Trans Services, Inc. on LinkedIn: - Port X Logistics (2024)

“April showers, Bring May flowers, I have seen rain before, But if Sunday morningLets that sun in, What are we waiting for?”1400 words 5 minute read - Let’s do this!Happy April! Just as April promises every year we’re starting with a lot of rain across the country and even some snow for us lucky ones. Will we see spring this year or will we jump right into summer? That seems to be the trend for the past few years. Q2 is also underway and there are a lot of market topics to be aware of and how they will affect the quarter and the rest of the year. Some issues have no resolution in sight like the sudden collapse of the Francis Scott Key Bridge in Baltimore and the ongoing Red Sea Crisis. What are your predictions for Q2? And the remainder of this election year?The Port of Baltimore remains closed indefinitely during the removal of the Key Bridge wreckage and repositioning the container ship Dali. The ports of Wilmington, Delaware, and Brunswick, Georgia are handling the first vehicle vessel diversions from Baltimore, where one of four roll-on/roll-off (RO/RO) terminals at the port continues to receive shipments thanks to its location on the accessible side of the collapsed Key Bridge. It could be weeks or months before the channel reopens. Baltimore is the busiest U.S. port for vehicle imports and exports, handling 847,000 cars and light trucks last year, according to Maryland Port Administration data. Emergency measures for RO/RO importers and exporters could include temporary moves to the Tradepoint Atlantic logistics complex, which already handles imports of Volkswagen and BMW vehicles. The privately-owned facility’s location, on the seaward side of the Key bridge, will allow it to remain open despite the closure of the rest of the port. The 3,300-acre multimodal logistics and industrial facility is operational and handled the car carrier “Wolfsburg” on charter to Volkswagen, on Wednesday. Many shippers are making alternate plans in an effort to avoid the Port of Baltimore for the future import and export project cargo and Port X Logistics has a project team to help with your project cargo needs. Are you overwhelmed with the upcoming boost of project cargo? Let us help you find a better way. Whether it’s out of gauge flat racks, open tops or oversized heavy haul and breakbulk, we can handle it at all Ports in the U.S. and Canada. Let us help you formulate a plan from start to finish, even including load plans and arranging a team on site to load and unload. Contact letsgetrolling@portxlogistics.com to experience why we are the best!Norfolk Southern Railway will begin running trains between the Port of New York and New Jersey and Baltimore on Friday to transport containers that have been rerouted after the Baltimore bridge devastation. To read more visit our blog.https://lnkd.in/gpH-cUZa#MarketUpdates #TruckingNews #LogisticsInsights #ImportAnalysis #Drayage

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Important decisions being made that will impact U.S. importers as cargo begins to get re-routed to alternative ports following the Francis Scott Key Bridge collapse. With steamship lines such as COSCO, CMA, and Evergreen declaring "Force Majeure", they are terminating their involvement in the shipment once the re-routed cargo has reached its new Port of Discharge."Force Majeure" is a provision that protects the steamship lines in this instance from accountability siting that an "act of god" (tornado/hurricane) or an unprecedented event has occurred. With steamship lines deciding to terminate involvement in the shipment once a container has been discharged, it puts the responsibility on the importer to secure the re-routed cargo from the port or be on the hook for port fines and penalties. Importers may not have the necessary level of visibility to know when a container is going to be arriving at it's new Port of Discharge, or the resources to arrange a new transportation solution in an unfamiliar port. NorthPoint Logistics is helping our clients re-route cargo to avoid this unfortunate crisis, working with steamship lines directly to identify where active cargo bound for Baltimore is now heading, and coordinating with our drayage partners on the East Coast to prepare for new containers that will need to be pulled from the port to ensure our importers avoid additional fees. This is only the first wave of challenges that will be experienced by importers and logistics providers as a result of this horrific incident. #logistics #internationaltrade #Baltimore

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Baltimore’s Seagirt, which handled 1.1 million TEUs last year, is planning to help move some of that freight. Ports America, Seagirt’s operator, said in a statement to theJournal of Commercethat it is working with CSX Transportation, its on-dock rail provider, to move import containers from other ports to Seagirt. It said it is also working with Norfolk Southern on a similar plan at its off-dock rail yard, which handles domestic containers. “CSX and Ports America are collaborating on the fast launch of intermodal service for cargo diverted to other ports to come through the intermodal container transfer facility at Seagirt as a solution for cargo owners wanting Baltimore access,” the statement said. “Norfolk Southern has also reached out to discuss similar solutions for importers." Trucking, ocean freight costs expected to increaseJeff Leppert, vice president of Redwood Logistics, told theJournal of Commercethat shippers are askingabout their trucking optionsas they face port diversions. He said it’s unclear how long those diversions will last, but noted they will cause delays and higher expenses as more drayage providers and transload facilities for truckload freight are tapped. “Shippers are asking what do we do about securing capacity,” Leppert said. “We don’t have a lot of excess truck capacity laying around.” Robert Burdette, vice president of Baltimore-based third-party logistics provider Shapiro, told theJournal of Commercethat roughly two-thirds of the ocean freight coming into Baltimore goes to warehouse and distribution centers areas around Hagerstown, Maryland, and southeastern Pennsylvania. Depending on where the cargo gets moved to, Burdette estimates that shippers will currently have to spend between $400 to $1200 more in the short-term for the extra trucking costs to move their cargo from New Jersey or Norfolk to an area closer to Baltimore. But those costs will likely escalate as more truck capacity gets absorbed. As the port remains closed, however, Baltimore-area shippers will face ocean rates 20% to 25% higher to opt for bringing cargo into NY-NJ and Norfolk, in addition to the increased trucking costs for moving goods closer to their destination, Burdette said. He said New York-New Jersey will make more sense for some of the Pennsylvania-bound freight due to the shorter length of haul. But freight coming through Norfolk will likely require transloading to dry-van because drayage is not economic at the longer distance.

