Ports of New York and New Jersey struggle with a backlog of freight containers

The Ports of New York and New Jersey announced new tariffs Tuesday related to empty containers and export volumes in their battle to reduce container congestion. Both loaded and empty containers that are tallied will be subject to the quarterly Container Unbalance Fee. The tariff will be effective from September 1, pending the mandatory 30-day federal notice.

The Port of New York and New Jersey is the largest port on the East Coast and the third largest in the country. Products recently processed through customs in July range from BMW motorcycles and dresses for David’s Bridal outside China, parts for Plug Power, a gas stove to supply tractors, and a “12 Days of Beauty Box” for Target.

But just like other ports, the Port of New York and New Jersey have handled record volumes of import containers during the pandemic and have seen those import containers wait longer at terminals. These containers clog land capacity and slow port throughput. As a result, more ships are waiting at anchor.

Under the new tariff, ocean carriers that do not carry empty containers out of port will be charged $100 per container. New container export levels at the port stipulate that export volumes must equal or exceed 110% of the incoming container volume for shipping companies during the same period. If this criterion is not met, the shipping company’s fee will be assessed at $100 per container for failing to meet this criterion. Both loaded and empty containers are included in the import container count. Rail size excluded.

Record the volume of cargo and excess containers

The port also uses the surrounding land to make room for excess containers. The port has established temporary storage for both empty containers and long-term import containers on a 12-acre plot within the Port of Newark and the Port Elizabeth Authority marine terminal. The port is also in negotiations and searching for additional areas that could be used for storage space.

“As we continue to manage record cargo volumes and work with our charterers and port stakeholders to remove empty containers in a timely manner, we call on all industry stakeholders to find sustainable, long-term solutions to an industry-wide problem affecting many US ports,” said Port Authority President Kevin O’Toole.

The decrease in productivity can be seen in the increase in the travel time of ships. The increased docking times can be traced to the ship’s transit time from China to the port of New York and New Jersey.

“The Ports of New York and New Jersey are facing record volumes of imports, leading to a buildup of empty containers in and around the port complex that is now affecting a regional supply chain that is already under pressure from various sources across the country,” said Bethan Rooney. , director of port management at the Port Authority of New York and New Jersey. “We categorically encourage shipping companies to step up their efforts to clear empty containers faster and in larger volumes to free up much needed capacity to access imports in order to keep trade moving through the port and the region.”

European goods and the pressures of German ports

East coast ports such as New York receive a lot of goods from Europe, as trade has been severely affected by the ongoing labor struggle in both the ports and rails. Exports to the US are at least two months late.

Among the thousands of containers imported into the Port of New York and New Jersey in July, according to a review of customs data using ImportGenius, there were wines from Spain, pastas and Prosecco, Giorgio Armani suits from Italy, and furniture from France.

Planet, a new contributor to CNBC Supply Chain Heat Map, took photos to show the impact of rail strikes that left squashing of containers at railway stations in Hamburg. Because of the extensive cloud cover in July, the comparisons were between May 15, 2022 and June 11, 2022. The build-up of containers can be seen clearly. As the labor struggle continued, the number of containers increased, according to logistics experts, slowing trade.

Hamburg railway station comparisons

planet

“The rail situation in German ports, especially in Hamburg, remains stressful and congestion is increasing,” said Andreas Braun, director of ocean products for Europe, Middle East and Africa at Crane Worldwide Logistics.

Rail operators are constantly missing regular deliveries and pickup windows, and are still unable to deliver loaded containers to the terminal seven days before loading. Due to the summer passenger schedule, container train operators have to give right of way to the increasing amount of passenger trains, which also contributes to delays.

“At least one week of delays is normal now, but it can be up to two weeks and the constant threat that you’ll miss the ship,” Brown said.

CNBC Heat M . Supply ChainaThe data providers p are artificial intelligence and predictive analytics company Everstream Analytics; Freightos global freight booking platform, creator of the Freightos Baltic Dry Index; logistics provider OL USA; supply chain intelligence platform FreightWaves; Bloom Global Supply Chain Platform; Orient Star Group for third-party logistics services; marine analytics company MarineTraffic; Marine Vision Data Corporation Project44; shipping data company MDS Transmodal UK; Measuring sea and air freight rates and market analytics platform Zenita. Leading provider of research and analysis Sea-Intelligence ApS; Crane Global Logistics. and Air, DHL Global Forwarding; freight logistics provider Seko Logistics; and the planet, Providing daily satellite imagery and geospatial solutions.

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