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OOCL revs up their Baltic feeder service

 

We got the following information from OOCL:

 

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Intra-Europe Trade: Scan Baltic Express Service Update

Dear Valued Customer,

We are pleased to announce a number of changes to our Scan Baltic Express (SBX) network which will increase the scope and frequency of coverage to/from Russia, Finland, Sweden and the Baltic Sea. The network improvements are focused on satisfying customer requirements by committing assets to strategic markets whilst concurrently improving schedule reliability.

The new network will offer class leading frequency with connection to OOCL trunk services at Hamburg, Bremerhaven, Rotterdam and Antwerp. In addition to which, our short-sea capability is also strengthened.

Service highlights:

• 15 sailings per week
• 7 sailings to/from St. Petersburg (calling at First Container Terminal (FCT), Petroles Port (PLP), Container Terminal St. Petersburg (CTSP)and Fish Port)
• 4 sailings to/from Helsinki
• 3 sailings to/from Kotka
• 3 sailings to/from Gdynia
• 2 sailings to/from Klaipeda (calling Klaipeda Konteineriu Terminal (KKT) and Klaipeda Smelte Terminal)
• 2 Sailing to/from Riga (Calling Riga Universal Terminal (RUT) and Riga Port Terminal)

In addition to the improved coverage of the above ports we will continue to offer weekly connections to/from Gavle, Rauma, Szczecin, Tallin and Ust Luga.  The updated SBX network and port rotation details are available on OOCL’s website by clicking HERE.

 

 

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NYK another GRI annoucement Asia – Euro

 

They keep on coming, but they do not seem to function, otherwise the rates would have been sky high already…

 

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Please be advised that NYK will implement 2014 Structural Revenue Recovery (SRR) program for Westbound with effect from 1st December 2014.

 
Effective date: 1st December 2014

 
Quantum: Westbound US$ 800 per TEU

 
Routes involved:
Asia (Including Japan)/ Indian Sub-continent to North Europe/ Mediterranean/ East Mediterranean / Adriatic/ Black Sea

 

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K- Line starts door delivery surcharge in the TA – US Trade

 

Please see here the details:

 

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Door Delivery Surcharge for Transatlantic Westbound Trade

 

 

 

 

Dear Valued Customer:

 

Please be advised “ K “ Line will implement  Door Delivery Surcharge for all door shipments from North Europe to North America.

 

Due to the unexpected increases in the cost of inland transport and door delivery in recent months, including extensive port congestion, truck driver shortages, sharply increased rail volumes with increasing limitations on rail shipments, extreme weather, and increased inland carriage costs; All door delivery shipments from North Europe to North America shall be subject to the following Door Delivery Surcharge.

 

Effective Date  : 1st December 2014

 

Quantum          : USD 100 per container (all sizes ) – Dry/Reefer

 

Should you have any questions, please contact your local “K” Line account representative.

 

 

 

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OOCL overview on American continent and service situation

 

OOCL hereunder gives us a comprehensive overview on the USA situation:

 

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Rail Network

 

BNSF operation maintained good fluidity across its’ network.   Their maintenance teams continue planning and executing track and bridge maintenance projects.

 

Truck Power
 
Truck Power across the United States to perform import store door deliveries and export door pickups continues to be a major concern, and our Operations colleagues continue to seek out new truck suppliers in a challenged market.  Please see our Truck Power Map on OOCL.com for more information regarding advance timing required for door movements.

Pacific Southwest

All Southern California marine terminal facilities remain highly congested. Labor shortages have delayed vessel operations and related scheduling.  To help alleviate the back log many terminals are performing dock work during the 2nd and 3rd shifts in order to keep their yards fluid.  For the most up to date gate schedules please refer to the individual terminal web sites or emodal.com.

 

Vessel / Loop Deployment Changes

 

  • In response to seasonal changes in market demand, the members of the G6 Alliance have announced the temporary suspension of their Central China (CC2) service between Asia and the U.S. West Coast until further notice.
  • The last sailing for CC2 will be OOCL Italy departing from Shanghai on October 31. All ports called by CC2 will be covered by other G6 Alliance services.
  • Meantime, CC3 will be revamped by replacing Xingang with Shanghai effective from week 45 (APL Thailand 185 November 8th at Qingdao). The revised rotation will be Qingdao – Shanghai – Pusan – Yokohama – Los Angeles (GGS) – Oakland – Yokohama – Pusan – Qingdao.

