RENO, Nev., Oct. 01, 2024 (GLOBE NEWSWIRE) — ITS Logistics today released the October forecast for the ITS Logistics US Port/Rail Ramp Freight Index. This month, the index reveals both the East and Gulf Coast regions have been moved to a severe status, as all operations and equipment will be adversely affected by the current International Longshoremen’s Association (ILA) strike. The index calls out that, similar to the COVID crisis, a significant impact will not be felt during the strike. However, once operations recommence, much of the supply chain will experience the strike’s negative effect.
“Congestion, lack of equipment, lack of yard space, capacity constrictions, and vessel congestion will stress every supply chain,” said Paul Brashier, Vice President of Global Supply Chain for ITS Logistics. “As was seen during the days leading up to the strike, driver productivity dropped significantly. Drivers that could pull six containers or more per day prior were only able to get one to two containers per day out of the port. Ultimately, shippers should be prepared to add a minimum of three to five times the number of drivers to their current network. It should also be noted that for every 36 hours the ports are closed, port operations will be negatively impacted for one full week.”
On Monday, October 1, the ILA rejected an offer from the United States Maritime Alliance (USMX), which included a wage increase over six years near 50%. After failing to reach an agreement with a new contract, approximately 50,000 ILA union longshoremen walked off the job at East and Gulf Coast ports from New England to Texas. This is the union’s first strike since 1977, and billions of dollars in trade monthly move through these two U.S. ports, equating to between 43% and 49% of all U.S. imports.
ILA represents about 45,000 workers, and the prospect of the strike creating significant economic damage places the Biden administration in a dilemma five weeks before the elections, as the President confirmed a federal labor law to force an end to the port shutdown would not be used. This tactic was last used in 2002 by President George W. Bush. Despite the President’s current sentiment to not interfere, a strike could have a damaging effect on the economy. The strike will stop the shipment of heavy machinery through the Port of Baltimore and derail the shipment of cars. Operations for both were already impeded upon most of this spring due to the Francis Scott Key Bridge collapse.
“West Coast rail operations are being tested due to inland point intermodal (IPI) volumes that have increased as volumes from the East and Gulf Coast are diverted to avoid ILA strike activity,” continued Brashier. “Export availability on the East and Gulf Coast have been closed due to strike activity, adding to congestion before and after the strike. The industry must also keep in mind that, as this strike takes place on the West Coast, significant volume increases are being experienced due to the Red Sea diversions, along with the diverted volumes to avoid the U.S. East and Gulf Coasts. This has stressed chassis, driver, and yard availability and will continue until West Coast volumes subside.”
ITS Logistics offers a full suite of network transportation solutions across North America and distribution and fulfillment services to 95% of the U.S. population within two days. These services include drayage and intermodal in 22 coastal ports and 30 rail ramps, a full suite of asset and asset-lite transportation solutions, omnichannel distribution and fulfillment, LTL, and outbound small parcel.
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. Visit here for a full comprehensive copy of the index with expected forecasts for the US port and rail ramps.
About ITS Logistics
ITS Logistics is one of North America’s fastest-growing, asset-based modern 3PLs, providing solutions for the industry’s most complicated supply chain challenges. With a people-first culture committed to excellence, the company relentlessly strives to deliver unmatched value through best-in-class service, expertise, and innovation. The ITS Logistics portfolio features North America’s #19 asset-lite freight brokerage, the #12 drayage and intermodal solution, a top 50 dedicated fleet, an innovative cloud-based technology ecosystem, and a nationwide distribution and fulfillment network.
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