Pre-Peak Season Shipping Strains Import Volumes Amid Strike Threats

The July forecast from the ITS Logistics US Port/Rail Ramp Freight Index indicates that pre-peak season shipping activities have led to moderate volume increases across most markets, though equipment shortages at origin are stressing import volumes. Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, notes that while North American inland transportation faces no significant operational challenges, shippers are experiencing moderate disruptions due to these shortages, particularly in late July.

Container volumes at the Port of L.A. saw a 14.4% increase, attributed to strong trade activity, early peak season preparations, and concerns over potential labor strikes at East and Gulf Coast ports. The first half of the year handled 4.7 million 20-foot-container equivalent units, surpassing last year's figures for the same period. With the International Longshoremen’s Association's contract expiring in 70 days and negotiations stalled, the threat of a strike looms, prompting shippers to reroute bookings to the West Coast to avoid potential disruptions.

Exporters face challenges from vessels bypassing smaller to medium-volume U.S. ports and equipment imbalances, issues expected to persist into the fourth quarter. ITS Logistics provides comprehensive transportation and logistics services across North America, including drayage, intermodal, and omnichannel distribution, aiming to mitigate such supply chain disruptions.

For detailed forecasts and analysis, the full ITS Logistics US Port/Rail Ramp Freight Index is available here.