Global Gateway South (GGS) Terminal

  • Appointments are to be made as soon as cargo has been fully cleared by CBP and the ocean carrier. Customers are therefore encouraged to clear their cargo containers as soon as possible.  Appointment availability did improve last week though the terminal remains congested.
  • Any motor carrier that misses their appointment has a next day grace period, and then must reschedule to obtain a new appointment time.

Pacific Container Terminal (PCT)

  • Due to congestion the terminal is moving all custom cleared 40’ import local and store door delivery containers to an off dock depot facility (Shippers Transport) where it will remain on wheels for pick up.  It may take up to three days to be transferred to the off dock facility. Importers are encouraged to monitor the SSA website for availability which will specify if the cargo is on terminal or at the off dock depot.

 

TraPac

  • Terminal productivity and chassis supply have improved this past week.
  • Motor carriers reporting favorable turn times on both import intermodal and local cargo.

 

 

Yusen Terminals Inc. (YTI)

  • Yard congestion and chassis shortages are still issues with excessive turn times.

 

 

Chassis

  • All major Southern California chassis pools continue to experience severe shortages.
  • The G6 chassis pool (GACP) operator has agreed to inject 3000 chassis to help cope with peak demands.  Thus far almost 1000 chassis have been added to the pool.
  • CUT, PCT, Yusen Terminals Inc. (YTI) and TraPac, Inc. continue to be ongoing deficit locations in terms of chassis supply.   Prior to sending trucks into these facilities, motor carriers are encouraged to arrange to bring in a chassis to support their import container delivery. Dispatchers should contact the GACP to determine chassis supply and to identify alternative pick up locations if required.

 

USA Midwest & South Central

  • Chicago, St Paul and Kansas City are all experiencing high volume and the BNSF is asking that containers out-gate as quickly as possible to alleviate congestion at the ramps.
  • Oakland International Container Terminal (OICT) has seen improvement in gate times this week with the average turn time at one hour.  Chassis inventory remains adequate.
  • Receiving dates for export cargo may fluctuate due to ongoing congestion in Southern California that impact vessel schedules.  Truckers have been reminded to verify receiving dates on Terminal’s web site.
  • Washington United Terminal (WUT) in Tacoma remains congested.  They are reviewing possible night gates or weekend gates to deliver import containers.
  • T-18 Terminal closed early FRI 10/24 at 1:00 PM due to a work related fatality at the Port of Seattle. The accident was reported at a grain terminal.  The T-18 gates have reopened for business on Monday, 10/27.

Oakland, Tacoma & Seattle 
 
 

Vancouver

 

  •  Intermodal operations at both DeltaPort and Centerm Terminals are reported as normal.

 

CN Montreal

 

  • The CN had adequate cars on hand or in route to evacuate the current intermodal containers at both CAST and Termont Terminals.  Both terminals remain fluid.

 

New York Terminals

 

  • Empty inventory levels in NYC remain adequate.
  • Due to an anticipated influx of volume, Global Terminal will be open until 5 PM all next week starting on Monday, October 27th for double moves including reefers

 

Norfolk International Terminal

 

  • The Virginia Maritime Association and the Port of Virginia have agreed to jointly host a productivity summit on Tuesday, October 28th, to review the issue of congestion at the port and to discuss solutions to meet this challenge.

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South Atlantic

 

  • Intermodal operations in the region are reported as normal.

Mexico

  • All operations are normal.

 

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Carriers are cutting capacity on Asia – Euro and Transpac

 

Here more information on the capacity adjustements to prevent the freight rates from a total collapse:

 

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CONTAINER shipping lines, including Maersk and the G6 Alliance, are cancelling more services on the transpacific and Asia-Europe routes over the slack winter season.

The Central China (CC2) service to the US west coast will be temporarily halted in response to “seasonal changes in market demand”. The service is provided by G6 members APL, Hapag-Lloyd, HMM, MOL, NYK and OOCL.

