Market Update: Understanding and Navigating Uncertain Supply Chains

Supply chains have continued to experience uncertainty through the course of these unprecedented times. 

Indeed, there have been a number of factors that have contributed to the challenges faced by supply chains, largely stemming from the continuation of COVID-19, and corresponding responses to the pandemic throughout the trade world. Additionally, recent Lunar New Year celebrations that have been taking place across Asia have contributed to a slow down in supply chains that are impacting schedules, availability, and cost.

To help you understand the scope of supply chain disruptions at this time, we have put together a brief overview of contributing factors and outcomes we are seeing — that we expect to continue throughout Q1 this year.

Equipment Shortages

While the initial shortage was for 40’ container types, the duration of increased demand has resulted in shortages of alternate sizes. Twentys and 45s are limited in specific areas and 40’ NOR (Non-Operating Reefer) also have restricted availability.

Ocean

Vessel wait times at port destinations continue to impact the availability of vessel capacity in Asia, as vessels are unable to return on schedule. This is resulting in an increased amount of slide sailings and delays. An increased number of COVID-19 cases among seafarers is also impacting some vessel operations and available vessel capacity. 

Prince Rupert Terminal  

  •   Vessel wait times:  7 days.
  •   Yard capacity: 95%.
  •   Rail dwell: 3.5 days.

Vancouver/Centerm 

  •   Vessel wait times: 7 days.
  •   Yard capacity: 93%.
  •   Rail dwell: 4.5 days.

Southern California

  • Daily number of vessels at anchorage waiting for berths: 33.
  • Waiting times for berthing: 8 days.

APM Terminals Pier 400 Los Angeles 

  •   Yard utilization: 86%.
  •   Import dwell: 4.5 days.
  •  Due to low imports available for delivery on terminal – Friday night and Saturday gates are not being offered at this time.

TTI Long Beach

  •   Yard utilization: 84%.
  •   Import dwell: 4.5 days.
  •   TTI will offer a second shift gate 6:00 pm – 3:00 am PST on Fridays and a Saturday day gate during Peak Season.
  •   TTI offers empty exemption appointments on dual transactions.

Oakland

  • Wait time for berthing of large vessels: 5 days.  
  • Labor shortage continues to impact the berthing lineup of all terminals in the harbor. 
  • The installation of 3 new cranes has taken the available berths down to 4 from 5. 

Ground

There is currently a shortage of drivers resulting from a rebounding economy, regulatory restrictions, challenges to the independent-driver model, and drivers leaving the industry. This continues to limit trucking resources and the ability to process higher shipment volumes.

Air

Los Angeles (LAX)

  •   Availability at carrier for loose cargo:  48 hours. 
  •   Availability at carrier for unitized cargo: 8-10 hours. 
  •   Cargo availability within 24 hours.

New York (JFK )

  •   Wait times at carrier for loose cargo: 3-4 hours. 
  •   Wait times at carrier for unitized cargo: 3-4 hours. 
  •   Cargo availability within 24 hours. 

We’re Here To Help

To help our clients navigate this tumultuous trade situation, we are offering the following guidance:

  • Provide the Carson Freight team with your order/shipping forecast 45-60 days in advance so we can plan and allocate space.
  • Watch for Carson Market Update emails providing any new or updated information.
  • Consider multiple 20 FT containers vs 40 FT, as 40 FT containers are becoming more and more scarce.
  • Our client freight portal allows you to keep updated through the shipment process, and also provide delay notices to keep you informed.

Of course, we are also always available directly to support our clients. Please reach out to directly your Carson contact, or get in touch.

Protect Your Shipments From The Unexpected

cargo

Things can go off-course in life, and shipping cargo is no exception.

This past January, a 13,100 TEU Maersk Essen was rerouted to Mexico instead of its intended destination of Los Angeles after taking on damage in a storm. The ship was just the latest casualty to suffer a container spill on the Pacific, losing up to 750 boxes from the ship.