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A trucking and rail strategy that boomed during pandemic shocks is heating up again: https://hubs.li/Q02qFjvx0"A logistics strategy called transloading, used by trucking companies during the pandemic to ease the container backlog, is increasing in popularity again after U.S. West Coast ports have started to receive higher volumes of containers that are being diverted away from the East Coast.Transloading is the process of moving freight from truck to rail or rail to truck. Logistics companies tell CNBC that U.S. importers are requesting this type of service more frequently as they move more freight on new routes as a result of the Red Sea diversions and the Panama Canal drought restrictions.“We’re seeing a double-digit shift from cargo moving away from the East Coast and to the West Coast,” Michael Aldwell, executive vice president of sea logistics for Kuehne + Nagel, told CNBC, citing the issues seen in the Panama Canal and Red Sea, as well as the threat of a potential labor strike at the East Coast and Gulf ports."#transloading #transload #logistics #supplychain #freightshipping #supplychainstrategy

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The impacts to logistics operations due to the tragic loss of the Baltimore bridge will be different depending on the services you buy and where your operations are located. If you're moving containers into our out of the port, there are 35 other East and Gulf coast ports that can be utlized. Reuters reported that eeSea liner database shows thatNew York, Virginia and Savannah had the highest terminal utilization levels on the North America east coast in 2023, at 75%, 67% and 65%. So absorbing Baltimores 21K TEU per week at these and 32 other ports on the east and gulf ports may not be a significant challenge, especially if the shipping channel can be reopened at some point in the near future.Auto exporters and importers, on the other hand, will have bigger challenges as the port was the primary U.S. gateway for auto imports and exports. However, several auto manufacturers have come out and said they do have alternatives.If you operate locally in and around the port, transportation will be a challenge as the 30K cars and trucks that used the bridge daily will need to be rerouted. This may add to drayage costs for local shippers.What hasn't been talked about is the potential for General Average (GA) to be declared. This Loadstar article does a nice job of summarizing it. It's an old marine law that requires all parties involved in a sea voyage to share in the losses. The share a shipper will pay correlates with their share of the cargo on the ship (based on value).So, the owners of the 4,700 containers on the vessel may potentially be required to share in the cost of the losses (recovering the vessel, repairing damage, cargo loss or spoilage, etc.), including potentially rebuilding the fallen bridge. My bet is many shippers aren't insured against GA claims - and this could be a big one. If you're an ocean shipper and you're not insured agains GA claims, you must understand your risk and make appropriate decisions about how you wish to mitigate it.Dali cargo owners face massive costs if general average is declared - The Loadstar

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Red Sea attacks could raise prices for U.S. consumersAttacks on Red Sea shipping might raise prices for consumers because cargo carriers takelonger routes to avoid dangerous waters for now.Iran-backed Houthi rebels in Yemen first struck cargo ships with drones and missiles this month, in what they claim is retaliation for Israel’s actions in theGaza war. The disruptions caused shipping giants Maersk, CMA CGM and COSCO toreroute shipmentsaround the Cape of Good Hope in South Africa, maneuvers that are increasingly costly to shippers and consumers.As of Tuesday, shipping carriers expect most services to avoid the Red Sea through China’s Lunar New Year festival, said Ryan Petersen, CEO of Flexport, a logistics technology company. The two weeks leading up to the celebrations is a peak period for shippers, who rush to deliver goods before the holiday, which starts Feb. 10.Experts say the costs of rerouting vessels around South Africa or through the Panama Canal will increase prices for consumer goods shipped from Asia to the U.S. EastCoast.“It’s about an 8 percent longer journey, which is going to drive prices up quite a bit for ocean freight — that’s a material impact on prices for the goods themselves,” Petersen said. The rising costs will affect the price of “most of the stuff that you see in all the stores,” other than food, raw materials, and energy, he added.Tucked between two continents and bordering 10 countries — six in Africa and four in the Middle East — around 12 percent of all global trade passes through the Red Sea and Suez Canal, according to the U.S. Naval Institute. It’s also an especially important passageway for fuel tankers.Wholesalers and retailers will still bear some of the increased shipping costs, especially on items with tight profit margins and competitive pricing, as well as goods that will no longer be in season, according to George Kochanowski and Richard Danderline, CEO and chief financial officer of Staxxon, a company that makes shipping containers.You can’t sell Valentine’s Day cards on St. Patrick’s Day,” Kochanowski said.While the most immediate effect of the conflict is on the shippers that have to reroute from the Red Sea, the added traffic to other passages “will ultimately metastasize to the entire world,” said Danderline.Shippers expect the congestion in the Panama Canal, for instance, to grow worse the longer the conflict continues.To protect cargo ships in the Red Sea region, U.S. Defense Secretary Lloyd Austin last weekannouncedthe launch of Operation Prosperity Guardian, a maritime security force with units from 20 countries.The industry has welcomed the security of the coalition but continues to cautiously reroute its shipments, satellite data shows. As of Tuesday, 290 vessels had either diverted or planned to divert from the conflict zone, according to data compiled by Flexport a by the Houthis, Flexport’ and Washington Post

