US WEST AND EAST COAST PORT CONGESTION UPDATE – November 5, 2018

Jan 2, 2020Market Advisory

TOC LOGISTICS INTERNATIONAL INC. offers this update to the ocean market at US West and East Coast ports:

TOC Logistics has been advised by our contract carriers at LA/LGB and New Jersey ports of severe congestion occurring over the last few weeks and expected to continue and worsen leading up to January 1, 2019 when the next round of full tariff applications on China imports is implemented.

Dray carriers in LA/LGB are experiencing 8 hour wait times, causing them to only be able to perform one container turn per day/shift. Dray carriers are starting to explore increased wait time rates and bonuses to retain drivers and avoid losing them to other jobs.

Dray carriers in New Jersey have reported consistent 2-mile long lines entering the port for drops and pickups. While they haven’t addressed what the time factor is that this creates, we believe the wait times to be similar here as well.

TOC Logistics needs to prepare our customers, with this announcement, of the possible economic effect and likely service delays we are all going to experience leading up to January 1, 2019.

Actual rate increases or surcharges are not published by anyone as of this writing; however, our customers may be assured that TOC Logistics will make such announcements immediately when that happens.

As always, we greatly appreciate the privilege of serving you.

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