WCMTOA agrees to adjust TMF as part of National Supply Chain Initiative
Stockwell International have received information regarding the
LONG BEACH, Calif., Feb. 1, 2022—At the request of the Biden-Harris Administration Supply Chain Disruptions Task Force, the West Coast MTO Agreement (WCMTOA) announced that it will again adjust the OffPeak program in response to the Task Force’s national supply chain analysis. The Task Force considers the PierPass OffPeak program as one link in the complex national supply chain that can assist with the objective of getting the entire supply chain to operate 24/7.
On Nov. 10, in response to an earlier request from the Task Force, WCMTOA announced that the Traffic Mitigation Fee (TMF) would be temporarily adjusted to $78.23 per TEU (twenty-foot equivalent unit) between Dec. 1 and Jan. 31, and would be charged only on weekdays during the daytime shift. Under this temporary adjustment, filed in November with the Federal Maritime Commission (FMC), the TMF was scheduled to revert to its previous levels after the holidays on Feb. 1. That change took place today, with the rate returning to $34.21 per TEU or $68.42 for all other sizes of container and payable throughout all hours of terminal operation. Under this version of the program, traffic is mitigated to the off-peak shifts using appointments.
On Jan. 21, the Biden-Harris Administration Supply Chain Disruptions Task Force’s Port Envoy requested that WCMTOA continue efforts to incentivize more truck trips to the off-peak shifts by continuing to waive its TMF during the second and third shift operations. Regulatory review requires a period of time for the FMC to review the request. Therefore, subject to regulatory clearance by the FMC, the rate will once again change on Feb. 14 to $78.23 per TEU (twenty-foot equivalent unit) and will be charged only on weekdays during the daytime shift.
Under the original PierPass OffPeak Program established in 2005 to mitigate severe traffic congestion around the ports, incentive pricing (charging a TMF for weekday, daytime container moves) was used to enable and drive traffic to new night shifts. After extensive consultations with supply chain participants, OffPeak 2.0 was introduced in 2018 to address supply chain requests that the program mitigate traffic with appointment systems instead of incentive pricing. The change also sought to eliminate the problematic truck bunching that occurred between shifts with the previous program.
Containers exempt from the TMF include empty containers, domestic and transshipment cargo, and import cargo or export cargo that transits the Alameda Corridor in a container and is subject to a fee imposed by the Alameda Corridor Transportation Authority. Empty chassis and bobtail trucks are also exempt.
PierPass is a not-for-profit company created by marine terminal operators at the Port of Los Angeles and Port of Long Beach to address multi-terminal issues such as congestion, air quality and security. The West Coast Marine Terminal Operator Agreement (WCMTOA) is filed with the Federal Maritime Commission and comprises the 12 international MTOs serving the Los Angeles and Long Beach ports.
If you require any additional information, please contact [email protected]
If you require any further information, contact [email protected]
NEWS: Massive Winter Storm Moving East Across U.S
A dangerous incoming winter storm has more than 20 states from the Rocky Mountains to New England — and as far south as Texas — under winter storm warnings, watches or both. The system is expected to bring “a variety of winter weather hazards, including heavy snow, sleet and freezing rain,” according to the National Weather Service.
The storm could deliver up to two feet of snow along the San Juan, La Garita, Sangre De Cristo and Wet mountains, accompanied with wind gusts as high as 35 mph, the NWS said. Meanwhile, some Michigan counties could see up to 15 inches of snow, Arkansas cities could see up to 8 inches, western and north central New York could see up to 9 inches and parts of Texas may be in for up to 8 inches of accumulated snow.
Mixed precipitation across certain states could also make for icy conditions, like in Oklahoma, where portions of the state are forecast to accumulate up to one half inch of ice.
Full Story | Dangerous winter storm forecast to sweep through several states with heavy snow and sleet – CBS News
Note : Stockwell International Inc would like to inform you that delays are expected as a result of this weather event. Our teams will endeavour to keep you informed with any changes that may happen due to this event. For further information you can email [email protected].
NEWS: Massive Winter Storm Moving East Across U.S
Stockwell International Inc would like to advise clients that due to inclement weather, our partner CFS in Dallas, Air General, is closed today, February 3rd 2022.
We will continue to update you with any new information as it becomes available to us.
LCL Export & Import Service Delays in the U.S.
Stockwell International Inc has received information regarding on-going delays in the U.S..
Omicron COVID variant has impacted all intermediaries of the supply chain, including steam ship lines, terminals, trucking companies, and warehouses, thus impacting the increase in congestion and delays. Industry analysts predict the next coming weeks will be very challenging for terminals and port trucking operations.
The American Trucking Association estimates the shortage of drivers is about 80 thousand based on current freight demand.
In addition, some of the largest port cities in China, Shanghai, Dalian, Tianjin, and Shenzhen, are currently dealing with lockdowns due to COVID-19.
Vessels continue to be pushed further off the proforma schedule causing blank sailings.
Terminals Updates:
Due to increased volume and labor shortage, most terminals are experiencing congestion issues, including Los Angeles/Long Beach, Savannah, Charleston, Miami, Houston, Seattle.
Each month, high cargo volumes continue to enter the U.S., with all North American ports facing berth congestion.
U.S. East Coast:
New York/New Jersey: Vessel wait time up to 3 days due to high import volume, one crane down at APM Terminal, and weather issues.
Philadelphia: Vessel wait time up to 2 days due to certain high import volume, weather issues, and labor shortage due to covid.