This was the fourth container spill in the Pacific in only 47 days, with nearly 3,000 containers now lost in the world’s largest ocean just since November 30.

Do you have cargo insurance?

It is important to protect your shipments from the unexpected. Make sure you’re covered in the event of an emergency with cargo insurance.

Reach out to Carson to learn more about protecting your cargo.

We’re on the Move!

transportation truck

With this new year, we are excited to announce that Carson is re-locating our British Columbia office from Surrey to downtown White Rock. While our border-adjacent Surrey location has served us well for many years, this new West Coast location will allow us to better serve the needs of our clients in a more modern, fresh, and centrally-located setting. 

As we work to gradually set-up our new offices while prioritizing the safety of our staff and clients amidst the pandemic, please make note of our new BC business address as of February 1, 2021:

208A-1461 Johnston Road
White Rock, BC
V4B 3Z4

Chinese New Year

Chinese New Year red lanterns

Many of our international trade partners will be observing Chinese New Year soon, which will take place on February 12, with national shutdowns occurring from February 11 to February 17, 2021.

The Year of the Ox

February 12 marks the beginning of the Year of the Ox. The second animal of the Chinese zodiac, the Ox denotes the hard work, positivity and honesty that will be manifested in all of us in the coming 12 months, according to astrologers.

The Ox is the second of all zodiac animals. According to one myth, the Jade Emperor said the order would be decided by the order in which they arrived to his party. The Ox was about to be the first to arrive, but the Rat tricked the Ox into giving him a ride. Then, just as they arrived, the Rat jumped down and landed ahead of the Ox. Thus, Ox became the second animal.

The Ox is also associated with the Earthly Branch (地支 / dì zhī) Chǒu (丑) and the hours 1–3 in the morning. In the terms of yin and yang (阴阳 / yīn yáng), the Ox is Yang.

Anticipated Delays

During this period of celebration, agents, warehouses, airlines, steamship lines and suppliers will cease their operations in observance of the holiday. Please keep in mind your supplier may be closed for longer periods outside of this time frame.

Notably, shipping lines in Hong Kong have warned of disruption and added costs following the reduction of Pearl River Delta barge connections until after Chinese New Year. Further exacerbating delays is the ongoing COVID-19 pandemic, and pubic health restrictions that have been firmly put in place to reduce the spread of the virus.
 
In anticipation of the shutdown within China, we are advising clients to inform the Carson Freight Team as soon as possible of any upcoming bookings that are required in January and February, so we can work to ensure space can be allocated.

This month will continue to be very challenging, with lack of space, lack of equipment, and port congestion, that will likely carry well into February after Chinese New Year.
 
Please reach out to our team for assistance in managing your supply chain over the next few months.

Webinar: A Look At Canada/U.S. Relations Under A New U.S. Administration

Carson International is pleased to partner with Miller Thomson LLP for another instalment in our webinar series addressing Canada/U.S. cross-border trade developments and updates.

President Joe Biden’s administration in 2021 will likely take a different approach to global trade than the current administration. We look into the crystal ball to discuss the following global trade issues:

  • Stability in Canada-US Trade Relations;
  • Can the softwood lumber issue be resolved;
  • The new administration’s approach to Canadian oil & gas industry;
  • Improving global trade and markets; and
  • Whether the U.S. will join Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Panelists:

Dave Pentland, Carson International
Dan Kiselbach, Miller Thomson LLP

Webinar Details:

A Look At Canada/U.S. Relations Under A New U.S. Administration
Tuesday, January 26, 2021
Time: 11:00 a.m. – 12:00 p.m. PST

Webinar connection details will be provided by Miller Thomson before the webinar.

R.S.V.P. by January 25, 2021.

Webinar Save the Date: A Look at Canada/U.S. Relations Under a New U.S. Administration

Carson International is pleased to partner with Miller Thomson LLP for another instalment in our webinar series addressing Canada/U.S. cross-border trade developments and updates.