The last sailing of the service is scheduled for October 31. The alliance said all ports called by CC2 will be covered by other services, reported Lloyd’s List.

The CC2 is operated by four vessels with an average total capacity of 5,800 TEU.

In total, there are 57 services that cover Asia and the North American west coast, although many of those stop at the west coast on their way to the east coast, South America and Caribbean, or they are pendulum services. The G6 Alliance is an operator on 14 of these services.

The axing of these non-direct services leaves a total of 38 dedicated Asia-US west coast strings.

The report estimates the service suspension will remove 1.6 per cent of capacity from the market.

Last week, the G6 announced it would combine its NYE and SCE service heading from Asia to the North American east coast. This would remove 3.3 per cent of capacity on the transpacific east coast trade lane.

Maersk Line is cancelling four sailings on the Asia-North Europe trade lane.

The carrier said that due to a “predicted lack of demand”, it would cancel four AE6 sailings scheduled for the fourth quarter.

One of these cancellations will take place in October, two in November and the final one in December.

The service is operated with vessels averaging 6,500 TEU in size.

Extra calls will be added to either the AE2 or AE7 services over the period to cover customer requirements, the Danish line said.

In September, the G6 Alliance announced it would cancel a sailing of its Asia-Europe Loop 7 service leaving Qingdao in mid-November.

 

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More voices on LA and LGB congestion

 

Please see here another report:

 

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By ANDREW KHOURIcontact the reporter

BusinessImportsPort of Los AngelesPort of Long Beach

Ships loaded with products are sitting idle off the coast, waiting for a backlog at the ports to clear

Via @latimes: ‘We have a meltdown on the harbor,’ a trucking firm president says. ‘Every day it gets worse.’

The twin ports of Los Angeles and Long Beach are experiencing a logistical nightmare as they struggle to ease a bottleneck that could undermine retailers’ all-important holiday shopping season and threaten the competitiveness of the region’s economic engine.

In the worst shipping crisis in a decade, mammoth vessels loaded with products destined for the nation’s stores are sitting idle just off the coast, waiting for cargo languishing on the docks to clear.

“We have a meltdown on the harbor,” said Robert Curry, president of California Cartage Co., a trucking firm that serves the two ports. “Every day it gets worse.”

The delays are racking up costs for retailers, who have started to reroute their goods from the nation’s busiest port complex to other locations in the Gulf Coast, Pacific Northwest, Canada and the East Coast, said Jon Gold, vice president of supply chain and customs policy at the National Retail Federation.

Getting goods out of L.A. and Long Beach now typically takes seven to 10 days longer than normal, he said. There’s concern that some toys, apparel and electronics may not arrive in time for the holidays.

“This is an important time and we need fully functioning ports to make sure goods get to the store shelves,” Gold said.

The congestion stems from a surge of cargo before the holidays, the rise of massive container ships that are deluging the docks with cargo, and a shortage of trailers, or chassis, that truckers use to haul cargo from the ports to sprawling warehouses in the Inland Empire.

“This is really a perfect storm,” said Port of Los Angeles Executive Director Gene Seroka.

Ports around the country are facing similar issues. But the problems are magnified in Southern California. The twin ports handle about 40% of U.S. imports. If congestion continues unchecked, there are fears that their market share could decline as importers tired of the delays choose gateways elsewhere, perhaps permanently.

“It’s a black eye,” international trade economist Jock O’Connell said of the current bottleneck.

Some apparel and footwear companies are even flying goods into the country that would have arrived through L.A. and Long Beach, unwilling to stomach delays that have trapped goods inside the complex for two weeks, said Nate Herman, vice president of international trade at the American Apparel & Footwear Assn.

“The delays are increasing, they are not getting better,” he said.

Gold, of the retail association, said retailers are taking steps to prevent delays, including temporarily diverting cargo elsewhere and paying Southern California truckers more to pick up their goods first. But if congestion continues, importers may look elsewhere in the future.

“They might not come back to L.A.-Long Beach,” he said.

As of Friday afternoon, there were seven container ships anchored off the coast, waiting to call at the ports, according to Marine Exchange of Southern California. Some have been there for days.

A massive influx of cargo is stressing the system. In September, the Port of Los Angeles saw imports rise 11% from a year earlier, while next door in Long Beach import volume climbed 10.2%.

