffer two consecutive slidings in the first two weeks of December. Algeciras and associated feeder network will miss a sailing.
  • Port of Seattle: 21 days average waiting time for vessels that have been in queue.
  • Port of Santos: Trucker strike in progress.
  • Port of Colombo: Port is facing operational delays due to high yard density and bad weather disruption.
  • Port Elizabeth: Due to feeder space constraint, we cannot accept bookings to this port.
  • Ports in Australia and New Zealand: Industrial action continues to impact Australia export ports. Sydney, Melbourne and Fremantle are experiencing up to 8 days delay. Melbourne’s VICT terminal is still experiencing the impact from COVID shutdown with reduced staffing numbers. Auckland Port is congested, and the current yard utilization is 93%.

LALB - ‘CONTAINER DWELL FEE’ ON HOLD UNTIL NOV. 29

• San Pedro Bay Ports Cite Continued Improvements on Marine Terminals

  
  SAN PEDRO, Calif. — Nov. 22, 2021 — Following meetings today with U.S. Port Envoy John Porcari and industry stakeholders, the Port of Los Angeles and the Port of Long Beach announced further postponement of the “Container Dwell Fee.” With continued progress moving containers off marine terminals, the fee will not be considered before Nov. 29.

   

  Since the fee was announced on Oct. 25, the twin ports have seen a decline of 33% combined in aging cargo on the docks. The executive directors of both ports are satisfied with the progress thus far and will reassess fee implementation after another week of monitoring data.

   

  Under the temporary policy approved Oct. 29 by the Harbor Commissions of both ports, ocean carriers can be charged for each import container that falls into one of two categories: In the case of containers scheduled to move by truck, ocean carriers could be charged for every container dwelling nine days or more. For containers moving by rail, ocean carriers could be charged if a container has dwelled for six days or more.

   

  The ports plan to charge ocean carriers in these two categories $100 per container, increasing in $100 increments per container per day until the container leaves the terminal.

   

  Before the pandemic-induced import surge began in mid-2020, on average, containers for local delivery remained on container terminals under four days, while containers destined for trains dwelled less than two days.

   

  Any fees collected from dwelling cargo will be reinvested for programs designed to enhance efficiency, accelerate cargo velocity and address congestion impacts.

   

  The policy was developed in coordination with the Biden-Harris Supply Chain Disruptions Task Force, U.S. Department of Transportation and multiple supply chain stakeholders.

West Coast Dockworkers Decline Contract Extension, Seek Talks

• The union representing about 15,000 dockworkers at the largest U.S. ports declined an offer by employers to extend existing labor contracts for a year, setting the stage for heated negotiations.

  The Pacific Maritime Association — which represents 70 ocean carriers and terminals operating at 29 West Coast ports — proposed extending its current agreement with the International Longshore and Warehouse Union for another year through July 1, 2023, it said in a Nov. 16 letter to the ILWU seen by Bloomberg News.

  “There is already a perception among the trade community that negotiations are likely to result in some kind of disruption,” PMA President James McKenna said in the letter. The extension would be a “necessary step to protect commerce and our economy during this recovery period,” he said.

  When companies and workers last discussed contracts in 2014, West Coast ports faced nine months of slowdowns that came to an end only when the White House got involved. Originally set to end in 2019, the contracts were extended for three more years after roughly two-thirds of union members voted to lengthen them to avoid cargo disruptions in exchange for higher wages and pensions.

  This time around, the negotiations come amid record backlogs at the ports of Los Angeles and Long Beach, with persistent supply chain constraints contributing to delays, shortages of some goods and quickening inflation.

  Dockworkers are also focused on the economy, union International President William Adams said in a letter of response to the employers. It’s “especially ironic to ask labor to pass on collective bargaining” when shortages of workers outside of the ports — such as truckers and warehouse employees — don’t have “wages and working conditions attained through collective bargaining that persuade people to stay and commit their lives to tough physical labor,” he said in the letter.

  “The employer is now asking for an extension to that extension,” Adams said in a separate emailed statement to Bloomberg News. “We’ve been waiting for seven years to address issues that are important to dockworkers.”

