Mr. Heimbeck strongly asserts the necessity for shippers and stakeholders in the supply chain to proactively find solutions to combat the persistent problem of entering the dreaded “congestion zone”, says an article published on pr log website.
Challenges And Realities
Mr. Heimbeck emphasizes the pressing need for proactive solutions to combat the persistent issue of port congestion. The announcement of the Council for Supply Chain Resilience by the White House is deemed timely. Several critical realities in the US Supply Chain Market are currently at play:
- Carriers are facing a surge in the number of new vessels, potentially impacting freight rates.
- Despite an impressive 5.2% growth rate in the US Economy, there are challenges, including reduced traffic at US West Coast ports due to low water levels in the Panama Canal.
- Container movements, as reported by Descartes’ Datamyne, have increased from the previous year.
Port Throughput As The Bottleneck
The pivotal concern remains the level of container throughput in the ports, which has been a persistent bottleneck from 2020 to 2022. Until port capacity is expanded through capital development or efficiency-focused process changes, the challenge is expected to persist.
Anticipating Future Congestion
Container volumes in October have reached the levels seen at the onset of port congestion in 2020. With expectations of decreasing seasonal volumes from November to February, the risk of future congestion looms. Factors like the Panama Canal’s reduced capacity and carrier rerouting could contribute to congestion, reminiscent of rush hour traffic in a bustling city.
Call To Action
Mr. Heimbeck calls for swift action from both the industry and the government to explore innovative ideas and approaches for improved cargo management. Rather than relying solely on lengthy capital projects, he suggests focusing on process changes as a more promising solution to alleviate port congestion.
Leveraging Data For Solutions
A crucial aspect is the utilization of data received by US Customs from ocean carriers and NVOCCs in compliance with the 24 24-hour rule. This data, encompassing legal shipments and adhering to standardized requirements, provides comprehensive visibility. Mr. Heimbeck encourages serious consideration of leveraging this data for effective congestion management.
In conclusion, the time is ripe for collaborative efforts, innovative thinking, and leveraging data to address and mitigate the challenges of port congestion in the evolving landscape of the US supply chain.
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Source: PR log
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