Adding to the congestion is the advent of ever-larger container ships, which have burdened terminals largely built for an age when ships were one-third the size, Seroka said.

“Vessels are taking a lot longer to work,” Seroka said. The shift to larger vessels “happened much faster than some of these [terminals] initially planned.”

Adding to the woes is a shortage of trailers. It’s “the root cause” of the congestion, said Port of Long Beach Chief Executive Jon W. Slangerup.

For decades, shipping lines owned these trailers. But in recent years, the lines exited the business nationwide and unloaded the chassis to third-party leasing companies. In Los Angeles and Long Beach, most of the shift occurred over the last year.

That has led to a shortage of chassis when they are needed, according to port officials.

One terminal may have a surplus, another too few. Truckers sometimes have to make multiple trips to locate a trailer. Previously, the shipping lines familiar with their supply chain were able to better plan for how many chassis were needed and where, O’Connell said.

The new chassis providers dispute the notion the shift has caused the dislocation and lay the blame largely on the rise of massive container ships, as well as a shortage of truck drivers.

The Port of Los Angeles is working with terminals to increase capacity and has also identified several parcels to store containers and repair chassis, in a bid to clear more space on the docks, Seroka said.

The Port of Long Beach this month directed staff members to devise a plan to purchase and supply truck chassis for use during peak periods. And it gave importers three more days to pick up cargo before storage fees kick in, in a bid to alleviate the financial pain.

Port officials say they see a possible solution to the trailer shortage in a massive shared pool, in which truckers could make multiple pickups with one chassis regardless of who owns the equipment. Now, a trucker may have to drop off a chassis, only to locate another chassis elsewhere in order to pick up an additional container, because trailer providers don’t have business relationships to serve the entire port.

According to port officials and others who work at the complex, the current congestion is the worst since 2004, a bottleneck that led to the creation of a system to encourage truckers to pick up goods at night.

The ports may get some breathing room to unclog the bottleneck when the traditional peak shipping season winds down at the end of October.

And by then the threats of importers to leave Southern California ports may wane. Also, many that did go somewhere else after last decade’s congestion crisis eventually returned, drawn back by the ports’ strong infrastructure and their location in relation to Chinese trade, O’Connell said.

Seroka, who was a shipping line executive before taking the top L.A. port post, said the port is taking the threats seriously. A third of the cargo traffic coming into Los Angeles could go elsewhere, he said. He expects heavy traffic to last until mid-November.

“We will help fix this,” he said. “This is our highest priority.”

 

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Los Angeles and Long Beach port congestion update

 

Seems that the problem in Long Beach and Los Angeles is not easy to solve, see here below:

 

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Port of LA chief: ILWU deal needed to fix congestion

Bill Mongelluzzo, Senior Editor | Oct 20, 2014 2:15AM EDT

  • 27 7 5 258

The executive director of the Port of Los Angeles said efforts to fix the congestion problem in Southern California will fall short until the International Longshore and Warehouse Union and Pacific Maritime Association negotiate a new contract.

“It’s very important that we have labor on board,” said Gene Seroka. “In order to have labor at the table, we have to have a contract,” he told the Western Cargo Conference of freight forwarders and customs brokers Saturday in Coronado, California.

Port executives in Los Angeles and Long Beach live the congestion problem every day as containers back up on the docks, trucks wait in long lines and angry importers and exporters divert cargo to other ports. “The frustration level is beyond belief,” he said.

To highlight the extent of the congestion, Seroka noted that four of the seven container terminals in Los Angeles are operating above 90 percent utilization.

“When a terminal is at 80 percent of capacity, it is going full bore,” he said.

Industry stakeholders are attacking symptoms of the problem by injecting more chassis into the system and extending free time for containers stranded on the docks due to congestion, but a port-wide solution will not happen without a labor agreement that will allow each segment of the industry to finalize agreements.

Seroka cited two examples of the inertia that has descended upon the ports due to the lack of a coastwide agreement between the ILWU and PMA. Operators of two of the three largest chassis pools received permission from the Department of Justice to discuss development of a neutral chassis pool, but they cannot address the labor rules associated with a gray pool until there is an ILWU contract.

