The October edition of the ITS Logistics US Port/Rail Ramp Freight Index, which was recently issued by Reno, Nev.-based ITS Logistics, a 3PL focused on drayage and intermodal services, pointed to ports running smoothly and not seeing any major interruptions, coupled with an observation that the trucking market is seeing more capacity leaving the market than entering it.
The ITS Logistics US Port/Rail Ramp Freight Index forecasts port container and dray operations for the Pacific, Atlantic, and Gulf regions. Ocean and domestic container rail ramp operations are also highlighted in the index for both the West Inland and East Inland regions.
This report highlights up-to-date port conditions, potential headwinds, and insights that can help industry stakeholders make informed drayage and intermodal decisions in the coming months. The full report is comprised of updated marine terminal conditions across the Pacific, Atlantic, and Gulf regions and the West and East inland regions of the United States, looking at factors such as vessel congestion, terminal operations, chassis availability, container storage, transload availability, outbound capacity, ramp congestion, and ramp operations, according to ITS Logistics.
“Terminal operations on the U.S. West Coast are the best they’ve been in years, and terminal operations throughout the U.S. are in great shape,” said Paul Brashier, Vice President of Drayage and Intermodal for ITS Logistics, in a statement. “I don’t foresee shippers experiencing demurrage or ramp storage issues as there is enough trucking capacity to pull containers effectively. There has been increased reports of capacity and drivers exiting the market, and that is one focal point that shippers should be mindful of as they move forward in the month.”
Brashier added that as trucking rates continue to plummet, many trucking providers are operating at a loss to maintain revenue streams.
“As fuel, insurance, and liability costs continue to rise in this low-rate environment, trucking capacity will exit at a rate higher than new capacity entering the market,” he said. “Prior to exiting the market, financially struggling trucking capacity will sacrifice staff, safety, security of freight, and operational excellence. Obtaining cheap rates in this environment will be easy; the concern needs to be focused on how long those rates will be sustainable.”
The report pointed to data from the Bureau of Transportation Statistics, which stated that of the roughly 531,000 motor carriers, 99% operate 100 or fewer trucks, with almost 97% having fleets comprised of less than 10 trucks.
And it observed the port container dray operations, for the Pacific, Atlantic, and Gulf Coasts were normal. Looking at ocean/domestic container rail/ramp operations, the West Inland Rail Ramp was normal and the East Inland Rail Ramp was elevated.
ITS said that rail ramp operations are seeing improvement, with Chicago seeing normalcy, with most IPI (inland port intermodal) freight affected from recent port strike activity on the Canadian West Coast having been processed. It also noted that ocean chassis equipment availability can be improved, with the caveat that current volume levels are meeting demand.
When asked if Peak Season is impacting port container dray operations and ocean and domestic container rail and ramp operations, Brashier told LM that peak volumes did not materialize this year, due to the amount of high inventory levels in shippers’ distribution centers.
“Due to these lower volumes and available capacity, rates are lower and operations are running the most efficient since Q1 2018,” he said. “Any peak volumes that were brought into the U.S. came in early Q3 and have already been absorbed into the U.S. supply chain. The rest of Q4 volumes will be depressed. The next potential for a volume spike may be Lunar New Year in early Q1 ’23, with volumes at the same level till Q3 of ’24, where we should see a traditional peak.”
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October 27, 2023 at 10:13PM
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ITS Logistics US Port/Rail Ramp Freight Index points to smooth ... - Logistics Management
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