Pre-Retail-Peak Season Shipping Strains Import Volumes Amid Equipment Shortages

The latest forecast from the ITS Logistics US Port/Rail Ramp Freight Index reveals that pre-retail-peak season shipping activities are putting significant pressure on import volumes, primarily due to equipment shortages at origin. Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, highlighted that while North American inland transportation remains operationally stable, shippers are navigating moderate disruptions. These challenges are particularly pronounced in late July as businesses adapt to booking shipments through new North American entry points outside their traditional networks.

Significantly, the Port of Los Angeles has reported a 14.4% increase in container volumes. This surge is linked to early peak season activity, sustained consumer spending, and growing apprehensions over potential labor strikes at East and Gulf Coast ports. The stalled contract negotiations between the International Longshoremen’s Association and port operators have raised the specter of a strike, compelling shippers to reroute their cargo to West Coast ports to circumvent possible disruptions.

Moreover, the current logistics landscape is further complicated by equipment imbalances and the tendency of vessels to bypass smaller to medium-volume ports. These factors are creating additional hurdles for exporters, with the situation expected to continue into the fourth quarter. The ITS Logistics index serves as a critical tool for understanding these dynamics, offering forecasts on operational conditions across major US port and rail ramps. For more information, visit https://www.itslogistics.com.