Savannah: Vessel wait time is two days due to off proforma vessels and high import volume, plus weather events and labor shortages. Carriers are advancing cut-offs with little to no notice, impacting operations. The port has opened new container storage spots to make additional room at terminals.
Charleston: Vessel wait time up to 9 days due to labor shortage, high import volume, and weather events. On Thursday, 19 container vessels were waiting offshore for a berth, an increase of 40% compared to the last week of December.
Port Everglades and Miami: Vessel wait time is up to 5 days due to high import volume causing a CFS Backlog. Equipment shortages are resulting in pick-up delays. Allocation and blank sailings are affecting the services out of MIA.
U.S. West Coast:
Long Beach: Vessel waiting time is up to 43 days due to high import dwell and labor shortages. TTI Terminal yard utilization is at 65% capacity.
Los Angeles: Vessel waiting time is up to 35 days due to yard congestion, high import dwell, and labor shortages. APM yard has 65% of the capacity used.
About 10% of the daily workforce has been reduced due to COVID-related absences at the ports of Los Angeles and Long Beach during January.
Los Angeles port exceeded approximately 10.7 million TEUs in 2021, with an increase of 13% compared to the previous year, while the Port of Long Beach moved 9.38 TEUs during 2021, showing a rise of 15.7% from 2020.
The queue of vessels waiting to get into the port is approximately 100 for the past two months.
Seattle: 7-day vessel wait time due to high import volume and labor shortages. Container terminals are more congested, and many containers are stored for weeks in a closed area until truckers can pick them up. All operations are delayed about a month, and transit times are much longer than in previous weeks.
Oakland: up to 12-day vessel wait time due to high import volume, labor shortages, and one berth down. Ships looking to berth in Oakland will now wait offshore, which will delay operations. The backlog is caused mainly due to a massive amount of empty containers in terminals waiting to be returned to Asia.
U.S. Gulf Coast:
Houston: Waiting time is up to 6 days due to high import volume, labor shortages, and port congestion.
Rail Terminal Updates:
BNSF & UP/LAX/LGB: There is severe congestion. Limited gate capacity, restrictions, rail car shortages, and limited reservations continue, causing increased delays on import rail units. There is limited allocation at this time. In Los Angeles, containers wait an average of almost 16 days before being picked up.
Chicago Rail Ramp: The rail facilities in Chicago are experiencing severe congestion due to dwelling containers and chassis shortages. G3 and G4 locations only allow ten open spots daily, causing a large backlog for containers to be picked up for imports. There are gate restrictions and lane suspensions, causing extended delays in pick-ups and deliveries. The rails continue to monitor in-gates with allocation or reservations.
NY/NJ: Chassis shortage includes rail ramps due to the high increase in import volume.
Philadelphia: Severe chassis shortages in the Philadelphia area. Extended delays in pick-ups, deliveries, and drayage.
Charleston: Lack of chassis causing extended delays in pick-ups, deliveries, and drayage over to rail facilities.
Savannah: Continued congestion and delays at the local ramps. Shortage of chassis and equipment continues to affect operations.
Jacksonville and Miami: Congestion issues at both rails. The FEC rail closure two weeks ago delayed operations, causing elevated traffic volumes and increased terminal dwell time. The shortage of equipment in Florida has carriers struggling to keep the service due to a slower turnover of import containers coming into the area. Most loads have been delayed an average of one to two weeks.
Seattle: Congestion due to increased dwell for Import rail cargo. Up to 10 days delay for cargo going to Chicago. Most truckers are booked 2 weeks or more in advance with limited trucker capacity.
Houston/Dallas: There is a severe chassis shortage and ongoing congestion in the area. Finding truckers has become a challenge as they are booked for 2-3 weeks in advance.
Chassis issues are challenging in all regions in the U.S. This is due to the division of the intermodal system, the severity of the Covid 19 pandemic, and the lack of additional capacity at different levels of the supply chain.
Equipment Availability:
There are continuous chassis shortages in Los Angeles/Long Beach, New York, Philadelphia, St. Louis, Columbus, Cleveland, Chicago, Memphis, Atlanta, Nashville, and Louisville.
Equipment availability remains an issue at Atlanta, Chicago, Cincinnati, Columbus, Detroit, Kansas City, Minneapolis, Memphis, Nashville, Omaha, St. Louis, South Florida, and Seattle.
Trucking capacity to accommodate less than 74% of freight volume is an issue in the East Coast, from New York to Florida and the Gulf Coast, affecting Louisiana and Texas. Washington state has seen the trucking capacity affected as well.
Stockwell International Inc would like to inform you that delays are expected. Our teams will endeavour to keep you informed with any changes that may happen. For further information you can email [email protected].
General Rate Increases, Emergency Port Congestion Surcharge & FCL Wharf/Port Charges 2022
General Rate Increases
LCL:
17th February 2022
All USA Origins to All Australia and New Zealand Ports
USD $25.00 W/M or USD $25 min
21st February 2022
All USA Origins to Australia, Fiji, French Polynesia, New Caledonia, New Zealand, Papua New Guinea
USD $20 W/M
FCL:
15th February 2022
U.S. and Canada to Australia, New Zealand, the Pacific Islands and Papua New Guinea
USD $500/20′
USD $1000/40′
(all equipment size/types)
Port Congestion Surcharge
16th February 2022
All USA Origins to Australia & New Zealand
USD 30.00 w/m
Stockwell International will endeavour to keep you updated with the most recent information as it become available to us.
For any other questions or enquiries please contact [email protected]