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Ocean carriers are currently redirecting vessels to alternate ports in the Northeastern United States, while CSX Transportation is intending to initiate infrequent north-south intermodal voyages between these ports to manage containers that would typically transit through the Port of Baltimore. These strategic maneuvers coincide with shippers urgently seeking optimal solutions following the recent closure of the Baltimore port.With efforts to salvage the downed bridge pending, the Maryland Port Administration has refrained from providing a definitive timeline for the port's anticipated reopening. Consequently, the immediate recourse entails enacting temporary rerouting measures. Addressing the prevailing circumstances, the Port of Virginia has issued a statement expressing proactive engagement with ocean carriers whose vessels were set to call at Baltimore, affirming readiness to discharge cargoes as necessitated. Emphasizing collaboration, Seagirt port authorities have articulated their cooperation with CSX Transportation, the dedicated on-dock rail provider, to facilitate the transportation of import containers from alternative ports to Seagirt. Concurrently, coordination with Norfolk Southern is underway for a similar initiative at the off-dock rail yard handling domestic containers.In partnership with CSX and Ports America, a concerted effort is underway to swiftly implement intermodal services for redirected cargo, enabling transfers through the intermodal container transfer facility at Seagirt as a viable solution for cargo proprietors aiming for Baltimore accessibility. Notably, Norfolk Southern has also initiated discussions regarding comparable solutions for importers.Preliminary estimates suggest that shippers may face an immediate increase of $400 to $1200 in trucking expenses to transport their cargo from locations like New Jersey or Norfolk to regions proximate to Baltimore. Nonetheless, these costs are anticipated to rise with the gradual absorption of available trucking capacity.Meanwhile, due to the port's current closure, shippers in the Baltimore vicinity will encounter a surge in ocean rates ranging from 20% to 25% should they opt to reroute their cargo through NY-NJ and Norfolk, along with incurring augmented trucking expenses for transporting goods closer to their final destinations.For shippers’ intent on accessing the Baltimore region, the primary recourse would involve transloading from container to truckload at the Port of Virginia. As for exporters, the challenge persists in either repositioning their containers or patiently awaiting the resumption of activities at the Baltimore harbor. CMA CGM has informed shippers of its decision, allowing laden exports to remain at the port until Baltimore's harbor is operational again. While exporters have the alternative of utilizing Norfolk or New York-New Jersey, any container repositioning will be undertaken at the shipper's cost. #portofbaltimore #portofvirginia

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Check it out! Brian Kempisty discusses what transloading is, Port X Logistics LLC drayage, transloading and trucking is our bread and butter. How much time can you save transloading your cargo vs. putting it on the rail and the ocean container arriving at a rail depot such as Memphis?Please reach out and find out how much time we can save you! #trucking #supplychain #freight #transload

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Choppy Waters indeed. Is "force majeure" - a boon or a bane in ocean trade?The Covid-19 pandemic, Suez Canal crisis, Israel-Hamas war, Houthi attacks in the Red Sea, El Nino drying up the Panama Canal and now #BaltimorePort #bridge collapse; Liners in mass have invoked the "force majeure" clause most since 2020, disrupting sea trade and creating a complete mayhem in #freight rates. What is "force majeure"?Force Majeure is a French term that means “greater force”. It is a concept derived from an act of God. It is included as a separate term in shipping contracts to discharge participants from fulfilling obligations in case of external, unforeseeable, and unavoidable catastrophes interrupting the regular course of events.#CNBC STORYOcean carriers are declaring "force majeure" due to the Baltimore port bridge crisis, telling logistics companies and U.S. shippers including retailers that once cargo is dropped off at alternate ports, it becomes their responsibility to pick up.In an alert to customers Tuesday, CMA CGM wrote, "Those (containers) on the water will be discharged at an alternate port where they will be made available for pick-up, and CMA CGM's bill of lading will terminate."According to ImportGenius, the Dali unloaded freight on March 24 which included clothing and household goods that could be on the diverted vessels, also ranged from approximately 80 containers of Satsuma mandarin oranges, approximately 74 containers of IKEA products and furniture to 104 containers of Electrolux products including chest freezers, air conditioners, and microwaves.#forcemajeure #francisscottkeybridge #collapse #sea #trade #shipping #global #trade #importexport #containershipping

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