  A one-year contract extension with the ILWU “would be in the best interests of the national economy,” in light of the supply chain disruptions, the PMA said in an emailed statement. “Given the union’s response, we will be prepared to meet at the bargaining table next year.”

  Automation and safety issues are likely to be at the center of the discussions. The union has lost at least 20 members to COVID-19, according to Adams, and automation has been a point of contention between the two organizations for years, as it’s gained more space in contracts over time.

  In an interview with Bloomberg earlier this month, McKenna said the PMA had already submitted its new contract proposal, but that negotiations are unlikely to officially start until the spring.

Here's an update on Operational Interruptions at Vancouver, Canada

• Here is the latest update to the recent events that had forced several city evacuations in British Columbia and shut down key highway and rail routes into and out of Vancouver. Rail and road operations servicing the Port of Vancouver remain impacted by the recent flooding in British Columbia, however, progress to restore main routes to the Metro Vancouver and Fraser Valley regions has been made.
  
  Roads:
  Highways 7, 99, 3 are now open for essential travel only.
  Highway 5 remains closed.

  Rail:
  Rail service estimated to re-start mid-week.
  A re-start will entail a slow re-commencement and a lengthy recovery period is expected to clear the backlog.

  CP Rail - all ramps:
  All CP Terminals in Canada (excluding Vancouver Intermodal (VIF)) are re-commencing acceptance of DRY Export loads (no reefers) excluding those to DPW Fraser Surrey.

  CN Rail - all ramps:
  All exports destined to the Port of Vancouver are currently embargoed / not accepted.  
  
  Port of Vancouver:
  Vessel delays, increased yard congestion and heightened anchorage demand are expected.

  GCT Delta Port Terminal:

  • • The majority of vessel operations have been idled until further notice.
    • No local export receiving until further notice.
    • Import CY gate remains open.

  
  DP World Fraser Surrey: Limited operations.

HMM Bulletin - CP/CN Service Interruption - UPDATE #2

• CP/CN Service Interruption – UPDATE #2

  Dear Valued HMM Customer,

  Please be advised that our rail carriers are still facing weather related delays in the southern British Columbia area due to flash flooding, mudslides, train derailment, etc. Your shipment may experience additional delays while transiting through this area. Please see below updates:

   

  CN

  As communicated yesterday, we are experiencing ongoing weather related disruptions in the lower mainland of British Columbia. CN crews continue to work diligently and safely to clean and repair multiple sites affected by the heavy rainfall. With multiple highway and road closures, as well as the continued risk of mudslides, it has been challenging to deliver materials to some of our repair sites. In an effort to maintain fluid Intermodal terminal and network operations in the Vancouver area, we will continue to take the following two actions until further notice:

   

   We will no longer be accepting originating container traffic through our Vancouver Intermodal Terminal for any destination.

   We will also not accept containers through our network destined to the Vancouver Intermodal Terminal.

   

  We will continue to assess the situation as repair crews progress toward re-opening between Kamloops and Vancouver. We will continue to update you daily as the situation evolves. We appreciate your continued patience and support. Should you require any immediate assistance or further information please contact your Account Manager or Customer Service Representative.

   

  CP

  CP’s operations between Spences Bridge and Falls Creek, B.C. remain suspended following heavy rains and severe flooding that have resulted in multiple track outages. We currently do not have a timeline to resume operations. 1-877-749-8632 www.hmm21.com/usa Page 2 of 2

   

  CP has deployed crews and equipment to the region, and CP engineering teams are working to repair the damaged rail corridor where safe to do so. We are committed to recovery as soon as it is safe to resume mainline operations.

  Our thoughts are with the communities impacted by these unprecedented weather conditions. The safety of the public and our employees remains our priority. In an effort to protect the operating fluidity of CP’s intermodal terminals, CP will not be accepting intermodal containers destined for Vancouver at any of CP’s terminals until further notice. We continue to monitor our network closely and will keep you informed of any further changes. Thank you for your patience and understanding. We appreciate your business.

[CBS news] What's caused America's supply chain crunch?

• Check out this 60 Minutes segment “What’s caused America’s supply chain crunch?”
  https://youtu.be/W7jSsyQKIfE