Pre-Peak Season Shipping Stresses Import Volumes Amid Strike Threats

The ITS Logistics July Port Rail Ramp Index reveals that pre-peak season shipping activities have led to moderate volume increases across most markets, with equipment shortages at origin stressing import volumes. Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, notes that while North American inland transportation faces no significant operational challenges, shippers are experiencing moderate disruptions due to equipment shortages, especially in late July. The Port of L.A. saw a 14.4% increase in container volumes, attributed to early peak season, potential labor strikes, and steady consumer spending.

The looming threat of a labor strike by the International Longshoremen’s Association (ILA), with its contract expiring in 70 days, could disrupt operations in the U.S. and Canada. Although a prolonged strike is unlikely, the possibility has prompted shippers to reroute bookings to the West Coast. The situation is further complicated by vessels skipping smaller to medium-volume U.S. ports, affecting exports and exacerbating equipment imbalances expected to persist into Q4.

ITS Logistics provides comprehensive transportation and logistics services, including drayage and intermodal operations across major North American ports and rail ramps. The ITS Logistics US Port/Rail Ramp Freight Index offers insights into container and dray operations, highlighting challenges and forecasts for the industry.