Also, Seroka said Los Angeles has designated three sites in the harbor as overflow yards for the storage of containers and chassis, but there are no takers from terminal operators.

“They can’t make a decision because they can’t talk to labor about maintenance and repair,” he said.

TraPac, a terminal operator in Los Angeles that is automating its facility, accuses the ILWU of go-slow tactics and engaging in unnecessary safety checks of equipment in order to secure manning requirements the employer believes will be excessive once the automation project is completed.

Bobby Olvera, president of ILWU Local 13, told a seminar last week at California State University in Long Beach that the use of unmanned cargo-handling equipment is unsafe. He said additional safety checks on trucks and chassis have resulted from ILWU mechanics finding a defective piece of equipment that presented a safety hazard.

Employers note that some European terminals for the past 20 years have been using unmanned cargo-handling equipment. Also, they say those terminals now have fewer safety issues because there are fewer longshoremen on the docks to get in the way of cargo-handling equipment and trucks.

The waterfront contract has a grievance mechanism through which employers and the ILWU can address disagreements over health and safety issues, but since the previous contract expired on July 1, the grievance machinery can not be used.

Port congestion has become a global problem precipitated by the introduction of especially large container ships operated by carriers in mega-alliances. Seroka said ports known for stellar operations such as Rotterdam, Hamburg and Singapore are reporting congestion issues.

Mega-alliances have added a new layer of complexity to the problem in Los Angeles-Long Beach by “spraying cargo across multiple terminals,” with truckers forced to move from one location to another to match containers and chassis, he said.

Shipping lines, terminal operators, truckers, railroads, the ILWU and the ports should all be meeting as a group to address the serious congestion problems, but the ILWU will not be at the table until it has a contract. Unless a tentative agreement is reached immediately, the situation could drag on until the end of the year, Seroka said.

That’s because reaching a tentative contract is only the first step. The ILWU and PMA must each meet with their respective members and call for a vote on the tentative agreement. That process can take 30 to 45 days, which brings it into the holiday period.

Seroka urged brokers, forwarders and their importer and exporter customers to “put pressure” on the PMA and ILWU. “It all begins with a contract. We all have to have a sense of urgency,” he said.

 

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CMA announces administration fee for manual bookings

 

The one or the other line started the administration fee already a while ago, now CMA is doing the same. Interesting approach, this is as if you would have to pay an admission fee when you want to go to the supermarket to buy goods and leave them with a profit as you walk out of the door. It cannot be the fault of the shippers that the lines do not come to a reasonable freight policy and need to charge people for giving them business:

 

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Dear Customer,

 

We would like to inform you that CMA CGM (Holland) BV has decided to implement an Administration Fee for all manual bookings (received via e-mail,  telephone, etc.) as per January 1st, 2015.


Administration Fee                        EUR 25,00 per manual booking

 

In our continuous effort to improve our customer service level  we are offering our customers an extensive range of eCommerce solutions for their booking and documentation processes. e-Solutions that provide our customers with several advantages.


Your advantages for submitting bookings electronically:

–          Create templates to submit your booking with just a few clicks and within a few minutes;

–          Receive your booking confirmation within 2 working hours;

–          Fast & complete booking information;

–          Dedicated EDI desk for high quality service;

 
With the launch of our own web platform (www.cma-cgm.com) at the end of last year we have given our customers an additional solution for submitting bookings and sending shipping instructions electronically opposed to the already available EDI portals.
To learn more about the new CMA CGM eBusiness functionalities click here to open and download our eBusiness brochure or visit our website and register (free of charge) here.

 

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OOCL winter program further details

 

 

Seems that the carriers are reluctant to believe the big volumes will move as they are cancelling single voyages, please read here below:

 

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Asia-Europe Trade – Winter Program Update

Dear Valued Customer,

In view of expected low demand during the Christmas period, we would like to inform you of the withdrawal of the following Asia-North Europe Loop 6 sailing:

–    Loop 6 service on Week 48 (ETA Kaohsiung on 23 November)

For further information, please kindly contact our local representatives.

Thank you for your understanding and support of OOCL.

