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Maersk CEO Vincent Clerc said during an interview last month . “ I expect continued resilient demand through the end of the year .”
The strains to the shipping system are becoming more apparent . In recent weeks , a “ roll pool ” of containers has built up at key Asian load ports , and that is creating a sense of urgency among retailers to secure vessel space wherever they can , said a non-vessel-operating common carrier .
The Southern California transportation community is already on record with concerns over the ability of terminal operators to handle the peak season volumes . Rail container dwell times at some terminals have almost doubled over the past two months , with the Port of Los Angeles website in early September showing that one quarter of dwells are nine days or longer .
Peter Tirschwell contributed to this report
email : bill . mongelluzzo @ spglobal . com email : michael . angell @ spglobal . com
So Cal Surge
Import wave lifts outbound surface rates
By Ari Ashe
As cargo from Southern California ports moves farther inland , demand for trucks and intermodal rail capacity is surging in the region , driving up prices across all modes of surface transportation .
Shipper-paid spot truckload rates out of Southern California rose 6 cents per mile in August from July , despite the national shipper-paid spot rate average falling 6 cents during the same period , according to a Journal of Commerce analysis of data from Cargo Chief , DAT Freight and Analytics , Sunset Transportation and digital broker Loadsmart .
Shippers paid $ 2.80 per mile , including fuel , on average in August on one-off spot hauls originating in Southern California , according to Journal of Commerce analysis .
This was the first time the spot price out of the region went up between July and August since 2022 . Last August , the average shipper paid $ 2.61 per mile on the same freight lanes . Truckload spot rates typically drop from July to August because the push to sell merchandise between Memorial Day and July 4th is over and goods for Halloween , Thanksgiving and December holidays don ’ t ship until after Labor Day .
Intermodal demand has also increased in Southern California , prompting private asset-owners such as Hub Group , J . B . Hunt Transport Services , Schneider National , STG Logistics and
“ There is less long-haul capacity in California , or carriers wanting to come into California .”
Swift Intermodal to assess surcharges on select shippers exceeding the volume in their contracts . Union Pacific Railroad also instituted a fee of $ 300 on high-volume shippers and $ 500 on low-volume shippers who exceed their contractual allotments .
Some shippers might find that trucking rates are comparable or cheaper than intermodal on excess loads subject to the surcharge . Typically , an intermodal shipper saves about $ 1,500 compared to truckload when shipping from Southern California to the eastern half of the United States . However , if the shipper faces a $ 1,500 rail surcharge , that load may end up traveling by truck instead .
Croke said demand and rates may also cool off before the holiday season because capacity on ocean vessels has loosened since May .
Other factors — not linked to port volume or rail — that are influencing truck rates in California include an increasing dissatisfaction with operating in the state because of regulations .
“ There is less long-haul capacity in California , or carriers wanting to come into California , and with even stricter regulations from the Environmental Protection Agency in 2027 , it ’ s becoming too expensive for some of these smaller fleets to keep operating in the state ,” Croke said .
Email : ari . ashe @ spglobal . com
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14 Journal of Commerce | September 23 , 2024 www . joc . com