MARKET BRIEF | February 2022
A BRIEF look at what’s happening in the logistics and shipping industry.
In this Edition:
Canadian Border Open at Windsor
Update on Vessel Wait Times
New Pop-Up Storage Sites Helping Savannah
California Engine Regulation Affecting Owner-Operators
Canadian Border Open at Windsor
Update on Vessel Wait Times
New Pop-Up Storage Sites Helping Savannah
California Engine Regulation Affecting Owner-Operators
CANADIAN BORDER OPEN AT WINDSOR
Last Sunday evening, protestors were cleared from the Ambassador Bridge in Windsor, Ontario. This enabled the bridge to re-open after a six-day blockade prevented traffic in a major trade lane between Canada and the United States. The blockade was an extension of the “Freedom Convoy” protests currently being carried out by Canadian truckers. This particular action severely limited the supply chain for automakers in Detroit, even causing Ford, General Motors, and Toyota to cut production. The Ambassador Bridge carries about 25% of the value of goods moving between the U.S. and Canada.
UPDATE ON VESSEL WAIT TIMES
As U.S. terminals continue to deal with increased volume, labor shortages, and equipment shortages, here are how long the wait times are currently extending:
East Coast
NEW POP-UP STORAGE SITES HELPING SAVANNAH
In order to alleviate the dwell times at the Port of Savannah, the Georgia Ports Authority (GPA) states that new pop-up storage sites should maintain cargo fluidity and avoid congestion. In addition to Savannah, pop-up storage sites have also been established in Atlanta, Chatsworth, and Statesboro. These Georgia-based sites have been joined by one in Rocky Mount, North Carolina. The GPA is discussing adding a sixth site at the Norfolk Southern Railway, which is just out of Georgia. These pop-up storage sites should add about a 25% increase in capacity.
CALIFORNIA ENGINE REGULATION AFFECTING OWNER-OPERATORS
California’s emissions rule requiring drayage truckers to upgrade their engines could prevent some of their businesses from operating into next year. The California Air Resources Board (CARB) Truck and Bus rule requires 2010 model year or newer diesel engines to be upgraded by the end of 2022. That has become a major obstacle for trucking companies. Used truck prices continue a sharp increase, due to semiconductor shortages. For those companies trying to buy new trucks for their fleet, semiconductor shortages are also causing delays with manufacturers. There is a provision in the rule that grants an extension for new truck buyers that are subject to these manufacturing delays. However, those opting for used trucks, and who are unable to obtain any — due to the increased cost and limited inventory — are not granted the extension.
Last Sunday evening, protestors were cleared from the Ambassador Bridge in Windsor, Ontario. This enabled the bridge to re-open after a six-day blockade prevented traffic in a major trade lane between Canada and the United States. The blockade was an extension of the “Freedom Convoy” protests currently being carried out by Canadian truckers. This particular action severely limited the supply chain for automakers in Detroit, even causing Ford, General Motors, and Toyota to cut production. The Ambassador Bridge carries about 25% of the value of goods moving between the U.S. and Canada.
UPDATE ON VESSEL WAIT TIMES
As U.S. terminals continue to deal with increased volume, labor shortages, and equipment shortages, here are how long the wait times are currently extending:
East Coast
- Savannah: 10 days
- Charleston: 9 days
- New York / New Jersey: 3 days
- Houston: 10 days
- Long Beach: 42 days
- Los Angeles: 35 days
- Oakland: 12 days
- Seattle: 7 days
NEW POP-UP STORAGE SITES HELPING SAVANNAH
In order to alleviate the dwell times at the Port of Savannah, the Georgia Ports Authority (GPA) states that new pop-up storage sites should maintain cargo fluidity and avoid congestion. In addition to Savannah, pop-up storage sites have also been established in Atlanta, Chatsworth, and Statesboro. These Georgia-based sites have been joined by one in Rocky Mount, North Carolina. The GPA is discussing adding a sixth site at the Norfolk Southern Railway, which is just out of Georgia. These pop-up storage sites should add about a 25% increase in capacity.
CALIFORNIA ENGINE REGULATION AFFECTING OWNER-OPERATORS
California’s emissions rule requiring drayage truckers to upgrade their engines could prevent some of their businesses from operating into next year. The California Air Resources Board (CARB) Truck and Bus rule requires 2010 model year or newer diesel engines to be upgraded by the end of 2022. That has become a major obstacle for trucking companies. Used truck prices continue a sharp increase, due to semiconductor shortages. For those companies trying to buy new trucks for their fleet, semiconductor shortages are also causing delays with manufacturers. There is a provision in the rule that grants an extension for new truck buyers that are subject to these manufacturing delays. However, those opting for used trucks, and who are unable to obtain any — due to the increased cost and limited inventory — are not granted the extension.
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