 

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OOCL USA overview

We are very grateful for the below upadate received from OOCL USA:

 

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Dear valued OOCL Customer,

Rail Network

 

This past weekend, the BNSF completed putting into service an additional six miles of double-track in a busy section across their Northern corridor, bringing their total to nearly 50 miles of new double-track added between Minot, ND and Glasgow, MT.

 

The BNSF is also readying the operation for the upcoming winter season by testing and pre-positioning equipment as well as adding resources to help ensure they are better prepared for the possibility of extreme winter conditions.

 

Truck Power
 
Truck Power across North America to perform import store door deliveries and export door pickups continues to be a major concern and our Operation colleagues continue to bring on new trucks but this is not an easy task in today’s market.  Please see our Truck Power Map on OOCL.com for more information regarding advance timing required for door movements.

 

Pacific Southwest

All Southern California marine terminal facilities remain highly congested.

 

Vessel / Loop Deployment Changes

  • As mentioned last week, this is a reminder that as a result of ongoing berth congestion within the Southern California G6 terminal network, the following deployment changes have been implemented:
  1. The Southeast Asia (SE1) Service will now alternate between California United Terminals (CUT) and Global Gateway South (GGS) Terminal.
  2. The Central China (CC2) Service will call Pacific Container Terminal (PCT) Pier J.

Global Gateway South (GGS) Terminal

  • GGS has converted back to a grounded operation for import delivery.
  • GGS has changed the rules on the appointment system and they are now instructing motor carriers to reschedule any missed appointments.
  • GGS will no longer extend appointments if there are no appointments available prior to Last Free Day.
  • Appointments are to be made as soon as cargo has been fully cleared by CBP and the ocean carrier. Customers are therefore encouraged to clear their cargo containers as soon as possible.

PCT

  • Due to congestion the terminal is moving all CBP and ocean carrier cleared 40’/45’ import local and store door delivery containers to an off dock depot facility (Shippers Transport) where it will remain on wheels for pick up.  It may take up to three days to be transferred to the off dock facility. Importers are encouraged to monitor the SSA website for availability which will specify if the cargo is on terminal or at the off dock depot.

 

TraPac

  • Terminal productivity and chassis supply have improved this past week.
  • Motor carriers reporting favorable turn times on both import intermodal and local cargo.

 

 

Yusen Terminals Inc. (YTI)

  • Yard congestion and chassis shortages are still issues prolonging turn times.

 

 

Chassis

  • All major Southern California chassis pools continue to experience severe shortages.
  • The G6 chassis pool (GACP) has agreed to inject 3000 chassis to help cope with peak demands.  Thus far almost 1000 chassis have been added to the pool.
  • CUT, PCT, Yusen Terminals Inc. (YTI) and TraPac, Inc. continue to be ongoing deficit locations in terms of chassis supply.   Prior to sending trucks into these facilities, motor carriers are encouraged to contact the GACP to determine chassis supply and identify alternative pick up locations if required.

 

USA Midwest & South Central

  • Chicago, St Paul and Kansas City are all experiencing high volume and the BNSF is asking that containers out-gate as quickly as possible to alleviate congestion at the ramps.
  • Oakland International Container Terminal (OICT) is congested with large volumes of import freight, however, chassis inventory remains adequate.
  • Washington United Terminal (WUT) in Tacoma remains congested.  They are reviewing possible night gates or weekend gates to deliver import containers.  In addition, chassis supply is tight.

Oakland & Tacoma 
 
 

Vancouver

 

  •  DeltaPort and Centerm Terminals experiencing no long dwell issues for OOCL import intermodal containers.

 

CN Montreal

 

  • The CN had adequate cars on hand or in route to evacuate the current intermodal containers at both CAST and Termont Terminals.

 

New York Terminals

 

  • Empty inventory levels in NYC have dropped but remain adequate.

 

Norfolk International Terminal

 

  • Virginia International Terminal (VIT) has extended the peak season operating hours for the weekend of October 25-26. Check with the terminal website for the additional times.
  • The Virginia Maritime Association and the Port of Virginia have agreed to jointly host a productivity summit on Tuesday, October 28th, to review the issue of congestion at the port and to discuss solutions to meet this challenge.

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South Atlantic

 

  • Intermodal operations in the region are reported as normal with no issues or delays.

Mexico

  • All operations are normal.

 

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