President Joe Biden’s administration in 2021 will likely take a different approach to global trade than the current administration. We look into the crystal ball to discuss the following global trade issues:

  • Stability in Canada-US Trade Relations;
  • Can the softwood lumber issue be resolved;
  • The new administration’s approach to Canadian oil & gas industry;
  • Improving global trade and markets; and
  • Whether the U.S. will join Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

Panelists:

Dave Pentland, Carson International
Dan Kiselbach, Miller Thomson LLP

Please watch in early January for an invitation to join us on January 26, 2021 to start the new year with discussion of the future of global trade under the Biden Administration.

Tips for Navigating Ongoing Ocean Freight Market Uncertainty

ocean freight

As we have previously shared, ocean shippers have been up against numerous obstacles when it comes to securing bookings and sticking to shipping schedules. The COVID-19 pandemic has set off a chain-reaction of events that has created the challenges, including:

Imports into the U.S. are skyrocketing, with the busiest ports, including Houston, seeing up to a 56% increase in volume in October. Around the world, companies and supply chain partners are frantically attempting to keep up an unstable ocean freight market.

As the COVID-19 vaccine begins to enter the market towards the end of the year, it is anticipated that these challenges will continue well into 2021.

To help our clients navigate this tumultuous trade situation, we are offering the following guidance:

  • Provide the Carson Freight team with your order/shipping forecast 45-60 days in advance so we can plan and allocate space
  • Watch for Carson Market Update emails providing any new or updated information 
  • Consider multiple 20 FT containers vs 40 FT, as 40 FT containers are becoming more and more scarce
  • Our client freight portal allows you to keep updated through the shipment process, and also provide delay notices to keep you informed

Of course, we are also always available directly to support our clients. Please reach out to directly your Carson contact, or get in touch with us here.

Marine Container Examination Process

marine container examination process

The Canada Border Services Agency (CBSA) has a mandate to ensure that all goods entering Canada do not pose a risk to the health, safety, and security of Canadians, while facilitating the free-flow of legitimate goods.

The vast majority of marine containers shipments are processed and authorized by the CBSA to enter Canada without delay. A small percentage of containers is selected by the CBSA for examination, based on a comprehensive risk assessment and random selection, using state of the art technology to facilitate the examination process at no cost to the importer.

The commercial examination process consists of key stakeholders with distinct roles in moving containers into Canada. The CBSA is responsible for the examination of marine containers, but does not control, influence, or charge for the:

  • movement of containers to and from the CBSA; and
  • offloading and reloading of containers.

Video: The Value of Customs Brokers

As proud members of the Canadian Society of Customs Brokers (CSCB), we know that working with a licensed customs broker can help companies:

  • Minimize risk
  • Boost trade compliance
  • Build efficient trade processes
  • Take advantage of free trade agreements
  • Maintain supply chain visibility
  • Save money on trade logistics through efficiencies and monetary recovery

Take a look at the below video from CSCB to learn more about how working with a customs broker can benefit your business —

Reach out today to learn how Carson can help streamline your business:

Webinar: Leveraging The Benefits Of Free Trade Agreements

Carson International is pleased to partner with Miller Thomson LLP in our webinar coverage addressing international trade issues, and how best to navigate changes.  

Canada’s economic prosperity is closely linked to its ability to maintain free trade agreements that provide benefits to Canadian business as a result of global access. Many of Canada’s FTAs go beyond trade in goods and cover areas such as services, intellectual property (IP), investment, labour and the environment.

Join the conversation regarding how free trade agreements can benefit Canadian businesses by increasing efficiencies, reducing costs and providing opportunities to expand.

Speakers:

Dave Pentland, Carson International
Dan Kiselbach, Miller Thomson LLP

Webinar Details:

Leveraging The Benefits Of Free Trade Agreements
Thursday, November 12, 2020
Time: 12:00 p.m. (PST) / 3:00 p.m. (EST)

Webinar connection details will be provided by Miller Thomson before the webinar.

R.S.V.P. by November 11, 2020.

The webinar will be approximately 30 minutes in length.