Truck Power & Intermodal Congestion Continues as of August 1st 2021

This article was sourced from the Wine and Spirits Shippers Association Newsletter, on July 29th, 2021.

This week brought more announcements on cost increases in USA domestic trucking and intermodal movements. The congestion at USA ports and rail hubs continues to worsen, and carriers are announcing surcharges  under the auspices of “Emergency Intermodal Charge/EIC.” As of August 1, 2021 the Emergency On Carriage/Intermodal Surcharge will be effective in the amount of $350 for all cargo moving inland via rail, barge or all motor to a US CY or US door. Unfortunately, the costs continue to mount, and the number of additions to your freight bills add up. Keeping track of surcharges can be challenging as they range from equipment to fuel to congestion to intermodal, each with an acronym that may vary by carrier.

We are also cognizant of the extreme difficulty in getting containers moved from ports and rail terminals prior to the last free day. Importers are running into significant demurrage bills, especially on reefer loads that get hit with the highest storage costs. The chaos in the industry is challenging for everyone, but the costs are primarily borne by the importers and exporters. Steamship lines are often advising that they cannot perform deliveries and throwing the responsibility back to the forwarder or shipper—often on the last free day. Truckers are cancelling pickups due to lack of drivers or chassis, often on the day the pick up is scheduled. There is very little recourse as we all need every carrier and every trucker available.

There are lots of problems and very few solutions at this moment. We hear the complaints of the shipping community, and we communicate on a daily basis with our ocean carriers and truckers, working to find solutions and plan for contingencies for deliveries as much as possible